Top IRS Scams to Watch Out for in 2021
Tax scams continue year-round, but as we move closer to April tax deadlines, they certainly spike. As with most cyber attacks, preying on human emotion is a huge component, and cyber criminals are fully aware of how overwhelming and stressful filing taxes can be. Catching anyone at the height of their worries makes them a better target and more likely to fall for phishing scams, identity theft, phone scams, and even ghost tax preparers. Your first line of defense comes with knowing what scams could be out there so you can quickly catch the signs. In this post, we’ll define IRS scams, review some of the top scams we’ve seen, and outline a few ways to protect yourself while you file your taxes this year.
Defining the IRS Scam Landscape
Tax scams can come in various forms, but it’s the carefully crafted tactics that make them unique in the cyber attack landscape. A cyber criminal will employ any method that works in order to trick victims into sharing personal and financial information. Not all victims are individual taxpayers either; mail, phone, email, and more are all leveraged to target every aspect, including businesses, payroll, and tax professionals.
These scams have also evolved to encompass identity theft tied to unemployment benefits as well as other pandemic-related relief efforts. "Tax scams tend to rise during tax season or during times of crisis, and scam artists are using the pandemic to try stealing money and information from honest taxpayers," says IRS Commissioner Chuck Rettig. "We urge people to watch out for these scams."
According to the Federal Trade Commission’s 2020 Consumer Sentinel Network data, over 4.7 million consumer reports were received last year alone, with roughly 2.2 million being fraud related. Of those fraud reports, 34% reported a loss which equated to over $3.3 billion total fraud losses. Quite often, this is the type of fraud that follows tax scams.
Top 5 IRS Scams to Watch For
One of your best options when it comes to avoiding an IRS scam is being able to spot them quickly. Know the golden rule: the IRS will never, “initiate contact with taxpayers by email, text messages, or social media channels to request personal or financial information.” That being said, phishing artists can be highly skilled at posing as the IRS regardless of the golden rule, and they employ scare tactics urging victims to act quickly. Here are the top five scams our threat research team wants you to keep an eye out for this tax season:
Steps to Protect Against Tax Scams
Besides the security hygiene practices you should already have in place when it comes to phishing and any form of financial fraud, there are a few specifics to keep in mind when it comes to tax scams.
See how ZeroFox protects enterprises against targeted multi-channel phishing and fraud attacks across the web, email, and social media.
See how ZeroFox protects enterprises against targeted multi-channel phishing and fraud attacks across the web, email, and social media.