Tax Season Safety: Protecting Yourself from Fraud

Estimated reading time: 2.5 minutes

Tax season is the perfect time to focus on your financial goals, but it’s also when scammers and cyber criminals become more active. With some awareness and smart precautions, you can protect yourself from fraud and keep your information secure.

What is Tax-Related Identity Theft?

Tax identity theft occurs when another person uses your Social Security number or personal information to steal your tax refund or gain employment. Often, people only discover they’ve been a victim of tax identity theft when they try to file their annual tax returns and are denied.

Slow Down and Think Before Acting

Many scammers and cyber criminals use urgent messaging to create a sense of urgency. The faster you respond, the less time you spend questioning the legitimacy of the message. Before responding, take some time to consider the tone of a suspicious message or e-mail and look for examples of pressure-sensitive language. The deadline for information may be listed as the same day you receive the message. Scam messages may include words like “immediately” or phrases like “action required.”

According to the official IRS website, the organization would never initiate contact by e-mail, text, or social media to request personal or financial information. Additionally, IRS officials will never demand immediate payment if you owe money, they will mail you a physical bill instead.

Multifactor Authentication

Multi-factor authentication, also commonly called 2-factor authentication, prompts users to enter a code before successfully logging into an account. The code is sent via text or email, discouraging scammers from gaining full access of your accounts. If you are alerted about an authentication code that you didn’t request, you should immediately change your password to guarantee your account security.

When in Doubt, Throw it Out

Links sent in emails and text messages are common ways scammers get access to your personal information. These unknown links or attachments may contain viruses, malware, or other forms of spyware. Regardless of whether a link looks legitimate, it’s best to not risk it. Delete the message and report it as junk, if possible.

What to Do if You Think You’ve Been Scammed

If you believe you’ve been scammed or are a victim of identity theft, you can file a report through the Federal Trade Commission or the IRS. Experts advise victims to also contact their financial institutions to freeze your accounts temporarily.  

When it comes to financial scams, knowledge is your best defense. If something seems too good to be true, it probably is. Remain skeptical and cautious of any unsolicited communication. Above all, only discuss your finances with trusted professionals you have had previous communications with.

Keeping Your Finances Secure

We take your personal and financial security seriously at McGlone Mortgage. Your data is fully encrypted and protected on our website and through our mobile app. These are just a few of the ways we prioritize our borrowers’ needs! Ready to work with a mortgage company that helps you reach your financial goals? Contact us today!