What's Happening?
As the IRS begins accepting tax returns for 2025, a federal watchdog has issued a warning to Americans about phishing and smishing scams designed to steal personal information. These scams often involve robo-emails or texts with the subject line 'tax
refund,' which appear to be from the IRS or state tax offices. Recipients are falsely informed that their tax refund has been processed or approved, prompting them to verify their identity by clicking a link and providing sensitive information such as Social Security numbers and bank account details. The Federal Trade Commission (FTC) advises against clicking these links, as they are a means for criminals to steal personal data and potentially the tax refund itself. Another prevalent scam involves callers posing as employees of fake government agencies, claiming the recipient owes back taxes and attempting to connect them with a 'tax resolution officer' to extract personal information. The FTC emphasizes that legitimate IRS and state tax offices do not contact individuals via text, email, or social media to request personal information.
Why It's Important?
These scams pose a significant threat to personal and financial security, as they can lead to identity theft and financial loss. The IRS and FTC's warnings are crucial in educating the public about these fraudulent activities, which can occur not only during tax season but throughout the year. By raising awareness, these agencies aim to reduce the number of victims and protect individuals' sensitive information. The scams also highlight the importance of cybersecurity measures and vigilance in protecting personal data. Taxpayers are encouraged to use official IRS tools, such as the 'Where's My Refund' app, to track their refund status safely. The broader impact of these scams includes potential financial instability for victims and increased workload for agencies tasked with addressing and mitigating these fraudulent activities.
What's Next?
Taxpayers are advised to remain vigilant and report any suspicious communications to the FTC. The IRS provides resources for reporting abusive tax schemes, including online Form 14242 for suspected abusive tax promotions or preparers. Additionally, individuals can report scam messages by using the 'report junk' option on their phones or forwarding unwanted texts to 7726 (SPAM), which alerts telecommunications providers about potential scams. As tax season progresses, it is expected that both the IRS and FTC will continue to monitor and address these scams, providing updates and guidance to the public to prevent further incidents.
