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February 4th, 2013

Tax scams to watch out for: Phishing and identity theft

tax_imgIt’s that time of year again for Americans. You have received your W-2 and are eager to file your tax return, especially if you anticipate a refund. Every year, the Internal Revenue Service (IRS) warns taxpayers to beware of phishing scams used by con artists to steal your identity, cash, and sense of security. This year is no different.

Phishing takes many forms, but usually involves unsolicited email or messages via social media and a fake website that poses as a legitimate site. The danger is that if you follow the link the scammers provide, you could end up with a malware infection, such as a Trojan that logs your keystrokes and allows a hacker to gain access to your bank accounts, or you could provide valuable personal and financial information that exposes you to identity theft. Here are some recent examples:

Classic phish: Last tax season, a bogus email warned recipients they would be penalized up to $10,000 for not filing their taxes by a false deadline of January 31st. They were instructed to follow a link which went to a phony site that appeared to be the official IRS website. They were asked to provide personal or financial information that could be used by scammers and identity thieves.

Don’t be misled by sites claiming to be the IRS but ending in .com, .net, .org or other designations instead of .gov. Read more…