Tax Scams: How Scammers Steal Identity

Last updated on July 15, 2023

Tax scammers use stolen identities to conduct tax and financial crimes such as filing fraudulent tax returns and raiding bank accounts. The basic information scammers need to file a fraudulent tax return includes tax filing status, name, and Social Security Number of a taxpayer.

A scammer usually files multiple fraudulent tax returns, sometimes in hundreds, hoping a few will sneak through the IRS’ anti-fraud filters. As this tax crime is conducted remotely, it is difficult for the victim and law enforcement agencies to track down the offender.

Scammers usually call or send email messages to random people, pretending to be from the IRS, a reputable bank, or a well-known institute. They often work in a team and support each other’s claims, often pretending to be members of the same institution.

The most effective method to protect yourself from tax scammers is to not entertain any unsolicited calls, especially those that require you to share your tax or financial information. Before sharing your information, be sure to authenticate the identity of the person or organization contacting you. Use an alternate method to initiate follow-up communication yourself, rather than using information they provide you.