Beware: Holiday Scams Exploiting Your Financial Information, Warns IRS

The IRS warns Americans as holiday scams emerge, threatening financial security and exploiting consumers’ trust.

At a Glance

• Taxpayers should be cautious of gift card scams, especially during the holiday season.
• The IRS never requests or accepts gift cards as payment for tax bills.
• Scammers may impersonate government or collections officials, sending official-looking requests
• The IRS will never demand immediate payment via gift cards, prepaid debit cards, or wire transfers.
• Victims of scams should report incidents to the Treasury Inspector General for Tax Administration or the Federal Trade Commission.

IRS Issues Strong Warning

The holiday season represents a prime opportunity for scammers to exploit the goodwill of taxpayers. The IRS is sounding the alarm on potential scams that could result in financial losses. Deceitful practices range from phishing emails and fraudulent calls to misleading social media encounters. Taxpayers should remain vigilant to prevent falling victim to these schemes. Scammers often masquerade as IRS agents or use official-looking communication to trick taxpayers into divulging sensitive financial information.

Fake emails are another popular tactic where fraudsters pose as IRS representatives, demanding immediate payment and threatening fake penalties. The IRS advises taxpayers to be aware and skeptical of such communications and to report any incidents promptly. Taxpayers should utilize official channels to verify authenticity and protect their personal information. It’s pertinent to remember that the IRS will not demand immediate payments via gift cards or any untraceable payment methods.

Protecting Financial Data

Gift card scams are particularly worrisome as they frequently arise during the holiday season. Scammers impersonating government officials may request payment in gift cards to resolve alleged debts. This misleading tactic harms well-meaning taxpayers and damages their financial security. Taxpayers should be aware that the IRS never requests gift cards as a form of payment. Protecting yourself during this busy time is crucial to ensure personal and financial data remains secure.

“Taxpayers should use extra caution this holiday season to protect their valuable personal and financial information, whether shopping online or clicking on links in email and other messages. A little extra caution can protect taxpayers’ confidential information and reduce the risk of identity theft in the upcoming filing season.” – IRS Commissioner Danny Werfel

Vigilance is critical; taxpayers should be cautious with online shopping, avoiding suspicious links and utilizing secure, trusted sites. Updating security software and practicing robust password management can prevent personal data breaches. Experts advise employing multi-factor authentication on online accounts as an additional security measure.

Preparation and Caution

The IRS is aligning efforts with Security Summit partners to raise awareness of these holiday threats. The Treasury Inspector General for Tax Administration and the Federal Trade Commission are standing by to address victim complaints and escalate incidents needing immediate intervention. Taxpayers suspecting identity theft should submit Form 14039 to the IRS to safeguard their financial information.

“The holiday shopping season and the fast-approaching tax season create a tempting target for identity thieves and scam artists.” – IRS Commissioner Danny Werfel

Security tips include online shopping caution, use of multi-factor authentication, and reporting suspicious activities promptly. An upcoming webinar on December 3rd will cover strategies for preventing scams and identity theft. Through diligence and informed decision-making, taxpayers can successfully navigate the holiday season without falling prey to scams.

Sources:

1. Don’t let scammers ruin holiday gift card giving | Internal Revenue Service
2. IRS warns of holiday scams, encourages protecting sensitive personal information as 9th annual National Tax Security Awareness Week starts
3. Taxpayers Beware: IRS Warns of Holiday Season Scams and Fraudsters – CNET