Fraud Watch

Tax season is here

And so are tax scams. Get a call, text or email from the IRS? It's probably a scam. 

latest irs scams  irs communication methods

Take these six steps to help you avoid tax scams:

Know the IRS does not:

Spoofing

Fraudsters make millions of calls and send just as many emails every day claiming to represent a legitimate business or government agency. They use advanced techniques to spoof the caller ID and phone number to increase their chances of you handing over your confidential information. 

Fraudsters spoof legitimate businesses and federal agencies, such as the Social Security Administration, the IRS, an executive at the company you work for, and even Oregonians CU.

OREGONIANS CU SPOOFING EXAMPLE:

You receive a text message asking you to confirm a $389.26 charge at Walmart. After indicating the transaction was unauthorized, you start receiving phone calls that look like they're from us (it might even be our phone number). The caller says they work for Oregonians CU, then asks you for personal information (card number, PIN number, etc.) in order to block your card and refund the transaction. We will never ask you to verify yourself in order to confirm fraud. This is a scam; hang up and call us at 503.239.5336.

Guard your sensitive information.

Do not provide your confidential information to anyone over the phone unless you are 101% positive the individual is reputable and they've explained satisfactorily why they need this information.

When in doubt, make a phone call. 

If you're unsure about the authenticity of a caller, give the organization or agency a call using the phone number listed on their official website (not the one they called you from or the one in their email).

Phishing

Think of Phishing as fraudsters "fishing for your confidential information".  They use emails, phone calls, text messages, and even social media to present clever ways to trick you into entering your confidential information. They often present an urgent situation: "Your account has been compromised", "Your warranty has expired", "Your Social Security number has been suspended"; or tell you you've won a prize, like a free vacation.

What's the catch? They'll need your confidential information and possibly a payment to remove suspension, extend a warranty, pay for shipping and handling, cover a fee, etc. Don't fall for the bait!

One of the most common forms of Phishing takes place in a fake email with malicious links and attachments. Fruadsters use official logos and header images to falsely represent themselves as representatives of banks, well-known organizations, and government agencies. The link(s) within the email will take you to a fake website (and it may look very real!) to enter your confidential information, and email attachments likely contains malware that will collect information from your device. 

Don't click email links. 

Instead, go to the organization's official website. Give them a phone call using the phone number listed on the official site, or login from this page to retrieve the information. Avoid downloading attachments from unsolicited emails.

Look for errors and misspellings. 

One of the most telling signs of a scam is when there are punctuation errors, misspellings, poorly-worded phrases, or an incorrect logo within the email.

Never provide your confidential information in an email, ever. 

And don't provide it within a website that appears after clicking a link within an email. Bookmark websites and login pages you make payments on for quick access, like utility bill sites.

Smishing

It's like Phishing, but it happens in a text message. Smishing, or "SMS Phishing" is a way for fraudsters to lure you into downloading malicious documents or clicking malicious links sent in a text. Ever receive an unsolicited text from Chipotle or Ticket Master? There have been real instances of fake texts being sent with a Chipotle coupon for 20% off your next burrito and free tickets via Ticket Master to an upcoming show. 

Don't engage with unsolicited text messages.

If you didn't signup for text notifications or recently interact with the business, rely on this simple childhood life lesson: don't talk to strangers.

Elder abuse

Many fraudsters perpetrate the elderly because they tend to have more money and are more vulnerable targets. You can protect yourself or your loved ones from financial abuse by becoming familiar some common scams that occur:

Grandparent scam. 

In this situation, the fraudster calls the elderly person and pretends to be their grandchild. The "grandchild" will them ask for money for some unexpected financial problem, like paying for rent, medical bills, car repairs, or a jail bond.

Conversely, the scammer may claim to be holding the grandchild hostage in order to legitimize requesting a very large sum. They'll convince the elderly person not to make any external contacts out of fear of hurting their grandchild.

Catfishing scam.

Fraudsters will create online dating and social media profiles and prey on lonely seniors who have turned to these mediums to make romantic connections. After eventually professing their undying love, they will ask for money to help with random expenses.

Telemarketing fraud. 

Fraudsters will call and offer senior care, medical equipment, products or services that the victim will pay for and the scammer will never be provide.

Fraudulent or legal documents.

Fraudsters hide their fraud behind legal authority, procuring a power of attorney or will, or another legal document giving them access to the senior's confidential information or property. They get seniors to sign these fake documents by lying to, threatening, or intimidating them.

Home repair scam. 

Scammers will scour neighborhoods with a high concentration of elderly residents, then appear on their doorstep offering to fix some problem they noticed - like a clogged drainpipe or hole in the roof. They'll demand payment upfront and often never deliver services.

Alternatively, they may result to phone calls over physical visits, hoping the senior will fall for the bait and make a payment for an investigation or repair services they'll never provide.

Sweetheart scams

Many people turn to online dating apps or social networking sites to meet someone. But instead of finding romance, they find a fraudster trying to trick them into sending them money. Romance scammers create fake profiles and strike up a relationship with their targets to build trust, sometimes talking or chatting several times a day. Eventually, they make up a story and ask you to send them money.

They often say they're living or traveling abroad for work:

• On an oil rig
• In the military
• As a doctor with an international organization

Common items they'll ask you to buy:

• Plane tickets or travel expenses
• Surgery or medical expenses
• Customs fees to retrieve something
• Gambling debts
• Visa or other official travel documents

How they ask you to pay them:

Scammers ask you to pay by wiring money, with reload cards, or with gift cards because they can get cash quickly and remain anonymous. They also know the transactions are almost impossible to reverse. Very rarely will they ask you to purchase the actual item they're "in need of".