The IRS has reported that the number of potential victims
impacted by a tax scam has increased from a few hundred to several thousand in
just a few days. Putting a new twist on an old scam, criminals are taking
taxpayer information, filing fraudulent returns, and depositing erroneous
refunds into real taxpayers’ bank accounts. The criminals then contact the
victim and use a variety of tactics to attempt to claim the refund.
The scam appears to have originated from tax preparers’
offices, where computers that have been infected with malware provided
criminals with access to thousands of consumers’ return data.
“Speed is critical,” the agency said in its
advisory. “If reported quickly, the IRS can take steps to block fraudulent
returns in a preparer’s clients’ names.”
As tax preparers increase their security settings to protect
client tax and financial files, it is important that consumers also protect
themselves by knowing identity theft warning signs.
Top Indicators of Tax-Related Identity Theft
- More than one tax return was filed using your
Social Security Number
- IRS records indicate you received wages from an
establishment at which you never worked
- You owe additional tax, receive a refund offset
notice, or have had collection actions taken against you for a year you did not
file a tax return
If you become a victim and notice an erroneous deposit in
your account, take the following steps:
- Contact your tax preparer immediately.
- Contact the Automated Clearing House (ACH)
department of the bank/financial institution where the direct deposit was
received and have them return the refund to the IRS.
- Call the IRS toll-free at 800-829-1040
(individual) or 800-829-4933 (business) to explain why the direct deposit is
being returned.
- Be aware that interest may accrue on the
erroneous refund.
- Communicate with your financial institution and
be prepared to close your account, since the information has been accessed by
criminals.
You can also access the steps for returning your erroneous
refund directly on the IRS
website.
Remember: The IRS does not initiate contact with taxpayers
by email, text, or social media, or phone calls to discuss your account. If you
receive a message, be suspicious!
LBA Haynes Strand is dedicated to alerting the public on any scam or fraudulous attempt to steal identities or gain access to important financial information. If you are interested in automatically receiving updates such as this, please subscribe to our blog.