What are E-File Tax Scams?

While searching online for a tax preparation service to e-file your tax return, you might come across a website that looks legitimate, only to realize it’s a fake created by scammers. These fraudulent sites are often designed to closely resemble trusted tax preparation services, tricking you into entering your personal information. The purpose of these sites is to steal your data and commit fraud or identity theft. By entering your information on an impostor site, you risk compromising your identity.

How to Avoid Falling Victim to E-File Tax Scams

So how do you avoid falling victim to e-file tax scams? First, use a secure Internet connection and never use public Wi-Fi to file your tax return. Hackers have a better chance of stealing your personal information when you’re using an unsecured network. 

Another great way to avoid e-file tax scams is to ensure that the tax service website you’re using is safe and that the website is encrypted. Look for the “https” at the start of the URL. The “s” indicates that the site is secure. You may notice that some websites only use encryption on the sign-in page, but if any part of your session isn’t encrypted, your entire account could become compromised.

Ask Your Tax Preparer Questions

Don’t be afraid to ask the tax preparer questions about their data security properties, and how they protect your sensitive information. Many online tax preparers such as TurboTax provide you with this information on their website. You can also ask your tax preparer for their tax preparer identification number. The IRS requires all paid tax preparers to have one before filing returns. 

These tips can help you stay safe this tax season, but there are still many more tax scam tactics that fraudsters are using. Be sure to Watch Out for These 5 Tax Scams that we cover in another blog. 

What to Do if You Have Fallen Victim to Tax Fraud

If you do fall victim to identity theft, visit IdentityTheft.gov to report it to the FTC, file an Identity Theft Affidavit with the IRS, and get a personal recovery plan in place. Filing a report will also help the FTC and other law enforcement agencies investigate scams and bring criminals to justice.