Watch Out: Holiday Season Brings Scams Targeting Taxpayer’s Financial Information

Scam alert warning sign on keyboard background

The IRS warns taxpayers of scams targeting financial information during the holiday season, urging protection measures.

At a Glance

Gift card scams increase during holidays; IRS does not accept gift cards for tax payments.
Scammers impersonate officials, demanding gift cards to resolve fake debts.
Phishing emails and calls imitate IRS agents with threats of penalties.
IRS encourages using secure websites and multi-factor authentication.
Victims should report scams to the Treasury Inspector General for Tax Administration or the FTC.

Growing Threat During the Holidays

As the holiday season approaches, the IRS has issued a warning for taxpayers to be on alert for potential scams that attempt to steal financial information. Criminals pose as IRS agents or other officials, often using tactics such as phishing emails and deceptive social media messages. These methods aim to trick victims into providing sensitive data or even making payments via gift cards, a method that the IRS categorically says it never utilizes.

The IRS reiterates that it does not request or accept gift cards as payment for tax obligations. Scammers often send falsified communications that seem official, requesting such payment methods to settle alleged debts. By raising awareness, the IRS hopes to pre-empt holiday-related scams, advising taxpayers to approach holiday season financial communications with heightened scrutiny.

Recognizing and Preventing Scams

Phishing attacks and fraudulent emails are a major concern. Scammers frequently steal identities through emails that look legitimate but are designed to capture personal information. Taxpayers must be cautious about email links, preferring accessing sites by typing the direct URL into their browser. Using strong passwords and updating security software can make it harder for scammers to access private information.

While you shop those early #BlackFriday deals, #IRS urges you to look out for phishing scams that put your info and next year’s tax refund at risk. Here’s how to shop smart while protecting your identity this holiday season https://t.co/Z6d4mWsZZA #TaxSecurity pic.twitter.com/wULzLtONuG

— IRSnews (@IRSnews) November 28, 2024

IRS Recommendations for Safety

The IRS has partnered with the Security Summit to provide important tips on securing personal and financial information. They advocate for using secure connections rather than public Wi-Fi and recommend multi-factor authentication to bolster online account security. Taxpayers should stay informed about the latest scam tactics through webinars and alerts.

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

Taxpayers are further urged to verify the legitimacy of any delivery alerts via official channels. Scammers often exploit the busy season by sending fake delivery notifications that prompt recipients to click links, potentially downloading malicious software or providing personal information. Careful verification through authorized sources protects against these traps.

Reporting and Resources

Those who encounter fraudulent schemes are advised to report the incident to the relevant authorities, such as the Treasury Inspector General for Tax Administration or the Federal Trade Commission. Awareness and proactive protective measures can significantly reduce the risk of identity theft, safeguarding the upcoming tax filing season from unnecessary financial complications.

“People need to be extra careful during the holidays and during tax season.” – Werfel

By staying informed and vigilant, taxpayers can effectively combat scam attempts during the holidays and beyond, ensuring their financial information remains secure and their holiday season remains joyful.