LifeLock experts advise how to keep your
identity and refund safe while hiring pros to do your
taxes
TEMPE, Ariz. and PRAGUE, March 14,
2024 /PRNewswire/ -- As the annual ritual of tax season
rolls on, an alarming number of Americans looking for help filing
their returns are raising red flags around tax prep service scams.
According to a recent consumer survey from LifeLock, a leading
identity protection brand of Gen™ (NASDAQ: GEN), sixty-one percent
of Americans worry they might be targeted by common tax scams,
which could result in identity theft, financial loss and could even
land them in hot water with the IRS. They have reason to be
concerned, as tax scams cost American taxpayers $5.7B in 2022.
Scam artists trick taxpayers by advertising and promoting
themselves as legit tax preparation service providers through
emails, social media ads and text messages. Their goal is to steal
sensitive personal and financial information. With more than half
of Americans opting to outsource tax prep and another 40 percent
using software to self-file, it's important to know how to
recognize if the service is legit.
"Criminals know most people are confused and overwhelmed by the
tax filing process and would rather leave it to a pro to make sure
they get the biggest refund or smallest penalty," said Ian Bednowitz, General Manager of Identity for
LifeLock. "There is a perception that hiring a tax pro or using a
software service can be expensive. So, people shop around for
alternative solutions, which can ultimately cost them a lot more if
they stumble onto a fake site or hand over their tax forms to a
fraudster."
Ghost Preparation Service Scams
According to the IRS, 80 million people filed returns prepared
by a CPA. But not everyone offering tax advice or prep services can
be trusted. Anyone paid to prepare another person's taxes must have
a Preparer Tax Identification Number (PTIN) and are required to
sign the completed returns. Refusing to sign a return is a huge red
flag that the person doing the taxes is trying to "ghost" people
and walk away with their fees, your refund or even your
identity.
These criminals tend to lure people in with the promise of a
large refund and have fees that are based on a percentage of the
estimated refund payable by cash only. They often encourage clients
to take shortcuts to maximize their refunds or have them sign
incomplete returns, which they promise to fill out later. They then
refuse to provide victims with copies of their returns and
disappear with no way to find the ghost who tricked them.
Experts at LifeLock urge everyone to check the tax
preparer's qualifications using the IRS directory to find tax
pros with credentials recognized by the IRS. Always review all
returns before submitting and never sign a blank form.
Fake Tax Prep Websites
Scammers target people with malicious links to fake sites and
malware through social ads, emails and text messages that
impersonate the IRS and popular online tax prep software companies
like TurboTax and H&R Block. Their goal is to trick people into
clicking these links to sign into what looks like their accounts to
resolve return issues or start new services. Scammers then use
malware to record login credentials and access the information
attached to profiles and tax forms and steal your identity.
Experts advise to always look at the content of emails and the
sender's address carefully for anything suspicious like misspelled
words, threatening or urgent language or URLs that display "http"
instead of "https". Never click on any links if you suspect
something phishy. Instead delete the message and block the sender.
Norton Genie is an AI-powered scam detection app that can
help people analyze suspicious emails and texts and provide
advice.
Scams Against Tax Pros
The IRS has warned legitimate tax professionals, accountants and
agents to be on the lookout for phishing attacks targeting their
businesses that might trick them into clicking malicious links and
gaining access to the tax preparer's computer systems and
databases.
These scammers generally use emails impersonating potential new
clients, filing platforms or even the IRS to embed links or
malicious attachments loaded with malware. Attacks are often
designed to collect customer data and steal the tax preparer's
identity, making it possible for them to file fraudulent returns
using their name and credentials.
Experts advise tax pros to make cybersecurity a priority
throughout the year, not just during tax season. Never click on
suspicious links or open attachments from addresses you do not
know. Report phishing attempts to the IRS by forwarding it to
phishing@irs.gov. Solutions like Norton Small Business can arm
independent firms with tools to identify and fend off
cyberattacks.
What to Do if You Become a Victim
- Immediately report identity theft tax-related activity to the
IRS using IRS Identity Theft Affidavit (Form 14029) that provides
all the necessary details for the IRS to open an
investigation.
- Be sure to monitor your bank accounts and credit card for
unusual activity and fraudulent transactions.
- For additional tax season safeguards, identity theft protection
services from LifeLock add professional support to help victims of
identity theft navigate complicated IRS and credit bureau actions
designed to restore taxpayers' lives, identities, and financial
loss.
About LifeLock
LifeLock is a leader in identity theft
protection in the U.S., and a brand of Gen™ (NASDAQ: GEN), a global
company dedicated to powering Digital Freedom through its family of
trusted consumer brands. Millions of customers trust LifeLock to
help protect their identities. LifeLock detects and alerts people
to possible identity threats, and its dedicated Identity
Restoration Specialists help people restore their identity if they
do become a victim. All LifeLock members also have coverage through
LifeLock's Million Dollar Protection™ Package which provides
additional coverage for stolen funds and lawyer and expert support.
Learn more at LifeLock.Norton.com and GenDigital.com.
Malea
Lamb-Hall
|
Benson
Kelsey
|
Gen
|
Edelman for
Gen
|
Press@GenDigital.com
|
Benson.Kelsey@edelman.com
|
|
|
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SOURCE Gen Digital Inc.