Protect Yourself from Tax Time Scams

As tax season approaches, it's important to stay alert and protect yourself from common scams that target taxpayers. At BMI Federal Credit Union, we want to help you recognize these threats, avoid falling victim to fraud, and know how to report scams if they occur.

Common Tax Scams

  1. Phishing Scams: Scammers may pose as the IRS by sending emails, texts, or phone calls claiming you owe taxes, or are due a refund. These messages often contain links to fake websites that steal your personal data.
    How to spot it: The IRS won't contact you via email or text for sensitive information or payment.
  2. Impersonation Scams: Fraudsters pretending to be IRS agents may threaten to arrest you or set up wage garnishment if you don't pay them immediately—often demanding payment through gift cards, wire transfers, or even payment by cryptocurrency.
    How to spot it: The IRS won't demand immediate payment by phone or ask for payment in the form of gift cards or cryptocurrency. Official IRS communication comes by mail.
  3. Tax Preparer Fraud: Some fraudulent tax preparers may promise inflated refunds in exchange for upfront fees or submit false information on your return.
    How to spot it: Avoid preparers who promise unusually large refunds or ask for minimal information. Make sure they are licensed and have a good reputation.
  4. Refund Fraud: Scammers may file a false return using your personal information, claiming a refund in your name.
    How to spot it: If you receive a notice that a return has been filed under your Social Security number, or if you notice discrepancies when filing your own return, you may be a victim of refund fraud.

How to Protect Yourself

  1. Use Secure Websites: Always make sure websites are secure by looking for "https://" and a padlock icon in the address bar before entering any personal data.
  2. Don't Share Sensitive Info Over the Phone or Email: Never respond to unsolicited calls or emails asking for your Social Security number or bank account details. Contact the IRS directly if in doubt.
  3. Verify Your Tax Preparer: Ensure your tax preparer is licensed and uses reputable services. You can find a directory of qualified preparers on the IRS website.
  4. Monitor Your Accounts: Regularly review your bank and credit union accounts for unusual transactions. Set up account alerts to stay on top of any changes.
  5. Consider Identity Protection: Identity theft protection services can help monitor your credit and alert you to fraudulent activity, including unauthorized tax filings.

How to Report Scams

If you suspect you've been targeted by a scam, take action immediately:

  1. Report to the IRS: Email phishing attempts to phishing@irs.gov, or call the IRS Identity Protection Unit at 1-800-908-4490 if you believe you're a victim of fraud.
  2. Report to the FTC: File a complaint with the Federal Trade Commission (FTC) at www.reportfraud.ftc.gov.
  3. Contact BMI Federal Credit Union: If you notice suspicious activity in your accounts, reach out to us right away so we can help you take action and protect your funds.
  4. Report to State Authorities: Depending on your state, you may also need to report scams to your state tax agency.

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(February 2025)