4 Tax Identity Theft Scams to Watch For

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Tax season is underway, and that means your tax refund—and your identity—are in play for identity thieves out to make easy money.

Tax identity theft is a fast-growing crime, impacting more than 260,000 victims a year and costing the IRS more than $3 billion in fraudulent tax refunds. [1] In 2016 alone, the IRS reported a 400 percent surge in phishing and malware incidents related to the crime. [2]

"Tax refund fraud is a reality for a whole lot of Americans," said Adam Levin, chairman and founder of CyberScout, formerly IDT911. "It is caused by the tidal wave of useable data that has been or soon will be stolen by hackers.”

Taxpayers can protect themselves by learning how to spot some of the most common scams criminals use to steal valuable personally identifiable information. Here’s a quick breakdown of scams:

  • Fake Bill. Scammers send victims a notice saying they owe taxes related to the Affordable Care Act. This scam may arrive by email, as an attachment, or snail mail.
  • The Bogus Tax. Scammers demand payment for non-existent taxes, such as a "federal student tax," whichasks college students to send payment via MoneyGram wire transfer.
  • Verification scams try to entice victims to confirm the last four digits of their Social Security number by clicking on a link provided via email.
  • CEO scams. Scammers impersonate executives and send emails to human resources and payroll departments asking for employees’ sensitive financial and personal data. The emails can be very convincing, using the name of the company and CEO, for example.

It’s important for taxpayers to remember that the IRS first contacts people with a letter in the mail if there is an issue with tax payment. The agency will never initiate contact through email or social media. Nor will it ever demand immediate payment of taxes or make threats to involve local police for not paying.

Follow these five tips to protect yourself:

  • File early. The IRS flags a second return as suspicious, so file early, before the bad guys.
  • Go electronic. Opt for direct deposit of tax refunds to avoid lost or stolen refund checks.
  • Choose tax preparers carefully. Avoid unscrupulous companies that steal personal data.
  • Keep sensitive tax data secure on a password-protected or encrypted external drive and store in a secure location.

Report scams to phishing@irs.gov

Take action now before identity theft strikes. Check with your providers. You already may receive proactive identity management services from CyberScout through your insurer, financial institution or employer.

[1] Identity Theft and Tax Fraud,” U.S. Government Accountability Office, May 2016, and “IRS Steps Up Security to Prevent Identity Theft on Tax Returns,” Fort Worth Star-Telegram, Jan. 6, 2017

[2] "Consumers Warned of New Surge in Email Schemes," IRS, Feb. 2016

Copyright 2025 CyberScout


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Here are some tips to make sure you are keeping your home safe this winter: 

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  • Make sure candles are kept away from flammable objects.
  • Use the 1:1 rule — only plug one heating appliance into an electrical outlet at a time.
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  • Have fuel tanks filled and maintained throughout the season.
  • Use a fireplace screen to prevent hot embers from flying out and catching your possessions on fire.
  • Service wood-burning or pellet stoves according to the manufacturer’s instructions.

Winter Weather Maintenance Practices for Your Home

Along with fire prevention, homeowners should perform winter maintenance to keep temperatures inside the house warm when it is cold outside.

  • Do not set the heater lower than 55 degrees, as the temperature inside the walls where water piping is located is colder than in living spaces. Also, keep doors open within the house to maintain an even temperature throughout.
  • Prevent drafts and heat loss by adding weather stripping around doors and caulking windows. Install storm windows, if appropriate.
  • Check for water leaks and make repairs, if needed. If a water pipe is exposed in an unheated area, such as a garage or crawl space, wrap the pipe in UL-listed heat tape; use only thermostatically controlled heat tape on plastic piping.
  • Learn where water pipes are located and know how to shut off the water supply in the event of an emergency to prevent damage.
  • Clean out your dryer lint trap or lint screen after EVERY use. It takes only a couple of seconds and can help stop a potential fire before it ever becomes a significant risk factor. Debris that builds up in the lint trap can catch fire when exposed to the appliance’s heat settings.

Winter is prime time for house fires, with more deaths occurring in December through March than any other time of the year. Develop an exit strategy with your household and run practice drills with your family to help avoid preventable tragedy. 

Related: Creating a Fire Escape Plan

With knowledge of the most common fire risks, our tips for fire prevention and a strong emergency response plan in place, you and your loved ones will be well equipped to protect yourselves and your home.

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6 Tips To Protect Your Vehicle From Potholes This Winter

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Blown tires, dented rims, damaged wheels, dislodged wheel weights, displaced struts, dislocated shock absorbers and damaged exhaust systems are all costly common automotive issues. Other signs include misaligned steering systems and ruptured ball joints. 

How Can You Protect Your Vehicle From Winter's Potholes?

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Follow the steps above to help avoid and prevent potholes and keep your vehicle safe this year! 

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The autumn season when leaves turn color and start to fall, along with cooling temperature, is a good time to take care of some annual maintenance around your home. By being proactive, you can avoid costly (and in some cases, dangerous) issues when the weather turns even colder. 

Have your furnace or boiler serviced by a licensed contractor to check annually for any repair or concerns. This is a good time to clean or replace the furnace filter on forced hot air systems. If you have a chimney, have it checked and serviced by a licensed contractor as well. Make sure to remove creosote buildup from chimneys that are connected to woodstoves and fireplaces.

Falling leaves and outdoor debris can clog drains and gutters. The fall is a good time to check that these are clean. Clogged gutters can cause a few issues, but the big one for most homeowners is roof leaks. If your gutters can't drain properly, that excess water can soak through shingles, eventually leaking into your home. This can cause mold to grow, along with damage from the water itself. Melting snow can also fill up your gutters, causing similar issues! A good rule of thumb is, clean your gutters twice a year. 

While gutters are being cleaned, take a few minutes to inspect your roof. Look for obvious holes and damaged (or missing) shingles, but also take some time to really comb over the details. Keep an eye out for cracks and general wear and tear! 

If there’s any loose tree limbs around your property, consider trimming or cutting them before they become destructive. Tree limbs that fall on a house or other insured structure on the property would be covered for both the damage inflicted and the cost of removing the tree, generally up to about $500. 

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