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Tax Refund Scam

How the scam works:

Online tax filing and its scams. This year, one of the biggest scams around is the Tax Refund or Free Tax Filing scam. Let's see.

Scenario 1. What would you do if you'd get a call from the Government telling they can't process your taxes because somebody else ALREADY applied in your name?

Watch the video below to see the Tax Refund scam exposed:

Your Tax Refund Scam Video

Scenario 2. You're checking your email when you notice a message that seems to be from the government regarding your tax return. The news is good - you're in line for a big refund! If you just submit your banking information, they can deposit the money right in your account for you.

You follow a link to an official-looking site featuring the government tax agency logo on it (IRS in US, CRA in Canada, HMRC in the United Kingdom, ATO in Australia, etc.) and fill in the blanks. Of course, there would be nothing wrong with entering your banking information, if it was, indeed, your government. It isn't, and you could stand to lose everything on your card.

how to get the most back on taxes

 

Scenario 3: You get an email about your taxes but this time, you get the email shortly after you submit. Your tax agency informs you that you can have all the payroll taxes refunded for a fee, usually one that's proportional to the amount you stand to get back (5%, 10%, etc.). They tell you the amount and ask you to wire the money. If you did so, you can kiss that money goodbye.


 

How to avoid:

The tax refund e-mail scam is active in over 15 countries all over the world. Don't fall for it. Take the time to read up a bit on the process of tax returns in your country, if you aren't informed already. Always rely on professional accountants this time of the year, contact legitimate companies to prepare your papers, or use trustworthy services.

 

How to report:

Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission using the link below:

Report Scammers To The Federal Trade Commission Here

 

How to protect yourself more:

If you want to be the first to find out the most notorious scams every week, feel free to subscribe to the Scam Detector newsletter here. You'll receive periodical emails and we promise not to spam. Last but not least, use the Comments section below to expose other scammers.

 

Related articles:

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Early Taxes Scam

Tax Settlment Companies Scam

IRS Tax Help Scam

American Opportunity Tax Credit Scam




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