Tax season is a busy time for individuals and businesses alike—and unfortunately, it’s also a prime opportunity for scammers. Every year, fraudsters take advantage of the time-sensitive nature of tax filings, the stress of financial preparation and widespread reliance on digital communication to target unsuspecting victims.
At Busey Bank, we want to help our clients stay vigilant and informed. Understanding the most common scams and learning how to protect yourself is essential to keeping your personal and business finances secure this tax season.
Common Tax Season Scams
- Phishing Emails and Texts. Scammers often impersonate the IRS or reputable tax preparation services to trick people into sharing sensitive information. Emails or texts may claim that you owe taxes, promise a refund or request that you verify personal details. These messages often include official-looking logos and language, but their goal is to steal your Social Security number, banking information or login credentials.
- Phone Scams. Fraudsters frequently call individuals or businesses pretending to be IRS agents. They use scare tactics, such as threats of legal action or arrest, to pressure victims into paying a fake tax bill immediately. More often than not, they’ll demand payment through unusual methods like gift cards, wire transfers or cryptocurrencies—methods the IRS would never request.
- Tax Preparer Fraud. Not all tax preparers are trustworthy. Some fraudulent preparers promise exaggerated refunds to lure customers, while others steal personal information for identity theft. It’s essential to verify your preparer’s credentials to ensure they are legitimate and trustworthy.
- W-2 Scams. Businesses and organizations are frequent targets of W-2 scams. Cybercriminals pose as company executives and request employees’ W-2 forms from payroll departments. These forms contain sensitive data that can be used for identity theft and fraudulent tax filings.
- Fake IRS Websites. Scammers may set up fraudulent websites designed to look like the IRS’s official site. These fake sites often collect personal and financial information under the guise of providing tax assistance.
How to Protect Yourself This Tax Season
- Verify IRS Communications. The IRS will never initiate contact with you via email, text or social media. Most official communications come through the mail. If you receive a suspicious message, don’t respond or click on any links. Instead, contact the IRS directly at irs.gov or call their official number to verify the inquiry.
- Be Cautious with Personal Information. Safeguard your Social Security number and financial details. Only share sensitive information with trusted entities, and avoid doing so over unsecured networks or email.
- Choose a Reputable Tax Preparer. Verify the credentials of your tax preparer. Look for a preparer with a valid Preparer Tax Identification Number (PTIN) and review their background. The IRS’s online directory can help you find qualified tax professionals.
- Educate Your Team. For business clients, ensure your staff is aware of the various types of tax scams and train them to recognize suspicious requests. Verify all requests for sensitive employee information through a second communication channel.
- Use Secure Technology. File your taxes using secure networks, avoid public Wi-Fi and ensure your devices are updated with the latest antivirus software. This minimizes the risk of falling victim to phishing attacks or malicious software.
- Monitor Your Accounts. Regularly review and monitor your accounts to catch fraud early. Review transactions frequently, set up alerts for unusual activity and inquire with your bank or credit card company about secure online tools for proactive financial protection.
At Busey, we prioritize the safety and security of our clients. From secure online banking platforms to expert fraud prevention advice, our team offers a breadth of tools and resources to help you stay protected during tax season and beyond.
If you believe you’ve been the victim of fraud or a scam on a Busey account, contact our Customer Care team, reach out to your Relationship Manager or visit your local Banking Center to place a fraud alert on your account. You can also read our Fraud Prevention FAQs for more information or check out our Fraud Prevention Toolkit.