Phone, text, email fraud common; be cautious when dealing with personal information

Phone, text, email fraud common; be cautious when dealing with personal information

By Susan Withrow Murphy
Correspondent, The Alabama Baptist

The coronavirus has made an impact on every part of Americans’ lives in 2020, including our tax returns. Tax season has been extended by three months, creating more time and opportunity for criminals to take advantage of unsuspecting taxpayers. Guarding against cybercrime in the digital age is an ongoing battle throughout the year, but the months prior to Tax Day (now July 15) may require a little extra vigilance on our part.

“If anyone contacts you [claiming to be] from the IRS, be wary,” said Richard Lindsey, certified public accountant and president at Lindsey & Waldo, an accounting firm in Mobile. “Always be skeptical.”

Warning signs

Lindsey warns against “phishing” (pronounced “fishing”) scams — fraudulent emails or texts that entice recipients to reveal credit card numbers, passwords or other sensitive personal information. Some texts and emails include embedded links that redirect users to a fraudulent website. Opening attachments can install what is known as malware, malicious software, including computer viruses, that steal or cause damage to data or systems when opened on your phone or computer.

“Do not click on an email that says it’s from the IRS,” said Lindsey. “The IRS will never initiate contact about a bill or refund via email.”

Although scammers’ communications can appear extremely professional looking, careful examination will often provide telltale signs that something is “off.” Look for these warning signs:

  • The sender’s return email address does not match the address in your email address book.

Verify the sender’s email address is legitimate. If you think the sender might have changed emails, be sure to call or initiate an email to the address you have on file to verify the sender.

  • There are misspellings in a website address (URL) or incorrect grammar usage in the body of the email. We all make mistakes, but these also are red flags.
  • The email contains suspicious links. Never click on a link contained in an email you are not expecting. Even if you receive an email from a familiar source, first verify the URL of an embedded link. Hover the cursor over the link without actually clicking on it to see if it matches the sender. If you aren’t certain but it looks important, consider placing a phone call to someone within the organization to confirm authenticity.
  • Beware of telephone phishing scams. The easiest way to avoid a phone scam is to allow a call with an unfamiliar number to go directly to voicemail. Engaging with an unknown person on a received call increases exposure to fraud. Adding important numbers to phone contacts such as insurance agents, financial services or other businesses you engage with regularly offers a heads up about who’s calling.

“If you receive a phone call from the IRS, hang up the phone,” said Lindsey. “If the IRS needs to communicate with you, they will first do so through postal mail.”

And while it is important to be generous, be wary of giving money before doing your homework.

  • Before donating to charities, learn how much of your gift actually goes toward the mission of the organization.
  • Visit the charity’s website to learn about the specific breakdown of the use of donations. For example, how much of the funds are used for administration versus feeding the poor? Do they make available an IRS Form 990 to show financial accountability?
  • Find reviews online where other donors have discussed specific organizations. The Federal Trade Commission recommends researching an organization to determine its viability before making a donation. Credible research sites for nonprofits include give.org, guidestar.org, charitywatch.org and charitynavigator.org.

‘The more you know’

In short, Lindsey said, file your tax return as soon as possible to give scammers less time to steal personal information and create fraudulent returns; be on guard and think first before acting on emails or responding to phone calls; and do your research before contributing money to charity.

“It helps to know how scammers strike,” said Lindsey. “The more you know, the more friends you could help in the future.”