Don’t Get Tricked by These Tax and Social Security Scams

My QDT editor, Karen Hertzberg, was recently the target of an identity theft scam. Fortunately, she didn’t take the bait. Karen suggested that I write about current tax and Social Security scams  so you don’t fall prey to one, either.

Every year, fraudsters seem to get more creative in their attempts to trick you into giving up your personal information. Once thieves have it, they can wreak havoc on your financial life. They can commit many different types of fraud, including:

• applying for credit in your name
• using your health insurance
• intercepting your tax refund
• opening utility accounts in your name
• hijacking your government benefits

Types of Tax and Social Security Scams

Here are three illicit techniques that criminals use to dupe you and how to protect your finances.

1. Calling you to impersonate the government

Criminals impersonate government agencies because they know it can intimidate or entice you into giving up personal information or money. A recent scam occurs when you get a robocall saying your Social Security number (SSN) is inactive due to suspicious activity or connection with a crime.

The robot tells you that you must call a specific number to verify the last four digits of your SSN or you’ll get arrested. Or it directs you to press a keypad number to speak with a support representative to reactivate your SSN. They may trick you by asking for your SSN to verify your identity or to supposedly reactivate your number.

Or a thief might call you bearing good news. Who doesn't like hearing that they're entitled to a big tax refund? Then they ask for your bank account number to deposit the money.

Thieves might say that you qualify for an increase in your disability or retirement benefits. But to get it, they claim you need to verify your identity by giving your name, address, SSN, and birthdate. If you provide those personal details, the criminal has data that makes it easy to steal from you.

The Internal Revenue Service (IRS) or the Social Security Administration (SSA) will never call you unless you’re actively working with them on some issue. Nor do they suspend, revoke, or block Social Security number or seize your money.

Other criminals may call saying they’re from the IRS...

Keep reading on Quick and Dirty Tips