Fraudulent individuals such as hackers and con artists are starting to target veterans as tax season approaches. Identity theft and fraud are persistent threats, so knowing how to protect yourself is essential. The IRS, VA, and VSAFE warn veterans about common tax scams. Let’s discuss how to keep your information safe, what red flags to look for, and how to report suspicious activity.
Tax scams can take many different shapes, and con artists are skilled at passing off phony schemes as legitimate ones. Staying informed about typical warning indicators is vital. Beware of fake tax tips on social media. When these con artists demand urgent payment or threaten legal action, they magnify the sense of urgency. Also, keep an eye out for phishing links and phony URLs; only trust websites from reliable sources, such as those that end in “.gov.” Unusual URLs, suspicious links, or misspellings are all common signs of deception. Remember to research before acting if an offer looks too good to be true or you feel rushed to act.
Phishing emails, fraudulent calls, and fake websites are common ways for scammers to take advantage of the added pressure of tax season to collect personal information. You conform to specific crucial safety procedures to prevent becoming a victim. First, be sure to check any IRS correspondence you receive. The IRS would never immediately call you and demand payment or ask for private information over email.
If in doubt, consult the IRS or their official communication guidelines. You should also consider securing an Identity Protection PIN from the IRS, especially if you are a veteran or member of the armed forces. This number is reissued yearly and provides further security against bogus paperwork made in your name. Create strong passwords, change them frequently, turn on automatic security software upgrades, and use multi-factor authentication whenever you can to strengthen your cybersecurity.
Due to specific tax incentives, veterans could unintentionally become ideal targets for fraudulent individuals hoping to profit by taking advantage of them. Keep in mind that, despite what certain con men may say to get your financial information, VA benefits, such as compensation, education payments, and career preparedness, are typically tax-free.
VA insurance proceeds are also free from federal income tax, but state tax laws may vary, so it’s a good idea to check local regulations. It is strongly recommended that you speak with your local property tax assessor to learn about any potential exemptions regarding property taxes for veterans with a service-connected disability rating.
You must act quickly if you believe you have fallen victim to a tax scam. Veterans can find tools specifically designed to address their worries about fraud, such as VSAFE’s support services at 833-38V-SAFE.