Protecting your finances: How to recognize and avoid tax scams

Tips By Aparna Iyer Apr 17, 2024

Scammers use the tax season as an opportunity to steal your hard-earned money. From impersonating government officials to fake emails and phone calls, they’re reaching out to us everywhere.

We can face anything when we’re smarter and safer together.

How? By staying a step ahead and outsmarting them.

Investigate and verify

A scammer could contact you under the pretext of:

  • Giving a tax refund.
  • Demanding tax payment to avoid penalties.
  • Claiming a tax payment is overdue.
  • Asking for donations to charities with non-existent tax benefits.

Know that you should never provide personal information like your government-issued ID details unless you have independently verified the legitimacy of the person or entity requesting it. Scammers often use fear and a sense of urgency to coerce people into making poor choices. Always ensure your privacy is prioritized.

Any information related to taxes will be communicated through official government email addresses and websites. Real tax communications are NEVER sent through unofficial channels like texts, emails, or calls, and government officials do not threaten or demand immediate payments through money transfers or prepaid cards.

Before taking any action, double check the source.

Some tips to avoid scammers and stay safe:

  • Check the email address. It should be from an official government domain.
  • Never click links that come from an unknown sender.
  • Do not share confidential bank account or card details with anyone, especially for tax purposes.
  • Always check the status of your tax refunds and returns directly on official government websites.

If a scammer is asking you to make a payment using Western Union, call our hotline on 1800 1027111 or report it online and we will ensure to take the necessary steps to stop it.

Together we can outsmart the  scams. Help spread the word by reporting potential scams. #BeFraudSmart