Mandy
As Christmas approaches, the Internal Revenue Service (IRS) has issued a strong warning urging Americans to stay alert to rising fraud attempts.
The holiday shopping surge and the upcoming tax season create a perfect environment for scammers looking to steal personal and financial information.
This week also marks the 10th annual National Tax Security Awareness Week, organized by the IRS along with its Security Summit partners.
Their joint mission is to reduce identity theft, promote safe online behavior, and shield taxpayers from fraudulent activity.
Heightened Fraud Risks This Holiday Season
IRS CEO Frank Bisignano emphasized that criminals become more active during the festive period, taking advantage of distracted shoppers and taxpayers.
He noted that scammers often trick people into revealing sensitive information, which may later be used to file false tax returns or claim refunds illegally.
According to the IRS, individuals must take extra precautionary steps to protect their financial data, including exploring tools designed to secure their tax identity.
IRS’ Most Urgent Warning: Protect Your Tax Identity
The agency strongly advises taxpayers to use an Identity Protection PIN (IP PIN)—a unique six-digit code that blocks unauthorized individuals from filing tax returns with someone else’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
- Anyone with an SSN or ITIN can request an IP PIN.
- The protection applies even to Americans living abroad.
- Taxpayers without a PIN are encouraged to sign up as a preventive measure.
The IRS has also published a list of the most common scams Americans should watch for during the holidays and the tax season.
Major Scams Highlighted In The IRS Warning
1. Social Media Scams
The IRS cautions that false or misleading tax advice often circulates on social media platforms. Some influencers encourage people to misreport information or claim credits they are not eligible for.
These posts may also serve as a gateway for scammers to contact potential victims directly.
2. Phishing And Smishing Attacks
Criminals frequently send deceptive emails (phishing) or text messages (smishing) to obtain personal financial details. These messages may:
- Pretend to be from the IRS
- Ask for payments
- Include malicious links or attachments
- Install harmful software on devices
The IRS stresses that it never initiates communication through unsolicited emails or text messages demanding money.
3. Scams Targeting Older Adults
Individuals aged 65 and above are prime targets for fraudsters. Scammers often pressure seniors into:
- Sharing sensitive financial information
- Making payments
- Withdrawing money from retirement accounts
Such withdrawals can result in unexpected tax consequences, making the damage even worse.
4. Scams Aimed At Businesses & Tax Professionals
The IRS reminds tax professionals and businesses of their obligation to maintain a Written Information Security Plan (WISP). This plan outlines procedures to safeguard confidential data and prevent cyberattacks.
The agency also recommends:
- Using multi-factor authentication
- Updating cybersecurity systems regularly
- Staying alert to unusual digital activity
The IRS’ holiday-season alert highlights a crucial message: cyber criminals are more active than ever, using sophisticated techniques to exploit taxpayers, seniors, businesses, and professionals.
By securing personal data, adopting stronger login protections, and staying cautious about online communications, Americans can significantly reduce the risk of identity theft and tax-related fraud.
Awareness and proactive security steps remain the strongest defense as Christmas and tax season draw closer.
FAQs
What is an IRS Identity Protection PIN?
An IP PIN is a six-digit code that prevents scammers from filing a tax return using someone else’s SSN or ITIN.
Does the IRS ever contact taxpayers through email or text?
No. The IRS does not send unsolicited emails, texts, or social media messages asking for money or personal information.
Who is most at risk of holiday fraud according to the IRS?
Seniors, online shoppers, small businesses, and tax professionals face the highest risk due to increased scams during the festive and tax-preparation periods.