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Social Media Scams Made the IRS 2024 ‘Dirty Dozen’ List!
These days, social media platforms have become indispensable tools for communication and information sharing. However, they also provide an ideal hunting ground for scammers who prey on unsuspecting taxpayers. The IRS has included social media scams in its 2024 “Dirty Dozen” list, bringing to our attention the most dangerous tax scams out there. Here, we will explore how these scams operate and how you can protect yourself from them.
How Do Social Media Tax Scams Work?
Fake Tax Benefits and Credits:
Hearing that you are eligible for a tax refund almost feels like you’re getting “free money” from the government, right? Remember, scammers are counting on that. They prey on this sentiment by posting about phantom tax benefits on Facebook, Instagram and other social media platforms. These posts promise large refunds or credits and include links that lead to fraudulent websites designed to trick you into entering your personal and financial information.
Phishing Schemes:
Scammers use social media to direct users to phishing websites where they are prompted to enter sensitive data under the guise of resolving tax issues or claiming refunds. These sites mimic legitimate IRS pages, making it easy for users to be deceived. The IRS will never reach out to you via social media. Please refer to their site to see their official contact methods.
For more details on how to protect yourself, see our blog about phishing scams and how to spot them.
Impersonation of IRS Officials:
Social media posts don’t always rely on positive messages to grab your attention. Generally, people are more responsive to urgency and fear. It’s human nature—we tend to remember the bad things more vividly than the good (for the caveman, it was more important to run from the tiger with the big, sharp teeth than to remember where he saw a pretty flower). While scammers might not be neuroscientists, they certainly understand the power of phrases like, “Your tax refund needs immediate attention!” or “Resolve your tax issue now or face legal action!”
Few things are as intimidating as receiving what appears to be a personal communication from an IRS agent about an urgent issue. Some scammers take their deception to the next level by creating fake profiles that impersonate IRS agents. They send direct messages claiming there are problems with the recipient’s tax return that require immediate attention. These messages typically include threats or urgent demands, designed to pressure the victim into compliance.
As stated on the official irs.gov website: “The IRS never contacts taxpayers on social media to ask for their personal or financial information.”
Fraudulent Investment Opportunities:
LinkedIn and other professional networks are used to promote investments that falsely promise tax benefits or reduced liabilities. These schemes lure victims with the prospect of significant returns and tax shelters, which are often illegal and result in severe penalties.
Protecting Yourself
Verify Information
Always cross-check anything tax-relate with the official IRS website or consult a trusted tax professional. The IRS does not use social media messages or DMs to initiate contact with taxpayers regarding tax issues.
Be Skeptical of Too-Good-To-Be-True Offers
If an offer sounds too good to be true, it probably is. It is highly unlikely that you’ll get a massive tax refund because of something you saw on Instagram. If you are unsure, consult a trusted tax professional or verify on the official IRS website. Remember, scammers use the promise of large refunds or credits to lure victims.
Avoid Clicking on Suspicious Links
Do not click on links or download attachments from unknown or suspicious sources. These can lead to phishing sites or install malware on your device.
Use Strong Privacy Settings
Consider tightening up your social media privacy settings to limit who can see your personal information. This reduces the chances of being targeted by scammers.
Report Suspicious Activity
Report any suspicious posts, ads, or messages to the social media platform and the IRS. The IRS has a dedicated page for reporting phishing and online scams. Social media tax scams are a real threat. If you don’t want to become the next victim, stay informed and be cautious.
How Paley & Prehn Can Help You
In the evolving landscape of social media, staying informed and vigilant is your strongest defense against tax scams. A good rule of thumb is to be skeptical of what you see on social media. If something seems unclear, always consult a tax professional for guidance.