Scammers know tax season can feel stressful.1 They use that pressure to trick people into sharing personal information, sending money, or clicking harmful links. These scams can delay your refund, damage your credit, or put your identity at risk. Knowledge is your best fraud prevention tool. Understanding how these scams work is the first step toward stopping them.
Know the Newest Tax Scams to Watch For
Scammers constantly evolve their tactics, but know they are always looking for new ways to fool consumers with tax refund scams. Common schemes include:
- Tax relief scam calls or phony IRS impersonation calls or emails
- Fake tax transcript attachments containing malware
- Refund-redirect scams where fraudsters try to change your direct deposit information
- Social media “tax hacks” that promise bigger refunds but can lead to penalties or identity theft
Learn more from the IRS about IRS Tax Scams & Consumer Alerts. As often as you can, make sure you are always learning so you can recognize tax scams and fraud.
Spot IRS Impersonators — Even the Convincing Ones
Neither UFCU nor the IRS will call you to solicit your personal information. Specifically, they will never:
- Call to demand immediate payment
- Ask for your debit card or gift cards
- Threaten arrest or legal action
- Email or text you asking for personal information
If you’re unsure whether a message is real, contact the IRS directly. You also can learn more about how to avoid tax scams at at IRS Identity Protection Resources.
Protect Your Personal Information Everywhere You Go
Many people wonder, is online banking safe? Yes. Reputable financial institutions put many systems in place to protect your funds and your identity, but you too must do your part to minimize risk. Your social security number, tax documents, and login credentials are valuable targets. Smart habits include the most basic financial data security tips:
- Using strong, unique passwords
- Enabling multi factor authentication
- Shredding sensitive documents
- Avoiding public WiFi when accessing financial accounts
- Creating account alerts to stay on top of what’s happening
UFCU Digital Banking includes secure login features and account alerts to help you stay protected. Remember that being informed about your latest account activity is your best bet for safe online banking. Learn more at the UFCU Security Center.
Avoid Clicking Links — Even “Official Looking” Ones
Understand these important terms and how they are different: spoofing vs phishing scams. Phishing is the scam attempt itself (the message, in other words the email, text, call, or DM) designed to trick you into giving up sensitive information or clicking a malicious link. Spoofing is the disguise. This is the bad actor faking someone else’s mail, phone number, website, or identity to make the phishing (or other fraud) look legitimate. A helpful way to think about it is,: Phishing is the con. Spoofing is the costume. Phishing emails often look like real messages. They may include:
- Fake refund notices
- “Urgent” account updates
- Suspicious attachments
- Links to counterfeit websites
When in doubt, go directly to the website by typing the URL directly into the browser instead of clicking a link.
For more on phishing, read What Is Phishing: Understand Cyber Threats and Prevention.
File Early to Stay Ahead of Fraudsters
Filing early reduces the chance that someone else can file a return in your name. Early filing also gives you more time to resolve issues if something looks suspicious.
If you discover someone filed a return using your information, report it immediately with IRS Identity Theft Affidavit (Form 14039).
Use Secure Financial Tools (Like UFCU Digital Banking)
Your financial institution plays a key role in protecting your identity. UFCU offers tools that help safeguard your accounts:
- Digital Banking2 with secure authentication
- Credit Cards3 with fraud monitoring and zero liability protection
- Credit Builder Loan4 as a safe alternative to risky “refund advance” offers
- Account Alerts to notify you of unusual activity
Explore more security resources:
Report Suspicious Activity Immediately
If something feels off, trust your instincts. You can report scams to:
- The IRS: https://www.irs.gov/privacy-disclosure/report-phishing
- The FTC: https://reportfraud.ftc.gov
- UFCU: Contact Member Services for help reviewing your accounts
Quick reporting helps protect your identity and prevents further damage. Scam prevention is the best protection.
More Ways to Stay Safe
Protecting your identity is one of the most important steps you can take toward financial well being. Whether you’re building credit, applying for a loan, or managing your family’s finances, UFCU is here to help you stay safe every step of the way. Consider these additional helpful resources:
- IRS Identity Theft Central
- IRS Taxpayer Advocate Service
- FTC Identity Theft Resources
- Free honest, practical financial advice at UFCU.org/Learn
Visit the UFCU Security Center to learn more about how we protect your accounts — and how you can protect yourself.
1 UFCU does not provide tax advice. For such guidance, please consult a qualified tax advisor.
2 UFCU does not charge for our Mobile app. Note that your mobile-service provider might charge for data usage or text alerts.
3 Must meet eligibility requirements. Credit cards are subject to credit approval. Requirements include having a UFCU checking account with:
- A balance of at least $500, or
- A monthly balance of $50 for the last 3 months, or
- Receive a direct deposit in your UFCU checking account.