Scammers are creative people.
Every season, they come up with new and innovative ways to try to separate you and your money.
Unfortunately, with the advent of Artificial Intelligence (AI), scammers are getting even better at what they do. That means you need to be on your toes. Here are a few of the new scams we're seeing, and how you can avoid them.
Tax Scams
Tax season (which is really now through the middle of April) is already stressful for a lot of us. When you're stressed, you might not be as careful as you should be. Tax scams include:
- "urgent" emails or phone calls from the IRS
- fake emails or texts that ask you to “verify” info or click a link
- fake tax preparation offers
- tax refund theft or identity theft.
How do you avoid this? There are a few things to remember to avoid these scams. First, the IRS will NEVER call you or email you. Official notifications from the IRS always come in the mail, so don't respond to anything phone calls, text messages or emails purportedly from the IRS.
If you do get a notification in the mail from the IRS, ask for recommendations from your friends or family for a legitimate tax preparer or accountant to help you, or at least someone who can give you professional advice.
If you are asked to verify financial information via an email or a text message, don't reply. Instead, you should look up the company's official information online and call them to check that the email or text message really came from them. If you don't recognize the company asking for information, don't respond.
Be wary of offers to prepare your taxes from people or companies you don't know. Be sure to ask any tax preparer for their PTIN (Preparer Tax Identification Number) and verify that PIN with the IRS before giving your personal information to any tax preparer you haven't worked with in the past.
Sometimes your information is stolen and someone files taxes using your name and social security number, directing your refund straight into their bank account. If you get a "duplicate return" error when you try to file online or you get an IRS notice saying a return was already filed, call the IRS immediately. (Or, ask your accountant to do so if you're using an accountant this year.)
Love Scams
Scams involving fake dating apps or profiles are on the rise. They say love is blind, but don't be blind to these scams!
One of the most common scams happens when a scammer creates a fake profile on dating apps or social media. They work to build an emotional connection with you, and then after a while they claim a financial emergency like sudden medical bills, travel issues or job loss, and they ask you to send money.
How do you avoid this? The best way is by really getting to know a person through phone calls, video chats and meeting (safely and in a public place) in person.
In addition, it's ok to do a background check on your love interest by looking them up online, seeing if their information tracks with what they say, checking the validity of their address and even looking for news stories about the person. In other words: Do all you can to make sure your love interest is a real person. Never send money to someone via crypto, gift cards or other untraceable methods.
Account Take-Over Scams and Debit Card Alerts
A lot of our members have alerts set up so they get a text message with debit card or credit card transactions. Scammers have figured out how to use these alerts to get money from you.
How do they do it? You may get a text alert saying that you spent money when you didn't. That text message often comes with a link to "verify" your information by "logging into your bank account." But it turns out the site you're logging into is fake and is just collecting your username and password info so a scammer can log into your real bank account and send themselves money.
How do you avoid this? If you get a notification that you don't recognize, don't respond to the text message and don't answer the phone if someone calls about it. Instead, call your bank directly using the number on the back of your card, and ask to speak to someone. If the notification was real, they'll help you handle it.
In addition, be on the lookout for times when your online banking password suddenly stops working, you get a login alert from an unfamiliar location or emails that say your password was changed when you didn't change it. If any of these things happen, call your bank immediately.
Outstanding Ticket Scams
There are more red light cameras, speed cameras and even stop sign cameras on the roads. It's never fun to get an automated ticket in the mail!
Scammers have figured out where those cameras are and are often able to create documents that look just like a real ticket from the city, county or state. Or, you might get a text message claiming that you skipped a toll booth or didn't have enough funds in your EZ-Pass.
How do you avoid this? Before you pay, there are a few things you should do to verify the information. Real tickets are sent in the mail, not via a text message. See if you can remember being in that place at the time the ticket was allegedly issued. (If your ticket is from the "Pennsylvania State Police" and you haven't been in Pennsylvania in years, you know it's a scam!)
Plus, there's nothing wrong with calling the police department or state agency that issued the ticket to ask about it. They'll tell you if it's real or not and they won't demand payment immediately. Also, only pay via normal methods like a check or credit card — courts do not accept payments via Venmo or Zelle, a gift card or other payment formats.
The bottom line for all of these? When in doubt, check it out! Don't act quickly because you're stressed, busy or the person or organization involved claims something is "urgent." Take the time to make phone calls and other actions to validate claims before you send money or information.
We're happy to have you as a member, and we hope you don't fall for any scams this year. If you do, we're here to help.
