CHARLOTTE, N.C. — New data shows an unprecedented number of online scams are expected during the 2024 tax season, leaving many people asking "Where’s the money?"
North Carolinians lost more than $11 million to government impersonation scams in 2023. Online investigation site Social Catfish said a bulk of those losses happened during tax season when scammers pretended to be IRS agents.
Social Catfish said scammers are getting smart and are using an array of sophisticated tactics to trick their victims into giving away personal and financial information.
RESOURCE GUIDE: How to get ahead in 2024
Popular tax scams and tips to avoid them
TurboTax scams: Scammers will send an email asking users to update their account information on TurboTax. Another common trick is to say there's an issue with someone's return and they need to fix it.
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How to avoid: Don’t use third-party websites or advertisements offering TurboTax at a discounted price. Go directly to the company's website to use its software.
Fake accountant: Social Catfish said scammers will pretend to be a CPA who promises unusually high tax refunds at very low prices. Payment is due upfront and once the scammer gets paid and has your personal information, they disappear.
How to avoid: Always make sure you perform a reverse search to confirm the identity of the tax preparer.
Spoofing the IRS: Criminals will call victims using a "spoofing" technique which makes the number appear as though it is coming from the IRS. They claim the victim owes money for unpaid taxes and threaten to fine them or arrest them if it is not paid.
How to avoid: Go directly to the IRS website to make any payments owed.
More scams to be aware of
Unclaimed Refund: Scammers send emails with the IRS logo telling victims they are owed more money and can immediately claim their tax refund by clicking a link and filling out the information. This is a phishing link designed to steal personal information.
How to avoid: The IRS never initiates contact by email, text messages or social media.
Employee Retention Credit: The ERC is a tax credit for businesses that retained employees during COVID-19. Scammers post ads on social media claiming they can help business owners – even those who are not eligible – get their ERC credit right away.
How to avoid: Use a trusted tax preparer. Do not respond to an unsolicited third party.
WCNC Charlotte's Where's The Money series is all about leveling the playing field in the Carolinas by helping others and breaking down barriers. WCNC Charlotte doesn't want our viewers to be taken advantage of, so we’re here to help. Watch previous stories where we ask the question “Where’s the Money” in the YouTube playlist below and subscribe to get updated when new videos are uploaded.