QUESTION: I recently received a text message from HMRC stating that I was due a refund. I had filed my tax return in August, but I don’t recall being due a refund. How do I know if the text is legitimate?
ANSWER: Be vigilant during tax season, as cyber-criminals often exploit the anxiety and urgency associated with the personal tax filing deadline. Protecting yourself from scams requires a combination of awareness, caution, and adopting secure practices.
Firstly, be sceptical of unsolicited communications. Scammers often use emails, phone calls, or text messages claiming to be from government departments, such as HMRC. These messages may contain urgent warnings about owing money or facing legal consequences.
Authentic government departments typically communicate through official channels, so verify any unexpected communication by contacting the department directly using official contact information.
Phishing emails and text messages are a common tactic used by scammers. These emails and text messages often include links that lead to fake websites designed to steal sensitive information. Avoid clicking on links or downloading attachments from unknown or suspicious emails. Verify the legitimacy of the sender and contact them directly if you have doubts about the authenticity of the email.
Watch out for phishing phone calls as well. Scammers may impersonate HMRC staff, demanding immediate payment or threatening legal action.
HMRC usually initiates contact through mail, not phone calls. If you receive a suspicious call, hang up and verify the caller’s identity through official channels.
Ensure that your computer and devices have up-to-date anti-virus and anti-malware software.
Regularly update your operating system and software applications to patch security vulnerabilities. These measures can significantly reduce the risk of falling victim to malware or other malicious activities.
Use strong, unique passwords for your online accounts, including tax-related portals.
Enable two-factor authentication whenever possible. This additional layer of security helps protect your accounts even if your password is compromised.
File your taxes electronically using secure and reputable software or through the official government gateway. Avoid using public Wi-Fi networks when accessing sensitive information, as they can be vulnerable to hacking.
Use a secure and private internet connection when handling personal tax information.
Review your financial statements regularly for any suspicious activity. Monitoring your bank accounts and credit reports can help you detect unauthorised transactions or identity theft early on.
Report any discrepancies to your financial institution immediately.
Educate yourself about common tax scams and stay informed about current tactics used by cyber-criminals. Being aware of the latest scams allows you to recognise potential threats more effectively.
Government departments and reputable cyber-security organisations often provide updates on emerging scams, so stay informed through official sources.
Consider using a professional tax preparer or accounting service with a solid reputation. Verify their credentials and reviews before sharing your financial information.
Legitimate professionals follow strict privacy and security measures to protect your data.
In conclusion, protecting yourself from tax-related scams involves a combination of scepticism, secure practices, and ongoing awareness. Stay informed about potential threats, be cautious of unsolicited communications, and use secure methods when filing your taxes.
By adopting these practices, you can reduce the risk of falling victim to scams and safeguard your sensitive financial information.
:: Shane Martin (s.martin@fpmaab. com) is tax director at FPM Accountants Ltd (www.fpmaab. com). The advice in this column is specific to the facts surrounding the question posed. Neither the Irish News nor the contributors accept any liability for any direct or indirect loss arising from any reliance placed on replies.
