WSB's Banknotes

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Tips to Protect Against Fraud During Tax Season – Feb. ‘25

As tax season approaches, we’re reminding consumers to be vigilant about protecting their personal information and refunds from fraud. Tax-related identity theft and scams are on the rise, and criminals are becoming increasingly sophisticated in their efforts to steal personal data and money. Here are several tips to help protect your personal information and ensure a secure tax season.

• Beware of phone scams and spoofing – Scammers often use spoofing and robocalls to impersonate the IRS, making it seem like they’re contacting you about your taxes. If you receive a call from someone claiming to be the IRS, ask for a reference number, then hang up and call the IRS directly using an official phone number found on the IRS website to confirm whether the call was legitimate.
• Watch out for smishing and phishing attempts – Be on the lookout for smishing (SMS phishing) scams, where fraudsters send text messages with "urgent" links that may lead to malicious websites designed to steal your personal information. Similarly, phishing emails impersonating the IRS often come with aggressive subject lines demanding immediate payment. Always check the sender's email address – if it doesn't end in ".gov," it’s likely a scam.
• Look out for misleading tax advice on social media – With the rise of social media, scammers have found a new avenue to spread misinformation, including offering fraudulent tax advice or fake tax refund promises. The IRS continues to see a variety of filing season hashtags and social media discussions that mislead taxpayers with inaccurate and potentially fraudulent information. While some information can be helpful, it’s important to verify everything with official sources.
• File your tax return early – To reduce the risk of identity theft, consider filing your tax return as early as possible. Criminals often file false returns using stolen personal information, so filing sooner gives you a better chance of detecting fraud early and protecting your tax refund.
• Use strong, unique passwords – When filing taxes online, ensure that you’re using strong, unique passwords for all accounts related to tax preparation. Enable two-factor authentication (2FA) when available and avoid using public Wi-Fi to submit sensitive information.
• Monitor your financial accounts and credit reports – After filing, be sure to keep an eye on your bank accounts and credit reports. If you notice any suspicious activity, report it immediately to your bank and the IRS. You can also check your credit report for free once a year at www.annualcreditreport.com to monitor any unauthorized accounts.

Protecting Older Americans from Financial Exploitation – Jan. ‘25

You, or someone you know, could become the victim of a growing crime in America — financial exploitation of older Americans. Criminals are targeting people of all ages, but especially those of an older generation. As people over 50 years old hold most of the nation's wealth, fraudsters are using new tactics to take advantage of retiring baby boomers and the growing number of older Americans.

What Is Elder Financial Exploitation?

It is defined as the illegal, unauthorized, or improper use of an older person's funds, property, or assets. It’s a crime that deprives older adults of their resources and ultimately their independence. Perpetrators may be family members, friends, neighbors, caregivers, health care providers, business associates, or strangers.

Tips for Seniors

What should you do to protect yourself?

• Plan ahead to protect your assets and to ensure your wishes are followed. Consider a financial caregiver.
• Shred receipts, bank statements and unused credit card offers before throwing them away.
• Lock up your checkbook, account statements and other sensitive information when others will be in your home.
• Regularly review your credit report. Never give personal information, including Social Security Number, account number or other financial information to anyone over the phone unless you initiated the call and trust the other party.
• Never pay a fee or taxes to collect sweepstakes or lottery “winnings.”
• Never rush into a financial decision. Ask for details in writing and get a second opinion.
• Consult with a financial advisor or attorney before signing any document you don’t understand.
• Get to know your banker and build a relationship with the people who handle your finances. They can look out for any suspicious activity related to your account.
• Check references and credentials before hiring anyone. Don’t allow workers to have access to information about your finances.
• Pay with credit cards instead of cash to keep a paper trail.
• Trust your instincts. Exploiters often are very skilled. They can be charming and forceful in their effort to convince you to give up control of your finances. Don’t be fooled—if something doesn’t feel right, it may not be right. If it sounds too good to be true, it probably is.

What should you do if you are a victim of financial exploitation?

• Talk to a trusted family member or friend.
• Tell your bank.
• Report it to your local police.
• File a report with the FBI at IC3.Gov.

Tips for Family and Friends

What are the warning signs of elder financial exploitation?

• Unusual activity in an older person’s bank accounts, including large, frequent or unexplained withdrawals, or large wire attempts.
• ATM withdrawals by an older person who has never used a debit or ATM card.
• Changing from a basic account to one that offers more complicated services the customer does not fully understand or need.
• Withdrawals from bank accounts or transfers between accounts the customer cannot explain.
• New “best friends” accompanying an older person to the bank.
• Sudden non-sufficient fund activity or unpaid bills.
• Suspicious signatures on checks, or outright forgery.
• Confusion, fear or lack of awareness on the part of an older customer.
• Refusal to make eye contact, shame or reluctance to talk about the problem.
• Checks written as “loans” or “gifts.”
• Bank statements that no longer go to the customer’s home.
• Altered wills and trusts.

What should you do if you suspect elder financial exploitation?

• Talk to your older loved ones. Try to determine what specifically is happening with their financial situation.
• Report elder financial exploitation to their bank.
• Contact Adult Protective Services.
• Reach out to the police and file a report with the FBI at IC3.Gov.

This article comes from the American Bankers Association: https://www.aba.com/advocacy/community-programs/consumer-resources/protect-your-money/elderly-financial-abuse