What are some common bank fraud practices?

February 05, 2019
Be aware to prevent fraud during tax season

Be aware of these fraud patterns during tax season


While tax-related fraud and identity theft comes in many forms, there are several ways that it can begin. They all involve obtaining a victim’s Personally Identifiable Information (PII). Here are some common scams to watch out for:

  • Phishing – Phishing occurs when fraudsters send taxpayers fraudulent e-mails or website links, that appear to be from the IRS. The criminal’s goal is to trick people into sharing personal information. A key point to remember: the IRS does not contact taxpayers by email, text messages, or social media to request personal or financial information. This includes requests for PIN numbers, passwords or similar access information.
  • Phone fraud – Cyber criminals often impersonate IRS agents via telephone, to steal personal information. The agency says it will never call to demand immediate payment, or ask you for your PII.
    • Important: The IRS will NEVER threaten you with arrest and tell you to buy gift cards and pre-paid debit cards, and send the card information to them as payment to avoid arrest. This is a sure sign of fraud, and has been rampant over the last several years. If you receive one of these calls, simply hang up the phone and call the IRS at 800.829.1040.
  • Tax preparer fraud – Tax preparer fraud occurs when tax clients receive e-mails that appear to be from their tax preparer, asking them to update their online accounts. The e-mails come from criminals, hoping to trick unsuspecting victims into providing such information as passwords, Social Security numbers, account numbers, and credit card numbers. 

Another common fraud tactic that is growing in frequency, not necessarily during tax season but year-round:

  • Computer Takeover – Fraudsters who purport to “clean up your computer” can access your Online Banking and transfer funds from one of your accounts to another; they will then tell you that they have made a “deposit” into your account and ask you to return the funds. In fact, they have not deposited any of their own funds at all; they have simply transferred funds from another of your accounts, often times without you knowing it. 

Please be aware of these scams. If you believe you have been a victim of one of these types of fraud, MHV is here to help you. If you have questions, please call us at 845.336.4444 and a representative will be happy to assist you.