Stay Alert This Tax Season: PSPRS Warns Members of Rising Scam Risks
Fraudsters target retirees with evolving tax schemes
Don’t let tax season turn into open season for fraud. The Public Safety Personnel Retirement System is urging members and retirees of PSPRS-managed plans to remain vigilant as tax-related scams continue to rise.
“Threats from scammers are evolving, but fraudsters still rely on tried-and-true tactics to steal from people – especially retirees,” said Angela Egelhoff, PSPRS chief compliance officer. “Unfortunately, individuals continue to fall victim to bogus text and email schemes, as well as fraudulent tax preparers who collect upfront fees and then disappear.”
Egelhoff emphasized that one of the most common scams involves fake notifications about tax refunds or unclaimed property. These messages often arrive via text, email, or even social media platforms such as Facebook – methods the IRS does not use to contact taxpayers.
“The IRS will never reach out through text messages, emails, or social media,” she said. “These are clear warning signs of a scam.”
Another growing threat is the so-called “ghost preparer,” a fraudulent tax preparer who takes payment but fails to file a return or vanishes entirely. In other cases, scammers may file a tax return using a victim’s Social Security number to claim a refund – often leaving the victim unaware until they attempt to file their own return.
PSPRS encourages members to take proactive steps to protect themselves, including safeguarding personal information and working only with reputable, verified tax professionals.
“Be vigilant,” Egelhoff said. “If you believe you’ve been targeted or victimized, contact your local law enforcement agency, report the incident to the Federal Trade Commission, and notify the three major credit bureaus to place a fraud alert on your accounts.”