AG Platkin: Be On High Alert For Fraud This Tax Season

Curt Springstead, a retiree living in Passaic County, went to get his mail one Saturday morning and discovered 25 identical envelopes from an unfamiliar bank.

Each letter congratulated him for opening a checking account. He hadn’t opened any—and as someone who worked in IT for decades, he knew in a heartbeat: This was identity theft.

“You feel like something’s draining out of you,” recalls Springstead.

Now an AARP New Jersey volunteer, Springstead, 72, shares his story—which started that Saturday in 2014 and played out for years as he shadow-boxed the thieves—during fraud prevention presentations around the state. Just as importantly, he explains what he did to protect himself financially from the thieves.

Incidents of fraud have exploded in recent years, as more people go online for everything from banking to socializing. In 2023, New Jersey consumers 60 and over reported losing more than $104 million in fraud—up from $87.5 million in 2021, according to FBI data; officials say that’s likely a significant undercount.

Separate Federal Trade Commission data shows that identity theft was the No. 1 type of fraud in New Jersey for consumers of all ages in 2023. Several schemes abound at tax-filing time.

“Tax season is prime time for cybercriminals,” New Jersey Attorney General Matthew Platkin (D) told the Bulletin in an email. “We urge New Jerseyans to be on high alert for schemes and scams that put their tax refunds in jeopardy and their financial security at risk.”

Steps to stop scammers

Criminals who have your stolen Social Security number can file a tax return in your name and grab your refund before you even get around to filing. IRS and state officials warn about impostors pretending to be professional tax preparers and making off with your personal data—charging you a hefty fee to boot. Or they falsify information to get large refunds for you, with their fee a percentage of the refund.

“All of our data are out there,” says Kathy Stokes, director of fraud prevention programs for AARP’s national office. Consumers should use strong passwords and password managers, so if someone steals their information, they can’t use it to get into other accounts, she advises.

Another major type of fraud reported in New Jersey, according to the FTC data: impostor scams. Criminals call, text and email—posing as IRS agents or other government officials—and demand urgent tax payment, sometimes threatening arrest or other negative actions. Some try to get your personal information by claiming you are owed a tax refund.

The cons are “constantly changing,” says Sarah Torres, AARP New Jersey’s outreach and engagement director. The best way to protect yourself against fraud, she says, is to be proactive and aware of the latest scams.

This year, AARP New Jersey is expanding its offerings, with more free community events on fraud featuring law enforcement and other specialists. Such efforts, along with digital outreach, a sold-out conference and regular fraud-focused Facebook videos, reached an estimated 60,000 people last year. (Visit aarp.org/nj/fraud for more.)

As for Springstead, a self-described “tech nerd,” he isn’t sure how the thieves got his data. But he knows it’s out there for any criminal to find. After receiving those first letters, he notified the bank, checked his real bank accounts, filed a police report and sought FTC advice on stopping further nefarious use of his name, Social Security number and other personal information.

The notifications of new accounts kept coming, about 200 in all, until a few years ago. The only thing that has kept the criminals at bay? Freezing his credit with the three major credit bureaus. That can help prevent approval of new loans or credit lines, credit cards or other accounts without your permission.

“In the last few years, I’ve gotten notices of people still trying to break in and open accounts on my behalf, but they’re all thwarted by the freeze,” he says.

Rita Beamish, based in California, is a former Associated Press reporter and San Francisco Chronicle editor. She has written for the Bulletin for 15 years.

Also of interest:

• Impersonating IRS Agents, Scammers Try to Steal Your Money
• 25 Great Ways to Avoid Scams
• What to Do if Your Wallet is Lost or Stolen