Tax Refund Scams

By
January 31, 2022
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Tax-related fraud and identity theft have continued to grow, with millions of people becoming targets. Scammers need little more than your Social Security number and other general information to file a fraudulent tax return and hijack your tax refund. Taxpayers typically don’t discover the fraud until they attempt to file their own returns, which is why it's essential to file taxes as soon as possible. At the same time, you may want to confirm the appropriate timing with your tax professional. Although 1099s are due by the end of January, custodians may correct 1099s throughout February. If drastic changes happen to a 1099 after you file your taxes, the change can severely impact the amount you owe.

 

Here are some helpful ways to prevent your SSN from being compromised:

  • If you have been a victim of identity theft, complete  IRS form 14039, identity theft affidavit.
  • Respond immediately to any IRS issued notice once you verify the authenticity of the notice. You can do so by calling the IRS directly at 800-908-4490 or setting up your  online account.
  • Get an Identity Protection PIN: a 6-digit number that prevents someone else from filing a tax return using your Social Security number or individual taxpayer identification number. Only you and the IRS know the IP PIN.

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By
Zach Swaffer, CFP®
February 28, 2019

Do you want to start investing but fear you will be buying in at the top of the market? Well, what if I told you there was a way to invest in which you could take emotion out of the equation altogether, not only banishing market anxiety but actually taking advantage of dreaded market volatility? Too good to be true? Far from it. The panacea exists, and it’s called dollar cost averaging or, as we call it in the finance world: DCA.

Dollar Cost Averaging is a pretty simple financial strategy: you purchase a set dollar amount (say $300) of securities (stocks, mutual funds, etfs, bonds…you get the idea) on the same day each month. Because you are committed to a set dollar investment the total number of shares purchased will vary from month to month based on the market. In months where prices are increasing you receive fewer shares; however, in months with falling prices your money buys MORE shares.

How does this benefit you? It removes emotion from the investment equation by keeping you from attempting to “time the market” (which has been proven to be impossible) and helps establish the saving behavior necessary for long term financial success. You are not waiting for a certain price to be reached before buying and when markets are experiencing volatility you are not selling and sitting on the sidelines waiting for things to settle down and then attempting to determine when to buy back into the market. Rather, you are using a disciplined strategy to steadily contribute to your long term goals and when the market is on sale, prices are declining, your monthly contribution has more buying power.

Here’s what’s even better: you are most likely already taking advantage of DCA as part of your financial plan, without even realizing it! If you are contributing to an employer sponsored retirement plan like a 401(k) (which you should be!), you are taking advantage of Dollar Cost Averaging by setting aside a certain percentage of your pay and investing it on set days each month. But why limit a DCA strategy to just one segment of your financial portfolio? You can leverage Dollar Cost Averaging to efficiently build individual accounts for shorter or medium term priorities such as travel, a new car, or purchasing a house. It’s not magic or rocket science, but Dollar Cost Averaging can help take advantage of volatility in markets, remove emotion from investing, and establish a beneficial pattern of saving for future priorities.

While dollar cost averaging is a powerful financial tool it is only one component of a full financial plan. If you would like to talk more about the impact of dollar cost averaging on your personal financial plan please contact me at zach.swaffer@trilogyfs.com.

By Trilogy Financial
June 7, 2024

AI is revolutionizing the way scams are conducted, drastically reducing operational costs while simultaneously enhancing the believability of fraudulent calls. In the 12 months since the launch of ChatGPT, AI-aided identity fraud surged nearly 1,800%, and phishing emails surged by nearly 1,300%, with their quality being the best we've ever seen. Additionally, AI-operated news sites, often used to push out misinformation, disinformation, and propaganda, grew from 40 sites to nearly 600.

Things to Know:

  • Content Farms: These platforms pump out low-quality, clickbait articles to earn ad revenue. Initially, humans edited AI-drafted articles for quality, but now, AI can produce vast amounts of content with little to no oversight.
  • Advertising Concerns: Reputable brands might unknowingly advertise on these spammy sites, which can mistakenly lend these articles credibility.
  • Disinformation Risk: Without human checks, AI can spread false information. This ranges from accidental “AI hallucinations” (fabricated facts) to deliberate disinformation, like fake celebrity obituaries designed to increase site traffic.

Tips for Navigating Content Safely:

  • Critical Thinking: Always question the authenticity of online articles.
  • Recognize AI Signs: Be cautious of sites with generic names or an overload of ads. Look out for errors and placeholders (e.g., “[date]”) that suggest AI-generated content.
  • Take Breaks: Regularly step away from the digital avalanche to avoid content fatigue and maintain cybersecurity awareness.

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