Identity theft is a growing concern, and as tax season approaches, there’s increased risk that people will be victims of tax return fraud—when scammers attempt to file under other people’s names and swipe their refunds. Financial advisors are not only uniquely positioned to help clients protect themselves in these cases—but can also use their expertise as a powerful marketing tool. Talking about such topics helps advisors engage with their clients more often and establish thought leadership.
I recently experienced the tax fraud issue firsthand. When our CPA filed our family’s tax return, we discovered that someone had already filed using my information. Luckily, the Internal Revenue Service flagged the fake return, but the experience was a stark reminder of how vulnerable we all are. It also shows advisors why they should be proactive talking about this subject with clients—the topic offers them an opportunity to market, educate and better connect.
Understanding The Growing Threat
Recent data breaches, including the massive data leak at background check website National Public Data, have exposed millions of taxpayers’ identification numbers, making this tax season especially risky. Scammers can use such data to submit fake returns early, claiming refunds before the legitimate taxpayers have had a chance to file. By warning clients about such issues now, you can position yourself as a trusted resource before there’s a problem.
A Content Marketing Opportunity
I believe content marketing is one of the best ways to grow your business over time, and fraud is a particularly relevant topic. Here are some ways you can take advantage of your knowledge and position yourself as a resource for clients (and prospects):
- Blogs and articles: You can write posts detailing identity theft prevention and tax return fraud risks, as well as the steps clients can take to protect themselves. These articles can drive organic traffic to your website and establish your expertise.
- Media outreach: You can also offer yourself as a knowledgeable source to local media. Journalists often seek out expert opinions, especially as tax season ramps up.
- Educational webinars: Consider partnering with a CPA to co-host a webinar on tax fraud prevention. This not only provides value but also helps you reach potential clients within your partner’s network.
- Email and newsletters: You can include brief, actionable tips about identity protection through these media. This type of content keeps you top of mind and shows that you’re always looking out for your clients’ best interests.
What To Talk About
Here are some of the practical things you’ll want to discuss with clients in your blogs, social media posts or short videos on the topics of financial fraud:
- Make sure your clients review IRS notices: Discuss with them the importance of taking correspondence from the agency seriously and talk about how catching issues early can help them prevent further problems.
- Tell them how to avoid phishing scams: Your clients need to know how to spot phishing attempts, especially from someone pretending to be from the IRS. For instance, they’ll want to watch out for emails or phone calls from someone claiming they have unpaid taxes, especially if the caller asks them for their personal details. Remind them that the IRS will never contact taxpayers by email or text to request sensitive information.
- Remind clients to monitor their financial accounts: Talk with them about the broader benefits of regularly keeping an eye on their bank and credit activity, not just during tax season, to catch anything suspicious.
- Remind clients to beef up their online security: Share tips with them about using strong, unique passwords and enabling multifactor authentication in their accounts to protect sensitive financial information.
- Point clients to wealth-tech platforms they can use: Explain how platforms like TaxStatus.com offer them real-time visibility into IRS account activity, offering early alerts for suspicious behavior and enhancing their overall security.
Reinforcing Your Role Through Content Marketing
Again, if you have strong content themes such as these, you can educate your audience while also demonstrating your expertise to them. Fraud is a perfect content marketing subject that can help you grow your business over time, strengthen bonds of trust with your clients and reinforce your role as a proactive and knowledgeable advisor.
With identity theft on the rise, there’s no better time to use this topic to engage clients and prospects.
