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Watch For Scams Newsletter. Tax Fraud
March 25, 2018
Watch For Scams is dedicated to helping you avoid becoming a victim of fraud.
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Tax FraudPhishing (as in “fishing for information”) is a scam where fraudsters send e-mail messages to trick unsuspecting victims into revealing personal and financial information that can be used to steal the victims’ identity.
The IRS has issued several alerts about the fraudulent use of the IRS name or logo by scammers trying to gain access to consumers’ financial information to steal their identity and assets.
Scam emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. These phishing schemes may seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.
Be alert to fake emails that appear to come from your tax professional, requesting information for an IRS form. IRS doesn’t require Life Insurance and Annuity updates from taxpayers or a tax professional. Beware of this scam.
Variations can be seen via text messages. The IRS is aware of email phishing scams that include links to fake web sites intended to mirror the official IRS web site. These emails contain the direction “you are to update your IRS e-file immediately.” These emails are not from the IRS.
The sites may ask for information used to file false tax returns or they may carry malware, which can infect computers and allow criminals to access your files or track your keystrokes to gain information.
There is also a sophisticated phone scam targeting taxpayers, including recent immigrants, which has been making the rounds throughout the country. Callers claim to be IRS employees, using fake names and fake IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling.
Victims are told they owe money to the IRS and it must be paid promptly through a gift card or wire transfer. Victims may be threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting. Victims may be told they have a refund due to try to trick them into sharing private information. If the phone isn't answered, the scammers often leave an “urgent” callback request.
Some thieves have used video relay services (VRS) to try to scam deaf and hard of hearing individuals. Taxpayers are urged not to trust calls just because they are made through VRS, as interpreters don’t screen calls for validity.
Limited English Proficiency victims are often approached in their native language, threatened with deportation, police arrest and license revocation, among other things.
Please Note that the IRS doesn't:
• Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail you a bill if you owe any taxes.
• Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.
• Demand payment without giving you the opportunity to question or appeal the amount they say you owe.
• Ask for credit or debit card numbers over the phone.
If you believe you have been a victim of this type of scam you should promptly report it to the IC3's website at www.IC3.gov. The IC3's complaint database links complaints together to refer them to the appropriate law enforcement agency for case consideration.
Remember - always watch for scams!
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