IRS Warns of Impersonation Scams

Scams, or unscrupulous forms of trickery, are nothing new. However, they are ever-present and increasingly becoming more sophisticated. Here’s what you should know!

Protecting yourself is key

Senior citizens are specifically being targeted by impersonation scammers. These are scammers who pretend to be trusted businesses, friends, or family. Scammers seek to gain access to people’s identities or money. Here’s what you should know to protect yourself and others from impersonation scams.

What happens in an IRS impersonation scam?

Impersonation scams can happen in multiple ways. Here’s a common example. Victims are contacted and told that they owe money to the Internal Revenue Service (IRS). The impersonator (scammer) will pretend to be an agent or representative of the IRS. They may pressure victims to pay them promptly via a gift card or wire transfer. Or they may issue threats like arrest, deportation, or suspension of a driver’s license. On some occasions, scammers may be unfriendly or outright hostile. Sometimes scammers calling victims may alter the caller ID to make it appear that the call is coming from IRS. Thus, government agencies warn taxpayers not to fall for scams targeting older adults.

How do I know if IRS contacting me is legit?

Generally, IRS will contact most taxpayers who owe money via a letter called a notice which comes through the U.S. Postal Service. IRS does not make random calls nor sends random texts or emails stating that money is owed to them. Folks are urged to be cautious of such contacts and not engage with suspected scammers. Be wary of suspicious emails that can potentially contain phishing links (links that bait victims into providing personal information) or malware (software intentionally designed to disrupt a computer or gain unauthorized access into systems of information). IRS never uses social media to contact people.

How is technology aiding and abetting scammers?

Scammers use technology to their advantage whenever possible. While the application of scientific knowledge is spectacular, technology has some downsides. For example, it makes it easy for scammers to personally contact individuals – making everyone accessible to them. Scammers seek to take advantage of weaknesses. Let’s look at this example. Senior citizens are more likely to be hard of hearing than the younger population. Thus, they may be specifically targeted for family impersonation scams whereby scammers pretend to be a family member in distress. Seniors with hearing challenges may lack the ability to effectively distinguish the caller’s voice, rendering them more susceptible to impersonation scams of this nature. In another example, IRS scammers may take advantage of seniors with age-related vulnerabilities, such as declining memory. Additionally, scammers have learned ways to “spoof” phone numbers, altering caller ID to gain legitimacy – using technology to trick people.

How can we avoid IRS scams?

IRS wants all taxpayers – particularly older Americans – to be educated on scams. IRS provides current information on the latest ones so that people can protect themselves from scammers.

What are some other signs of scams to watch for?

• Claims of problems or prizes. Scammers will fabricate stories and make them sound believable or appealing. For instance, scammers may say that a taxpayer has an unclaimed refund and ask them to verify information to obtain the refund. This, of course, is an attempt to steal personal information. Or scammers may claim an individual has won a prize. Note that IRS does not offer “prizes.”
• Requests for unconventional payments. This is a total red flag of a scam. IRS will never ask for payment in the form of gift cards, Bitcoins, or prepaid debit cards. Nor will they call and ask for credit or debit card numbers over the phone. These are signs of scammers – do not engage.
• Pressure for immediate action. IRS does not make threats. For example, they will never threaten taxpayers with arrests, bodily harm, deportation, revoking licenses, or other such ill-fated actions.  Should you be threatened by scammers, contact your local police department. Report all unsolicited email claiming to be from the IRS or an IRS-related function to [email protected].  If you experienced monetary loss due to IRS-related incident, report it to the Treasury Inspector General for Tax Administration (TIGTA) online or by calling TIGTA at 1-800-366-4484.  You may also notify the Federal Trade Commission.

Be vigilant

Heed IRS warnings. This federal government agency wants you to know that scams are on the rise, bad actors are increasingly using technology to promote their scams, and seniors particularly must watch out for impersonation scams. To be vigilant, one must safeguard personal data and learn to identify scams to avoid falling victim. If you are uncertain of your current tax status or face concerns about the legitimacy of a notice received, contact your tax preparer or IRS through their official website for guidance. Never use contact numbers provided to you. Always look up phone numbers or websites independently to ensure legitimacy.