‘Largest’ phone fraud scam targets taxpayers

The Treasury Inspector General for Taxpayer Administration issued a warning Monday to taxpayers to beware of phone calls from individuals claiming to represent the Internal Revenue Service in an effort to defraud them.
Mar 29, 2014

 

The Treasury Inspector General for Taxpayer Administration issued a warning Monday to taxpayers to beware of phone calls from individuals claiming to represent the Internal Revenue Service in an effort to defraud them.

“This is the largest scam of its kind that we have ever seen,” said J. Russell George, the Treasury inspector general for tax administration. 

George said TIGTA received reports of more than 20,000 contacts and has become aware of thousands of victims who have collectively paid more than $1 million as a result of the scam, in which individuals make unsolicited calls to taxpayers fraudulently claiming to be IRS officials.

“The increasing number of people receiving these unsolicited calls from individuals who fraudulently claim to represent the IRS is alarming,” he said. “At all times, and particularly during the tax filing season, we want to make sure that innocent taxpayers are alert to this scam so they are not harmed by these criminals. Do not become a victim.”

George urged taxpayers to heed warnings about the sophisticated phone scam targeting taxpayers, noting the scam has hit taxpayers in nearly every state. Callers claiming to be from the IRS tell intended victims they owe taxes and must pay using a pre-paid debit card or wire transfer. The scammers threaten those who refuse to pay with arrest, deportation or loss of a business or driver’s license.

The truth is the IRS usually first contacts people by mail – not by phone – about unpaid taxes. And the IRS won’t ask for payment using a pre-paid debit card or wire transfer. The IRS also won’t ask for a credit card number over the phone.

“If someone unexpectedly calls claiming to be from the IRS and uses threatening language if you don’t pay immediately, that is a sign that it really isn’t the IRS calling,” he said.

The callers who commit this fraud often:

• use common names and fake IRS badge numbers.

• know the last four digits of the victim’s Social Security number.

• make caller ID information appear as if the IRS is calling.

• send bogus IRS e-mails to support their scam.

• call a second time claiming to be the police or department of motor vehicles, and the caller ID again supports their claim.

Read more about tax scams on the genuine IRS website at irs.gov.

 

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