- Senior Scam Alerts
- Posts
- How to Spot, Verify and Report IRS Scams
How to Spot, Verify and Report IRS Scams
Seth Combs
July 05, 2024
If you’ve been a victim or know a victim, please contact us and we will try to assist
Quick Overview
Protecting Yourself from Impersonators
Did you know that seniors are disproportionately targeted by IRS impersonation scams, accounting for over 60% of these crimes?
I had no idea that seniors were such a big target for this type of scam. To me, it’s mind blowing that criminals impersonate major government agencies to strike fear into the hearts of victims.
People get uneasy whenever they receive any correspondence from the IRS, and criminals prey on this. The issue around IRS scams has become so big that the IRS Commissioner is on a publicity tour to warn taxpayers about this rise in scams.
I have taken some time to comb through the IRS site and other governmental agencies that are working diligently to educate the public about these scams. Hope you find today’s newsletter helpful.
Remember, scammers go to work everyday with one goal in mind - steal your money. It’s not if you’re going to be targeted, it’s when. It’s so important to stay educated because every week, there’s a new scam or a new variation of an old scam.
Stay safe out there,
How to Spot, Verify and Report IRS Scams
In recent years, there's been a significant rise in IRS scams targeting senior citizens. These scams are becoming increasingly sophisticated, leaving many vulnerable individuals at risk of losing their hard-earned savings. As AI and technology continues to progress, so does the believability and the complexity of these scams.
More government agencies are doing their best to educate the public. Here’s a public service announcement about IRS scams from the Treasury Inspector General for Tax Administration.
Before we dig into the most common types of IRS scams, it’s important to understand how the IRS contacts taxpayers.
The IRS states that most communication is initiated through mail delivered by the United States Postal Service. In certain situations, the IRS may make phone calls or visit homes or businesses. These situations include having an overdue tax bill, an unfiled tax return or missing employment tax deposit. All of which are preceded by a letter delivered by the USPS.
Types of IRS Scams
IRS scams often come in various forms, but they generally take place by:
Phone: Scammers have access to tools that allow them to impersonate caller IDs to seem real.
Email: Scammers use fake IRS logos, asking for personal information or directing you to malicious websites.
Mail: Letters that look official but contain false information are sent to trick you into providing sensitive information.
Most common types of IRS scams include claims that:
You Owe Money: Scammers frequently fabricate urgent scenarios, such as outstanding debts for past tax balances. These scammers will also emphasize penalties and the immediate need to pay it off via gift cards, wire transfers, or cryptocurrency.
You Have a Refund: Scammers use the refund tactic to throw you off the scam. Scammers may ask you to provide your social security number, a credit card number or bank information to trick you into giving them sensitive information. They may also prompt you to pay a fee to process your refund.
You Won a Prize or Lottery: This common scam offers you significant prize winnings. Then, the scammer asks you to pay fees to claim non-existent winnings.
You Must Verify Account Information: This scam is focused on getting as much sensitive information on you as possible. This includes asking for your social security number, banking information, and other details that can help scammers to access your financial accounts.
How to Spot an IRS Scam
Scammers are criminals and they use psychological tricks and social engineering to manipulate victims, including:
Urgent Language: Scammers create a sense of urgency, demanding victims take immediate action without allowing time for reflection.
Threats: Scammers use threats of arrest, deportation, license suspension or computer viruses to coerce you and force immediate action.
Use of Your Private Information: A lot of your private information is online and available for scammers to utilize, including your name, address, number, social security number (in some cases), and more. Scammers will sometimes use this information to gain trust and compliance. Just because they have information on you does not mean they are a government agent.
Not letting you off the phone: In addition to pressuring you for immediate action, scammers that call you will try and force you to make a payment immediately and not let you get off the phone. By doing this, they don’t allow you to verify information, think about the situation, or contact experts.
If you experience any of the following, it is a scam because the IRS will never:
Demand immediate payment via prepaid debit cards, gift cards or wire transfers. To complicate traceability, scammers insist on these unconventional payment methods.
Threaten to involve local police or other law enforcement agencies.
Demand payment without allowing opportunities to dispute or appeal the amount owed.
Request credit, debit or gift card numbers over the phone.
Initiate contact via email, text, or social media regarding tax bills or refunds.
How to Protect Yourself from IRS Scams
If you receive a suspicious call, email, text or letter, here’s what you should do:
Hang Up: If you get a call from someone claiming to be from the IRS, hang up immediately.
Verify By Phone: Do not return the call using the number provided by the caller or the one displayed on their caller ID. You can contact IRS customer service for verification at 800-829-1040, or for the hearing impaired, TTY/TDD 800-829-4059.
Do Not Click Links: Avoid clicking on any links in suspicious emails. Instead, go directly to the IRS website.
Verify Online: To view details about your tax account, you can set up or check your IRS account on IRS.gov.
Never Share Personal Information: The IRS will never ask for your Social Security number, credit card numbers, or other sensitive information over the phone or email.
Shred Sensitive Documents: Shred old tax documents, bank statements, and any paperwork containing personal information.
How to Report an IRS Scam
If you encounter an IRS scam, it’s crucial to report it. This information helps local and national government agencies understand the scope of these scams and will help others understand how to protect themselves.
Ways to report an IRS scam include:
Contact the IRS: Report all unsolicited email claiming to be from the IRS or an IRS-related function to [email protected] or call 1-800-366-4484.
Report to the Treasury Inspector General for Tax Administration (TIGTA): Submit a report on their website.
Notify the Federal Trade Commission (FTC): File a complaint at FTC.gov.
Stay Informed and Stay Safe
To ensure you stay one step ahead of the scammers, always keep yourself informed:
Attend Workshops: Join local community workshops on scam prevention.
Educate Others: Education is crucial in combatting IRS scams. Be sure to share information with your loved ones.
Sign Up for Senior Scam Alerts: It’s easy and free. Sign up today and tell your loved ones to sign up as well.
Conclusion
At Senior Scam Alerts, we’re dedicated to ensuring you have the knowledge and tools to protect yourself from IRS scams. Remember, staying vigilant and informed is the key to safeguarding your assets and personal information. If you have any doubts or need assistance, do not hesitate to reach out to us. We’re here to support you every step of the way. Together, we can stop these scams.