IRS Scams Continue to Pose Serious Threats

The Internal Revenue Service has some advice for taxpayers this April Fool’s Day that may prevent them from being the victim of a tax scam: Don’t be fooled by scammers. Stay safe and be informed. Here are some of the most recent IRS-related scams to be on the lookout for:

Telephone Scams: Aggressive and threatening phone calls by criminals impersonating IRS agents remain an ongoing threat. The IRS has seen a surge of these phone scams in recent years as scam artists threaten taxpayers with police arrest, deportation, license revocation and more. These con artists often demand payment of back taxes on a prepaid debit card or by immediate wire transfer. Be alert to con artists impersonating IRS agents and demanding payment.

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DON’T BE A VICTIM TO A TAX SCAM

Each year, people fall prey to tax scams. Stay safe and be informed – don’t become a victim.

If you get involved in illegal tax scams, you can lose money or face stiff penalties, interest, and even criminal prosecution. Remember, if it sounds too good to be true, it probably is. Be on the lookout for these scams:

Telephone Scams

Threatening phone calls by criminals impersonating IRS agents remain an ongoing threat. The IRS has seen a surge of these phone scams in recent years as scam artists threaten taxpayers with police arrest, deportation, license revocation, and more. These con artists often demand payment of back taxes on a prepaid debit card or by immediate wire transfer. Be alert to con artists impersonating IRS agents and demanding payment.

FedEx Phishing

The email below is not from Federal Express. Note their mailing address is not FedEx.com

I verified this with Federal Express directly, who told me that they are getting large volumes of customers calling and asking. If you were to click on the “Get Shipment Label” bar, you will have let the hackers into your computer.

IRS Updates Phone Scam Warnings

The IRS is again warning the public about phone scams that continue to claim victims all across the country. In these scams, thieves make unsolicited phone calls to their intended victims. Callers fraudulently claim to be from the IRS and demand immediate payment of taxes by a prepaid debit card or wire transfer. The callers are often hostile and abusive.

The Treasury Inspector General for Tax Administration (TIGTA) has received 90,000 complaints about these scams. TIGTA estimates that thieves have stolen an estimated $5 million from about 1,100 victims. To avoid becoming a victim of these scams, you should know:

PROTECT YOUR PERSONAL INFO.

1.  Shred, Shred and Shred some more. And do not be cheap about the shredder. Make sure it cuts in two directions.

2.  Remove your name from mailing lists for preapproved credit cards or other financial offers. This mail could be stolen, your address changed and credit applied for in your name. Some banks have even approved credit on torn applications that were taped back together. (shred, shred, shred).

SOUTH CAROLINA’S DEPARTMENT OF REVENUE HACKED

South Carolina’s Department of Revenue has been hacked. It has been reported that the hacker had access to 3.6 million social security numbers and 387,000 credit/debit card numbers and/or bank account numbers with the associated bank routing numbers.

For years, I have warned my clients:

1.        Do not give banking information on your tax return.