Internal Revenue Service (IRS) Tax Refund Scams

The Internal Revenue Service (IRS) estimates that it sent out nearly three million fraudulent refunds to con artists last year. And, according reports from the Government Accountability Office, it cost tax payers $5.2 billion. During the period of filing for tax refunds thieves go around stealing individual’s identifications such as their social security number and date of birth. Persons may wonder how is that possible, where did they get all these information from, but it is so easy to purchase identities these days from the right person, namely, hospitals, schools, banks and many other institutions in which persons share their social security number and date of birth with. Also, the thieves collect information by calling or sending emails to potential victims, claiming they are from the IRS and trick them into giving them their personal and financial information, by threatening the potential victims with arrest and legal action.

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Internal Revenue Service (IRS) Tax Refund Scams

These thieves use the given information to their advantage by filling out fraudulent tax return W-2 forms on behalf of innocent victims before they do so themselves and collect refund checks from the Internal Revenue Service (IRS).

All these master-minds need are a laptop or a smart phone with the correct app, internet access to a tax preparation online website, a made up employer’s information and the amount of money that was earned. All these information are falsified except your social security number and your date of birth.

These thieves when filling out these bogus forms electronically ask for the check to be sent to an address of their choice, wire transfer to a bank account, or tell the IRS to load the money onto a prepaid debit card. These prepaid debit cards can be bought at any convenience stores around without having to provide up front an identification card. The money which is loaded onto these prepaid cards can be used like any regular visa credit card that a bank issues. The money is then withdrawn from these cards at ATMs and then disposed of. Your tax refund is all gone and stolen by these fraudsters.

Most times you aren’t aware you are a victim of such identity tax fraud until you try filing your return and the IRS informs you that “You have already filed”. With a puzzled reaction you tell them “No I have not yet filed for my returns” but in their database it shows where you have.to your defense you tell them “It wasn’t you, it must have been someone else”.

The IRS will now have to carry out an investigation in order for your identity to be sorted out. This process may take up to months before you can regain your identity and also claim your tax refund. The IRS is working tirelessly in an effort to try and put a stop to this. If you are a victim of identity tax fraud please contact your local law enforcement agency and report the crime.

How to Protect Yourself Against IRS Refund Scams?

  • The IRS will not contact you via telephone or email message; they will only contact you via snail or postal mail. So, any calls from persons claiming they are from the IRS, should be terminated. And, email messages appearing as if they came from the IRS requesting information or payment, should be deleted.
  • Never give out your personal information(address, full name, date of birth) and finacial information(credit card number, Social Security Number(SSN)) over the phone, or send it to someone who requested it via email message.
  • The IRS will never ask you to make payment via prepaid debt card, a money order, wire transfer, Western Union, MoneyGram or other money transfer services.
  • Never verify information over the phone to callers who claim they are from the IRS. This is another trick by scammers to trick their victims into indirectly disclosing their information.
Check the comment section below for additional information, share what you know, or ask a question about this article by leaving a comment below. And, to quickly find answers to your questions, use our search Search engine.

Note: Some of the information in samples on this website may have been impersonated or spoofed.

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Comments, Questions, Answers, or Reviews

Comments (Total: 4)

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September 8, 2016 at 10:49 AM by
Internal Revenue Service (IRS) Tax Refund Scams
info

Received via email:

"Received 2 threatening calls from the " IRS" the number they gave me was 607 794 8330"

Delete

March 7, 2016 at 3:52 PM by
Internal Revenue Service (IRS) Tax Refund Scams
info

A phone call from a government employee asking for money or offering to give it away is a red flag that someone is attempting to scam you! The government will never ask for money or give money away over the telephone.

Also, if you are asked to purchase a prepaid debit card and send the number to the caller, that is the first sign that someone is attempting to scam you.

Delete

January 30, 2016 at 6:50 PM by
Internal Revenue Service (IRS) Tax Refund Scams
info

Received from an anonymous user:

"We weren't home when the call came in, but they left a message on our machine that it was the "IRS AND WE'RE STARTING A CASE AGAINST YOU". I didn't report it, but did block the number."

Delete

January 30, 2016 at 6:46 PM by
Internal Revenue Service (IRS) Tax Refund Scams
info

Received the following from an anonymous user:

"Yes, I got a call from (210) 807-4116, which i answered after ignoring the first call. This person did NOT sound like an English speaker. Telling me my previous address and then asking for my current address. I said who is this again? The IRS - to which I replied I have NEVER received a phone call from the IRS, it's usually through the mail. Then hangs up. I could see how some elderly people would be afraid."

Delete

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Online Threat Alerts Security Tips

Pay the safest way

Credit cards are the safest way to pay for online purchases because you can dispute the charges if you never get the goods or services or if the offer was misrepresented. Federal law limits your liability to $50 if someone makes unauthorized charges to your account, and most credit card issuers will remove them completely if you report the problem promptly.

Guard your personal information

In any transaction you conduct, make sure to check with your state or local consumer protection agency and the Better Business Bureau (BBB) to see if the seller, charity, company, or organization is credible. Be especially wary if the entity is unfamiliar to you. Always call the number found on a website’s contact information to make sure the number legitimately belongs to the entity you are dealing with.

Be careful of the information you share

Never give out your codes, passwords or personal information, unless you are sure of who you're dealing with

Know who you’re dealing with

Crooks pretending to be from companies you do business with may call or send an email, claiming they need to verify your personal information. Don’t provide your credit card or bank account number unless you are actually paying for something and know who you are sending payment to. Your social security number should not be necessary unless you are applying for credit. Be especially suspicious if someone claiming to be from a company with whom you have an account asks for information that the business already has.

Check your accounts

Regularly check your account transactions and report any suspicious or unauthorised transactions.

Don’t believe promises of easy money

If someone claims that you can earn money with little or no work, get a loan or credit card even if you have bad credit, or make money on an investment with little or no risk, it’s probably a scam. Oftentimes, offers that seem too good to be true, actually are too good to be true.

Do not open email from people you don’t know

If you are unsure whether an email you received is legitimate, try contacting the sender directly via other means. Do not click on any links in an email unless you are sure it is safe.

Think before you click

If an email or text message looks suspicious, don’t open any attachments or click on the links.

Verify urgent requests or unsolicited emails, messages or phone calls before you respond

If you receive a message or a phone call asking for immediate action and don't know the sender, it could be a phishing message.

Be careful with links and new website addresses

Malicious website addresses may appear almost identical to legitimate sites. Scammers often use a slight variation in spelling or logo to lure you. Malicious links can also come from friends whose email has unknowingly been compromised, so be careful.

Secure your personal information

Before providing any personal information, such as your date of birth, Social Security number, account numbers, and passwords, be sure the website is secure.

Stay informed on the latest cyber threats

Keep yourself up to date on current scams by visiting this website daily.

Use Strong Passwords

Strong passwords are critical to online security.

Keep your software up to date and maintain preventative software programs

Keep all of your software applications up to date on your computers and mobile devices. Install software that provides antivirus, firewall, and email filter services.

Update the operating systems on your electronic devices

Make sure your operating systems (OSs) and applications are up to date on all of your electronic devices. Older and unpatched versions of OSs and software are the target of many hacks. Read the CISA security tip on Understanding Patches and Software Updates for more information.

What if You Got Scammed?

Stop Contact With The Scammer

Hang up the phone. Do not reply to emails, messages, or letters that the scammer sends. Do not make any more payments to the scammer. Beware of additional scammers who may contact you claiming they can help you get your lost money back.

Secure Your Finances

  • Report potentially compromised bank account, credit or debit card information to your financial institution(s) immediately. They may be able to cancel or reverse fraudulent transactions.
  • Notify the three major credit bureaus. They can add a fraud alert to warn potential credit grantors that you may be a victim of identity theft. You may also want to consider placing a free security freeze on your credit report. Doing so prevents lenders and others from accessing your credit report entirely, which will prevent them from extending credit:

Check Your Computer

If your computer was accessed or otherwise affected by a scam, check to make sure that your anti-virus is up-to-date and running and that your system is free of malware and keylogging software. You may also need to seek the help of a computer repair company. Consider utilizing the Better Business Bureau’s website to find a reputable company.

Change Your Account Passwords

Update your bank, credit card, social media, and email account passwords to try to limit further unauthorized access. Make sure to choose strong passwords when changing account passwords.

Report The Scam

Reporting helps protect others. While agencies can’t always track down perpetrators of crimes against scammers, they can utilize the information gathered to record patterns of abuse which may lead to action being taken against a company or industry.

Report your issue to the following agencies based on the nature of the scam:

  • Local Law Enforcement: Consumers are encouraged to report scams to their local police department or sheriff’s office, especially if you lost money or property or had your identity compromised.
  • Federal Trade Commission: Contact the Federal Trade Commission (FTC) at 1-877-FTC-HELP (1-877-382-4357) or use the Online Complaint Assistant to report various types of fraud, including counterfeit checks, lottery or sweepstakes scams, and more.
  • Identitytheft.gov: If someone is using your personal information, like your Social Security, credit card, or bank account number, to open new accounts, make purchases, or get a tax refund, report it at www.identitytheft.gov. This federal government site will also help you create your Identity Theft Report and a personal recovery plan based on your situation. Questions can be directed to 877-ID THEFT.

How To Recognize a Phishing Scam

Scammers use email or text messages to try to steal your passwords, account numbers, or Social Security numbers. If they get that information, they could get access to your email, bank, or other accounts. Or they could sell your information to other scammers. Scammers launch thousands of phishing attacks like these every day — and they’re often successful.

Scammers often update their tactics to keep up with the latest news or trends, but here are some common tactics used in phishing emails or text messages:

Phishing emails and text messages often tell a story to trick you into clicking on a link or opening an attachment. You might get an unexpected email or text message that looks like it’s from a company you know or trust, like a bank or a credit card or utility company. Or maybe it’s from an online payment website or app. The message could be from a scammer, who might

  • say they’ve noticed some suspicious activity or log-in attempts — they haven’t
  • claim there’s a problem with your account or your payment information — there isn’t
  • say you need to confirm some personal or financial information — you don’t
  • include an invoice you don’t recognize — it’s fake
  • want you to click on a link to make a payment — but the link has malware
  • say you’re eligible to register for a government refund — it’s a scam
  • offer a coupon for free stuff — it’s not real

About Online Threat Alerts (OTA)

Online Threat Alerts or OTA is an anti-cybercrime community that started in 2012. OTA alerts the public to cyber crimes and other web threats.

By alerting the public, we have prevented a lot of online users from getting scammed or becoming victims of cybercrimes.

With the ever-increasing number of people going online, it important to have a community like OTA that continuously alerts or protects those same people from cyber-criminals, scammers and hackers, who are every day finding new ways of carrying out their malicious activities.

Online users can help by reporting suspicious or malicious messages or websites to OTA. And, if they want to determine if a message or website is a threat or scam, they can use OTA's search engine to search for the website or parts of the message for information.

Help maintain Online Threat Alerts (OTA).

Internal Revenue Service (IRS) Tax Refund Scams