IRS Imposters Among the “Dirty Dozen” Tax Scams
IRS imposters are among the “Dirty Dozen” tax scams. Make sure you are not a victim by knowing how these scammers work. Here’s the bad news about unexpected good news you receive in an email from the Internal Revenue Service: It’s probably bogus. For example, out of the blue, the IRS will not contact you via email about a refund you were not expecting. People fall for this scam again and again. Some have received emails–with convincing IRS logos–that display a refund amount and a link you must click on to get a refund.
IRS Imposter Emails
The link leads to a mock-IRS Web page form that requires financial information, such as a Social Security and bank account number, user ID, password, mother’s maiden name, and other personal information. Victims enter this information, press “submit,” and Presto! Another identity thief can make your bank balance disappear, buy a home in your name, and max out credit cards in your name.
The bogus IRS email is an example of “phishing,” which can lead to identity theft. It occurs when scammers use an authentic-looking email to trick recipients into supplying personal financial data.
IRS Dirty Dozen Phishing
Although phishing accounts for only a fraction of the Internet fraud committed each year, its sting goes deep. We offer a few clues that an email may be from an IRS imposter:
* Tortured English: Most phishing emails traced by the IRS originate outside the United States. Look for grammar and spelling mistakes or unusual words and sentence structures.
* No forewarning: The IRS does not make initial contact with taxpayers via email. Agents do correspond via email, such as during some audit situations, but that doesn’t happen unless you provide them with your email address first.
* Your gut reaction: If it sounds too good to be true—it probably is.
IRS Dirty Dozen- Charities
Phishers also may pose as charitable organizations. Finding a list of a charity’s donors is easy, and criminals use the organization’s identity to go phishing.
For example, they send emails telling donors that the charity has calculated the tax-deductible amount of their donations. Donors are asked to supply Social Security numbers or other personal data. They use this data to retrieve the documentation they’ll need to claim the tax deductions.
Unsure if it is from the IRS?
If you’re unsure whether a tax email is legitimate, check at irs.gov, then call your local IRS office, or forward the email to phishing@irs.gov. Not only can you find the truth there—you may alert the IRS to a criminal who could get caught before scamming another victim.
Now you know how the IRS imposters are among the “Dirty Dozen” tax scams and what to do if you are caught up in this mess. Don’t become a victim; make sure you are in the know. And tell your family and friends, so they do not get scammed out of their hard-earned money. And if you like this post, make sure to check out our other MoneySmart Tips.
