IRS impersonation scam

IRS impersonation scams involve scammers targeting American taxpayers by pretending to be Internal Revenue Service (IRS) collection officers.[1] The scammers operate by placing disturbing official-sounding calls to unsuspecting citizens, threatening them with arrest and frozen assets if thousands of dollars are not paid immediately, usually via gift cards or money orders.[2] According to the IRS, over 1,029,601 Americans have received threatening calls, and $29,100,604 has been reported lost to these call scams as of March, 2016.[3] The problem has been assigned to the Treasury Inspector General for Tax Administration.[4]

The scammers often request payment in the form of gift cards such as Google Play or iTunes cards, wire transfer, MoneyGram, or credit card.[5]

As of September 2017, several people from India have been arrested for impersonating IRS employees.[6]

The United Kingdom

Variations on this scam have targeted British taxpayers, pretending to be from HM Revenue and Customs (HMRC). Sometimes the scammers use telephone calls,[7] sometimes SMS text messages, and sometimes emails.[8] Versions include:

  • The scammers threaten a lawsuit by HMRC to recover money allegedly owed.[7][9]
  • The scammers tell people that they are due a tax rebate, and use this to trick them into disclosing their account and personal details.[8]

Canada

Another variation similarly targets Canadians by impersonating the Canada Revenue Agency and utilizing aggressive fear tactics, with at least 60,000 Canadian residents filing complaints from 2013 to 2018.[10]

Response by companies

In response to a modus operandi by scammers where they coax victims into buying prepaid cards or gift cards for online services, companies such as Apple, along with the Federal Trade Commission, have posted advisories warning over the illicit use of gift cards by scammers.[11][12] Retailers and supermarkets have also followed suit by putting up similar warnings on prepaid and gift card sections.[13]

See also

References
  1. "Phone Scams Continue to be a Serious Threat, Remain on IRS "Dirty Dozen" List of Tax Scams for the 2016 Filing Season". IRS. Retrieved 28 March 2016.
  2. "IRS Urges Public to Stay Alert for Scam Phone Calls". IRS. October 21, 2015. Retrieved 28 March 2016.
  3. "IRS: Over $29 Million Lost in Fraud Phone Scams". March 11, 2016. Retrieved 28 March 2016.
  4. "IRS Impersonation Scam Reporting". Treasury Inspector General for Tax Administration. Retrieved 28 March 2016.
  5. https://www.irs.gov/newsroom/tax-scamsconsumer-alerts
  6. "2017 TNT 182-6 TAX CRIME ROUNDUP". 21 September 2017.
  7. Scam Warning: Phone message threatens HMRC lawsuit, Tax Volunteers, 22 July 2016, retrieved 2 September 2018
  8. HMRC warns on tax refund scams, HM Revenue & Customs, 9 May 2018, retrieved 2 September 2018
  9. Knapman, Joshua (12 June 2018), Scammers claiming to be from HMRC targeting people by phone, Wales Online, retrieved 2 September 2018
  10. https://www.cbc.ca/news/canada/cra-phone-tax-scam-marketplace-1.4830141
  11. "iTunes Gift Card Scams - Official Apple Support". Apple Inc. Retrieved 28 September 2018.
  12. Herbert, Amy (10 May 2016). "Scammers push people to pay with iTunes gift cards". Federal Trade Commission. Retrieved 28 September 2018.
  13. Tompor, Susan (21 September 2016). "New scam: Student puts $1,762 on iTunes cards to pay IRS". Detroit Free Press. Retrieved 28 September 2018.
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