Fraudsters Mess with the IRS
The Daily Record, December 15, 2009 by Gina Bliss
A client called me and was excited because he had received an email from the IRS that he had an additional refund just waiting for him to claim. He went on to tell me that all he had to do was provide his bank account information and the refund would be deposited into his account in 3-5 business days. Fortunately for my client, he decided to call me and I was able to tell him it was a scam.
The IRS recently published an alert on their website to warn the public of new identity theft scams that use the IRS name, logo or website. Most scams utilize email but a few were by phone. The common goal is to gain personal information such as social security numbers, bank account or credit card numbers.
In these difficult economic times, we are all looking for a few extra dollars but here is a warning: Don’t fall for these scams! If you respond to these frauds you could lose cash from your bank account, and you could also be a victim of identity theft.
With the new “making work pay” credit, fraudsters try to take advantage of those who can’t stay on top of all the changing legislation. An email is sent to a taxpayer stating that there is a refundable credit available that can be paid if the taxpayer registers with the IRS. The email has a link where the taxpayer can then enter personal information. In actuality, working taxpayers have already received their “making work pay” credit in their paychecks through reduced withholdings.
A second email scam appears to come from the U.S. Department of Treasury stating that the taxpayer can receive their share of recovered funds, lottery winnings or cash consignments in return for personal information. This scam is perpetrated in many steps and the victim may be contacted with additional emails or a phone call. The victim may even receive a check that will bounce.
Fraudsters will also modify an original IRS form and email it to an unsuspecting taxpayer. This form will request personal information. Often, fraudsters will use a form number similar to a legitimate IRS form.
There has been some talk of another stimulus payment, and fraudsters have used this to their advantage. They will send an email saying the taxpayer qualifies for advance payment of their stimulus money. Again, all they have to do is provide their bank account information.
Fraudsters are even creating online customer satisfaction surveys to gain access to personal information. A taxpayer is lured into participating in a survey with the promise of an $80 credit to their tax account. The taxpayer then needs to “confirm” some of their personal tax information to receive the credit.
In the last fraud listed by the IRS alert, a fraudster posing as an IRS agent will call a taxpayer claiming that their refund check has never been cashed. The taxpayer is then asked to verify their bank account.
So, how do you know it is a scam? I have seen an email and it looks legitimate with the IRS logo displayed across the top.
The first thing to remember is that the IRS typically does not discuss tax account matters by email. Also, the only way to request a refund from the IRS is by filing the appropriate tax forms. In addition, check the internet address. If it does not start with www.irs.gov, you are looking at a fake. Often these emails will have incorrect grammar or odd phrasing as they originate from overseas.
If you do receive an email or phone call from the IRS, you should first contact the IRS at 1-800-829-1040 to see if the IRS is indeed trying to contact you. Do not open any attachments or click on any links as they may contain viruses. Also, forward the email to the IRS at phishing
irs [dot] gov. The IRS reviews and investigates each email they receive.
As a tax preparer and certified fraud examiner, I subscribe to the IRS newswire which sends updates of recent fraud schemes and tax law changes. When a client calls, I know exactly what to tell them.
Content taken from www.irs.gov IR-2009-71
Gina Bliss, CPA, CFE
Gina is a senior manager at EFP Rotenberg who specializes in internal audit, fraud audit, and forensic accounting. Article reprinted courtesy of The Daily Record.