Five million dollars. That’s how much money the Treasury Inspector General for Tax Administration (TIGTA) estimates that victims have lost to the most recent IRS phone scam.
TIGTA has received 90,000 complaints about the scam through its telephone hotline. In March, J. Russell George, the Inspector General called it “the largest scam of its kind that we have ever seen.”
In the most common version of the scheme, callers posing as IRS representatives contact taxpayers by phone, claiming that they owe money to the IRS. Taxpayers are told that they must pay the balance promptly using a pre-loaded debit card or wire transfer or be subject to punishment, including arrest, deportation or suspension of a business or driver’s license. The callers may have heavy foreign accents, use common names and fake badge numbers. The number on the caller ID may also look like the IRS since the scammers may spoof the IRS toll free number.
It is not unusual for the caller to turn hostile during the call, and use threatening language. And even though the IRS has a bad rap, that’s not the way they do business. IRS Commissioner John Koskinen reminded taxpayers to be mindful about the scheme, warning, “A big red flag for these scams are angry, threatening calls from people who say they are from the IRS and urging immediate payment. This is not how we operate. People should hang up immediately and contact TIGTA or the IRS.”
That’s key: if you think a call might be a scam, hang up. There’s no need to engage the caller and no need to give them additional opportunities to make you a victim. Don’t give away any personal information over the phone, including your financial information.
If you are concerned about the legitimacy of a call, contact the IRS at 1.800.829.1040. It’s worth noting that the IRS doesn’t generally initiate contact by phone: your first contact with the IRS is usually by mail. Additionally, the IRS won’t ask for payment using a pre-paid debit card or wire transfer or ask for a credit card number over the phone (the IRS uses a third party processor for credit card payments via the web site). The IRS also does not ask for PINs, passwords or similar confidential access information for credit card, bank or other financial accounts.
You can also report the incident to TIGTA at 1.800.366.4484. Try to remember as many details about the call so that the authorities can follow-up.
Most of all, be careful out there. If you’re suspicious about a call, trust your gut. So far, 1,100 victims have lost money in the scams. Don’t become #1,101.
