|
Washington,
D.C. -- Tax-related scams are on the rise, according to consumer
complaints tracked by the National Consumers League’s Fraud
Center. Reports of tax scams from consumers nearly quadrupled in
2007 from the year before, and the trend seems to be continuing
into 2008
“This time of year – and with the economy in the shape it’s
currently in – crooks see vulnerable prey in consumers feeling
the squeeze at tax time, said Sally Greenberg, Executive
Director, National Consumers League. “Posing as IRS officials,
these criminals pretend to be helping consumers claim a refund
they’re due, but they’re really setting up a sting to steal
consumers’ hard-earned cash. Consumers who are eager to get
their refund faster may be vulnerable to these pitches.”
In the scam, which was first reported to NCL’s Fraud Center in
April 2005, the two most common scenarios are both “Phishing”
schemes: the victim receives a phone call from an “IRS employee”
offering a tax refund – however, they need the taxpayer’s
checking account number, he or she is told, in order to deposit
the money. Alternately, the victim gets an email claiming to be
from the IRS – often with a realistic-looking sender address –
stating that the consumer is due a refund and needs to click on
a link and enter their personal financial information in order
to have it processed.
“Our Fraud Center received close to 50 complaints in 2007, which
we believe is just the tip of the iceberg, since many people
don’t report these scams due to embarrassment,” said Greenberg.
“Many consumers who do report have been too savvy to fall
victim. However, with tax season upon us, and as scammers’ pitch
continues to evolve, we’re cautioning consumers against falling
for the bait.
Tips for Consumers:
-
Be immediately suspicious if someone claiming to be from the
IRS or any other government agency contacts you.
-
Do not give out any personal information – legitimate
government agencies will have a consumer’s contact
information on file and should not need you to provide it.
-
Ask the caller to follow-up with you via regular mail, or
hang up and call the agency’s phone number – obtained from a
credible source, such as the official Web site or the
government pages of your phone book.
Other tax-related scams reported to NCL’s Fraud Center include:
-
Offers to provide “tax relief,” or assistance with clearing
or reducing tax payments consumers owe to the government.
-
Con artists claiming to be government representatives
calling to initiate payment transfer of impending government
tax “rebates” (Economic Stimulus Act of 2008 which will
provide payments to more than 130 million American
households)
-
Tax-filing services that file the return on behalf of the
consumer but use different routing numbers to ensure that
the refund never makes it to the consumer’s bank account.
Consumers should remember: the IRS does not use e-mail to
initiate contact with taxpayers about issues related to their
accounts. If a taxpayer has any doubt whether a contact from the
IRS is authentic, the taxpayer should call the IRS customer
service toll-free number (1-800-829-1040) to confirm it.
Stephen
Stephen was worried about the money he owed the IRS. He
contacted a company that assured him he would be work with tax
attorneys who would settle his debt. Stephen sent them his
personal information and tax returns from previous years. One
week later, the company said they couldn’t help Stephen, but
wished him “luck”. When Stephen asked for a refund for the
$9,500 fee he paid via credit card, the company hung up on him.
Stephen reported the scam to NCL’s Fraud Center, and is working
with an attorney in hopes of recovering the money he lost.
“Pattie”
Pattie responded to a tax refund company’s advertisement –
receive a tax refund directly deposited into one’s bank account
within 8-11 days for only $99! She provided her routing number
when filling out the paperwork. The company told her that there
was a delay but that her direct deposit was being processed.
After following up with her bank, Pattie learned that the
company had rerouted her deposit into their account – leaving
her without a refund and helpless.
For more examples of tax scams or for an interview with a
victim, contact NCL’s communications department:
media@nclnet.org or (202) 835-3323, ext 114. |
