Season for scammers
Law enforcement officials warn about rise in deception targeting taxpayers, preparers
New technology makes it easier than ever to file taxes, but it is also opening up new avenues for scammers looking for personal information.
Law enforcement officials are raising new alarms about some of the tax scams that are taking hold and victimizing not only individuals through email and the internet but also tax professionals.
“We want to put New Mexicans on notice about the types of tax scams out there so they can take measures to protect themselves,” said U.S. Attorney Damon P. Martinez at a news conference last week. “We also want to put these unscrupulous scammers on notice that what they are doing is criminal and we will make every effort to prosecute them and hold them accountable.”
The Treasury Inspector General for Tax Administration reports that between October 2013 and Jan. 3, 2017, over 100,000 known victims have collectively paid more than $54 million as a result of phone scams. This includes 58 victims in New Mexico who lost a total of $172,167. The numbers do not include individuals who have not reported their victimization, Martinez said.
The most common scams include:
Phone scams from those impersonating IRS agents continue to be an ongoing threat to taxpayers. The IRS is seeing a surge in phone scams where con artists threaten taxpayers with arrest, deportation and license revocation.
Phishing/email scams where criminals use fake emails and websites in the hope that victims will provide money, passwords, Social Security numbers and other information that can be used for identity theft. The emails can also infect a taxpayer’s computer with malware to access contacts and files.
A telephone call targeting students and parents and demanding payment for a fake “Federal Student Tax” where if the person does not comply, the caller becomes aggressive and threatens to report the student to the police.
“Verifying” tax return information over the phone when callers say they have your tax return, and they just need to verify a few details to process your return. The scam tries to get you to give up personal information such as a Social Security number or a bank account information.
Ismael Nevarez Jr., IRS criminal investigator in New Mexico, said the initial IRS contact with a taxpayer is usually by U.S. mail.
“Don’t be fooled by phone calls or emails by criminals impersonating IRS agents with threats or promises of a big refund if you provide them with your private information,” said Nevarez at the news conference. “If you are surprised to get a call or email from the IRS, it almost certainly is not the real IRS. It is almost certainly a scam.”
Tax professionals are also being warned to be alert for a new scam impersonating software providers.
The scam email comes with the subject line “Access Locked” and tells users their tax prep software accounts have been suspended, asking them to use an “unlock” link.
“However, the link will take the tax professional to a fake web page, where they are asked to enter their user name and password. Instead of unlocking accounts, the tax professionals actually are inadvertently providing their information to cybercriminals who use the stolen credentials to access the preparers’ accounts and to steal client information,” according to the IRS.
Taxpayers can report tax-related schemes, scams, identity theft and fraud by contacting the Treasury Inspector General for Tax Administration at www.treasury.gov/tigta/ or 800-366-4484. Additional information about tax scams is available at IRS.gov and on IRS social media sites, including YouTube, www. youtube.com/irsvideos, and Tumblr, internalrevenueservice.tumblr.com.
If you think you might owe taxes, call the IRS directly at 800-829-1040.