Beware of stimulus check, tax scams
Every year, scammers use tax season to their advantage in various ways to commit fraud. This year, with the stimulus payments and the extended tax season overlapping, fraud schemes are getting more complex and tougher to identify.
In recent days, the IRS has begun distributing CARES Act stimulus direct deposits and checks, with millions more to be paid to consumers in the weeks to come. These funds are much needed for millions of Americans as COVID-19 has impacted their ability to earn money.
Unfortunately, these funds are a prime target for fraudsters, and recent reports show they are getting creative. Combined with the extended tax season, these scammers are using fear tactics to their advantage, persuading consumers to divulge critical personal information and money.
Here’s what you need to know.
Stimulus Check Scams
Scammers posing as Federal and bank employees, asking consumers for their social security numbers, bank account numbers, bank routing numbers and other personal identifying information. According to Federal agencies, the types of scams include:
• Victims are told they owe money to the IRS and it must be paid promptly through a preloaded debit card or wire transfer. They may reference your stimulus check and urge you to pay the fake debt by using your direct deposited funds or endorsing and signing your check over to them.
• If you receive texts or emails claiming that you can get your money faster by sending personal information or clicking on links, delete them. Don’t click on any links in those emails.
• “Concerned” bank customer service employees calling you to confirm bank account information to ensure your stimulus check can be direct deposited. These schemes are getting sophisticated, with reports that the caller ID may even show your bank’s name. Never give information when solicited. Hang up, or don’t answer at all, and call your bank using the phone number on your debit card or statement to report the fraud attempt.
Every year, scammers use tax season to their advantage in various ways to commit fraud. This year, with the stimulus payments and the extended tax season overlapping, fraud schemes are getting more complex and tougher to identify. These schemes include:
• Telling potential victims they have a refund due to try to trick them into sharing private information. If the phone isn’t answered, the scammers often leave an “urgent” callback request.
• As noted above, they may reference your stimulus payment and tie it to a fake debt you owe the IRS.
• Email phishing scams that appear to be from the IRS and include a link to a fraudulent website intended to mirror the official IRS web site.
Federal agencies, including the IRS, FBI and Federal Trade Commission (FTC), warn that fraud schemes are ever-changing, but there are some basic steps you can take to protect your information.
For example, the FTC clearly states that “the government will not call to ask for your Social Security number, bank account, or credit card number. Anyone who does is a scammer.” Click here to view the FTC’s fraud prevention tips.
Additionally, banks will not ask customers for full account numbers or their own routing information. If you are solicited for this information, notify your bank and report it to the FTC.