Fake debt collectors impersonate real businesses
July 17, 2017 by Rosario Méndez
Attorney, Division of Consumer and Business Education
Fake debt collectors will say anything that will scare you into paying them. Today, the FTC stopped imposters who pretended to be lawyers. They threatened people with lawsuits and jail time to collect debts that didn’t exist.
These imposters often used the names of real small businesses or names that were very similar to those of existing businesses. When these real businesses started receiving calls from people trying to reach the “debt collectors” or complaining about abusive practices, they realized that their businesses’ name was being used in a scam. So they filed complaints with the FTC.
Fake debt collectors try many tricks to get you to pay. This advice will help you handle debt collectors’ calls:
1) If a debt collector says you owe a debt, before you agree to pay anything ask for a validation notice that says how much money you owe. By law, they have to send you a validation notice in writing, within five days of contacting you. If they don’t, that’s a sign that you’re dealing with a fake debt collector.
2) If a debt collector threatens you with jail time, hang up the phone. They’re violating the law and you should report them to us at https://www.ftccomplaintassistant.gov
3) If you own a small business, it might be a good idea to research online occasionally to check if anyone else is using your business’ name. And if you start receiving complaints about practices that your business is not engaged in, let us know at https://www.ftccomplaintassistant.gov
IRS WARNS OF NEW PHONE SCAM INVOLVING BOGUS CERTIFIED LETTERS:
June 20, 2017
The Internal Revenue Service is warning people to beware of a new scam linked to the Electronic Federal Tax Payment System (EFTPS), where fraudsters call to demand an immediate tax payment through a prepaid debit card. This scam is being reported across the country, so taxpayers should be alert to the details.
In the latest twist, the scammer claims to be from the IRS and tells the victim about two certified letters purportedly sent to the taxpayer in the mail but returned as undeliverable. The scam artist then threatens arrest if a payment is not made through a prepaid debit card. The scammer also tells the victim that the card is linked to the EFTPS system when, in fact, it is entirely controlled by the scammer. The victim is also warned not to contact their tax preparer, an attorney or their local IRS office until after the tax payment is made.
“This is a new twist to an old scam,” said IRS Commissioner John Koskinen. “Just because tax season is over, scams and schemes do not take the summer off. People should stay vigilant against IRS impersonation scams. People should remember that the first contact they receive from IRS will not be through a random, threatening phone call.”
EFTPS is an automated system for paying federal taxes electronically using the Internet or by phone using the EFTPS Voice Response System. EFTPS is offered free by the U.S. Department of Treasury and does not require the purchase of a prepaid debit card. Since EFTPS is an automated system, taxpayers won’t receive a call from the IRS. In addition, taxpayers have several options for paying a real tax bill and are not required to use a specific one.
Tell Tale Signs of a Scam:
The IRS (and its authorized private collection agencies) will never:
Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. The IRS does not use these methods for tax payments. Generally, the IRS will first mail a bill to any taxpayer who owes taxes. All tax payments should only be made payable to the U.S. Treasury and checks should never be made payable to third parties.
Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
Demand that taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed.
Ask for credit or debit card numbers over the phone.
For anyone who doesn’t owe taxes and has no reason to think they do:
Do not give out any information. Hang up immediately.
Contact the Treasury Inspector General for Tax Administration to report the call. Use their IRS Impersonation Scam Reporting web page. Alternatively, call 800-366-4484.
Report it to the Federal Trade Commission. Use the FTC Complaint Assistant on FTC.gov. Please add "IRS Telephone Scam" in the notes.
For anyone who owes tax or thinks they do:
View your tax account information online at IRS.gov to see the actual amount you owe. You can then also review your payment options.
Call the number on the billing notice, or
Call the IRS at 800-829-1040. IRS workers can help.
The IRS does not use email, text messages or social media to discuss personal tax issues, such as those involving bills or refunds. For more information, visit the “Tax Scams and Consumer Alerts” page on IRS.gov. Additional information about tax scams is available on IRS social media sites, including YouTube videos.
Scam spotted thanks to a clever store clerk
January 18, 2018 by Monica Vaca
Associate Director, Consumer Response and Operations, FTC
You’re going about your normal day at work when, suddenly, there’s a call that looks like it’s from your electric company. That’s what the caller ID shows, and what the person on the line says. The voice on the line tells you that, because of late payments, the power to your business is about to be cut off. Without power, you can’t keep your business running, so that’s an emergency. Or is it?
The next line of the story tells you that this not an emergency at all. Instead, it’s a straight-up scam. Because the caller next tells you to go to the store right away and buy a cash reload card. And the caller wants the card’s PIN code – which, of course, means the money is gone right away. But no legitimate business – and certainly no legitimate power company – will ever demand that you pay with cash reload cards like MoneyPak, Reloadit or Vanilla Reload. Or insist that you pay with a gift card or by wiring money.
Luckily, several people who’ve reported this scam to the FTC figured out it was a scam before they sent the money. At least one uncovered it thanks to a store clerk who spotted the scam for what it was and stopped the transaction in its tracks. But give everybody you know these reminders, whether you’re at home or at work:
Caller ID can be faked, so the person on the phone is not always who caller ID says it is.
Never wire money, put money on a cash reload card or gift card and give the PIN code to anyone who asks you to. The person who insists on one of those forms of payment is scamming you, so tell the FTC about them.
If someone threatens to cut off your power, get off the phone, look up the real power company number, and check with them before you do anything.
And, maybe, the next time you see an attentive clerk at the store, thank them for having your back.
Tax Scams / Consumer Alerts
If it sounds too good to be true, it probably is! In recent years, thousands of people have lost millions of dollars and their personal information to tax scams and fake IRS communication. This page looks at the different scams affecting individuals, businesses, and tax professionals and what do if you if you spot a tax scam.
REMEMBER: The IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. In addition, IRS does not threaten taxpayers with lawsuits, imprisonment or other enforcement action. Being able to recognize these telltale signs of a phishing or tax scam could save you from becoming a victim.
Scams Targeting Taxpayers
IRS-Impersonation Telephone Scams
An aggressive and sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, but are not. These con artists can sound convincing when they call. They use fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling.
Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting. Or, victims may be told 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.
Please See: Consumer Alert: Scammers Change Tactics, Once Again
Note that the IRS will never:
Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail you a bill if you owe any taxes.
Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.
Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
Ask for credit or debit card numbers over the phone.
Remember: Scammers Change Tactics -- Aggressive and threatening phone calls by criminals impersonating IRS agents remain a major threat to taxpayers, but variations of the IRS impersonation scam continue year-round and they tend to peak when scammers find prime opportunities to strike.
Surge in Email, Phishing and Malware Schemes
The IRS has issued several alerts about the fraudulent use of the IRS name or logo by scammers trying to gain access to consumers’ financial information in order to steal their identity and assets. Scammers use the regular mail, telephone, fax or email to set up their victims. When identity theft takes place over the web (email), it is called phishing.
The IRS saw an approximate 400 percent surge in phishing and malware incidents in the 2016 tax season.
Scam emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. These phishing schemes can ask taxpayers about a wide range of topics. Emails can seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.
Variations of these scams can be seen via text messages, and the communications are being reported in every section of the country. The IRS is aware of email phishing scams that appear to be from the IRS and include a link to a bogus web site intended to mirror the official IRS web site. These emails contain the direction “you are to update your IRS e-file immediately.” The emails mention USA.gov and IRSgov (without a dot between "IRS" and "gov"), though notably, not IRS.gov (with a dot). These emails are not from the IRS.
The sites ask for Social Security numbers and other personal information, which could be used to help file false tax returns. The sites also may carry malware, which can infect people's computers and allow criminals to access your files or track your keystrokes to gain information.
For more details, see:
Phishing Remains on the IRS “Dirty Dozen” List of Tax Scams for the 2017 Filing Season
Consumers Warned of New Surge in IRS Email Schemes during 2016 Tax Season; Tax Industry Also Targeted
IRS warns taxpayers of a phishing scam targeting Washington D.C., Maryland and Virginia residents where the email scammers are citing tax fraud and trying to trick victims into verifying “the last four digits of their social security number”
The IRS does not initiate taxpayer communications through email. Unsolicited email claiming to be from the IRS, or from an IRS-related component such as EFTPS, should be reported to the IRS at firstname.lastname@example.org.
For more information, visit the IRS's Report Phishing web page.
Tax Refund Scam Artists Posing as Taxpayer Advocacy Panel
According to the Taxpayer Advocacy Panel (TAP), taxpayers are receiving emails that appear to be from TAP about a tax refund. These emails are a phishing scam, where unsolicited emails which seem to come from legitimate organizations — but are really from scammers — try to trick unsuspecting victims into providing personal and financial information. Do not respond or click the links in them. If you receive an email that appears to be from TAP regarding your personal tax information, please forward it to email@example.com and note that it seems to be a scam email phishing for your information.;
TAP is a volunteer board that advises the IRS on systemic issues affecting taxpayers. It never requests, and does not have access to, any taxpayer’s personal and financial information such as Social Security and PIN numbers or passwords and similar information for credit cards, banks or other financial institutions.
Additional Recent Tax Scams
Scammers are constantly identifying new tactics to carry out their crimes in new and unsuspecting ways. In recent years, the IRS has seen scammers use a variety of schemes to fool taxpayers into paying money or giving up personal information. Some of these include:
Soliciting W-2 information from payroll and human resources professionals.
IRS, States and Tax Industry Renew Alert about Form W-2 Scam Targeting Payroll, Human Resource Departments
IRS Alerts Payroll and HR Professionals to Phishing Scheme Involving W-2s
Fictitious “Federal Student Tax” scam targeting students and parents and demanding payment.
See: IRS Warns of Back-to-School Scams; Encourages Students, Parents, Schools to Stay AlertIRS Warns of Latest Scam Variation Involving Bogus “Federal Student Tax”
Automated calls requesting tax payments in the form of iTunes or other gift cards.
See: IRS Warns Taxpayers of Summer Surge in Automated Phone Scam Calls; Requests for Fake Tax Payments Using iTunes Gift Cards
Pretending to be from the tax preparation industry.
See: Consumers Warned of New Surge in IRS E-mail Schemes during 2016 Tax Season; Tax Industry Also Targeted
Scams Targeting Tax Professionals
Increasingly, tax professionals are being targeted by identity thieves. These criminals – many of them sophisticated, organized syndicates - are redoubling their efforts to gather personal data to file fraudulent federal and state income tax returns. The Security Summit has launched a campaign aimed at increasing awareness among tax professionals: Protect Your Clients; Protect Yourself.
Recent scams targeting the tax professional community include:
A phishing scheme mimicking software providers targets tax professionals.
Criminals target tax professionals to steal data such as PTINs, EFINs or e-Service passwords.
Bogus email asks tax professionals to update their IRS e-services portal information and Electronic Filing Identification Numbers (EFINs).
See: IRS Warns Tax Preparers to Watch out for New Phishing Scam; Don’t Click on Strange Emails or Links Seeking Updated Information
Tax professionals should review Publication 4557, Safeguarding Taxpayer Data, A Guide for Your Business, which provides a checklist to help safeguard taxpayer information and enhance office security.
No matter how some things are sliced, they're still baloney. If someone tells you that you don't have to pay taxes, check out The Truth About Frivolous Tax Arguments, where some of the more common false legal arguments made by those opposed to compliance with the federal tax laws are addressed. The page explains and rejects each contention, deals with frivolous arguments encountered in collection due process cases and illustrates penalties imposed on those pursuing frivolous cases.
See also IR-2016-27, Frivolous Tax Arguments Completes the IRS “Dirty Dozen” List of Tax Scams for the 2016 Filing Season
How to Report Tax-Related Schemes, Scams, Identity Theft and Fraud
To report the various types of tax-related illegal activities, refer to our chart explaining the types of activity and the appropriate forms or other methods to use. You may also report instances of IRS-related phishing attempts and fraud to the Treasury Inspector General for Tax Administration at 800-366-4484.
Additional Scam-Related Information:
Security Summit - Learn more about how the IRS, representatives of the software industry, tax preparation firms, payroll and tax financial product processors and state tax administrators are working together to combat identity theft and refund fraud.
Taxes. Security. Together. We all have a role to play in protecting your data
IRS Security Awareness Tax Tips
Tax Scams — How to Report Them
Criminal Investigation's Tax Fraud Alerts
Don't fall victim to tax scams. Remember — if it sounds too good to be true, it probably is.