This scam uses a combination of phishing emails and spoofed Caller ID scam calls. The scammers intimidate the victim, threaten with arrest, deportation or loss of a business or driver’s license.
The Treasury Inspector General for Taxpayer Administration this week issued a warning about it. "This is the largest scam of its kind that we have ever seen," said J. Russell George, the Treasury Inspector General for Tax Administration. Over 20,000 victims have collectively paid more than $1 million as a result of the scam.
Scammers claiming to be from the IRS tell people they owe taxes and must pay using a pre-paid debit card or wire transfer. The truth is that the IRS usually first contacts people by mail - not by phone - about unpaid taxes. Here are some Red Flags you need to watch out for:
- The callers use common names and fake IRS badge numbers.
- The perpetrators know the last four digits of your Social Security Number.
- Caller ID looks like it is the IRS calling.
- The criminals send bogus IRS e-mails to support their scam.
- Many fraudsters call a second time claiming to be the police or department of motor vehicles, and the caller ID again supports their claim.
The IRS recently warned consumers of this and other ongoing scams that tend to peak during tax season when many taxpayers could be on edge. The scams come in many variations, from scams where callers say the victims owe money or are entitled to a huge refund. More at Treasury.gov: http://www.treasury.gov/tigta/
