Summertime Phishing Schemes Are Heating Up, IRS Warns

News July 21, 2023 at 01:34 PM
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The Internal Revenue Service is warning taxpayers to be on the lookout for a "summer surge" of phishing emails and text messages promising tax refunds or offers to help "fix" tax problems — most notably promises related to a third round of Economic Impact Payments.

The IRS said it's seeing "hundreds of complaints daily" sent to [email protected] about the Economic Impact Payments scam, which the agency said "has an embedded URL link that takes people to phishing websites to steal sensitive taxpayer information."

IRS Commissioner Danny Werfel said Friday in a statement that "taxpayers should be wary; remember, don't click on links from questionable sources."

Email messages include titles such as "Third Round of Economic Impact Payments Status Available."

While the third round of Economic Impact Payments occurred in 2021, more than two years ago, "the related scheme has evolved and changed as scam artists look for new ways to adjust their message," the IRS said.

The emails are riddled with spelling errors and factual inaccuracies, the IRS states, offering the following example:

"Dear Tax Payer, We hope this message finds you well. We are writing to inform you abount an important matter regarding your recent tax return filing. Our record indicate that we have received your tax return for the fiscal inconsistencies or missing information that require your attention and clarification. You will receive a tax refund of $976.00 , We will process this amount once you have submitted the document we need for the steps to claim your tax refund. Sender : INTERNAL REVENUE SERVICE"

The IRS states that, like many scams, "this email urges people to click on a link so they can complete their 'application.'" Instead, the link directs taxpayers to a website "where identity thieves will try to harvest valuable personal information."

The IRS says there's been a significant increase in false Employee Retention Credit (ERC) claims, a pandemic-related credit for which only select employers qualify.

"Scam promoters are luring people to improperly claim the ERC with 'offers' online, in social media, on the radio, or through unsolicited phone calls, emails and even mailings that look like official government letters but have fake agency names and usually urge immediate action," the IRS states.

"It's important to watch for warning signs such as promoters who say they can quickly determine someone's eligibility without details, and those who charge up-front fees or a fee based on a percentage of the ERC claimed," the IRS states.

"Anyone who improperly claims the ERC must pay it back, possibly with penalties and interest," the agency warns.

'Claim Your Tax Refund Online' Scheme

Other phishing emails and texts play off tax refunds and suggest people have somehow missed receiving their tax refund.

A variation hitting inboxes in recent weeks has a blue headline proclaiming people should "Claim your tax refund online," the IRS said.

Again, there are "telltale warning signs," the IRS states, including misspellings and urging people to click a link for help to "claim tax refund."

The IRS offered the following example:

"We cheked an error in the calculation of your tax from the last payment, amounting to $ 927,22. In order for us to return the excess payment, you need to create a E-Refund after which the funds will be credited to your specified bank. Please click below to claim your tax refund. If we are unable to complete within 3 days, all pending will be cancelled."

'Help You Fix It' Scheme

Another text-related scam seen in recent weeks involves an anonymous sender that offers to resolve a tax-related problem by clicking on a link.

Like others, there are many red flags in the messages, including misspellings and factual inaccuracies, the agency said, noting the following example.

"MSG … IRS: You federal return was ban-by the IRS. Don't worry, we'll help you fix it. Click this link."

Mail-Related Scam

In mid-July, the IRS warned taxpayers to be on the lookout for a new scam mailing attempting to mislead people into believing they are owed a refund.

The new scheme involves "a mailing that arrives in a cardboard envelope from a delivery service. The enclosed letter includes the IRS masthead and wording that the notice is 'in relation to your unclaimed refund,'" the IRS explains.

The letter includes contact information and a phone number that do not belong to the IRS.

It also "seeks a variety of sensitive personal information from taxpayers," such as pictures of driver's license, cell phone number, bank routing information, Social Security number and bank account type, followed by a "poorly worded" warning:

"You'll Need to Get This to Get Your Refunds After Filing. These Must Be Given to a Filing Agent Who Will Help You Submit Your Unclaimed Property Claim. Once You Send All The Information Please Try to Be Checking Your Email for Response From The Agents Thanks."

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