According to the FBI 2023 Internet Crime Report, "Impersonation scams defraud thousands of individuals each year. Tech/Customer Support and Government Impersonation are responsible for over $1.3 billion in losses". Here are some tips on how to protect yourself from this trend that is becoming more common each year.
What Does Impersonation Fraud Look Like?
An IRS imposter may appear as a convincing and authoritative individual claiming to be from the Internal Revenue Service. These scammers can be skilled at manipulating emotions and creating a sense of urgency, making it difficult for their targets to question the legitimacy of the situation.
"Call centers overwhelmingly target older adults, with devastating effects. Almost half of the complaints report to be over 60 (40%), and experience 58% of the losses (over $770 million)."
- 2023 Internet Crime Report
How The Scam Works
The Federal Trade Commission outlines the IRS Imposter Scam like this:
- You get a call.
Your caller ID may be manipulated to show that the IRS is calling you and the caller might give a badge number to assert their "authority". In some cases, the fraudster may even have personal information about you, including the last four digits of your Social Security Number. - You are manipulated.
The scammer uses threatening language to play on your emotions. They may use phrases like:
"You owe us money!"
"You need to pay now or we will issue a warrant for your arrest."
"Send us money with a prepaid debit card, gift card, or wire it to us." - You pay the fake IRS.
If you pay the scammer, your money is gone.
Warning Signs
- The IRS will not contact you by phone.
- The IRS will not contact you by email.
- The IRS will contact you by postal mail.
- The IRS will not ask for payment in the form of prepaid debit cards or gift cards.
- The IRS will not demand payment in the form of a wire transfer.
- The IRS does not require a specific form of payment.
What To Do If You Get A Call
The FTC recommends the following steps if you get a call and suspect it's a scam:
- Most importantly, do not give the caller any of your personal information. This includes your address, social security number, date of birth, and account information. Even if it seems like they have your information already, do not confirm it for them.
- Document any details that you can obtain. This includes the name of the caller, any badge numbers or information they provide to you, the phone number they call from, where they want the payments sent, etc.
- Hang up. Protect your information, attempt to document their information, and end the call.
- Contact the IRS directly if you think that you may owe back taxes. You can call them at 800-829-1040 or visit your individual account information page on the IRS website.
- Report the call. You can file a compliant with the Treasury Inspector General for Tax Administration (800-366-4484) or the FTC (877-FTC-HELP).
- Warn your friends and family. Tell the people you know that these calls are scams and help prevent them from falling victim.
Source: IRS Imposter Scams from the FTC
