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IRS impersonation scam

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A typical IRS impersonation scam robocall

An IRS impersonation scam is a class of telecommunications fraud and scam which targets American taxpayers by masquerading as Internal Revenue Service (IRS) collection officers.[1] The scammers operate by placing disturbing official-sounding calls to unsuspecting citizens, threatening them with arrest and frozen assets if thousands of dollars are not paid immediately, usually via gift cards or money orders.[2] According to the IRS, over 1,029,601 Americans have received threatening calls, and $29,100,604 has been reported lost to these call scams as of March 2016.[3] The problem has been assigned to the Treasury Inspector General for Tax Administration.[4] Studies highlight that most victims of these scams are aged 20-29 years old and women are more affected than men. One way to decrease the risks of an individual falling victim to IRS impersonation scams is through awareness programs.[5]

The scammers often request payment in the form of gift cards such as Google Play or iTunes cards, wire transfer, MoneyGram, or credit card.[6]

As of September 2017, several people from India have been arrested for impersonating IRS employees.[7]

The United Kingdom

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Variations on this scam have targeted British taxpayers, pretending to be from HM Revenue and Customs (HMRC). Sometimes the scammers use telephone calls,[8] sometimes SMS text messages, and sometimes emails.[9] Versions include:

  • The scammers threaten a lawsuit by HMRC to recover money allegedly owed.[8][10]
  • The scammers tell people that they are due a tax rebate, and use this to trick them into disclosing their account and personal details.[9]

Canada

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Another variation similarly targets Canadians by impersonating the Canada Revenue Agency and utilizing aggressive fear tactics, with at least 60,000 Canadian residents filing complaints from 2013 to 2018.[11]

Malaysia

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Variations of this scam are common in Malaysia, where they are known as 'Macau scams'. In addition to posing as tax agents, these scams can involve fraudsters posing as police officers or bank workers.[12]

Response by companies

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In response to a modus operandi by scammers where they coax victims into buying prepaid cards or gift cards for online services, companies such as Apple, along with the Federal Trade Commission, have posted advisories warning customers over the illicit use of gift cards by scammers, and not to give out the code to anyone they do not know.[13][14] Retailers and supermarkets have also followed suit by putting up similar warnings on prepaid and gift card sections.[15] Amazon has also warned of the dangers of these scams by advising customers not to use Amazon.com Gift Cards for payment outside of Amazon or its affiliated properties and not to use gift cards for other retailers and brands outside of the intended brand.[16] Google Play has also published a similar warning on their website.[17]

See also

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References

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  1. ^ "Phone Scams Continue to be a Serious Threat, Remain on IRS "Dirty Dozen" List of Tax Scams for the 2016 Filing Season". IRS. Retrieved 28 March 2016.
  2. ^ "IRS Urges Public to Stay Alert for Scam Phone Calls". IRS. October 21, 2015. Retrieved 28 March 2016.
  3. ^ "IRS: Over $29 Million Lost in Fraud Phone Scams". March 11, 2016. Retrieved 28 March 2016.
  4. ^ "IRS Impersonation Scam Reporting". Treasury Inspector General for Tax Administration. Retrieved 28 March 2016.
  5. ^ Datta, Priyanka; Panda, Surya Narayan; Tanwar, Sarvesh; Kaushal, Rajesh Kumar (March 2020). "A Technical Review Report on Cyber Crimes in India". 2020 International Conference on Emerging Smart Computing and Informatics (ESCI). pp. 269–275. doi:10.1109/ESCI48226.2020.9167567. ISBN 978-1-7281-5263-9. S2CID 221280189.
  6. ^ "Tax Scams / Consumer Alerts | Internal Revenue Service".
  7. ^ "2017 TNT 182-6 TAX CRIME ROUNDUP". 21 September 2017.
  8. ^ a b Scam Warning: Phone message threatens HMRC lawsuit, Tax Volunteers, 22 July 2016, retrieved 2 September 2018
  9. ^ a b HMRC warns on tax refund scams, HM Revenue & Customs, 9 May 2018, retrieved 2 September 2018
  10. ^ Knapman, Joshua (12 June 2018), Scammers claiming to be from HMRC targeting people by phone, Wales Online, retrieved 2 September 2018
  11. ^ "60,000 Canadians have complained about the CRA phone scam — but Indian police say Canada isn't asking for help | CBC News". Archived from the original on 2018-09-21.
  12. ^ "Big phish: how Asia's cyber scammers stay one step ahead of the banks". South China Morning Post. 2022-01-26. Retrieved 2024-01-13.
  13. ^ "iTunes Gift Card Scams - Official Apple Support". Apple Inc. Retrieved 28 September 2018.
  14. ^ Herbert, Amy (10 May 2016). "Scammers push people to pay with iTunes gift cards". Federal Trade Commission. Retrieved 28 September 2018.
  15. ^ Tompor, Susan (21 September 2016). "New scam: Student puts $1,762 on iTunes cards to pay IRS". Detroit Free Press. Retrieved 28 September 2018.
  16. ^ "Amazon.com Gift Card Scams". Amazon.com. Retrieved 1 May 2021.
  17. ^ "What to do if you're a victim of a gift card scam". Google Play. Retrieved 1 May 2021.
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