If you haven't heard about the fake IRS Scam, you need to read this article and share it with your friends and family. Federal investigators revealed some frightening numbers about the scam that has bilked at least 3,000 victims across the country.
Timothy Camus, a Treasury deputy inspector general for tax administration, reports that victims have lost a total of $15.5 million. He says the scam has claimed victims in almost every state.
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"The criminals do not discriminate. They are calling people everywhere, of all income levels and backgrounds," Camus told the Senate Finance Committee at a hearing. "The callers often warned the victims that if they hung up, local police would come to their homes to arrest them."
Sometimes, the scammers claim they are investigators from the IRS, or they may just claim to be with the Treasury Department. Either way, don't be fooled.
The IRS and the inspector general's office started warning taxpayers about the scam a year ago, and it has since ballooned. This year, it tops the IRS list of "Dirty Dozen" tax scams.
How It Works
As part of the telephone scam, fake IRS agents call taxpayers, claim they owe taxes, and demand payment using a prepaid debit card or a wire transfer. Those who refuse are threatened with arrest, deportation or loss of a business or driver's license, Camus said. The callers can manipulate caller ID to make it look like they are calling from an IRS phone number. They might even know the last four digits of the taxpayer's Social Security number.
They request prepaid debit cards because they are harder to trace than bank cards. Prepaid debit cards are different from bank cards because they are not connected to a bank account. Instead, consumers buy the cards at stores, and use them just like a bank card, until the money runs out or they add more.
One Oakland County Man's Story
One Oakland County man agreed to share his story with Ruth to the Rescue. Frank asked that we not use his last name, but he felt it was important to
remind people about the scam danger. "You know there's something wrong here, and I just thought I should do something about it."
His experience, like so many others, started with a message on his answering machine. This message featured a robotic voice claiming to be with the Investigation Department of the Internal Revenue Service.
"And the more I listened to it, the more I thought it was just a scam or a hoax," he told Ruth to the Rescue. "I would believe the IRS would send you a letter. I don't think they would send you a robocall."
Frank had an attorney friend call the number left with the message. The person who answered said Frank owed the IRS $1,500, but the problem could be solved with just $500. The friend was pressured to make the payment as quickly as possible.
That's not how the IRS operates. If you really have a problem with the IRS, you will be notified by a letter, not a robocall. The scammers will make threats, often threatening you with arrest. You need to be on guard, so you don't give into the pressure.
Luckily, Frank didn't lose any money. "It could be devastating. They maybe could fall into the trap and send money," Franks told Ruth to the Rescue as he shared his concern for other potential victims.
Local 4 Consumer Expert Ruth Spencer called the number to see if she could speak someone about the alleged charges against Frank. Someone answered the phone and claimed it was the investigation department. When Spencer identified herself, the call was disconnected. She immediately called back, and could only reach a voice mail.
Fighting All Scammers
Whether you receive a call from the "IRS" or from scam artists pretending to be with any other agency, you just have to know these four steps to avoid losing your money.
1) IGNORE! Use caller ID to help you avoid callers you don't recognize. Plain and simple, if you stop answering strange numbers, scammers will not be encouraged to call you back. Just avoid them all together.
2) RESIST! Don't give out any personal information over the phone or allowed yourself to be pressured into making a quick payment. No matter what the claim, don't let them push you into doing something that could be a big mistake.
3) Instead, VERIFY! If you think the call may be legitimate, find a legitimate way to contact the organization that's calling for you. If they claim to be from
DTE, call the actual number on your bill. If they claim to be from Mastercard, call the number on the back of your card. Do NOT call the number they leave on the message and expect to get good information. Scammers work in teams, the person may sound different, but that person is likely part of the scheme.
4) NOTIFY! Warn family and friends about the call, and share information with the police, IRS, or Federal Trade Commission.
Frank hopes that by sharing his story he might protect someone else. He also has a parting message for the scammers. "I guess I would say, get a job! You know, why try and cheat people?"
For more information from the IRS follow this link: http://www.irs.gov/uac/Newsroom/Beware-of-Fake-IRS-Emails-and-Phone-Calls
The Lapeer County Sheriff's Office also added this advice.
You can call the IRS directly to determine if there's a problem 1-800-829-1040. Or, contact your tax preparer.
If you know you don't owe taxes, you can report the incident to the Treasury Inspector General for Tax Administration at 1-800-366-4484.