Alert to Taxpayers: Significant Increase in Texting Scams

November 22, 2022 by fasnew@fasnew@66541.6486513

Alert to Taxpayers: Significant Increase in Texting Scams

To date, the IRS has discovered and reported tens of thousands of bogus URLs linked to numerous texting scams that target taxpayers. The IRS wants to urge taxpayers to be on the alert for this significant increase in texting scams and schemes that could compromise important tax data, particularly the most recent texting scams with an IRS theme that target people’s personal and financial data.

Texting scams fraud techniques:

Campaigns aimed at mobile phone users frequently utilize bogus messages known as “lures” that appear to be coming from the IRS. These fraudulent texts frequently offer tax credits, COVID relief, or assistance with creating an IRS online account. Scammers are asking taxpayers to visit a link or contact a phone number in the most recent instance of smishing so that they can steal their financial and personal information.

The IRS does not send emails or text messages to taxpayers requesting personal, financial, or account information.

How to report texting scams involving the IRS:

To handle complaints about internet hoaxes involving the IRS, the Treasury, and taxes, the IRS maintains phishing@irs.gov. These IRS-related frauds should be reported by their victims to the IRS via email at phishing@irs.gov.

Text scams can be reported to the relevant security professionals so they can be tracked down and stopped. Taxpayers shouldn’t use this email address to report smishing affecting other organizations or businesses.

Take the following actions to record and disclose the specifics of any IRS-related smishing texts you may have received:

1. A fresh email should be sent to phishing@irs.gov.

2. Copy the email address or caller ID number.

3. In the email, paste the phone number or email address.

4. Select “copy” by pressing and holding the SMS or text message.

5. Copy the message and paste it into the email; if necessary, send screenshots.

6. Include as much specific information as you can, such as the time zone, date, and phone number that received the message.

7. Emails should be sent to phishing@irs.gov.

Additionally, recipients can copy and forward fraudulent SMS/text communications to telecom service providers by texting the number 7726. (SPAM). In the future, this aids the provider in identifying and blocking similar messages.

Finally, anyone who experiences a scamming occurrence, whether it is successful or unsuccessful, should also report it to the Internet Crime Complaint Center

New Scam Alert: Synthetic ID Theft

September 13, 2020 by fasnew@fasnew@66541.6486513

Even if there are a lot of measures to eliminate identity theft, this crime is still evolving to continuously scam people. Scammers are now modifying their tactics, they are combining information from multiple individuals to invent a false identity, a technique called “synthetic” identity theft.

Here’s what you need to know:

How It Works:

Scammers pull together a stolen Social Security or Social Insurance number (often belonging to a minor or someone with no credit history), address of an abandoned property, and a fake name and birth date.
Using the gathered information mentioned above, the scammer applies for a credit card. Initially, they will be declined since they don’t have a credit profile, but this creates a record of a “person” that doesn’t actually exist.
Next, the scammer adds that “person” to one or more legitimate accounts to eventually build up a credit history until they can qualify for large lines of credit
Once they are approved for a high line of credit, they do what is called a “bust-out.” The con artist charges their credit cards to the limit, pays nothing, discards the identity, and disappears.

Why This is A Problem:

It is difficult to detect if your Social Security Numbers had been used in synthetic identity theft.
Negative credit reports will be tied to your Social Security number, but not your name, phone number, and address which means you won’t receive fraud alerts.
The unpaid debts left by the scammer can affect your ability to take out loans or credit.

How to Protect Yourself from Synthetic Identity Theft:

Don’t give out your Social Security or Social Insurance number if it isn’t absolutely necessary. When a business, medical office, or individual asks for this information, don’t be afraid to ask them why they need it and how they will protect your personal information.
Monitor any mail, phone calls, email, or other communications you receive. Be alert if something arrives out of the blue or doesn’t make sense.
Check yours and your child’s credit report for signs of fraud using https://www.annualcreditreport.com/, but make sure your device and connection are safe to prevent third parties from obtaining sensitive information.

FAS Bookkeeping and Tax Services care about your data privacy! Here’s our reminder to be smart, be vigilant, and be alert to avoid being a victim of these types of crimes.

The “Dirty Dozen” List of Tax Scams For 2020 You Need to Be Aware Of

August 10, 2021August 16, 2020 by fasnew@fasnew@66541.6486513

The Internal Revenue Service today announced its annual “Dirty Dozen” list of tax scams with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments.

The IRS urges taxpayers to refrain from engaging potential scammers online or on the phone. Here are the “dirty dozen” list:

Phishing

IRS Criminal Investigation has seen a tremendous increase in phishing schemes utilizing emails, letters, texts and links. These phishing schemes are using keywords such as “coronavirus,” “COVID-19” and “Stimulus” in various ways. These schemes are blasted to large numbers of people in an effort to get personal identifying information or financial account information, including account numbers and passwords.

The IRS will never initiate contact with taxpayers via email about a tax bill, refund or Economic Impact Payments. Don’t click on links claiming to be from the IRS. Be wary of emails and websites − they may be nothing more than scams to steal personal information.

Fake Charities

Criminals frequently exploit natural disasters and other situations such as the current COVID-19 pandemic by setting up fake charities to steal from well-intentioned people trying to help in times of need. Fraudulent schemes normally start with unsolicited contact by telephone, text, social media, e-mail or in-person using a variety of tactics.

Taxpayers should be particularly wary of charities with names like nationally known organizations. Legitimate charities will provide their Employer Identification Number (EIN), if requested, which can be used to verify their legitimacy. Taxpayers can find legitimate and qualified charities with the search tool on IRS.gov.

Threatening Impersonator Phone Calls

A common form of this scam are threatening phone calls claiming to be with the IRS. The scammer attempts to instill fear and urgency in the potential victim. These calls often take the form of a “robocall”

The IRS will never demand immediate payment, threaten, ask for financial information over the phone, or call about an unexpected refund or Economic Impact Payment.

Social Media Scam

Social media enables anyone to share information with anyone else on the Internet. Scammers use that information as ammunition for a wide variety of scams. These include emails where scammers impersonate someone’s family, friends or co-workers.

The IRS reminds taxpayers to protect their social media accounts and to never give out any sensitive information online to avoid identity theft.

EIP or Refund Theft

Criminals this year turned their attention to stealing Economic Impact Payments as provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Much of this stems from identity theft whereby criminals file false tax returns or supply other bogus information to the IRS to divert refunds to wrong addresses or bank accounts.

Taxpayers can consult the Coronavirus Tax Relief page of IRS.gov for assistance in getting their EIPs. Anyone who believes they may be a victim of identity theft should consult the Taxpayer Guide to Identity Theft on IRS.gov.

Senior Fraud

Senior citizens and those who care about them need to be on alert for tax scams targeting older Americans. Older Americans are becoming more comfortable with evolving technologies, such as social media. Unfortunately, that gives scammers another means of taking advantage. Phishing scams linked to Covid-19 have been a major threat this filing season.

Seniors need to be alert for a continuing surge of fake emails, text messages, websites and social media attempts to steal personal information.

Scams Targeting Non-English Speakers

IRS impersonators and other scammers also target groups with limited English proficiency. Phone scams pose a major threat to people with limited access to information, including individuals not entirely comfortable with the English language.

Taxpayers who are recent immigrants often are the most vulnerable and should ignore these threats and not engage the scammers. Remember, the IRS will not contact you this way.

Unscrupulous Return Preparers

Selecting the right return preparer is important. Most tax professionals provide honest, high-quality service, but dishonest preparers pop up every filing season committing fraud, harming innocent taxpayers or talking taxpayers into doing illegal things they regret later.

Taxpayers should avoid so-called “ghost” preparers who expose their clients to potentially serious filing mistakes as well as possible tax fraud and risk of losing their refunds. Ghost preparers don’t sign the tax returns they prepare.

Taxpayers should avoid preparers who ask them to sign a blank return, promise a big refund before looking at the taxpayer’s records or charge fees based on a percentage of the refund. Taxpayers can go to a special page on IRS.gov for tips on choosing a preparer.

Offer in Compromise Mills

Taxpayers need to wary of misleading tax debt resolution companies that can exaggerate chances to settle tax debts for “pennies on the dollar” through an Offer in Compromise (OIC). These scams are commonly called OIC “mills,” which cast a wide net for taxpayers, charge them pricey fees and churn out applications for a program they’re unlikely to qualify for.

Individual taxpayers can use the free online Offer in Compromise Pre-Qualifier tool to see if they qualify. The simple tool allows taxpayers to confirm eligibility and provides an estimated offer amount. Taxpayers can apply for an OIC without third-party representation; but the IRS reminds taxpayers that if they need help, they should be cautious about whom they hire.

Fake Payments with Repayment Demands

Here’s how this scam works: A con artist steals or obtains a taxpayer’s personal data including Social Security number or Individual Taxpayer Identification Number (ITIN) and bank account information. The scammer files a bogus tax return and has the refund deposited into the taxpayer’s checking or savings account. Once the direct deposit hits the taxpayer’s bank account, the fraudster places a call to them, posing as an IRS employee. The taxpayer is told that there’s been an error and that the IRS needs the money returned immediately or penalties and interest will result. The taxpayer is told to buy specific gift cards for the amount of the refund.

The IRS will never demand payment by a specific method. There are many payment options available to taxpayers and there’s also a process through which taxpayers have the right to question the amount of tax they owe.

Payroll and HR Scams

Currently, two of the most common types of these scams are the gift card scam and the direct deposit scam.

In the gift card scam, a compromised email account is often used to send a request to purchase gift cards in various denominations. In the direct deposit scheme, the fraudster may have access to the victim’s email account. They may also impersonate the potential victim to have the organization change the employee’s direct deposit information to reroute their deposit to an account the fraudster controls.

BEC/BES scams have used a variety of ploys to include requests for wire transfers, payment of fake invoices as well as others. In recent years, the IRS has observed variations of these scams where fake IRS documents are used in to lend legitimacy to the bogus request.

The Direct Deposit and other BEC/BES variations should be forwarded to the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) where a complaint can be filed.

Ransomware

This is a growing cybercrime. Ransomware is malware targeting human and technical weaknesses to infect a potential victim’s computer, network or server. Malware is a form of invasive software that is often frequently inadvertently downloaded by the user. Once downloaded, it tracks keystrokes and other computer activity. Once infected, ransomware looks for and locks critical or sensitive data with its own encryption. In some cases, entire computer networks can be adversely impacted.

Cybercriminals might use a phishing email to trick a potential victim into opening a link or attachment containing the ransomware. These may include email solicitations to support a fake COVID-19 charity. Cybercriminals also look for system vulnerabilities where human error is not needed to deliver their malware.

The IRS and its Security Summit partners have advised tax professionals and taxpayers to use the free, multi-factor authentication feature being offered on tax preparation software products. Use of the multi-factor authentication feature is a free and easy way to protect clients and practitioners’ offices from data thefts. Tax software providers also offer free multi-factor authentication protections on their Do-It-Yourself products for taxpayers.

Be smart, be alert, and avoid these scams by educating yourself about them. The IRS has many articles that can help you identify these different types of scams, be sure to conduct your own research to know everything about them.

If you need bookkeeping and tax help, FAS is here to help you! Contact us today at admin@fas-accountingsolutions.com or at 713-855-8035.

Surge in Email, Phishing and Malware Schemes

August 9, 2021April 13, 2020 by fasnew@fasnew@66541.6486513

Scam emails are designed to trick taxpayers into thinking these are official communications from the IRS, tax industry professionals or tax software companies. These phishing emails ask taxpayers about a wide range of topics — related to refunds, filing status, ordering transcripts and verifying PIN information – in order to steal your personal information or file false tax returns.

When people click on links from these phishing emails, they are taken to sites designed to imitate an official-looking website, such as IRS.gov. The sites may also carry malware, which can infect people’s computers to steal their files or record their keystrokes.

Also be aware of email phishing scams that appear to be from the IRS and include a link to a bogus web site intended to mirror the official IRS web site. These emails contain the direction “you are to update your IRS e-file immediately.” The emails mention USA.gov and IRS.gov (without a dot between “IRS” and “gov”). Don’t get scammed. These emails are not from the IRS.

Don’t be a victim! Visit IRS.gov or IRS.gov/coronavirus for the latest information.

IRS-Impersonation Telephone Scams

August 9, 2021April 13, 2020 by fasnew@fasnew@66541.6486513

An aggressive and sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, but are not. Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. Or, victims may be told they have a refund due to try to trick them into sharing private information.

With COVID-19 scams, they may urge you to pay this fake “debt” with your economic impact check. For those who receive an actual check, they may ask you to endorse it and forward to them for “payment of past debts.”

Remember: scammers change tactics. Variations of the IRS impersonation scam continue year-round and they tend to peak when scammers find prime opportunities to strike — like a new economic impact check being sent.

Do Not Fall Victim to a COVID-19 Scam

August 9, 2021April 13, 2020 by fasnew@fasnew@66541.6486513

The Internal Revenue Service (IRS) will begin to distribute COVID-19 Economic Impact Payments in a matter of weeks. For most Americans, this will be a direct deposit into your bank account. For the unbanked, elderly or other groups that have traditionally received tax refunds via paper check, they will receive their economic impact payments in this manner as well.

With any good news story from the IRS, comes an opportunity for criminals and scammers to take advantage of the American public.

Scammers may try to get you to sign over your check to them.
Scammers may use this as an opportunity to get you to “verify” your filing information in order to receive your money, using your personal information to file false tax returns in an identity theft scheme.

Between these two schemes, everyone receiving an economic impact payment is at risk.

The Internal Revenue Service – Criminal Investigation (IRS-CI) is working tirelessly alongside our civil counterparts and law enforcement partners to identify scams and halt wrongdoers from taking advantage of the American people. Special Agent in Charge Ryan L. Korner warns, “unfortunately criminals are taking this unprecedented pandemic as an opportunity to exploit the public. It is critical now more than ever to remain vigilant for scams that are attempting to steal your personal information and your money. All Americans should specifically be on the lookout for scammers trying to directly steal their COVID-19 Economic Impact Payment, as well as fraudsters trying to trick them into providing sensitive information by convincing them it is required to receive their payment from the IRS.”

“While much of the country is working from home, scammers and con artists are also working – on schemes to steal your money,” said United States Attorney Nick Hanna. “Criminals are taking advantage of the health emergency, so I urge everyone to heed the warnings to protect your personal information, your bank account and anything potentially valuable to a fraudster. The Justice Department will vigorously investigate and prosecute criminals, but we need everyone to be extra careful so they can avoid becoming a victim.”

Top Line Messages from the Internal Revenue Service

The IRS will deposit your economic impact payment into the direct deposit account you previously provided on your tax return (or, in the alternative, send you a paper check). The IRS will not call and ask you to verify your payment details. Do not give out your bank account, debit account, or PayPal account information – even if someone claims it is necessary to get your economic impact payment. Beware of this scam.

If you receive a call, do not engage with scammers or thieves. Just hang up. If you receive texts or emails claiming that you can get your money faster by sending personal information or clicking on links, delete them. Do not click on any links in those emails.

Reports are also swirling about bogus checks. If you receive a “check” in the mail now, it’s a fraud –- it will take the Treasury Department a few weeks to distribute the payments. If you receive a “check” for an odd amount (especially one with cents), or a check that requires that you verify the check online or by calling a number, it’s a fraud.