Looking for variety? This year’s IRS list of the worst scams out there has plenty! Some warnings are familiar, while newer scams involve “Vishing,” robo-calls, and sophisticated financial provisions. Crooks were busy during COVID trying to steal your identity and phishing for tax info! During 2020, almost 400 “vishing” or “voice phishing” scams were reported, up 14%.
Here are 12 of the worst scams reported for 2021:
- Stealing stimulus payments: ID thieves stooped so low as to try to steal Economic Impact Payments. Watch for text messages or random calls or emails inquiring about bank account information or requesting that recipients click a link or verify data.
- Impersonating the unemployed: The pandemic threw millions into joblessness, and scammers took advantage by filing fraudulent claims for unemployment compensation using stolen personal information of individuals who had not filed claims. Keep your eyes open for a 1099-G reporting compensation you didn’t receive.
- Data mining through infected devices: Tax filing season remains a special time of year for phishing scams, targeting individuals with communications appearing to come from legitimate sources which aim to infect devices by convincing victims to download programs that silently mine data. Cybercriminals usually send these phishing communications by email, but may also use text or social media posts or messaging.
- Aiming at tax pros: Tax professionals have reported receiving emails from the fictitious “IRS Tax E-Filing” phishing scams that purport to involve verification of EFINs and CAF numbers. The IRS has also seen an increase in offers to buy and sell EFINs and CAFs.
- Clients as bait: The “New Client” scam continues to be a phishing favorite targeting tax pros. For example, “I just moved here. I have an urgent tax issue and I was hoping you could help. I hope you are taking on new clients.” Coming in many variations, these emails might say one attachment is an IRS notice and the other is the prospective client’s prior-year tax return.
- Turning wishes into “Vishes”: there is increased voice-related phishing, or “vishing,” particularly with scams related to federal tax liens. As you’d expect, these unexpected calls ask for personal financial information. Hang up immediately.
- Just plain anti-social: Social media enables the unscrupulous to lurk on accounts and extract personal info to use against victims. Emails often impersonate the victim’s family, friends or co-workers and hinge on events like the COVID pandemic. These rip-offs have also led to tax-related ID theft.
- Ripped from the headlines: Recent news is full of tales of ransomware, malware designed to block access to a computer system or hold data hostage until the victim pays for release. Crooks might also threaten to publish sensitive files belonging to the victims. Think Colonial Pipeline!
- Mining tragedy: Scammers love fake nonprofit organizations — and the soil was fertile in the past year with tragedies, disasters and pandemic. Scams requesting donations for disaster relief efforts were especially common over the phone.
- ‘This is the IRS calling’: IRS impersonators target and threaten groups with limited English proficiency, as well as senior citizens. A taxpayer receives a call threatening jail, deportation, or revocation of a driver’s license from someone claiming to be with the agency.
- Offer in compromise: Offer in compromise mills contort the IRS program into something it’s not, misleading victims who have no chance of meeting real OIC requirements while charging sky-high fees.
- Abusive arrangements: Promoters peddle false hopes of large deductions, charging a fortune and offering phony claims of legitimacy. Arrangements include syndicated conservation easements twisted through the tax law; micro-captive structures lacking many attributes of insurance; scummy interpretation of the U.S.-Malta Income Tax Treaty; improper R&D credit claims; and abusive shelters of monetized installment sales, etc.
Contact Us: When in doubt, reach out to a CPA for guidance. Something that sounds too good to be true – usually is! Email CPA@fuoco.com or call toll free: 855-542-7537.
