The Internal Revenue Service (IRS) today issued a warning to alert about a surge in coronavirus-related scams over email, phone calls, or social media requesting personal information while using economic impact payments as a lure.
This scam wave that can lead to identity theft and tax-related fraud is using the SARS-CoV-2 pandemic to trick vulnerable targets into giving away their sensitive info in exchange for help to speed up the COVID-19 economic impact payments.
"We urge people to take extra care during this period. The IRS isn't going to call you asking to verify or provide your financial information so you can get an economic impact payment or your refund faster," IRS Commissioner Chuck Rettig said.
"That also applies to surprise emails that appear to be coming from the IRS. Remember, don't open them or click on attachments or links. Go to IRS.gov for the most up-to-date information."
Cisco Talos said on March 30 that it "has already detected an increase in suspicious stimulus-based domains being registered" and staged for COVID-19 relief package themed attacks.
Economic impact payments coming in a few weeks
COVID-19 economic impact payments are going to be distributed within the net three weeks although scammers will promise to get them deposited in your bank account a lot faster as Jr. United States Attorney Robert M. Duncan explained in a Department of Justice press release.
Most of the eligible Americans will have the funds sent as a direct deposit into their bank accounts per the U.S. Department of the Treasury, while the unbanked, elderly, and other groups who don't use or have access to bank accounts will receive the approved $1,200 economic impact payments via paper check.
The scammers attempting to exploit the taxpayers' distress caused by the COVID-19 pandemic and their anxiousness to receive already approved payments to get them to 'verify' the information needed for the money to be deposited.
This stolen information will be used later by the crooks to file false tax returns as part of identity theft schemes.
"Because of this, everyone receiving money from the government from the COVID-19 economic impact payment is at risk," Duncan said.
Retirees are the most exposed to these scams and they are reminded by the US revenue service that the agency will not ask them for info related to the coronavirus economic impact payment by phone, email, mail or in person.
Spot the fraudsters
Scammers can use a wide range of tactics to trick their targets into sharing their personal or financial information, with some of them potentially attempting to:
- Emphasize the words "Stimulus Check" or "Stimulus Payment." The official term is economic impact payment.
- Ask the taxpayer to sign over their economic impact payment check to them.
- Ask by phone, email, text or social media for verification of personal and/or banking information saying that the information is needed to receive or speed up their economic impact payment.
- Suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer's behalf. This scam could be conducted by social media or even in person.
- Mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it.
Taxpayers should in no situation share their banking information with others when being asked to provide it for input on their behalf according to the IRS.
"Those taxpayers who have previously filed but not provided direct deposit information to the IRS will be able to provide their banking information online to a newly designed secure portal on IRS.gov in mid-April," the IRS said.
"If the IRS does not have a taxpayer's direct deposit information, a check will be mailed to the address on file."
Report the scammers
Detailed and official info on the COVID-19 economic impact payments is available on the IRS.gov Coronavirus Tax Relief page, with info on who is eligible and how will the IRS know where to send the payments accessible here.
Taxpayers who have been or will be targeted by fraudsters with Coronavirus-related or other types of phishing attempts via unsolicited emails, text messages, or social media are urged by the IRS to report them to phishing@irs.gov.
"The IRS Criminal Investigation Division is working hard to find these scammers and shut them down, but in the meantime, we ask people to remain vigilant," IRS Criminal Investigation Chief Don Fort concluded.
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