Scams and Fraud IRS Back-Taxes Scam Steals Millions 10/15/2024 | By Kate Schubel A call from a government official, like an IRS agent, gets our immediate attention (along with quickening our pulse and making us sweat!). But what if that call isn’t real but a ploy to steal our money? A new fraud is on the rise: IRS back-taxes scam phone calls steal millions from innocent Americans. Once you hand over your financial information, a scammer can drain your bank account quickly. The Federal Trade Commission (FTC) estimates IRS imposters have stolen almost five million dollars in the last five years. But there’s increased danger today as thieves pretending to be IRS agents work smarter, not harder. These con artists are targeting people like you with information they already know. The latest scam involves claims that you owe back taxes. You will be told an IRS agent is calling because you owe back taxes that you must pay promptly through wire transfer or gift card. The supposed “agent” will have fake credentials and a bogus name. What’s most shocking is that they may even know a lot about you. Scammers will also make the caller ID look like the IRS is calling you. The hope is that you will comply with the scammer’s instructions and hand over your personal information or money. If you don’t comply, they may become aggressive and threaten to arrest or deport you or suspend your business or driver’s license. According to the IRS, scammers often seek to exploit an attribute you might have, such as: A hearing or vision impairment Speaking English as a second language Cognitive issues sometimes associated with older age For example, if you are hard of hearing, a thief may use a video relay service and make themselves seem more legitimate through an interpreter. Or, if you speak English as a second language, a scammer could call you in your native language and threaten you with a police arrest. So how can you protect yourself or people you know who might be targets of this IRS back-taxes scam or similar scams? Stay up to date on what the IRS doesn’t do. The tax agency will never: Call for payment without first mailing you a letter. Ask for payment via email or demand immediate payment through gift card or wire transfer. Threaten to have you arrested. Not allow you to appeal your case. Ask for credit or debit card information over the phone. Leave an urgent callback message after unexpectedly calling you. Tip: If the scammer claims to be part of a business, you can search for that business on the Better Business Bureau (BBB) to check its legitimacy. Related: Beware of Package Scams! Kate Schubel is a CPA and tax writer with Kiplinger.com. For more on this and similar money topics, visit Kiplinger.com. ©2024 The Kiplinger Washington Editors, Inc. Distributed by Tribune Content Agency, LLC. Read More Kate Schubel