IRS, federal agencies warn seniors of scams

HONOLULU (KHON2) — As part of continuing efforts to protect the senior community, the Internal Revenue Service issued a warning about the rising threat of impersonation scams targeting older adults by posing as representatives from government agencies. These scammers aim to steal their victims’ personal information and finances.

“Scammers often target seniors, attempting to steal personal information through phone calls, emails or text messages by pretending to be from the IRS or other agencies or businesses,” said IRS Commissioner Danny Werfel. “Preventing these types of scams requires assistance from many different places. By partnering with other federal agencies and others in the tax community, we can reach more seniors and other taxpayers to help protect them against these terrible scams.”

In a wider effort to raise awareness this week leading up to World Elder Abuse Awareness Day (WEEAD) on Saturday, the IRS joins other federal agencies in engaging in long-term efforts to protect against scams and other related schemes.

Understanding the threats

Scammers deploy advanced techniques to fabricate a veneer of credibility, including the manipulation of caller IDs to appear legitimate. Here are a few examples of their schemes:

• Impersonation of known entities: Fraudsters often pose as representatives from government agencies — including the IRS, Social Security Administration and Medicare — others in the tax community or familiar businesses and charities. By spoofing caller IDs, scammers can deceive victims into believing they are receiving legitimate communications.
• Claims of problems or prizes: Scammers frequently fabricate urgent scenarios, such as outstanding debts or promises of significant prize winnings. Victims may be falsely informed that they owe the IRS money, are owed a tax refund, need to verify accounts or must pay fees to claim non-existent lottery winnings.
• Pressure for immediate action: These deceitful actors create a sense of urgency, demanding that victims take immediate action without allowing time for reflection. Common tactics include threats of arrest, deportation, license suspension or computer viruses to coerce quick compliance.
• Specified payment methods: To complicate traceability, scammers insist on unconventional payment methods, including cryptocurrency, wire transfers, payment apps or gift cards, and often require victims to provide sensitive information like gift card numbers.

Avoiding scams and reporting them

IRS notifications are typically sent through mail. If one is uncertain about the legitimacy of a call, contact IRS customer service for verification at (800) 829-1040, or for the hearing impaired, TTY/TDD (800) 829-4059.

To view details about an individual’s tax account, they can set up, sign in, and check their IRS individual online account on IRS.gov.

Download the free KHON2 app for iOS or Android to stay informed on the latest news

Electronic scams are also on the rise; The IRS reminds taxpayers that it does not initiate contact via email, text, or social media regarding tax bills or refunds.

To report a call or an electronic scam, visit the Hotline page of the Treasury Inspector General for Tax Administration and using an IRS Impersonation Scam Reporting form or by calling 800-366-4484.

Forms to report different types of fraud are available on the Hotline page of Treasury Inspector General for Tax Administration website. Taxpayers can click the appropriate option under “IRS Scams and Fraud” and follow the instructions.

Key points to recognize scams

• Most IRS communications are initiated through regular mail delivered by the United States Postal Service. However, in certain situations, the IRS may make phone calls or visit homes or businesses. These situations include having an overdue tax bill, an unfiled tax return or missing employment tax deposit.
• an IRS employee might review assets or inspect a business as part of a collection investigation, audit or ongoing criminal investigation. Remember the following:

• The IRS will never demand immediate payment via prepaid debit cards, gift cards or wire transfers. Typically, if taxes are owed, the IRS will send a bill by mail first.
• The IRS will never threaten to involve local police or other law enforcement agencies.
• The IRS will never demand payment without allowing opportunities to dispute or appeal the amount owed.
• The IRS will never request credit, debit or gift card numbers over the phone.

In March 2020, the U.S. Department of Justice introduced the National Elder Fraud Hotline to address fraud targeting elderly Americans and support affected individuals. Contact the National Elder Fraud Hotline at 833-372-8311 from Monday through Friday, 10 a.m. to 6 p.m. Eastern Time.