BY LINDA BENTLEY | SEPTEMBER 10, 2014
IRS-spoofing scammers bilk taxpayers out of millions
He said the IRS is making it a top priority to get this resolved and stated, since Jan. 1, 2014, the scammers stole $80,000 from Arizonans alone
From left: Matt Richards, Assistant Special Agent in Charge, Treasury Inspector General for Tax Administrations; Sgt. Jay O’Neill, Glendale Police Department Public Information Officer; and Lisa Sukenic, IRS Criminal Investigation Division Special Agent and Public Information Officer, participated in the IRS news conference panel regarding a recent scam.
PHOENIX – Last week, the Phoenix IRS office held a news conference to inform the public of a scam they’ve been tracking since last fall, which, as of January 2014, has bilked approximately 1,100 victims out of an estimated $5 million.
Introduced by IRS spokesperson Bill Brunson, the panel was made up of Matt Richards, Assistant Special Agent in Charge, Treasury Inspector General for Tax Administrations; Sgt. Jay O’Neill, Glendale Police Department Public Information Officer; Lisa Sukenic, IRS Criminal Investigation Division Special Agent and Public Information Officer; Martha Mena, IRS Phoenix Office Taxpayer Assistance Center; and Alma Buono, IRS spokesperson, Spanish Format media.
Brunson said the scammers use old technology by calling victims, while spoofing the IRS on caller ID, to tell the person they owe taxes and must pay immediately or be subject to deportation, having their driver license revoked or being arrested.
If the person hangs up or doesn’t respond by sending money immediately, the scammers will call back spoofing the local police department and threaten arrest.
According to Brunson, the number of victims is probably light since many victims either believed they owed taxes and paid without realizing they’ve been scammed or they may be too embarrassed to admit they’ve been scammed.
Mena, who provides walk-in services for taxpayers, said she has been apprised of six such incidents within the last 60 days.
She told about one case where a woman said her husband received a couple phone calls from the IRS saying he owed $3,000 in taxes and was told to pay the money with a pre-paid card or he would either be deported or go to jail.
Although he paid, he sent his wife to the IRS office to inquire about how they came up with such a high amount they owed, only to learn they didn’t owe anything.
Although the scammers don’t appear to be targeting any particular demographic groups, immigrants and the elderly seem to be more susceptible to falling for it.
Sukenic said her husband answered the phone while home one day recently with a sick child, with the caller asking for her. The caller said Suskenic owed taxes and they had a warrant for her arrest if she didn’t pay.
She said her husband told the caller he knew it was a scam and hung up.
The scammer called back a second time, again claiming to be the IRS, saying the police were there and were ready to go out and arrest her.
Calling the scam “pervasive and widespread,” Sukenic said people should never provide any personal information to callers and report the call to the Treasury Inspector General.
She said the IRS never makes unsolicited calls and to people should tell the caller they know it’s a scam and hang up.
O’Neill said Glendale Police department has taken six calls on this particular scam since July 1,
While the majority of those called were able to identify it as a scam, he said one victim was taken for $6,000.
O’Neill also said this scam is most likely underreported.
He wanted the public to know law enforcement does not call people to tell them they have a warrant out for their arrest, they serve arrest warrants in person.
He said if someone receives a call that doesn’t feel right, ask for a number and tell them you will call them back.
While the phone numbers that show up on the caller ID may be that of the scammer, they will answer the phone claiming to be the IRS.
He noted the Arizona Attorney General’s Office has information on its website about scams.
Richards said his office deals with employee integrity, extortion, bribery, scams, complaints, tax preparer fraud and more.
He said the fraud associated with this IRS scam is broad and the callers are known to make second and third calls asking the person to pay with Green Dot prepaid money cards or wire transfers.
Richards said they will even ask the “taxpayer” to stay on the line as they go to Walmart to obtain the prepaid money card and give the caller all the numbers they need to access the funds over the phone.
He said this has been the largest IRS impersonation scam with no demographics associated with this crime.
According to Richards, some victims have been bilked out of their life savings in connection with this scam.
Much like the classic Nigerian scams, the callers use very Americanized names.
Because the case is under investigation, Richards couldn’t say if the calls were originating from any foreign country or countries in particular.
The panel also indicated the United States is not the only country being targeted by this scam.
Richards stated, “If you get a call from anyone claiming to be an IRS employee, the IRS does not call people who owe money and ask for prepaid cards or wire transfers.”
He said the IRS is making it a top priority to get this resolved and stated, since Jan. 1, 2014, the scammers stole $80,000 from Arizonans alone.
Richards said if a taxpayer believes they actually owe taxes, they should hang up on the caller and call the IRS at 800-366-4484.
Although the source of the phone lists used by the callers doesn’t seem to be the result of any of the recent data breaches, Brunson stated the caller may have the last four digits of people’s Social Security Numbers.
When asked how someone would know the caller is not from the IRS, Brunson replied, “The IRS never calls anyone unsolicited without them having received something in the mail first or in response to a taxpayer’s inquiry.
Richards said there is an ebb flow to scams but it will always seem to have an uptick if it’s successful.
He said to let the caller know you know it’s a scam and hang up.
Richards said, “The bottom line is, the IRS will never call people to say they owe money and pay it now.”
This scam has blossomed on the heels of a previous IRS-spoofing e-mail scam telling people they owe money.
Brunson stated the IRS does not send out unsolicited e-mails claiming a taxpayer owes money. A taxpayer will always receive something in the mail.
He said the IRS may use e-mail as a means of following up with a taxpayer, but only after an initial contact has been made through the mail, and the IRS never uses “regards” in the closing, as seen in numerous IRS e-mail scams.
