IRS Issues Warning to Millions of Older Americans

The Internal Revenue Service (IRS) has issued a warning about a range of scams using “fear and deceit to exploit” elderly Americans.

The government agency has “identified a concerning trend” where fraudsters are impersonating IRS agents to target “unsuspecting individuals, particularly senior citizens.” America’s elderly are being tricked into “making immediate payments through unorthodox methods such as gift cards or wire transfers under the pretense of resolving fictitious tax liabilities or securing false refunds,” the IRS warned in a release issued on June 12.

“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.”

A few examples of known scam tactics include:

• Impersonation of known entities: Fraudsters pretend to be representatives from government agencies, such as the IRS or the Social Security Administration. By spoofing caller IDs, scammers can deceive victims into believing they are genuinely being contacted by a government agency.
• Claims of problems or prizes: Scammers often make up fake scenarios to lure in their victims, including outstanding debts or promises of significant prize winnings. Victims may be falsely informed that they owe money to the government agency, are owed a tax refund, need to verify accounts, or must pay fees to claim nonexistent prizes.
• Pressure for immediate action: Fraudsters will often stress that the matter of payment is urgent, ordering immediate action without giving the victim time to consider what is happening. Common tactics include threats of arrest, deportation, license suspension or computer viruses.
• Specified payment methods: Scammers will often use unconventional payment methods in an effort to make the transaction untraceable, including asking for payment using cryptocurrency, wire transfers, payment apps or gift cards.

What should I do if I think I’m being scammed?

While fraudsters use a range of methods to target their victims, the IRS has said all taxpayers should remember the following:

• The IRS will never demand immediate payment via prepaid debit cards, gift cards or wire transfers. If taxes are owed, the IRS will typically send a bill by mail first.
• The IRS will never threaten individuals or businesses with law enforcement involvement.
• The IRS will never demand payment without allowing opportunities to dispute or appeal what is owed.
• The IRS will never request credit, debit or gift card numbers over the phone.

In the event that you receive an unanticipated call from a person claiming to be from the IRS, and you have not been formally notified via mail about any discrepancies with your IRS account, you should hang up immediately as this is likely to be a scam.