Category: Tax Professional

The Dangers Of The Stimulus Scams

3/3/2021

With the potential of a third stimulus check heading our way, a brand new round of stimulus fraud has made its ugly appearance. We wanted to shed some light on the topic and to help avoid any issues that might get you in trouble!

Welcome to the Hoods Tax and Accounting Service blog! While we are inching closer to the end of tax season, we wanted to bring a very important topic to our reader's attention! With the possibility of a third or even more stimulus checks coming our way, the rise of stimulus fraud has begun to show its ugly head yet again. When the country needs support now more than ever, you'd think that these scammers and spammers could take a break. Sadly, this is not the case. When people are in need, they are an easy targets for these horrible people to hit. They have taken advantage of people many times before and have been very active during these last 11 months of this global pandemic. While we will get through the pandemic, we might never be able to get through or get over these scammers and spammers. We wanted to share some more information about these ugly scams and how to keep yourself protected and safe!

These thieves, scammers, and spammers are taking advantage of honest taxpayers during this current tax season and have been through the stimulus payment periods. With the constant back and forth of the media on the current political atmosphere, it's easy for many to not know if that third potential stimulus check is a reality or not. Tax season is also in its own flurry, as many Americans are trying to file as quickly as they can to get much-needed funds from their tax return. In this fiscal pandemonium that is where these criminals are striking. It is very important to know that a third stimulus has not been distributed nor has it been confirmed, it is still in the works. Also, please remember that you will not receive your tax return until you've filed your taxes, and you will receive it one of two ways. You will either receive it in the form of a direct deposit to your bank account that you have set up with the IRS by providing your banking information, or in the form of a check in the mail. They will not ask you for any personal information directly to access your refund money. They already have all of this information about you. Also, they will never try to send your return to you in any other way nor can you do anything extra for the IRS (outside of filing your taxes) to receive your return.

While we know finances are still strained and you need that money, please do not accept any other offers baiting you to receive your tax return early. Also, please do not give away any personal information in exchange for your tax return. That is most likely some kind of scam or criminal target you. Please note, criminals do not discriminate. They will go after anyone to get any information or money that they can. It is also important to understand that the main form of contact for the IRS is through your mailbox. If you receive a text message, phone call, email, or voice mail from someone who claims to be the IRS without you prompting these responses, that too is most likely some kind of spam or attack.

While not directly linked, according to ABC 7 Chicago, another scam is to keep your eyes open for is fake COVID packages and test kits. These scams include offers to sell bogus cures, pills, the vaccine, and other medical advice for false and unproven COVID-19 treatments. Please do not give anyone information to receive such materials. These packages are fake, as are the items inside of them. If you are looking for a vaccine or help with a COVID diagnosis, please contact your doctor.

One of the biggest things we can recommend is to not engage in any of these criminal efforts. Do not respond to any phone calls, text messages, emails, or letters, even if it's asking them to not bother you. At the end of 2020, CNBC reported that Americans lost over $211 million to these types of scams, and the FTC has received over 275,000 complaints. When the first round of stimulus checks were released and time passed, fraud activity did quiet down. Now that the second has been released and tax season is here, there is no doubt that this rate will rise and continue until tax season is over on April 15th. If a third stimulus check is released, this pattern will repeat itself all over again. Scammers are always looking for an opportunity for their next payout. Remember that one of the many tactics these criminals use is fear, scamming taxpayers into giving them private information, or else! The IRS will not send unprompted emails, texts, nor will they call you with threats of sending you to jail or filing a lawsuit against you. They will also not demand wiring money or gift cards in return for your tax payments.

What Are Some Current Scams and Spam Threats?
Along with offering cures, vaccines, and help to fight or stay safe from the COVID-19 virus, some current scams look like this:

Fake donations for areas, groups, and people heavily affected by COVID-19. Please be aware these scams could appear in the same form but will be referencing natural disasters like the wildfires California saw last year, the hurricanes Texas and Louisiana saw last year, and the horrific ice and snow damage so many have suffered from in recent weeks. Please research before donating money, especially right now!
Phishing and scamming schemes online that use keywords that help a reader believe that they are legitimate. Some of these keywords include words like "stimulus", "refund", "COVID-19", and "corona virus".
Text messages that ask for your bank account number claiming they will deposit your stimulus money right away if you provide them with this information.
Receiving emails or text messages asking the recipients to verify their personal information. The IRS already has the information needed, and if not, they would not ask you to verify it in such an unprofessional or relaxed manner.
Another common tactic is that people are being contacted by these criminals and they claim that if you pay them a certain amount of money, wire them money, or send them gift cards of their choosing, they will send you your stimulus money faster. There is no such thing as getting it sooner, the IRS will send any stimulus payments and your tax returns based on their decisions and when you file your taxes.
Another scam to look out for is look-alike checks. Scammers send these very believable-looking checks to individuals, and then they are deposited on the trust that they are indeed real. The scammer will then contact the recipient of the check saying the amount of the check was incorrect and they need to return the amount of money they were overpaid. This leaves the recipient out of the check they believed to be real once it bounces, and the money they gave back as a "refund".
Also, please do not put in or give any of your personal or financial information to a non-government website when it comes to anything regarding the IRS. These phony websites can download malware on your device and steal any personal information your computer has access to, including your banking information.

How Do I Protect Myself from Tax and Stimulus Fraud?
With all of these very intelligent criminals hitting their targets on so many different platforms and in so many different ways, how can you protect yourself?

As we mentioned before, do not engage with these forms of communication; do not respond, and do not follow up with them!
Do not answer any phone calls from anyone you don't know, the same goes with text messages. Also, avoid visiting questionable websites and never open any attachments on any emails this so-called "government" worker has sent you. Avoid clicking on any links that any suspicious emails invite you to click on. The IRS would not have you do any of these things.
If you do answer a call from someone you don't know, claiming to be the IRS, and they begin to threaten you, take a deep breath and hang up. They will not be calling the police, they will not be calling their lawyers, and they will not be coming to your home. If you feel unsafe, please contact your local authorities and provide the phone number used to contact you.
If an email looks suspicious or too good to be true, it probably is. Go ahead and trash it. You can and should report all scams to the National Center for Disaster Fraud Hotline at 866-720-5721.
To learn more about these scams, please visit the IRS or FTC website. Please find those links below. After reporting the phone numbers or email addresses you've dealt with, please block them from your phone and your inbox and toss them out!

Tax season, tight finances due to a global pandemic, and dealing with staying up to date with potential future stimulus payments is difficult enough. Stay alert and educate yourself to avoid any fraud or scams that could potentially make your life even more difficult. Please never hesitate to contact us if you have any questions, and we are here and ready to help you through your 2020 tax season! Remember, if you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon!

To learn more and to report fraudulent activity, please visit the IRS or FTC website by following the links below.

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