As the IRS sends out $1,400 Economic Impact Payments (EIPs) to eligible taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax return, scammers are taking this opportunity. Recent reports have shown an uptick in phishing scams where fraudsters impersonating the IRS send text messages to recipients claiming that they need to act by responding with personal information to receive their stimulus payments. This article will tell you about such scams, how they work, and how you can save yourself.
Brief details on the new scam
The new scam comes in the form of text messages, purportedly from the IRS, and informs recipients the individual is eligible for a $1,400 EIP. Most of them instruct the recipient to either click on a link or provide personal details such as Social Security numbers, bank account information, or other sensitive data. In return, scammers promise the payment in time, stating that the funds will be deposited into the recipient’s bank account or sent via check within one to two business days.
For instance, one such message states: “You are eligible for a $1,400 Economic Impact Payment. Please provide your accurate personal info. We will deposit the funds in your bank account or send you a paper check in 1 to 2 business days.” The messages instill an element of urgency and attempt to fool recipients into taking action before looking into the sender.
How the scam works
Scammers use various ploys in their scheme:
- Phishing links: Many of the text messages contain links to scam websites, sometimes appearing just like the IRS web pages. When you click on these links, it will likely download malware onto your device or ask you to fill out forms that will capture your personal information.
- Impersonation: The scammers, by pretending to be representatives from the IRS, leverage the assumed trust of governmental communications. They may also use logos and terminology that make the messages look like official business.
- Urgency and fear: The scammers will, at times, create an urgent situation where the recipient needs to act quickly to solve the problem of obtaining funds. This is to goad the victim into giving out information without stopping to consider the legitimacy of a message.
Knowing legitimate IRS communications
It is essential to understand how the IRS communicates with taxpayers:
- No texts or emails: The IRS does not send text messages or emails to communicate with individuals. All official communications will be made via postal mail.
- Automatic payments: There is no action required by eligible taxpayers to receive their EIPs; payments are automatic upon the processing of tax returns. If you’re eligible, you’ll receive an IRS letter when your payment is made.
- No requests for personal information: The IRS will never request personal or financial information by unsolicited texts or emails. You should view such a request with a lot of suspicion.
Protecting yourself from scams
To help you protect yourself against these scams, here are some tips:
- Verify communications: If you receive a suspicious message that purports to come from the IRS, do not respond. Instead authenticate any communication by going directly to the official IRS website.
- Do not click on links: Refrain from clicking on links within unsolicited messages. Go directly to official sites by manually typing URLs in your browser.
- Be cautious of urgency: Take time to consider any claims that require immediate action. One of the tactics scammers use is urgency—trying to bypass your critical thinking.
- Report suspicious activity: If you receive a scam message, report it right away. Forward suspicious emails to phishing@irs.gov and report text messages by sending them to 7726 (SPAM) along with the message details.
With fraudsters continuing to take advantage of economic relief efforts, awareness and vigilance are your best defenses against scams involving the $1,400 stimulus checks. It’s through knowing how these scams work and what the official practices of the IRS are that you can better protect your personal info and finances.
Remember, if it sounds too good to be true or something just doesn’t feel right about a communication you receive regarding your stimulus payment, it’s best to err on the side of caution and verify before taking any action.
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