IRS seeing a surge in scams tied to EIP

The Internal Revenue Service received a record number of complaints about Economic Impact Payment (EIP) scams in June and July, not seen in more than a decade.

“Criminals will look for any opportunity to take what they are not entitled to and this is no exception,” said Acting Special Agent in Charge Justin Campbell, of IRS Criminal Investigation, Chicago Field Office. “While this is not the first time that EIP payments have been targeted, this increase in scams is alarming.”

The public should be wary of any phone calls, emails or text messages asking for personal information, or offering a deal that seems too good to be true. The U.S. Attorney’s Office will work with law enforcement partners to investigate and prosecute to the fullest extent possible those who exploit a national emergency, by engaging in COVID-19 related fraud schemes.

Phishing scams attempt to mirror legitimate IRS communications with the goal of convincing unsuspecting taxpayers to enter personal information or submit a payment. This information is then exploited by scammers.

Recent scam reports include text messages stating that a taxpayer is eligible for a “stimulus payment” and they must click on a link to complete the necessary information to claim it. Phishing emails are also claiming the IRS has calculated a taxpayer’s “fiscal activity” and they are eligible for an EIP in a specific amount.

Although criminals are constantly changing their tactics, taxpayers can help protect themselves by acting as the first line of defense. The best way to avoid falling victim to a scam, is knowing how the IRS communicates with taxpayers.

The IRS does not send unsolicited texts or emails. The IRS does not threaten individuals with jail or lawsuits, nor does it demand tax payments on gift cards or via cryptocurrency.

Taxpayers should be on the lookout for grammatical, capitalization and spelling errors, in emails and texts, which serve as fraud indicators. Taxpayers should also exercise caution when clicking shortened URLs, which can lead to fraudulent web pages.

Those who receive unsolicited emails or social media attempts to gather information that appear to be from either the IRS, or an organization closely linked to the IRS, should forward the message to phishing@irs.gov. Taxpayers are encouraged not to engage potential scammers online or on the phone.

A report fraud or theft of an EIP can be made to the Treasury Inspector General for Tax Administration, at tips.tigta.gov.