Tax-related
identity theft was the most common form of identity theft reported to the
Federal Trade Commission in 2014, while the number of complaints from consumers
about criminals impersonating IRS officials was nearly 24 times more than in
2013, according to FTC statistics released today.
The
FTC, along with the Department of Veterans’ Affairs, Treasury Inspector General
for Tax Administration, the AARP, and other partners are holding a series of
events this week designed to educate consumers about these issues as part of Tax Identity Theft Awareness Week, which
begins today and runs through Jan. 30.
“We’ve
seen an explosion of complaints about callers who claim to be IRS agents – but
are not,” said Jessica Rich, director of the FTC’s Bureau of Consumer
Protection. “IRS employees won’t call out of the blue and threaten to have you
arrested or demand specific methods of payment.”
The
statistics released today come from the FTC’s Consumer Sentinel database, which
accounts for complaints received by the FTC and other federal, state and local
law enforcement and consumer protection agencies. In 2013, the FTC received
2,545 complaints about IRS imposter scams; in 2014 that number increased to
54,690. In 2014, the FTC received 109,063 complaints about tax identity theft,
accounting for 32.8 percent of the 332,646 overall complaints about identity
theft.
Tax
identity theft typically happens when a scammer files a fraudulent tax return
using a consumer’s Social Security number in order to receive a refund. The
year 2014 marks the fifth consecutive year in which tax-related identity theft
topped the list of identity theft complaints, with tax identity theft
accounting for nearly a third of all identity theft complaints to the FTC.
IRS
impersonation scams typically consist of an individual contacting a consumer by
phone, claiming that they are an IRS agent and that the consumer owes the IRS
money. The callers suggest to consumers that they pay by wiring money or
loading money on a pre-paid debit card. The callers often threaten arrest or
legal action, and their calls may appear to originate from Washington, D.C.
phone numbers; scammers may even know a consumer’s full or partial Social
Security number, lending credibility to the scam. The nearly twenty-four-fold
increase in complaints related to IRS impersonation indicate that scammers are
using this technique against consumers across the country.
Consumers
have tools to fight back against these pervasive scams, though. When it comes
to tax identity theft, consumers’ best defense is to file their taxes as early
as possible to get ahead of scammers who may attempt to use their Social
Security number to get a fraudulent refund. If a consumer is a victim of tax
identity theft, they should contact the FTC to file a complaint immediately either
online or by phone at 1-877-FTC-HELP, as well as contacting the IRS at
1-800-908-4490.
IRS
impersonation scams prey on consumers’ lack of knowledge about how the IRS
contacts consumers. The IRS will never call a consumer about unpaid taxes or
penalties – the agency typically contacts consumers via letter. If consumers
get a call purporting to be from the IRS, they should never send money – once
it’s sent to the criminal, it is impossible to retrieve. They should instead
hang up and report the scam to the FTC and to the Treasury Inspector General
for Tax Administration at tigta.gov.
For
consumers, the FTC is hosting or co-hosting two webinars and a Twitter chat
this week as part of Tax Identity Theft Awareness Week:
- Jan. 27, 2 p.m.: an FTC webinar for consumers, co-hosted with the Treasury Inspector General for Tax Administration and AARP addressing how tax identity theft happens and what consumers should do if they become a victim.
- Jan. 28, 1 p.m.: the FTC and the Veterans Administration will host a webinar with information about tax identity theft for veterans.
- Jan. 29, 3 p.m.: the FTC and the Identity Theft Resource Center will co-host a Twitter chat about tax ID theft – consumers can join the conversation on #IDTheftChat.
No comments:
Post a Comment