IRS warns of typical scams used to commit ID theft

August 2, 2010 – 8:49 am

As if keeping an eye out for the taxman wasn’t bad enough, now scammers are mimicking the IRS and other government agencies to trick you into giving away your personal information. The IRS recently released new reminders to consumers regarding a variety of scams currently being perpetuated — most using the IRS’s name, logo and Web site.

The most important thing to remember is that the IRS will never discuss account or personal information with you via e-mail. If you receive requests that seemingly come from the IRS about tax information through e-mail, then it’s a phishing attempt. There are four major scams running right now.

Making work pay for a refund: This is a phishing e-mail about the Making Work Pay provision of the economic recovery law and references a refundable credit that is supposedly available to workers. All you have to do is supply your bank information to get the refund — the links are handily provided. The Making Work Pay tax credit does exist, but most people received it in their paychecks as a result of lower tax withholdings.

Large cash awards: This is another phishing scheme that, by e-mail claiming to be from the U.S. Dept. of Treasury, announces you’re the recipient of inherited funds, lottery winnings or a cash consignment. All you have to do is give them personal information like your phone number or address and send them a reply e-mail. Usually this leads to further e-mails or telephone calls to gain further information from you. It normally culminates in them sending a fake check and asking you to pay them 10 percent in fees after you put it in. The check then bounces after a few days leaving you minus the 10 percent and a bounce fee.

Form W-8BEN: Scammers modify a real IRS form (form W-8BEN – Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding) so that it requests indepth personal and financial information. They will either e-mail or fax the form which states that unless quickly filled out the recipient will face additional penalties and taxes. A W-8BEN form will never ask for a passport number, bank account or PIN numbers.

Refund scam: In this e-mail supposedly from the IRS, they inform you that you are eligible to receive a tax refund. You are instructed to click on a link that takes you to an official-looking form that asks for your personal and financial information. This email sometimes comes with an official-looking name and position with matching signature. The IRS says this is the most common scam used.

Keep on the lookout for scams like this and protect yourself. Call LifeLock today. Receive 30 days free and get a 10 percent discount on enrollment with the LifeLock Promo Code “Defense.”

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