Tax scams are targeting seniors

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Ivelin Radkov/Ivelin Radkov - Fotolia

In the lead up to World Elder Abuse Awareness Day on June 15, the Internal Revenue Service warned about the rising threat of impersonation scams targeting older adults.

Crooks pretend to be government officials, using fear and deceit to steal sensitive personal information and money.

"Scammers often target seniors, attempting to steal personal information through phone calls, emails or text messages by pretending to be from the IRS or other agencies or businesses," said IRS Commissioner Danny Werfel in a statement.

WEAAD, observed since 2006, aims to foster a better understanding of the neglect and abuse faced by millions of older adults, focusing attention on the contributing cultural, social, economic and demographic factors.

The IRS has identified a concerning trend where fraudulent actors are increasingly targeting unsuspecting individuals, particularly senior citizens, by masquerading as agents of the service. Victims are pressured into making immediate payments through unorthodox methods such as gift cards or wire transfers under the pretense of resolving fictitious tax liabilities or securing nonexistent refunds. Scammers deploy advanced techniques to fabricate credibility, including the manipulation of caller IDs to appear legitimate.

Schemes can include:

  • Impersonation of known entities. Fraudsters often pose as representatives from government agencies — including the IRS, the Social Security Administration and Medicare — or as others in the tax community or familiar businesses and charities. 
  • Claims of problems or prizes. Scammers frequently fabricate urgent scenarios, such as outstanding debts or promises of significant prize winnings. Victims may be falsely informed that they owe the IRS money, are owed a tax refund, need to verify accounts or must pay fees to claim non-existent lottery winnings.
  • Pressure for action. These deceitful actors create a sense of urgency, demanding that victims take immediate action without allowing time for thought. Common tactics include threats of arrest, deportation, license suspension or computer viruses. 
  • Specified payment methods. To complicate traceability, scammers insist on unconventional payment methods, including cryptocurrency, wire transfers, payment apps or gift cards, and often require victims to provide sensitive information such as gift card numbers. 

If an individual receives an unexpected call from someone claiming to be from the IRS but they haven't been notified by mail about issues with the agency, they should hang up immediately and not return the call using the number provided by the caller or the one displayed on their caller ID. Taxpayers uncertain about the legitimacy of IRS communications can contact the agency at (800) 829-1040 (TTY/TDD 800-829-4059). 

Electronic scams are also on the rise, with scammers sending malicious emails and texts posing as IRS representatives to steal personal information. The IRS reminds taxpayers that it does not initiate contact via email, text, or social media regarding tax bills or refunds. Report the call or electronic scam by visiting the Hotline page of the Treasury Inspector General for Tax Administration and using an IRS Impersonation Scam Reporting Form, or by calling (800) 366-4484.

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