The Internal Revenue Service’s Criminal Investigation Division issued a warning Thursday about a new wave of COVID-19 scams tied to the latest round of stimulus payments, especially targeting taxpayers in the District of Columbia.
The warning comes amid heightened tension in Washington after a riot last week at the Capitol that left five people dead and scores of people injured and led to an unprecedented second impeachment of President Trump on Wednesday. Washington is also bracing for possible protests next week around the time of the inauguration of President-elect Biden. National Guard troops have amassed at the Capitol to protect it.
The new COVID-19 scams echo some of the same schemes seen last year when the previous round of Economic Impact Payments was sent to taxpayers. However, in the last several months, the IRS’s CI unit said it has seen a variety of EIP scams and other financial schemes with the goal of stealing money and personal information from taxpayers. Criminals are taking advantage of the second EIP round, along with the impending tax-filing season, to trick honest taxpayers out of their money.
As CMO, Nancy Sansom is responsible for marketing and communications at PlanSource. With more than 15 years of executive leadership experience within highgrowth SaaS companies, she excels in marketing, communications, P&L and product management, software design, business development and HR. Prior to joining PlanSource, Nancy served on the senior leadership teams at Benefitfocus and PeopleMatter. During her 10-year career at Benefitfocus, Nancy led product strategy and management, marketing and product design. Most recently she was CMO at PeopleMatter, where she developed the PeopleMatter brand while building a demand generation engine for driving topline growth. Nancy earned her MBA from Carnegie Mellon University and has been a member of the Kellogg School of Management’s Executive Education program.
Ryan Buckner is a principal at CPA firm Schellman & Co. LLC, where he serves on the methodology leadership team and leads attestation task forces. He is also an AICPA-approved SOC Peer Review Specialist, and has completed over 800 service audits and SOC examinations.
Tabassum Ali is president of Tax Tabs in South Richmond Hill, N.Y. He writes a blog at www.taxtabs.com.
“IRS-CI wants to make sure all residents of the District are aware of the potential scams to help prevent them from becoming victimized,” said Kelly R. Jackson, special agent in charge of IRS-CI's Washington, D.C., Field Office, in a statement. “Please stay vigilant of potential scammers looking to steal your personal information and your money.”
Some of the common COVID-19 scams seen by IRS-CI agents include:
- Text messages asking taxpayers to disclose bank account information under the guise of receiving the $1,200 EIPs;
- Phishing scams using email, letters and social media messages with key words such as “coronavirus,” “COVID-19” and “stimulus” in different ways — these communications are sent to large numbers of people and aim to access personally identifying information and financial account information (including account numbers and passwords);
- The organized and unofficial sale of fake at-home COVID-19 test kits (along with offers to sell fake cures, vaccines, pills and professional medical advice regarding unproven COVID-19 treatments);
- Fake donation requests for individuals, groups and areas heavily affected by COVID-19;
- Bogus opportunities to invest in companies developing COVID-19 vaccines while promising that the “company” will dramatically increase in value as a result.
Taxpayers who get 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. The IRS is encouraging them not to communicate with potential scammers online or over the phone.
