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.
Michael Cohn, editor-in-chief of AccountingToday.com, has been covering business and technology for a variety of publications since 1985. Prior to joining Accounting Today and WebCPA, he worked for Red Herring, Internet World, Beyond Computing, Accounting Technology and PC Magazine, and freelanced for a variety of other business publications. A graduate of the University of Pennsylvania with a BA in English, he studied accounting at the Wharton School of Business, and currently lives in New York City.
Ori Eisen has spent the last twenty-two years in the cybersecurity and information technology industry, and is respected for his business knowledge and leadership. His background includes an in-depth application of innovative solutions for preventing online fraud.Priorto founding Trusona, Mr. Eisen was the Founder and Chief Innovation Officer at 41st Parameter – the leading online fraud prevention and detection solution for financial institutions and e-commerce and travel merchants. 41st Parameter was acquired by Experian in 2013.Prior to 41st Parameter, Mr. Eisen served as the Worldwide Fraud Director for American Express focusing on Internet, MOTO and counterfeit fraud. During his tenure with American Express, Mr. Eisen championed the project to enhance the American Express authorization request to include Internet specific parameters.Prior to American Express, Mr. Eisen was the Director of Fraud Prevention for VeriSign/Network Solutions. By developing new and innovative technologies, he skillfully reduced fraud losses by over 85 percent in just three months.Mr. Eisen has an extensive background in developing system infrastructure and implemented solutions, and he is highly regarded in the information and payment technologies industry as a noted leader and technology innovator. Based on this reputation Mr. Eisen is often quoted by industry insiders, and receives numerous invitations to appear as a keynote speaker for industry events and conferences.Mr. Eisen holds a Bachelor of Science degree in business administration from Montclair State University.
Phil Cunningham is CEO of Advicent, an enterprise technology solutions provider.
“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.
