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.
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Roishetta Ozane is the founder of Vessel Project of Louisiana, and Gulf Fossil Finance Coordinator with the Texas Campaign for the Environment.
James Pruskowski is the CIO and co-founder of 16Rock, a full-service asset management firm specializing in Municipal Bonds. He leads the firm's flagship 16Rock Municipal Opportunities Fund LP, a long-short hedge fund, as well as the firm's long-only Separately Managed Account (SMA) client business.
Mr. Pruskowski spent nearly three decades at BlackRock starting in 1994 shortly after the firm was founded, when it had only 50 employees and $25 billion in assets under management. He was a Managing Director, Portfolio Manager, and Head of Municipal Bonds, Institutional & Wealth Management. Mr. Pruskowski was a member of the management committee and led a team of 58 investment professionals, driving strategic growth initiatives and innovation. He has a proven track record over multiple investment cycles and award-winning performance.
Before focusing on municipal bonds, Mr. Pruskowski was a multi-sector taxable fixed income portfolio manager. He was instrumental in launching BlackRock's Financial Institutions Group, which has grown into the world's leading insurance asset management business. He provided a wide array of services in balance sheet management, analytics, capital markets, and portfolio construction to banks, insurance companies, and official institutions worldwide. Mr. Pruskowski began his career in Risk & Quantitative Analytics as a risk analyst and programmer, playing a key role in the development of what is now known as BlackRock Solutions.
Mr. Pruskowski is a thought leader and content expert, known for his diverse skills, experience, and energetic, detail-oriented, and structured approach. His hands-on, can-do attitude drives results. As an industry advocate with strong brand awareness, he frequently speaks publicly, engages with the media, and collaborates with clients. He possesses a unique talent for understanding, designing, and clearly explaining markets and complex concepts in an accessible manner.
“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.
