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.
Amanda Riley joined HealthEquity more than 12 years ago and has worked in member services, operations, sales and now focuses on enterprise relationships. The majority of her work has been focused on helping to shape and evolve benefits programs at organizations of all sizes. Amanda lives in Washington state and can be found on LinkedIn.
Aaron Cirksena, founder and CEO of MDRN Capital, has devoted his entire career to financial planning, distribution planning and managing client money.
He worked with multiple $1 billion teams at Morgan Stanley and independent firms, and eventually created his own independent services firm in MDRN Capital. As a fully digital firm, MDRN prioritizes efficiency and convenience, providing remote consultations and digital account opening.
Founder and Director of the IoT Insurance Observatory, and Global Ambassador of the Italian InsurTech Association.
Internationally recognized as an insurance industry strategist and a world-renowned authority on InsurTech, he has worked in 20 different international insurance markets. Co-author of a book, 18 papers and more than 100 thought-leadership articles on insurance innovation. He has been invited to speak at more than 200 events across the world.
Accomplished business leader who co-founded Archimede, a SPAC that raised €47M and acquired the Italian insurance carrier Net Insurance in 2018. As board member and chairperson of the innovation advisory board, played a key role in the success of the listed combined entity. This journey resulted in Poste Italiane's acquisition of Net Insurance in May 2023, generating a 120% return for SPAC investors.
Before creating Observatory and co-founding Archimede, he spent 11 years in Bain & Company. He received his Business Administration degree from Bocconi University, also executive program certificates in IoT and data monetization from the MIT Sloan School of Management.
“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.
