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 S. Edmiston is an attorney with Jonathan W. Evans & Associates and is the immediate past president of PIABA.
He is a former NASD Dispute Resolution senior staff attorney and business manager for a national dispute resolution firm. Since 2006, he has represented investors in claims against brokerage firms, RIAs and other financial services companies.
David P. Meyer is the current president of PIABA and the managing principal of the law firm MeyerWilson.
As Vice President, Data Science in RGA Reinsurance Company's Global Research and Data Analytics department, Jeff Heaton works primarily with modeling risk for underwriting systems using electronic health records. In this role, Jeff's IT background allows him to bridge the gap between complex data science problems and proven software development. Jeff joined RGA in 2001 as a member of the Information Technology (IT) group to design and implement systems for retrocession administration and premium calculation, and transitioned to a data science role in 2013. He is a frequent speaker and author for organizations such as the Society of Actuaries (SOA), the Institute of Electrical and Electronics Engineers (IEEE), and for academic journals. Jeff has authored several books on artificial intelligence, and teaches a graduate course at Washington University in St. Louis on this subject. Jeff is a senior member of the IEEE and a Fellow of the Life Management Institute (FLMI). He holds a Master of Information Management (MIM) degree from Washington University in St. Louis and a Ph.D. in computer science from Nova Southeastern University.
“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.
