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.
Suzanne Schmitt is a vice president, Financial Wellness at Prudential Financial, where she focuses on the firm’s strategy around financial wellness outcomes. Prudential Financial is a financial wellness leader and premier active global investment manager with more than $1.5 trillion in assets under management as of June 30, 2020.
Ken Cahill is the CEO and co-founder of SilverCloud Health. With offices in Boston, Dublin, and London, SilverCloud is the world’s leading digital mental health platform. It enables the delivery of clinically validated digital therapeutic programs that are proven to significantly improve mental health outcomes, increase access and scale while reducing costs of care delivery.
Prior to founding SilverCloud Health, Ken held senior positions in several multinationals including, Dell, HP, and Gateway. Ken received the 2018 MedTech Boston 40 under 40 award. He holds a BSc. in computing, and a diploma in new business and certificate in company direction from the Institute of Directions in London. Visit Ken on LinkedIn or Twitter at @SilverCloudH.
Nigel Morris is the co-founder and managing partner of QED Investors, a fintech venture capital platform focused on disruptive, high-growth financial services companies.
Nigel is the chairman of ClearScore and Mission Lane, serves on the boards of Remitly, Bitso, Current and Amount, and is a board observer for QuintoAndar. Additionally, he works in an advisory capacity with Oliver Wyman.
Prior to QED, Nigel co-founded Capital One Financial Services in 1994.
“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.
