IRS warns about COVID-19 scams

The Best Times Digital Edition

February 23, 2021

The Internal Revenue Service’s Criminal Investigation Division (IRS-CI) is warning taxpayers about a new wave of COVID-19-related scams as the agency delivers Economic Impact Payments (EIP). In the last several months, IRS-CI has seen a variety of EIP scams and other financial schemes designed to steal money and personal information from taxpayers. Criminals are taking advantage of EIPs – as well as the approaching tax filing season – to trick taxpayers.

Some common COVID-19 scams include:

  • Text messages asking taxpayers to disclose bank account information under the guise of receiving the Economic Impact Payments.
  • Phishing schemes using email, letters and social media messages with key words such as “Coronavirus,” “COVID-19” and “stimulus” in varying ways. These communications are blasted to large numbers of people and aim to access personal identifying information and financial account information (including account numbers and passwords).
  • The organized and unofficial sale of fake at-home COVID-19 test kits (as well as 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 the disease.
  • Bogus opportunities to invest in companies developing COVID-19 vaccines while promising that the “company” will dramatically increase in value as a result.

Although criminals are constantly changing their tactics, taxpayers can help protect themselves by acting as the first line of defense. The best way to avoid falling victim to a scam is knowing how the IRS communicates with taxpayers.

The IRS does not send unsolicited texts or emails. The IRS does not call people with threats of jail or lawsuits, nor does it demand tax payments on gift cards.

COVID-19 scams should be reported to the National Center for Disaster Fraud (NCDF) Hotline at 1-866-720-5721. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation and prosecution of criminal conduct related to natural and man-made disasters and other emergencies.

Taxpayers who receive 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. Taxpayers are encouraged not to engage potential scammers online or on the phone.

To learn more about COVID-19 scams and other financial schemes, visit IRS.gov. Official IRS information about COVID-19 and EIPs can be found on the Coronavirus Tax Relief page, which is updated frequently.