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Don’t be scammed into paying Back Taxes

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It’s easy to scam someone who did something wrong by telling them they need to fix their mistake. This is why thousands of people get scammed into paying back taxes to the IRS—the IRS has nothing to do with these scams, of course, but the predators prey on peoples’ fear of Uncle Sam. It all begins with the fraudster making a phone call, pretending to be an IRS employee.

9DThey have other tricks up their sleeve too, such as making the caller ID show a number that appears to be coming from the IRS and identifying themselves with phony IRS badge numbers. They’ll even leave urgent messages if they get voicemail.

Preying on emotions, the crook gets vulnerable people to give up private information right then and there—enough information for the crook to commit some kind of identity theft crime. When many people hear “IRS,” they get scared. Scammers have ripped off millions of dollars as a result.

The IRS won’t give you a phone call if you’re delinquent in your tax payment. They’ll snail mail you an official notice instead. In fact, the IRS, despite its negative stereotype, won’t use scare tactics or threatening verbiage. Anyone on the phone who does this is pond scum; hang up immediately.

The IRS also won’t ever just up and e-mail you about back taxes. If you see “IRS” in a subject line, do not open it. Instead, forward it to phishing@irs.gov and delete it.

If you want to have a little fun with these thieves, then if you ever get a call from someone claiming to be from the IRS, nonchalantly tell them that you yourself work for the IRS. See what happens.

A woman in Denver, Rachel Fitzsimmons, received calls from the “IRS” telling her they were filing a lawsuit against her. The message was a robotic-sounding female voice that left a call-back number. At first she was unnerved, but then after doing some research, recognized this as a scam. She called back the number, let the man talk a little with the threat, then told him she worked for the IRS (she doesn’t). He immediately hung up. Busted!

Robert Siciliano personal and home security specialist to BestHomeSecurityCompanys.com discussing burglar proofing your home on Fox Boston. Disclosures.

10 Skeevy Scams to watch

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You may think you’re not dumb enough to fall for scams, but consider that someone you care deeply about is naïve enough to be conned. Besides, some scams are so clever that even those who think they’re scam-proof have actually been taken for a ride.

http://www.dreamstime.com/stock-images-online-risks-sign-road-banner-image34668294Sometimes fraudsters pose as an authority figure. Some claim you won a prize, while others claim you’re in trouble. Some even claim they’re a family member (needing money) and have figured out a way to convince you of this.

Some scams are done via e-mail, while others involve a phone call or snail mail. One common ploy is for the crook to pose as a rep from the electric company and threaten to shut off your electricity unless you pay a delinquent bill. Of course, the payment must be in the form of a reloadable debit card. People will actually give these cards to the “rep,” without calling the company to confirm the situation.

A big tip-off to a scam is that you’re told you won a prize or have been hired for employment—but must send money to get the prize or be trained for the employment.

Some scams are so very obvious, but still, people get taken, like those ridiculous e-mails claiming you inherited a windfall from some deceased prince named Gharbakhaji Naoombuule. But people actually fall for these, not considering that this same e-mail was sent to 10,000 others.

Top 10 Scams

  • Caller ID spoofing. Has your phone ever rung and you saw your phone number and name in the caller ID screen? How can your own phone be calling you? It’s a scam. Ignore it. If you pick up you’ll hear an offer for lower credit card rates. You’ll be told to press 1 to opt out—but you should not even be on that long to hear this option; you should have hung up the second you heard the credit card offer. Anyways, pressing 1 indicates your number is legitimate; it’s then sold to scammers. Caller ID spoofing is also perfect for scammers posing as the police, government agency, corporations etc all with the intention to get you to part with your money.
  • Mystery shopping. Though mystery shopping is a legitimate enterprise, scammers take advantage of this and mail out checks (phony) before the “shopping” is done. A legitimate company will never do this. They also get victims to give up credit card data to pay for getting a job!
  • Calls about unpaid taxes. Always hang up, regardless of threatening nature to pay up or else. The IRS always uses snail mail to notify people of unpaid taxes.
  • Puppy scam. You find a website offering purebred puppies at very low prices or even for free, but you’re told you must pay for shipping or transfer fees (wire transfer) to get your puppy. The money is gone and you never get your puppy.
  • You get a call from someone claiming to have found buyers for your timeshare. You receive a contract, but are told you must pay funds to cover some fees. The contract is phony.
  • Tech support. Someone calls you claiming your computer needs servicing. They’ll fix it after you give them your credit card information. Legitimate geeks don’t call people; you must call them.
  • Postcard survey. Out of the blue you’re told you’ve won a gift card, or, just take a brief survey to get one. Go along with this and soon you’ll be asked to provide your credit card number. Don’t bother. You’ll get no gift card while the crook gets your credit card information.
  • A notice says you’ve won a big fat prize. To claim it, just pay some fees. Yeah, right. Never pay fees to collect a prize!
  • You’re told you’re eligible for a grant or have been awarded one, but must first pay processing fees. Federal grants don’t require fees.
  • Subscription renewal notice. The notice says you can renew for a lower rate. Check to see if the notice was sent by the publication itself or some third party (the crook).

Robert Siciliano is an identity theft expert to BestIDTheftCompanys.com discussing  identity theft prevention.

IRS announces a 66% Increase in Tax Identity Theft Investigations

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Tax related identity theft is reaching nightmarish and epidemic proportions. Heed the following to minimize your risk.3D

  • File taxes early. ‘Tis the season for tax fraud, and scammers like to get a jump start from the beginning. File early before the fraudsters file.
  • Use electronic filing. Paying the IRS via e-filing is fast and more secure than the paper method. You’ll also get an e-confirmation of receipt. E-filing also lets you know promptly if another person has filed under your own information.
  • An IRS e-mail is probably a fake. You’ll never get an unsolicited e-mail from Uncle Sam asking for your SSN, date of birth or other private information. Don’t open these e-mails. If you accidentally open one, do nothing more than forward it to phishing@irs.gov.
  • Fake web sites. Telltale signs of a fraudulent site are typos and grammatical mistakes, odd page layouts, an unprofessional appearance and other oddities. Be suspicious if there’s not a tiny yellow padlock and “https” to the left of the URL.
  • Be careful where you store. Never store tax information on an Internet drive or cloud. If it must be stored on a computer, encrypt the drive. Better yet, store it on an external drive or disk that’s encrypted or password protected, and store this in a locked safe.
  • Strong, long passwords and usernames. Use an assortment of characters (letters, numbers, symbols like # and *).
  • Check your annual Social Security statement. It shows all income from U.S.-workers under your SSN.
  • Your tax preparer. Use a reputable, licensed tax preparation firm. There exist many tax fraudsters.
  • Be on red alert. Services that claim to have no or very low tax liability often sock you with very high fees, or divert refunds or take money from returns.
  • Snail mail alert. Monitor reception of tax forms. Take notice if any are late or seem to have been opened. If anything is awry, notify the provider at once to find out when they were sent out.

Robert Siciliano is an identity theft expert to BestIDTheftCompanys.com discussing  identity theft prevention. For Roberts FREE ebook text- SECURE Your@emailaddress -to 411247. Disclosures.

Tax Season Scams Bite Businesses

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There are numerous tax related scams out there. And as a business or even a consumer, forewarned is forearmed.

9DTax relief. Predators scan through tax lien notices to see who’s in deep with the IRS, then offer them tax relief services which are fraudulent. You pay them, and voila, your money not only is gone, but so is the “service.” You’re now further sunk in debt.

  • A fee, usually high, is required in advance.
  • These scams may be advertised on TV and radio.
  • They may also come as an unsolicited snail letter or e-mail, saying that you qualify for some governmental plan.
  • The company offering the solution may suddenly disappear.
  • If some kind of tax payment plan seems too good to be true, assume that it is.

IRS giving away money. When pigs fly. But really, this scam makes its rounds: flyers and ads claiming free money from Uncle Sam, suggesting you can file a return with minimal or no documentation. These postings often appear in churches. People see them and innocently spread the word.

Abuse of 501(c)(3). Numerous types of nonprofit organizations are exempt from certain kinds of federal income taxes. Some organizations will create schemes to become exempt, including ploys that fraudulently shield income from taxation.

Corporate ownership disguise. A third party is fraudulently used to request EIDs (employer identification numbers). The third parties then form corporations that muddle the business’s true ownership standing.

Trust misuse. Transferring assets into trusts may have some legitimacy, but shady promoters have also encouraged people to do this in an improper way. These transactions don’t live up to their promise of reducing taxable income or maximizing deductions for giving gifts or for personal expenses.

Inflated income & expenses. Though some businesses deflate income to lower what they owe, others will inflate it to optimize refundable credits. They may also claim expenses they never paid.

Hiding income offshore. Some people and businesses, to avoid paying taxes, hide income in offshore accounts. They use credit or debit cards, or wire transfers to gain access to their funds. Other people will use employee-leasing schemes, employ foreign trusts, or use insurance plans or private annuities to get access.

Fake forms. Someone files a false information return, like the Form 1099 Original Issue Discount, to validate a fake refund claim on a corresponding return. Some have made false claims for refunds based on the sham theory that the IRS has secret accounts for U.S. citizens and that one can gain access to these accounts with the 1099 OID form.

Ridiculous attempts at write-offs. Businesses claiming crazy, frivolous claims to avoid paying owed taxes like that business trip to Mardi Gras. The IRS will recognize many frivolous tax arguments and will toss them out of court.

Robert Siciliano is an Identity Theft Expert to AllClear ID. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen. See him knock’em dead in this identity theft prevention video. Disclosures

Police Looking into Tax Return Scam

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Leading up to April 15th, I’m going to keep reminding you it’s that time of the year again, yes, Tax Scamming Season. This is when identity thieves come out of the woodwork and steal from good standing Americans who do the right thing and pay their taxes.

There are no shortages of bad people looking to take from good people. “Police officials say the case is still under investigation after it was first reported late last week, but are not sure whether the fraud occurred in that fake W-2 forms were submitted or whether real W-2 forms were submitted under fake identities.”

Tax scams can happen in a number of ways. The goal is always to get the victims refund. Every January we get W-2 forms in the mail. As an employee you receive a W-2 from the employer, which is a wage and tax statement for the year. Self employed people who do contract work may receive 1099’s.

Scammers can steal these documents from your mailbox and use them as you would to file taxes under your name. Depending on what you claim, or how many dependants you may have, your refund can be substantial, which makes it a nice target to an identity thief.

Robert Siciliano personal security expert to Home Security Source discussing Tax Scams on Fox News