Archive for the ‘IRS’ Category

Consumer complaints helped bust bogus call center with 700 employees

Posted Oct. 31, 2016, at 6:54 a.m.
FMI check press release, October 27th

FMI check press release, October 27th

You are likely one of the thousands of Maine consumers who have received phone calls from someone wanting a “delinquent tax payment.” We’ve written over the years about crooks posing as Internal Revenue Service agents or other officials who try to coerce people into paying money they don’t owe.

These days, you might hang up quickly and dismiss the attempted ripoff without another thought. However, you might help slow the scammers by taking the time to report the attempt.

Consider the action by police in Mumbai, India, a few weeks ago. Raids on nine call centers resulted in 70 arrests. Investigators allege that employees were trained to speak with American accents as they pressured people to pay phony debts by wiring money that couldn’t be recovered. Each call center raked in an estimated $150,000 per day, usually from retirees and other older Americans.

The Indian Express reports that authorities are still questioning some of the 700 employees of the fake call centers. They’re also hunting for the alleged mastermind of the scheme, who apparently fled a lavish lifestyle in India for a new home in Dubai.

Back in the U.S., people who keep an eye on such things think the raids were made possible by reports from people the scammers attempted to target. Since March 2015, the Better Business Bureau has maintained a “scam tracker” website that consumers can use to file complaints about the IRS scam and other ripoff attempts. BBB officials say that following the raids in India complaints to that website dropped by 95 percent.

The sharp dip in complaints “validates our belief in the importance of using reports from the public to better understand the scam landscape,” program manager Emma Fletcher told the Washington Post. The Treasury Department welcomes information about these impersonation scams. File a report online at treasury.gov/tigta/contact_report_scam.shtml.

The Internet Crime Complaint Center also accepts reports at IC3.gov.

Maine Attorney General Janet Mills warned consumers back in August about the IRS impostor scam maine.gov/ag/news/article.shtml?id=703353.

At the time, Mills said, “The IRS scam and others like it are consistently the top complaint we receive.” She urged consumers not to engage callers and not to divulge personal information.

The Internal Revenue Service will not call suddenly to ask for a payment, won’t demand a specific kind of payment (hoaxers specify paying by wire or gift card) and the IRS won’t threaten legal action if you don’t pay immediately.

If you do owe money, you’ll get a letter first, and there’s usually a period of time in which you can settle your debt.

The IRS has a rundown of recent hoaxes and steps consumers can take to avoid being scammed at irs.gov/uac/tax-scams-consumer-alerts.

Scammers sometimes send emails to back up their phone call threats. They may have personal information about consumers, including the last four digits of their Social Security numbers. They may also spoof the number a caller ID shows to mimic a real IRS office. Don’t be fooled. If you have any doubts, look up the number of your nearest IRS office yourself, call that number and inquire.

A lot of scams originate overseas; in fact, posing as a government official ranked second on a list compiled by the International Consumer Protection and Enforcement Network, a joint effort by 35 organizations worldwide. Visit its site at econsumer.gov/#crnt.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer , ME04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

‘Student tax’ doesn’t exist, so hang up on demands to pay it

CONSUMER FORUM

By Russ Van Arsdale, executive director Northeast CONTACT
Posted May 30, 2016, at 11:08 a.m.

Those nasty scam artists claiming to be Internal Revenue Service agents are at it again.

This time, they’re calling students — weary from finals and staggering under student loan debt — and telling them they’re in arrears on their “federal student taxes.”

A lot of students have recognized these calls as the hoaxes they are and hung up. Many then get another call with a “spoofed” caller ID, making it appear the caller is with a branch of law enforcement or other agency. The demand is the same: Wire money immediately or face arrest.

The warning signs are all there: cold calls from supposed authority figures, demands for immediate payment backed by phony threats of jail or sometimes physical harm.

The Federal Trade Commission warned consumers last week that there is no student tax and that attempts to collect are always scams.

“No one from the IRS will ever ask you to wire money, or pay by sending iTunes gift cards or reloadable prepaid cards,” the FTC news release read.

The agency’s advice is to hang up immediately, don’t believe fake follow-up calls and report the call to the FTC.

“And tell your friends at school. They might get the next call!” the release concluded.

It might seem like a waste of time to file a single report, considering the thousands of scams that occur. However, Sen. Susan Collins said last week that a complaint filed with her Special Committee on Aging had led to the arrest of five people in Florida. The five allegedly impersonated IRS agents and scammed victims of nearly $2 million.

The bottom-line message is that criminals don’t care about the age of their intended victims. They care only about stealing money.

All student loans in the U.S. total roughly $1.2 billion, so it’s no surprise that criminals target debtors. Because borrowers are always required to repay student loans, many seek ways to lessen the financial burden of their loans. Unfortunately, they often look for “quick fixes” that can turn into long-term headaches.

Offers to refinance, lower rates or abolish debt altogether are often bogus. Many services for which greedy sellers charge fees can be obtained for free, at least in the case of federal loans.

Get information on federal student loan programs at studentaid.ed.gov/sa/ or call toll-free 1-800-4FED-AID (1-800-433-3243). That website also contains toll-free phone numbers so that federal loan recipients can call their loan servicers directly.

For tips on avoiding scams involving federal student loans, visit studentaid.ed.gov/sa/types/scams.

The Finance Authority of Maine also has information about student loans at famemaine.com/education or by calling 1-800-228-3734.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Tax season brings out worst phone scammers

CONSUMER FORUM

Posted March 21, 2016, at 9:35 a.m.

“Hi, I’m calling from the Internal Revenue Service to verify some information on your income tax filing. Just to be sure I have it right, could you tell me…”

The caller may give you a phony name and badge number and may have spoofed the phone number to make it appear you really were getting a call from an IRS office. But it was just one of the nearly 900,000 phone scam attempts reported to the Treasury Inspector General for Tax Administration since October 2013. The agency says it knows of more than 5,000 victims who have been tricked out of more than $26.5 million in such scams.

The tricksters are successful because they play on our fears. We might fear being sent to prison, being deported or having our credit score lowered. Scammers have no power or legal authority to do any of those things, but the threats still concern us.

They concern seniors and students, especially. Seniors are frequent targets because they’re generally home, they answer the phone and they tend to be a bit more trusting than younger people.

Crooks target students with phony IRS threats and with offers to help “fix” their student loan situations. Don’t pay an upfront fee for something you can probably do for free.

Once the offer or threat is made, the punch line amounts to “pay up or else.” Do so by wire transfer or prepaid debit card — untraceable and not recoverable. Several scammers might call to make you think their story is real. Once you send the money away, it’s gone, straight into the pockets of the crooks.

The IRS estimates that phishing schemes have gone up 400 percent just this year. The agency — indeed, all legitimate businesses and government entities — do not do business by calling first. If they call at all, a real business or agency will leave a message, giving you a chance to verify the correct phone number to call.

That last point is important, of course, because of scammers’ ability to spoof phone numbers, fooling caller ID systems that may display a genuine business or government number. The crooks are really calling from disposable cellphones, but only they know that’s the case.

Impostors use our emotions in other ways, too. Concern for family or friends kicks in when we get a call that someone has been in an accident or was jailed while in a foreign country. A call to someone close to the supposed victim can determine the truth. Wiring money based on a single phone call usually ends up benefitting only a scam artist.

One last major group of impostors pretends to be from “Microsoft technical services” and says your computer needs fixing. They’re not, and it doesn’t.

They’re looking to have you press the combination of keys that turns control of your computer over to them, so they can download viruses or other malware and hold your computer for ransom. When they call, just hang up.

Today’s scammers might also use old-fashioned trickery. Some impersonate municipal workers, “checking water lines” or using other ruses to get inside your home. If you did not call for the service being offered, don’t open the door. If the scammer refuses to leave or pressures you, call 911.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Protect yourself against scams before filing taxes

CONSUMER FORUM

 

Posted Jan. 25, 2016, at 11:18 a.m.
Federal officials have termed them the biggest scams ever. Together, they cost consumers billions of dollars every year. And they use people’s fear of the Internal Revenue Service as a weapon.

The first starts with an unexpected phone call. You’re told that you owe taxes and must pay immediately or you’ll be jailed. What do you do?

An IRS official says, just hang up … it’s a scam.

Hundreds of thousands of consumers have received multiple calls from different people, all posing as either IRS officials or law enforcement agents. All the callers claim that legal action is certain, unless they receive money via wire right away. A demand for immediate payment is the second tipoff that it’s a hoax.

The first was the threat of imprisonment.

The IRS does not typically call a taxpayer; the agency begins by sending a letter. It also does not seek payment by way of prepaid cards, and it does not have agents standing by with arrest warrants in case the taxpayer hesitates.

The criminals who use these techniques can be abusive, even threatening to hurt their victims. These hoax calls may originate halfway around the world — although a spoofed phone number may make them appear nearby — and any threatened action rarely happens.

The second major hoax involves the filing of a phony tax return. If a thief steals your name, birthdate and Social Security number, he or she can file a bogus return in your name. If the IRS doesn’t catch it, the agency might send a refund to the crook; it may not be until you file your legitimate return that the fraud is discovered.

The IRS has trained thousands of employees to help possible victims. It has also put in place a number of preventive measures, most of which it won’t discuss in order not to assist the scammers. In a public message last week, the IRS said it has teamed up with the states and tax preparers to “stop fraudulent returns at the door.”

One new piece of information from tax software providers will be the amount of time it took to prepare a return. That could be a tipoff when computer-generated returns are fraudulent and have been filed by the hundreds or thousands.

You can read about the new measures at IRS.gov/uac/IRS,-States-and-Tax-Industry-Deploy-New-Safeguards-for-2016.

Tax season brings with it a rash of scam artists trying new ideas. Crooks might point to last year’s hack of IRS computers, which compromised some information of about 200,000 taxpayers. They might pose as “IRS counselors” or “credit advisers” while their real goal is to steal more personal data.

IRS officials suggest that tax preparers do a “deep scan” of all their computer drives and devices to find malware and viruses that may hide in places that a “quick scan” can’t find. Firewalls and antivirus software also should be up to date; if you use a tax preparer, don’t be shy about asking if security systems are robust.

If you store your tax filings on your computer, make sure there’s a backup in case your hard drive crashes. If you store paper copies, keep them under lock and key (ideally in a fireproof container). Find more security and identity protection tips at IRS.gov.

If you get a phone call you suspect is a hoax attempt, call 800-366-4484 to find out if the caller is a real IRS employee with a legitimate reason to reach you. If a piece of mail seems suspicious, call 800-829-1040 to see if it’s legitimate.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

How the new federal spending plan affects consumers

CONSUMER FORUM

Posted Dec. 28, 2015, at 9:41 a.m.
Last modified Dec. 28, 2015, at 10:14 a.m.

The omnibus spending bill Congress passed earlier this month included $1 billion for a destroyer. Maine’s congressional representatives hope the contract goes to Bath Iron Works.

Passage of the 1,600-page, $1.1 trillion bill headed off a possible government shutdown, prevented another of the stopgap spending plans our lawmakers have made famous and it allowed the national debt to go up. It also included a number of added-on spending items, known on Capitol Hill as “riders.”

Our thanks to writers at The Washington Post, Christian Science Monitor and The Atlantic for spotting these items of interest to many consumers.

— A 1 percent pay raise for federal employees, starting Jan. 1, 2016. President Barack Obama ordered the increase and the omnibus bill retains it. Military service personnel will receive a similar raise, while pay for generals and flag officers are subject to a pay freeze.

— Multi-employer pension plans. The benefits of potentially millions of retirees could be cut to try to save some pension plans that are in financial trouble. There are about 1,400 such plans, most of them in good shape.

— More money for food safety. Funding for the Food and Drug Administration goes up $37 million from last year. The Food Safety Modernization Act gets $27 million in new funds, and there’s a $5 million increase for the Food Safety and Inspection Service.

— Some Dodd-Frank reforms reversed. The financial reform bill had required that banks “push out” some derivatives trading into other entities that did not have the backing of the Federal Deposit Insurance Corporation. Banks won a reversal of that rule; Democrats say that, in exchange, they received more funding for enforcement efforts by the Securities and Exchange Commission and the Commodity Futures Trading Commission.

— Internal Revenue Service cuts. Funding for the IRS drops by $345.6 million. The agency also is barred from singling out organizations that cite ideological beliefs to get tax-exempt status.

— School lunch programs. Flexibility goes to school districts that can “demonstrate a hardship” when buying whole grain products. There also are less rigid sodium standards until they are supported by “additional scientific studies.”

— WIC and potatoes. The Women, Infants and Children nutrition program for low-income families gets $6.6 billion, down $93 million from the last fiscal year. But WIC will have to guarantee that “all varieties of fresh vegetables, including white potatoes, are eligible for purchase.”

— Tired truckers. The trucking industry won a round in the fight to require that drivers get two nights sleep before going back to work. That Department of Transportation regulation would have cut a typical driver’s workweek from 82 hours to 70. Maine Sen. Susan Collins had pressed for suspension of that rule in favor of more study.

— Safer tracks. The omnibus bill includes $3 million to expand inspection of about 14,000 miles of track used by trains that include oil tanker cars.

— Veterans reform bill funding. The bill that was passed last summer gets $209 million to deal with new costs, including added medical staff and expanding facilities. The Veterans Administration’s Office of the Inspector General receives an additional $5 million to keep investigating the “wait list scandal.”

— Light bulb choice. The spending bill limits enforcement of a 2007 law to end use of incandescent bulbs. While many consumers have switched, others may be able to find the older style a while longer.

— Saturday mail delivery. It continues, courtesy of the omnibus bill, despite years of efforts to cut the service to save money.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Fake IRS phone scammers more aggressive, sophisticated

CONSUMER FORUM

Posted Dec. 14, 2015, at 7:10 a.m.

Click image to report phishing and/or scams

Most consumers can spot a scam attempt almost as soon as they pick up the phone. However, one recent spate of calls has citizens and government officials concerned.

The callers pretend to represent the Internal Revenue Service, or IRS. They claim they’re calling because taxes are past due; unless payment is made immediately, the caller threatens to file a lawsuit, seize property, even do them physical harm.

In the past two weeks, the Maine attorney general and Bureau of Consumer Credit Protection, or BCCP, have issued warnings about these scams. Similar warnings from officials around the country show scammers are ramping up their efforts. And they’re doing so a lot earlier than usual.

The fake IRS scam usually hits high gear during the run-up to income tax season, that is, in February, March and early April. This year, however, crooks have been burning the phone lines pretending to be IRS agents, police officers, court officials and others who might be in the business of collecting delinquent taxes.

Except, they’re not. They’re just criminals trying to get you to wire them money you can never get back.

“It’s really unusual that they’ve started in December,” David Leach of BCCP said.

Leach said his office has received calls from across Maine. Many callers said they realized they were targets of a scam attempt; others said they didn’t realize they were being victimized until they had sent money they had no hopes of recovering.

As with most scams, the crooks demand that money be sent by wire transfer or prepaid cash cards. Both methods are untraceable, and crooks count on that fact — plus their scare tactics to make their scams work.

Aiding their schemes are electronic tactics, such as spoofing, which makes a phony number appear on caller ID devices. The criminals can make it appear they really are calling from an IRS office, when they may be halfway around the world.

The callers can make their threats sound real, but they’re as phony as the call itself. The real IRS never cold calls; it always sends a letter first — on real IRS stationery — and never asks for credit or debit card information or that money be sent by wire transfer or money card.

If a phone caller claims to be calling from the IRS office in Washington, at the very least the phone number should include a 202 area code. Ask for the agency’s exact name, physical address and the supervisor’s direct dial — not 800 — phone number. If you’re in doubt, locate the phone number of the real tax office and call to find out if you have taxes that are overdue. Don’t disclose personal information — date of birth, Social Security number, credit or bank account numbers — to unknown callers; you could become a victim of identity theft.

Report suspicious activity to the BCCP (1-800-332-8529), to an IRS office or to a federal law enforcement officer in Maine or Boston. The anti-scam guide Gone Phishing is available free to Maine residents who call BCCP at the number above or online at CreditMaine.gov.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Identity thieves try to cash in during tax filing season

CONSUMER FORUM

Posted Feb. 01, 2015, at 9:53 a.m.

click image to report scams, waste and abuse

Two headlines top the news near the start of this income tax season.

Thieves who steal Social Security numbers and other personal data do so in order to file phony tax returns and claim rebates they’re not owed.

And crooks posing as Internal Revenue Service officials are calling people and, in many cases, bullying them into sending money they don’t owe.

They use common names and all kinds of tricks. They may say they’re calling from the IRS criminal division. They might have technology that will spoof a caller ID, making it appear they’re calling from a real IRS office. They threaten those they consider easier targets — such as older people and recent immigrants — with fines, jail terms, job loss, even deportation.

The crooks do their homework before calling. They might know a person’s Social Security number — or at least the last four digits — and other personal details that lend credence to their pitch. Demanding immediate payment is a tipoff it’s a scam — the real IRS first would notify you by letter of any official action — and the agency never would demand payment by a debit card or wire transfer.

Losing a one-time payment is bad enough. Thousands of taxpayers have filed their income taxes only to find a crook has stolen their identities, filed fraudulently and collected their refunds illegally.

The IRS says after such discoveries, it takes an average of four months to get a refund to its rightful recipient. That person also needs to go through the hassle associated with identity theft. Perhaps ironically, prisoners’ Social Security numbers often are tempting targets, because inmates are less apt to be on top of their tax or banking activities.

The Treasury Inspector General for Tax Administration, or TIGTA, says it has received reports of 290,000 scam calls since October 2013, and nearly 3,000 victims have lost a total of $14 million. The IRS has been working to curb these crimes, saying it spotted 19 million suspicious returns since 2011 and prevented more than $63 billion in fraudulent returns. Read about ways to spot impersonators and report scams at Treasury.gov/tigta.

Consumers can and should take all the usual steps to prevent fraud: use firewalls and antivirus software, use strong passwords and change them often on all online accounts and reveal your Social Security number only when it’s absolutely necessary.

If you become a victim, the IRS says it wants to help. Read about the agency’s prevention and detection efforts at IRS.gov/Individuals/Identity-Protection.

The IRS is also warning consumers about unscrupulous preparers who push filers to make inflated claims. Often, these preparers will demand an up-front fee; they may also refuse to give the taxpayer a copy of the return. Both are things that legitimate tax preparation pros don’t do.

You may qualify for free help preparing your income tax filings. Seniors can check with AARP or the local agency on aging. The Volunteer Income Tax Assistance, or VITA, program gives free tax help to people who make $53,000 or less, have disabilities, are older or who speak little English and need help preparing their returns.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit necontact.wordpress.com or email contacexdir@live.com.

%d bloggers like this: