Beware of the Newest IRS Scam: What to Tell Clients
Have you heard about the new high-level telephone scam targeting taxpayers and making the rounds all over the country?
The callers say they are IRS employees, but of course, they are not. The scammers use fake names and false identification to convince consumers that they're the real deal since they make the caller ID to show IRS. They even know a lot about a citizen on the other end of the line.
The con artist tells victims that they owe money to the federal agency and demand that it be paid promptly through a wire transfer or a pre-loaded debit card. If a target refuses, they receive threats like an arrest or suspension of a driver's license. The con artist becomes hostile and insulting. Some victims hear the promise of a refund to trick them into sharing private information. If the phone goes unanswered, the scammer leaves an "urgent" callback.
Other ways the scam works is to send a false IRS form (CP 2000) and claim that the income reported on the return does not match the income stated by an employer or even Social Security. The con artist claims this has to do with the Affordable Care Act. They hope to worry and confuse you and make you feel vulnerable. They'll follow-up with emails with attached forms, text messages, and more calls in hopes to scare you. The scammers want to retrieve your Social Security number, date of birth, and other personal data to use and steal your identity. They will offer a fake "protection plan" to get your credit card number.
Please remember - the IRS will never contact you to collect overdue taxes by an email, text message, or a phone call. Other things the IRS will never do:
- Call and require instant payment. The IRS will never make you buy a prepaid debit card, gift card or wire transfer. The federal agency will mail the bill if you owe taxes.
- The IRS will never threaten to call local authorities and the police to arrest you for the outstanding debt.
- Demand that you pay taxes without giving you the opportunity to question or appeal the amount owed.
- Get a credit or debit card number over the phone.
If you receive an email, text messages, mail or even live calls concerning money you owe, do not respond. Just hang up the telephone. If you get a "CP 2000" form in the mail, call the IRS at 1-800-366-4484 to confirm it is a scam. The federal agency saw close to 400 percent surge in phishing and malware incidents in the 2016 tax season, so beware.
If you click on the link that's in the email, it leads you to a website designed to emulate the official-looking IRS.gov website. While at the fake site, they ask for your Social Security number and more personal data and use the information to file a false tax return. The fake website may carry malware, which infects the citizen's computer to allow the con artist to access private archives or track keystrokes to gain information.
The threat remains high, but variations of the IRS impersonation scam continue year-round.
Most Read IRIS Articles of the Week: April 17-21
Here’s a look at the Top 11 Most Viewed Articles of the Week on IRIS.xyz, April 17-21, 2017
Click the headline to read the full article. Enjoy!
Like so many others in the industry, I was wrong. For years, I was certain that the bull market was nearing its end. I thought the market was over-extended, and that, surely, the wild equities run was coming to an end. But everyone else was bullish, and perhaps rightfully so. And while I’ve watched equities continue on their spectacular rise, I do think now is the time (really!) to put a hedge in place. Here’s why. Here’s how. — Adam Patti
The realities for fixed income investors have changed. How is this being reflected in markets? Bond investing has become increasingly difficult over the past decade. Markets have been heavily distorted by ultra-low interest rates and quantitative easing, as well as by extreme risk aversion in response to the global economic crisis and the eurozone debt crisis. — Nick Gartside
Is being a financial advisor worth it? I am an optimistic person and I encourage other people to keep a positive mental attitude (shout-out to Napoleon Hill and W. Clement Stone). However, by taking a good, hard look at the negatives in life, we can successfully pivot towards the positive aspects that will help us achieve our goals. — James Pollard
How do you treat one of your most valued, existing clients? Here’s a list of some things that come to mind. — Andrew Sobel
According to many advisors I speak with, the only clients that leave are those who have died. And while attrition may not be a big problem in this industry, I have to assume that at least a few clients change advisors without doing so via the funeral home. — Julie Littlechild
I was talking with an advisor last week about how to get into conversations about what he does. He was relaying the story of going jogging with a friend who could be a good client but is, more importantly, connected to a large network of people who fit this advisors ideal client description. — Stephen Wershing
Big picture thinkers are not unicorns - rare and mystical. And they were not born with the innate ability to think big. They do, however, pay attention to the broader landscape and take the time to think, analyze and evaluate. — Jill Houtman and Danny Domenighini
Your reputation is who you are and how you show up, Monday to Monday®. Many of us take our image and reputation for granted. Give careful thought to the kind of reputation that you would be proud of Monday to Monday® and that would resonate with your purpose and priorities. — Stacey Hanke
The generational changing of the guard is a fact of life as old as time. Young replaces old in responsibility, importance, control and culture. Outside of the family, the workplace is perhaps where this is seen most regularly by most people. — Shirley Engelmeier
Next time you hear your prospects give you price objections, it’s not because of the price. The give price objections because they don’t know the full value proposition that they’d be paying for. And it’s not based on their need, or your features and functions. It’s based on the buying criteria they want to meet internally. — Sofia Carter
Last week we wrote about the economic rationale behind going independent vs. moving to another major firm as an employee. As a follow-up topic, we thought it prudent to analyze transition packages attached to big firm moves and peel back the layers of the onion to show the components of these deals. — Louis Diamond
- 1 of 1118