IRS & Social Security Impersonation Scams Explained
What is this scam?
Impersonation scams involving the Internal Revenue Service (IRS) and Social Security Administration (SSA) are alarmingly common and can cause significant financial harm to unsuspecting victims. According to data from the Federal Trade Commission (FTC), consumers reported losing over $42 million to these types of scams in 2021 alone. Scammers often claim that recipients owe back taxes or Social Security benefits, creating a sense of urgency that leads people to hand over their personal and financial information without verifying the legitimacy of the request.
How the scam works
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Step 1: The scammer contacts the victim through phone calls, emails, or even in-person visits.
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Step 2: The caller claims to be from the IRS or SSA and states that there is a problem with the recipient's account or tax return.
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Step 3: Scammers may threaten legal action or arrest if the individual does not comply with their demands immediately.
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Step 4: They request personal details like Social Security numbers, bank accounts, or credit card information to 'resolve' the issue.
Real examples
Alice received a call from someone claiming to be an IRS agent stating she owed back taxes and must pay immediately via prepaid debit cards. She was told not to tell anyone about this or risk arrest.
Bob got an email from a spoofed SSA address saying his benefits would cease unless he verified personal information over the phone.
Red flags to watch for
- Unsolicited contact demanding immediate payment of taxes or fees.
- Requests for personal details like Social Security numbers or bank account information to 'resolve' issues.
- Threatening language, suggesting legal action if demands are not met.
- Instructions to pay via unusual methods such as gift cards or wire transfers.
- Contact over the phone rather than through official mail or a secure government website.
Victim recovery plan
1First 24 Hours
- 🚨 Contact your bank immediately to report any unauthorized transactions and request a fraud alert on your accounts.
- 🚨 If you have given scammers remote access to your computer, disconnect from the internet, run antivirus software, and change all passwords.
- 🚨 If you provided gift card PINs or prepaid cards, contact the company directly (e.g., Walmart for Walmart gift cards) to report the scam and request a refund if possible.
- 🚨 Review any documents shared with scammers and secure your personal information by shredding physical copies.
2File Reports
- 📝 Report to FTC at reportfraud.ftc.gov, providing details of the scam including dates, amounts, and how you were contacted.
- 📝 File with FBI IC3 at ic3.gov, ensuring to include all communication records such as emails or phone numbers used by scammers.
- 📝 Contact local police for a report number; provide them with any evidence you have, like call logs or email exchanges.
- 📝 File with your state Attorney General’s office to ensure they are aware of the scam and can assist in broader investigations.
3Financial Recovery
- 💳 Dispute any charges made by scammers with your financial institutions. Provide them with all evidence you have.
- 💳 Freeze credit at all 3 bureaus (Equifax: equifax.com/personal/credit-report-services, Experian: experian.com/freeze, TransUnion: transunion.com/credit-freeze) to prevent new accounts from being opened in your name.
- 💳 Consider placing a fraud alert on your credit reports which will require creditors to take extra steps to verify your identity before opening any new account.
4Protect Your Identity
- 🔒 Change passwords for all financial and personal accounts, especially if you suspect this information was compromised.
- 🔒 Monitor your credit reports weekly at annualcreditreport.com to look for any unauthorized activity.
- 🔒 If Social Security number was shared, contact the SSA at 1-800-772-1213 or ssa.gov to report fraud and consider setting up a fraud alert.
5It's Not Your Fault
- 💛 These scammers are professionals who manipulate thousands of people; you were targeted for your vulnerability, not because of any flaw in yourself.
- 💛 Talk to someone you trust about what happened to process the emotional impact and get support.
- 💛 Contact the AARP Fraud Watch helpline at 877-908-3360 for free support from experienced counselors who can provide guidance.
6Follow-Up (Weeks 2-8)
- 📋 Monitor credit reports weekly at annualcreditreport.com to ensure no new fraudulent activity is occurring.
- 📋 Watch for follow-up scams targeting previous victims, such as requests for additional payments or threats of legal action.
- 📋 Continue to secure all personal information and update security measures on your devices and accounts.
How scammers find you
- Phone calls, often with spoofed numbers making them appear legitimate.
- Emails containing fake invoices or threatening letters from the IRS or SSA.
- Text messages demanding immediate action to avoid legal consequences.
Related scams
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