The Great IRS Phone Scam of 2014

Imagine you’re minding your own business when you get a phone call from an unrecognized number. Reluctantly, you answer.

The man on the other end tells you he’s with the IRS. He bluntly states that you attempted to defraud the government, and that legal action is coming—including a warrant to be issued within the hour.

You’re frightened, and for good reason. The call is as authentic as it gets. The man sounds professional and asks professional questions. He describes the investigation in great detail. He uses stern language. “Do not interrupt me while I speak. Ask your questions after I’m finished,” he says, before listing out your supposed wrongdoings.

He adds other details to boost his authenticity, too, such as the last four digits of your Social Security number and your home address.

Still frightened, you ask how much you owe. He says approximately $5,100. Sensing your fear, he makes his push. You have to pay within the hour, he says, by money order or pre-paid debit card. Failure to comply will result in your arrest.

At this point, you come to your senses. The IRS would never ask for money over the phone—especially by money order or pre-paid debit card. Convinced the call is a scam, you hang up.

Unfortunately, many other Americans this tax season did not hang up. In fact, the Inspector General for Tax Administration claims thousands have fallen victim to this scam over the past few months, collectively losing more than a million dollars.

How the Scam Works on You

Like other scammers we’ve warned you about on this blog, these con artists rely on familiar psychological triggers to scare people into handing over money.

First, they pose as legitimate authority figures, because people naturally comply with authority. Then they pressure you, hoping you’ll act while you’re scared and not thinking clearly.

How to Protect Yourself

Here are some tips to make sure you don’t fall victim to this scam, or others like it:

1. Remember that the IRS sends official correspondence through the mail. They may only try to reach you by phone if they can’t reach you by mail first.
2. Remember that the IRS will not demand immediate payment by debit card, credit card, or wire transfer over the phone.
3. Remember that both of the above rules apply to most other government agencies, too.
4. Remember that if a supposed authority figure ever threatens you and makes immediate demands over the phone, you should write down the accusations and demands, politely get their contact information, end the call, and contact your attorney.

Please share this information with your friends and loved ones. It could save them thousands of dollars and a lot of stress.

Good luck with the rest of tax season.

—The Shea Law Team