ECONOMIC IMPACT PAYMENT SCAMS – New Economic Impact Payments Give Scammers More Opportunity

With Congress’ latest authorization of an up to $600 payment to eligible taxpayers, federal agencies such as the Internal Revenue Service (IRS) and the Federal Trade Commission (FTC) are warning citizens about scammers trying to take advantage of the payments.

The first round of stimulus payments brought scammers out to take your money and your identity. And you can expect that scammers will take advantage of this new round of payments.

The IRS has issued a statement explaining the process for this second round. It emphasizes that there is nothing you need to do to receive your payment. Most payments will be via direct deposit to bank accounts based in information that the IRS has in your record. If the IRS does not have account information for you, it will send you a check or debit card. For more information about the process and how to check on your payment check out the news release below.

The FTC warns citizens that they fully expect scammers to contact citizens to try to fool them into giving over their money or their personal information. The FTC says the following,

·       The government won’t ask you to pay anything up front to get this money. Anyone who does is a scammer.

·       The government won’t call, text, email, or contact you on social media to ask for your Social Security, bank account, or credit card number. Anyone who does is a scammer.

·       There’s no such thing as getting your money early, or faster. Anyone who says they can hook you up now (or soon) is both lying and a scammer.

The FTC encourages everyone to warn your family and friends about the potential for scams and to report to the FTC if you are contacted by a scammer. You can report scams to https://reportfraud.ftc.gov/#/.

The IRS emphasizes that the “official” term for the payments is “economic impact payment” and that you should be wary of anyone who does not use that terminology or who refers to the payments as “stimulus check” or “stimulus payment.”

Another technique that scammers might use is to send you a check for an odd amount. Depending on your eligibility, you may not receive a full payment of $600. But a warning sign, might be receiving a check for an odd amount, especially of the check includes cents, and then you are asked to call a number or verify information online in order to cash it. Another, older scam, is to send a check that is over an agreed to amount, then the scammer asks that you send the difference to him. After a while, your bank discovers that the check is a bad check and leaves you stuck for the whole amount.

The fact that federal agencies are warning the public about potential economic impact payment scams shows that scammers keep up with the news to take advantage of the latest situation. While the federal government has been keeping track of the latest trends in scams related to COVID-19 and economic impact payments and has a good idea of scammer tactics, do not be surprise if scammers put a new twist to their current methods.

 

  

 

 

 

Internal Revenue Service News Release:

https://www.irs.gov/newsroom/treasury-and-irs-begin-delivering-second-round-of-economic-impact-payments-to-millions-of-americans

 

Federal Trade Commission:

https://www.consumer.ftc.gov/blog/2020/12/more-money-government

 

Identity Theft Resource Center:

https://www.idtheftcenter.org/stimulus-payment-scams-expected-with-new-relief-package/?utm_source=email&utm_medium=TMIEmail122220&utm_campaign=TMINewStimulusCheck

 

CNET:

https://www.cnet.com/personal-finance/these-8-stimulus-check-scams-are-out-to-get-you-heres-how-to-spot-them/