The Internal Revenue Service (IRS) is warning of a new “smishing” scam targeting Americans who are due to receive money as part of the American Rescue Plan.
In March 2021, former president Joe Biden signed the plan into law, which provided automatic payments of $1,400 to roughly a million taxpayers who qualified for it based on their income level.
‘Current and topical’
However, some recipients didn’t claim the funds—whether because their situation changed, or they left the line blank on their tax return.
According to an IRS spokesperson, who spoke to Newsweek via a phone interview, the service decided to identify the eligible recipients and simply send the money out, rather than having them amend their return.
The smishing scam exploits that policy.
“The scam is the smishing with the text,” the spokesperson said, “It’s very current and topical.”
According to the spokesperson, the scammers send a text message telling the recipient that they are owed $1,400 from the IRS and are eligible to receive a payment.
Then the text directs them to “Get My Payment” with a link that is designed to look like an IRS website.
“If people click on the link that appears on their phone, they’re downloading malware and giving away personal information,” the spokesperson said.
‘You should not respond’
The spokesperson emphasized that people should be cautious about any phone message claiming to be from the IRS.
“Under no circumstance will the IRS reach out with a text, an email or a random, threatening phone call asking for personal information,” he said.
“Be wary of anything you see on social media that looks too good to be true.
“The normal course of reaching out to a taxpayer is through old-fashioned mail. Anything that’s uninitiated and comes out of the blue—on a computer, phone or other device—should be treated with skepticism.
“If it’s claiming to be from the IRS and seems like a lure, you should not respond.”
The ‘Dirty Dozen’
The IRS puts together an annual list entitled the “Dirty Dozen,” which outlines scams that taxpayers should be aware of around tax time.
In 2024, the agency advises taxpayers and businesses to be especially on the lookout for bogus tax avoidance strategies, fake charities and scammers impersonating the IRS through phishing emails and smishing text messages.
The agency also warned against fraudulent tax preparers, including “ghost preparers” who manipulate tax returns for a cut of the refund, as well as social media misinformation where viral tax advice leads taxpayers to file false claims.
Taxpayers should be particularly cautious of identity theft schemes. Some scammers offer to set up IRS Online Accounts, only to steal sensitive information.
Other fraudulent “Offer in Compromise” services claim to settle IRS debts for pennies on the dollar while charging steep fees.
To stay safe, taxpayers should always verify tax advice through IRS.gov, avoid unsolicited contacts regarding tax matters and work with trusted tax professionals.
Report any potential scams to the agency.
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