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Press Release
October 18, 2007

Oklahomans and Arkansans Seeing New IRS-Related Tax Scams

As summer turns to fall, Oklahomans and Arkansans are being bombarded, not only by falling leaves, but also by scamsters, under the guise of official contact from the IRS, who are looking for ways to reach into their victims’ pocketbooks or maliciously attack their computers.

 “We’ve received reports of scams attempted by both telephone and e-mail from taxpayers in central and northeastern Oklahoma, as well as in the Ft. Smith, Arkansas, area,” said David Stell, IRS spokesman.  “We’re certainly happy those who have reported these bogus contacts have not fallen victim, but we’re also very concerned about others who may be more susceptible to the scammers’ smooth and potentially-believable pitches.” 

 The IRS has previously been aware of e-mail scam attempts, but those by telephone are a new discovery in the two-state area.

 The IRS earlier this year issued a warning news release, and already updated it three times thus far as new scams have been discovered.  The release, which can be found on the IRS Website, www.irs.gov at the front page link, “Warning on Scam E-Mails,” details scam e-mails purportedly coming from the IRS and:

• offering a refund based on “fiscal activity,” or
• paying an $80 refund for taking an on-line survey, or
• accusing the recipient of tax fraud and directing completion on an on-line “investigation form,” or
• informing the recipient he or she is under criminal investigation for filing a false tax return.

 An older scam, still circulating, promises a refund of $63.80.

 In each case, clicking on a link in the e-mail either activates a “Trojan horse” computer virus or takes the unwitting recipient to a Website looking very much like an official IRS Website, but requiring the visitor to provide bank account numbers, credit card numbers, passwords, etc., with the goal of identity and money theft – a practice known as e-mail “phishing.”

 The IRS does not send people unsolicited e-mails that advise of a refund or ask for, either directly or via a Web page link contained within an e-mail, detailed personal and financial information. Additionally, the IRS never asks people for PIN numbers, passwords or similar secret access information for their credit cards, bank accounts, or other financial accounts.

 Specifically in Oklahoma and Arkansas, the IRS has been made aware of not only the “fiscal activity” and the “$63.80” e-mail scams reaching residents, but now also, of new attempts by telephone.

 Scams by Phone

 In the Ft. Smith area, residents have reported receiving telephone calls from individuals identifying themselves by the names of actual IRS employees.  In one scenario, the caller states the person is entitled to a refund of $500 because he or she has paid taxes timely each year.  In another, similar scenario, the caller states the person is entitled to a refund of $300 per month for six months.  In both instances, the caller asks for at least the victim’s bank account number – supposedly to make the refund deposit – and the victim’s Social Security number.  To further enhance the call’s believability, the caller states the taxpayer may verify his or her identity by calling the Social Security Administration – of course, not directing the potential victim to call the IRS.

 In the central Oklahoma area, the IRS has received reports that residents are receiving telephone calls from persons purporting to be IRS agents, telling them they are entitled to $12,000 in federal financial assistance as a result of the recent Oklahoma flooding.  The caller asks for at least the victim’s bank account number to supposedly be able to deposit the money.

 “The IRS does legitimately call taxpayers, but not to advise them of refunds or federal financial assistance payments,” said Stell.  “We suspect that these types of calls are not confined only to these areas where residents have reported them, but could very well be happening statewide in both states.  Because the apparently-convincing calls reference either an actual or fictitious IRS employee’s name, or the widespread and well-publicized Oklahoma flooding earlier this year, we’re worried many may be victimized,” he said.

 What to do

 Taxpayers should always regard as suspicious a telephone contact offering an unexpected refund or payment by someone purporting to be from the IRS. When in doubt, recipients of calls claiming to be from the IRS should ask the caller for his or her name, title, call back number and ID number, without giving the caller any personal information.Verification of the validity of a contact from the IRS – by telephone or e-mail -- is always available by calling the IRS Tax Help Line, toll-free, at (800) TAX-1040.  Taxpayers who believe they have been victimized by providing personal or financial information as the result of a scam e-mail or telephone call should contact the Treasury Inspector General for Tax Administration, toll-free, at (800) 366-4484.

 Recipients of questionable e-mails claiming to come from the IRS should not open any attachments or click on any links contained in the e-mails, and may also forward the e-mails to phishing@irs.gov.  Since the establishment of this mail box last year, as of May, 2007, the IRS had received more than 17,700 e-mails from taxpayers reporting more than 240 separate phishing incidents.  Investigations have identified host sites in at least 27 different countries, as well as in the United States.