The Taxman & Government Impersonator Scams
In this issue we’re spotlighting scams that pose as authorities . Fraudsters often impersonate government officials – IRS agents, border services, police, you name it – to scare you into paying. These imposter scams are actually the most commonly reported scams in the U.S., with over 850,000 reports in 2023. Let’s break down how to recognize these cons and protect yourself.
“This is the IRS” – Tax Scams
As tax season approaches, beware of callers or emails pretending to be from the IRS or CRA (Canada’s tax agency). They’ll claim you owe back taxes or fees, and demand immediate payment. Key facts to remember: tax agencies will never call you out of the blue threatening arrest or demand payment via gift card, wire transfer, or cryptocurrency. If someone does, it’s a scam.
Typical script: “This is Agent ___ from the IRS. You owe $5,000. If you don’t pay right now, the sheriff will arrest you.” They might already know some of your personal info, making them sound legit. They’ll insist you stay on the phone until you pay – often directing you to buy gift cards at Target or send a wire. This urgency and odd payment method are clear warning signs. Hang up immediately. You can always call the real IRS (or CRA) yourself using the official number from their website if you’re concerned. You’ll find there’s no such debt.
How to Stay Safe:
- Never pay on the spot: Real government agencies mail you official notices if there’s an issue. They won’t demand payment over a single phone call without prior notice, and certainly not via gift cards or e-transfer to some random account.
- Verify independently: If you get a scary call or email, don’t respond directly. Look up the government agency’s official contact info and reach out yourself to confirm. 99.9% of the time, the “agent” who contacted you was a fraud.
- Guard your SSN/SIN: Some scammers instead try to steal your identity by “verifying” your Social Security Number (or SIN in Canada) over the phone. Never give personal data when you didn’t initiate the call. Government officials won’t call just to “confirm” your sensitive info.
Other Impersonator Scams
It’s not just tax authorities. Scammers also pose as police or court officers (“There’s a warrant for your arrest unless you pay a fine now”), immigration officials (“Your visa is expiring, pay this fee or be deported”), or even utility companies (“Your electricity will be shut off – pay overdue bills now”). The common thread is an unsolicited contact that creates panic and demands immediate payment or personal information.
Stay calm and think : Would the real police ask you to buy prepaid cards to pay a fine? (No.) Is it logical that immigration would call asking for your credit card over the phone? (Absolutely not.) Scammers rely on fear – don’t let them bully you.
If you receive any threatening call claiming to be an official, hang up and verify . You can also report these incidents to the FTC or Canadian Anti-Fraud Centre. By reporting, you help authorities track and shut down scammers.
Shield your identity during tax season. Consider an Identity Theft Protection service (such as LifeLock or a similar reputable provider) to monitor your personal information. These services can alert you if someone tries to use your SSN or open credit in your name – a common fallout of government impersonation scams. They can’t stop a scam, but they provide peace of mind and help with recovery if identity theft occurs.
Stay safe – and remember, the real officials work through proper channels, not aggressive calls or DMs . You’ve got this!