Press Releases & Current Scams

Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use the regular mail, telephone, or email to set up individuals, businesses, payroll and tax professionals.

The IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. Recognize the telltale signs of a scam. See also: How to know it's really the IRS calling or knocking on your door (www.irs.gov).

Taxpayers should be on the lookout for new versions of SSN scam. Tax scams continue year-round and take on many fraudulent forms. The IRS website is updated often to assist with information.

The grandparent is urged not to tell anyone, such as the parent of the "grandchild" because they do not want them to find out about the trouble they've gotten themselves into. The victim never hears from their fake grandchild again and is tricked out of hundreds or even thousands of dollars.

To detect and avoid the Grandparent Scam, FRAUD.ORG recommends the following tips:

- Beware of any urgent solicitation of funds, especially if it is needed to pay for unexpected bills, such as bail money, lawyer's fees, or doctor bills.

- Before sending funds, independently contact the relative (or parent of the relative) the scam artist is claiming to be (or represent) at a known phone number to verify the details of the story.

- Scam artist's payment method of choice is the wire transfer. Any urgent request to wire money should be treated suspiciously.

- Be aware that fraudsters attempting the Grandparent Scam may call late at night to confuse potential victims.

Congratulations! You've won a car, valuable jewelry, cash, or some other fabulous prize! Is this really your lucky day, or is your luck about to take a turn for the worse? Be cautious before you claim your big prize or sweepstakes win.

- Never pay to play. It's illegal for a company to require you to buy something or pay a fee in order to win or claim a prize.

- Don't believe that you have to give the company money for taxes on your prize. Taxes will be deducted from your winnings or you will pay them directly to the government.

- Guard your credit card and bank account numbers. No legitimate sweepstakes company will ask for this information.

- Be on guard for imposters. Some con artist use company names that are identical or very similar to well known, legitimate sweepstakes operators. Tell them that you'll get back to them and contact the real companies to ask if there is any connection. Time is on your side in legitimate sweepstakes claims.

If someone you don't know wants to pay you by check but wants you to wire some of the money back, beware! It's a scam that could cost you thousands of dollars.

- There is no legitimate reason for someone who is giving you money to ask you to wire money back. If a stranger wants to pay you for something, insist on a cashiers check for the exact amount, preferably from a local back or a bank that has a branch in your area.

- You are responsible for the checks you deposit.

- Wait to use the money, have your bank verify the deposited check is legitimate. Usually 3-5 working days is enough time for verification.

Want to learn more? Go to www.consumerfed.org/fakecheckscams or www.fakechecks.org to find information to help you and people you care about avoid losing money to fake check scams.

Online dating can be fun and convenient, but falling for a sweetheart swindle can be costly. Be wary of "friends" you meet online who develop a relationship with you only to con you out of hundreds or even thousands of dollars.

- Con artist search for victims and will usually be the first to make contact through dating websites or other social media platforms.

- Claims to be romantically connected too quickly and is living far away.

- As the friendship develops, the "friend" asks the victim to send money to help out with some fake situation. The "friend" may claim they need the money to come visit the victim, pay medical bills, avoid going to jail, or some other urgent reason.

- If the victim agrees to pay, there will inevitably be more request for money to cover other fictitious expenses until the victim comes to realize it is a scam.

The pitch is that you will make money by paying to participate in the program and recruiting others to join. But if it's really a pyramid, you and your friends will lose money, not make it.

- Plans that promise profits mainly for recruiting new members are illegal pyramid schemes. In legitimate multilevel marketing plans, profits come primarily from selling goods and services to consumers.

- Be aware that some pyramids are disguised as "gifting clubs". New recruits give money to current members with the promise that they will receive money from future recruits.

- Check it out before you commit. Get all details in writing, and contact your state or local consumer protection agency for advice. In some states, multilevel marketing companies must register with the government and comply with other requirements.

- www.iowaattorneygeneral.gov