Phone scammers target vulnerable groups and take advantage of world events or natural disasters, holidays and other significant dates to con us out of our money or personal information. They also take advantage of technology, using phony caller ID information to make themselves appear to be calling from nearby locations or legitimate institutions.
Fortunately, learning to recognize such calls is not difficult and is a great way to protect yourself.
Recognizing scam calls
If a caller does one or more of the following, they are a probably scammer:
- Demands immediate payment using specific payment methods like a prepaid debit card, gift card or money transfer
- Uses threats like calling the police to scare you into complying
- Pressures you to make an immediate decision
- Asks you to provide personal information that a legitimate caller would already know or have access to, such as a social security number
- Offers you a “prize” you must pay a fee to claim
Types of phone scams
Just about any sort of scam can be perpetrated over the phone, but there are several common ones including:
- Selling extended car warranties, in which scammers target you by the make model and year of your car to sell overpriced or worthless service contracts
- Prize and lottery scams, in which the scammer tries to convince you to pay taxes, or registration or shipping fees in order to collect a prize
- Charity scams in which scammers request donations for disaster relief
The Federal Trade Commission’s Phone Scams webpage lists many more examples and offers sound advice for protecting yourself from and dealing with scammers.
For example, in the months preceding April, 15, a.k.a. “tax day” in the U.S., tax scams become much more common. Let’s take a closer look at phone scams related to taxes.
Recognizing tax scam calls
There are some things that the IRS simply doesn’t do. If you receive a call from someone who does one of the following, they’re probably a scammer:
- Demands immediate payment or specify particular payment methods. If you owed unpaid taxes, the IRS would start by sending you a bill.
- Immediately threatens to call local police or other law enforcement groups to have you arrested
- Demands that taxes be paid without giving you a chance to question or appeal the amount owed
- Calls unexpectedly about a tax refund
Scam calls are only one of the forms of tax fraud to beware of. For more information, see our article Tips To Avoid Tax Season Fraud.
What to do if you receive such a call
- Record the number and then hang up the phone immediately
- Report the call to TIGTA using their IRS Impersonation Scam Reporting form or by calling 800-366-4484
- Report the number to phishing@irs.gov and be sure to put “IRS Phone Scam” in the subject line