Integrated Global Business Solutions (IGBS)

Business Alert from March

Watch out for tax rebate scams

If all goes according to plan, millions of Americans will start receiving advance tax payment or "rebate" checks later this year. Of course, scam artists read the newspapers too. They'll try to use this plan as an opportunity to steal your identity and your assets. In yet another variation of the common "phishing" scheme, fraudsters are on the prowl again to dupe people into handing over personal information — this time in the name of the Internal Revenue Service.

In fact, the IRS is already warning people about identity theft schemes involving the upcoming tax rebates. In a typical scam, you might receive a phone call from someone claiming to work for the IRS. The caller says you're eligible to receive a hefty rebate that can be deposited directly into an account at your local bank. Of course, to receive the rebate you'll need to provide a few pieces of information, including your bank account number. The caller might even threaten you, claiming that you'll lose the rebate if you refuse to provide the required information.

The fact is, such phone calls are bogus. For one thing, the IRS doesn't gather bank account information by calling people on the telephone. For another, the IRS doesn't require anyone to directly deposit a tax rebate. To have a standard tax rebate transferred electronically to your bank, you input the appropriate account information on your federal tax return and submit it directly to the IRS.

E-mail is another common tool used by fraud artists. Again the fraudster claims to be an IRS employee or representative. The e-mail states that you are eligible to receive a rebate in a specified amount. To claim the funds you click on a link that takes you to a "rebate claim form." In fact, by filling out and sending this form, you are providing valuable personal information to a con artist, who may then use this information to steal your identity.

If you receive such an e-mail, press the delete key. The IRS doesn't send unsolicited e-mails about tax account issues to individuals, businesses, or other taxpayers. Period.

Identity theft can wreak havoc with your life and finances. Don't become a victim. If you think someone has tried to con you with one of the above schemes, visit the IRS's official Web site at www.irs.gov to learn how to report the fraud to the proper authorities.

The information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or business consulting.

If you have any questions or comments contact an IGBS senior business consultant at 703.934.6170