Hello. This is CoBank’s Fraud Wise helping you avoid becoming a victim of fraud. I am Jamie Fiedor, senior financial crimes specialist, and today I’ll be discussing the latest in consumer fraud and how to avoid it.
These days, everyone is especially vulnerable when it comes to consumer fraud. In particular, over the past year during COVID-19, new types of scams have surfaced—from pandemic-related fraud to consumer and social engineering scams, which are on the rise.
A large number of scams claim to be related to the IRS. Many originate from a phone call, email or text message stating it is from the IRS and in these cases, it is an unexpected delivery and does not include an official IRS notice. Almost all of these types of situations indicate it is a scam.
Social engineering is becoming a very popular type of fraud. In these situations, fraudsters send emails to victims with a requested action item that prompts a response. This could appear as a phony tax receipt or document that falsely appears to be from the IRS or any other type of service provider. The goal is for the victim to click on the link, which unfortunately will install malware or prompt you to provide personal information. Often this is done by telling you there is a need to “process your document.”
Another area of focus for fraudsters has to do with the delays that were permitted in regards to filing taxes for prior years. Tax information is very sensitive, and people need to know the IRS typically does not email or call you. Most times information from the IRS will arrive via written correspondence only from the USPS. So, it is important to be aware of tax scams, as they are created in an attempt to steal sensitive information.
Additionally, any phone calls that ask you to contact the IRS, or that say your social security number has been stolen, are usually fraudulent… the caller is most likely NOT from the IRS. Another situation to avoid is giving out your social security number, even if you are told your e-filed tax return is rejected because of something like a duplicate EIN and social security number already being on file—this is another red flag, and one way to avoid it is to file your taxes as early as possible. You also should avoid clicking on attachments or links from email domains that appear to be from IRS or other government agency, because it is likely they are actually from a third party.
There is another popular scam that has been especially prevalent during the pandemic; through this, you will receive a text message telling you it is from a home delivery service, such as UPS, Amazon or FedEx, and offering a link to click to track your package. In these cases, if you do click the link, it will potentially install an unwelcome virus on your smart phone or redirect you to a site that will end up installing malware.
It is also recommended to ignore offers giving congratulations, stating that some sort of refund has been approved, or referencing a pending stimulus check.
The key here is to not click on links in text messages that seem too good to be true.
The bottom line is: the best response is no response. And in cases that worry you, you can always contact the Federal Communications Commission, or FCC, by searching online.
Many people attempt to avoid fraud by blocking incoming phone numbers on their phones, and while this is an understandable response, it usually does not solve the problem. In most cases, the same entity will simply make the next phone call appear to come from a different number.
Finally, please note that impersonations are getting more and more common. When you hear from someone who says they are from the Census Bureau, the government, law enforcement, or even a company like Microsoft or Apple Support stating they need to gain remote access to fix a tech issue… all of this is typically fraudulent.
The good news is that the more you know, the safer you will be. For more information about these and other types of fraud, visit cobank.com/security.
This has been CoBank’s Fraud Wise. Helping YOU avoid becoming a victim of fraud.