IRS warns of holiday scams targeting unsuspecting taxpayers
- The IRS warned about increased scams targeting consumers during the holiday shopping season due to projected rises in online spending.
- Scammers are impersonating IRS officials and demanding payment via gift cards, which are hard to trace.
- IRS advises taxpayers to exercise extra caution and report any suspicious activity to protect personal information.
In the United States, the Internal Revenue Service (IRS) has issued a warning to taxpayers as the holiday shopping season approaches. As of December 2, 2024, the IRS Commissioner Danny Werfel cautioned that the combination of holiday shopping and the upcoming tax season creates increased opportunities for identity thieves and scam artists. Scammers often exploit the heightened activity in online shopping to trick consumers into giving away their personal information or money. The agency noted that holiday online spending is projected to grow by 8% compared to the previous year, making it an ideal time for scammers to operate. Among the warnings issued, the IRS highlighted the danger of scammers posing as IRS officials. These perpetrators often ask individuals to provide gift cards instead of actual payments to avoid detection. This tactic is a common aspect of modern scams, as gift cards can be easily converted to cash and are difficult to trace. The IRS emphasized that people should be especially alert to unsolicited demands for immediate payments, as such urgent requests typically indicate fraud. Additionally, individuals are advised to be suspicious of any interactions that threaten legal repercussions for non-compliance. Moreover, the IRS expanded its warning to include fake shipping notifications, which are frequently disseminated via email or text messages. These messages style themselves as alerts about issues with deliveries, enticing recipients to click on links that ultimately lead to phishing sites or malware. The IRS explained that these deceptive communications are part of a broader scheme to harvest personal information or infect devices with harmful software. This underlines the importance of verifying such messages directly with the shipping companies rather than responding to the links provided in potentially malicious communications. As the IRS encourages vigilance, those who suspect they may have encountered a scam, or who believe they have been targeted, are urged to report it to the Treasury Inspector General for Tax Administration. Reports can be made online through the IRS Impersonation Scam Reporting page or via a dedicated phone line. The proactive stance taken by the IRS is intended to empower consumers to safeguard their information and financial resources during a particularly precarious time of year.