A new scam is floating around, sprung from the ever-fertile minds of crooks, swindlers, and scam artists. The IRS itself is warning the public about this one, so you know it’s serious – and clever. I was going to write on a different topic this month, but when I heard that the married son of a friend of mine fell for this scam and lost $5,000 in one phone call, I thought I had better cover it.
The “Line”
You get a phone call from the IRS, and a deep voice who identifies himself as “Criminal Detective Agent John Crawford” quotes the last four digits of your social security number and tells you that you are subject to arrest for not paying your taxes. You might be told to stay at home, that leaving your house would be deemed evading arrest and would subject you to mandatory jail time. You are threatened with having your driver’s license invalidated, and even possible deportation from the country!
You check caller ID, but, amazingly, it comes up with IRS as the source of the call. (The scammers know how to create fake names.) After the “IRS” hangs up, you get a call from the “police department,” explaining the terms of your arrest and what you will have to deal with.
At this point you are pretty desperate to resolve this.
Crawford then calls you back and is exasperated with your refusal to follow the rules. Finally, you convince him to show some mercy and accept a relatively small amount, if you pay up right now. You reasoning is that, for just a few thousand dollars, you will get out of this enormous problem. Hiring a criminal defense attorney would cost you even more, so you might as well end it as cheaply as possible.
You pay a few thousand dollars via a prepaid debit card or wire transfer, methods of payment that you cannot undo. It’s a “mere percentage” of what you owe, and you walk away greatly relieved. Your legal problems are over. In fact, you are pretty proud of how well you talked Crawford out of most of the taxes as well as all additional interest and penalties.
There’s only one problem: It was all a lie. You fell for a scam, big time. You’re not the only one, though. The government has acknowledged that this scam is major, with lots of people losing lots of money.
If you get such a call, remember that the IRS never calls on the phone: plain and simple. They will also not send you sudden emails. The taxman contacts you through the U.S. Postal Service only. Any requests for money are mailed. If you get a call and have suspicions, call the IRS back at 800-829-1040 and find out if this is genuine call. A step you can take now is to watch IRS YouTube videos that warn taxpayers regarding these scams. Can you imagine how my friend’s son feels after losing $5,000!? It must be very painful.
More Warnings
The ordinary, less dazzling scams continue on a daily basis. Here are some that I have written about in the past. I write again, because you can never be too informed.
Phishing: You get an email from what appears to be a legitimate website – such as from your email provider – asking you to input your password. The crooks now have your password and can change it and have fun with your email account. One thing they do is send emails to all your contacts asking for money. Or they ask them to click on a link that will take them to a dangerous website that allows the crooks to steal information from their computer.
So, if you receive a strange email from a friend, never click on a link or open an attachment. Call your friend and find out what it’s it all about. Never enter you passwords anywhere but the actual website you are logging into.
Fake charities: After natural disasters, the fake charities start. It hurts me to say this, but even some of the frum ones are fake. According to charges brought by New York State Attorney General Eric Scheiderman, in June 2013, a call center existed at 1493 Coney Island Avenue, in Brooklyn, that collected for 19 “charities.” To fool his fellow Jews, he appropriated the names of recognized tzedaka, or created similar ones, including Hatzalah Rescue of Israel, Yad L’Shabbat, Hatzalah Shomron, Agudath Israel Bikur Cholim, Zaka Israel, Kupat Reb Meir Baal Haness, and Bnei Torah Eretz Yisrael, Inc.
The charges state that the “rabbi” at the head of these “charities” took over two million dollars for his personal expenses, including a trip to a casino in Atlantic City. (I have it on good authority that the head of these charities has relocated from New York to New Jersey and is back in business.)
I certainly want to encourage everyone to be very charitable, but make sure your money is going to the correct organization. We are all aware of the many worthwhile charities that exist – many based here in Baltimore – that are very responsible and do very good work both locally and abroad.
The Nigerian scam: If you fall for this old one, you sort of deserve it. It’s been around for a long time. You get an email claiming that there are millions of dollars in a Nigerian bank, and if you just provide some upfront money for expenses and government bribes, you will share in the pot. Run from this one.
The lottery scam: You receive an email telling you that you won three million dollars; all you need to do is mail back a $30 processing fee.
The altered ATM: ATM machines can be rigged in various ways by thieves. Try to use legitimate ATMs that are located in your bank.
The missed jury scam: Here’s a new one. I got a phone call from the “sheriff.” He told me that I was subject to arrest, and he sounded quite convincing. When I questioned his legitimacy, he told me to stay at home and that a police car was coming to take me to jail. By the way, I had not missed jury duty; my number was never called that day.
Precautions
You might want to have a computer technician check your computer for malware, bad software that can steal data from you. Also, never pay up front when buying from unknown entities or suspicious sources, and be wary of cold calls. Be careful when buying used cars on craigslist, especially if you are buying from a foreigner who will meet you in a parking lot. Google the seller’s phone number and find out how many cars he has sold recently. Never give up pin numbers and passwords to anyone.
The common denominator of all these scams is that the victim has no way to ask advice. Without a mentor to ask if this sounds legitimate, they have to figure it out for themselves. The number one defense is to go to a wise person and ask if this sounds kosher. Let’s repeat that: Warn your friends and family, especially the elderly, with this tip: Do not try to figure this out on your own; call a savvy friend and let them work it through. Your 87-year-old mother is no match for John Crawford. It is so sad to hear that someone lost thousands of dollars. Aside from the monetary loss, the victim feels so foolish and embarrassed. Let’s get the word out to others to be vigilant.
Eli Pollock is a CPA in Baltimore. He can be reached at elipollock2@yahoo.com
