Government Impersonation Scams: Protect Yourself from IRS and Official Agency Scams

What Are Government Impersonation Scams?

Government impersonation scams involve fraudsters posing as representatives from agencies like the IRS, Social Security Administration, or law enforcement. They claim you owe back taxes, are under investigation, or need to verify information immediately. Scammers use intimidation tactics and even spoof caller IDs to make their messages seem official.

According to the Federal Trade Commission (FTC), these scams have become increasingly sophisticated, causing substantial losses each year. In 2022 alone, Americans reported losing over $700 million to such scams. 

How These Scams Typically Work

1. Unsolicited Contact

   • Scammers often initiate contact by phone, email, or text. They may claim to be from government agencies like the IRS, demanding action on an “urgent” issue. Using caller ID spoofing, they make their number look like it’s coming from a legitimate government office.
   • This type of initial contact is common in IRS scams, as fraudsters know that most people feel compelled to respond to government requests, particularly involving taxes.

2. Intimidation and Urgency

   • The scammer creates a sense of urgency, claiming that you’re at risk of immediate arrest, deportation, or fines. They might say you owe back taxes and need to pay right away or risk jail time. According to the AARP, scammers rely on this pressure tactic to prevent victims from stopping and verifying the information. 

3. Payment Demands Through Untraceable Methods

   • Instead of directing you to an official government portal, scammers will ask for payment through wire transfers, prepaid gift cards, or even cryptocurrency. They choose these methods because they’re difficult to trace and nearly impossible to recover once sent.
   • Real government agencies will not ask for payment in these ways. If a supposed government official demands gift cards, this is a red flag that you’re dealing with a scam.

4. Personal Information Requests

   • Scammers may also request personal details, such as Social Security numbers or bank account information, under the guise of “verifying” your identity. This is a strategy to commit identity theft, leading to more severe financial consequences.

A Real-Life Example of a Government Impersonation Scam

One of the most common forms of government impersonation scams involves the IRS. A recent example includes an elderly couple who received a call from someone claiming to be an IRS agent. The “agent” said they owed back taxes and faced imminent arrest if they didn’t pay immediately. Following the scammer’s instructions, the couple purchased thousands of dollars in gift cards and read the numbers over the phone. It was only afterward that they realized they’d been scammed and reported the incident to the Treasury Inspector General for Tax Administration (TIGTA).

How to Protect Yourself from Government Impersonation Scams

Understanding these scams is key to avoiding them. Here are practical tips to keep yourself safe:

1. Verify Any Unsolicited Contact

   • If someone contacts you claiming to be from the government, hang up and reach out directly to the agency using the number on their official website. Never trust the number or email provided by the caller.
   • This is particularly crucial for IRS-related scams. The IRS states that they will never initiate contact by phone, text, or email; they will always reach out by mail first. 

2. Recognize Common Red Flags

   • Be suspicious of any communication that demands immediate payment or threatens legal action. Government agencies typically communicate through official letters, not urgent phone calls or emails.
   • The FTC notes that government agencies will not ask for payment through wire transfers, gift cards, or cryptocurrency. Any request for these types of payments is a clear indication of fraud. 

3. Protect Your Personal Information

   • Never provide personal information like Social Security numbers, bank details, or credit card numbers over the phone, email, or text unless you’re 100% certain of the recipient’s identity.
   • Consider using a monitoring service to keep track of suspicious activity related to your personal data, which can add an extra layer of protection.

4. Report Suspected Scams

   • Reporting scams is essential to help authorities track and stop these fraudsters. You can report IRS-related scams to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484 or online.
   • For general scams, report to the FTC through their online complaint form at ftc.gov/complaint. Sharing your experience can help prevent others from becoming victims.

Conclusion: Staying Safe from Government Impersonation Scams

Government impersonation scams are designed to instill fear and urgency, but with knowledge and caution, you can protect yourself. Remember that government agencies will not call or email you asking for immediate payment or sensitive information. When in doubt, pause, verify the caller’s identity through official channels, and report suspicious activity to help stop these scammers in their tracks.

Being vigilant and cautious will go a long way in protecting you and your personal information from these increasingly common scams.