When financial aid programs like stimulus payments are introduced, they provide critical relief to individuals and families in need. Unfortunately, such programs also attract scammers looking to exploit confusion and desperation. During the pandemic, stimulus scams became rampant, targeting people through phone calls, emails, texts, and even social media. Knowing how to recognize and avoid these scams can protect your money and personal information.
This article offers actionable advice on identifying common stimulus scams and provides practical tips for safeguarding yourself against fraud.
Scammers use various tactics to trick people into revealing personal information or sending money. Here are some of the most prevalent stimulus-related scams:
Phishing Emails and Texts:
Scammers send messages pretending to be from the IRS or government agencies, often including links to fake websites.
These sites may ask for sensitive information like Social Security numbers, bank account details, or login credentials.
Fake Phone Calls:
Fraudsters impersonate government officials, claiming there’s an issue with your stimulus payment or asking for payment to release funds.
They often use threats, such as saying your payment will be delayed or canceled if you don’t act quickly.
Social Media Scams:
Posts on platforms like Facebook or Twitter may advertise "special programs" or "exclusive opportunities" to claim additional stimulus money.
Scammers often ask for personal details or small payments to process your "claim."
Advance Fee Scams:
Scammers promise to expedite your stimulus check or increase the payment amount in exchange for a fee.
Once the fee is paid, the scammer disappears, leaving victims without any assistance.
Impersonation of Legitimate Businesses:
Scammers pose as banks, credit unions, or payment platforms like PayPal, requesting login details to deposit stimulus payments.
Fake Charity Scams:
Fraudsters exploit people's goodwill by pretending to represent charities or community aid organizations collecting donations to "distribute stimulus payments."
Being able to identify warning signs is the first step to avoiding scams. Watch out for the following red flags:
Unsolicited Communications: The IRS does not contact people via email, text, or social media to request personal or financial information.
Requests for Payment: Stimulus payments are free and do not require fees or payments to access.
Sense of Urgency: Scammers often create a false sense of urgency, pressuring you to act quickly without verifying the information.
Suspicious Links or Attachments: Emails or texts with unfamiliar links or attachments are often phishing attempts.
Unverified Contact Information: Fraudsters may spoof official phone numbers or email addresses to appear legitimate.
To stay safe from stimulus scams, follow these practical tips:
Verify Information Directly with the IRS:
Visit the official IRS website at www.irs.gov for accurate information about stimulus payments and related programs.
Use the "Get My Payment" tool to check the status of your payment without involving third parties.
Do Not Share Personal Information:
Avoid giving out sensitive information like your Social Security number, bank account details, or tax ID to anyone contacting you unsolicited.
Legitimate government agencies will never ask for this information via phone, email, or text.
Beware of Unofficial Websites:
Ensure that the website you visit ends in ".gov" for federal government services. Be cautious of similar-looking domains that are designed to deceive.
Be Skeptical of Unexpected Messages:
If you receive an email or text claiming to be from the IRS, do not click on any links or attachments. Instead, report the message to phishing@irs.gov.
Enable Call Blocking:
Use your phone's call-blocking features to reduce the number of spam calls. Consider apps like Hiya or Nomorobo for additional protection.
Secure Your Accounts:
Use strong, unique passwords for your online accounts, and enable two-factor authentication where possible.
Regularly monitor your bank and credit card statements for unauthorized transactions.
Report Suspicious Activity:
If you suspect a scam, report it to the Federal Trade Commission (FTC) at www.ftc.gov/complaint and the IRS.
You can also file a complaint with your state’s attorney general.
Fake IRS Emails: A phishing email circulating during the pandemic claimed to offer a link for "fast-tracking" stimulus checks. Victims who clicked the link were directed to a fake IRS login page, where their credentials were stolen.
Advance Payment Scam: In one case, scammers promised victims an additional $500 if they paid a "processing fee." Once the fee was paid, the scammers vanished, leaving victims out of pocket.
Social Media Phishing: Posts on Facebook claimed that individuals could receive a "second stimulus check" by entering their Social Security number and bank account details into a fraudulent website.
If you suspect that you’ve been targeted by a stimulus scam, take the following steps immediately:
Stop Communication:
Do not respond to the scammer. Hang up the phone, delete the message, and avoid clicking any links.
Freeze Your Credit:
Contact credit bureaus (Experian, TransUnion, and Equifax) to place a fraud alert or freeze on your credit report.
Report Fraud:
Report phishing attempts to the IRS at phishing@irs.gov.
File a complaint with the FTC at www.ftc.gov.
Monitor Your Accounts:
Regularly check your bank accounts, credit cards, and credit reports for signs of unauthorized activity.
Stimulus scams are an unfortunate reality during times of economic uncertainty. By staying informed, recognizing red flags, and taking proactive steps to protect your personal information, you can avoid falling victim to fraud. Remember that legitimate government agencies will never ask for payment or sensitive information over the phone, via email, or through social media.
Stay vigilant and share this knowledge with friends and family to help prevent the spread of scams. Awareness is the best defense against fraud.
