Mortgage Loan Modification Scams

As Tax Time Heats Up, IRS-Related Scams Increase!

The Internal Revenue Service recently warned taxpayers to beware of several current email and telephone scams that use the IRS name as a lure. These include:

• Rebate Phone Call - In this scam, consumers receive a phone call from someone identifying themselves as an IRS employee. The caller tells the trageted victim that he or she is eligible for a sizable rebate for filing taxes early. The caller then asks for the victim's bank account information for the direct deposit of the rebate.
• Refund email - Various emails supposedly from the IRS generally tell the recipient that he or she is eligible for a tax refund for a specific amount and then instructs the recipient to click on a link in the email to access a refund claim-form. The form asks the recipient to enter personal information that the scammers can then use to access the victim's bank account or credit card account.
• Audit email - In another scam, the email notifies the recipient that his or her tax return will be audited. It may contain a salutation in the body addressed to the specific recipient by name. The email instructs the recipient to click on links to complete forms with personal and account information, which the scammers will use to commit identity theft.
• Changes to Tax Law email - This bogus email is addressed to businesses, accountants, and treasury managers. It instructs them to download information on tax law changes by clicking on a series of links to publications on businesses, estate taxes, excise taxes, exempt organizations, IRAs and other retirement plans. Clicking on a link downloads malware (Malware is software designed to infiltrate or damage a computer system without the owner's informed consent. It includes computer viruses, worms, trojan horses, most rootkits, spyware, dishonest adware, and other malicious and unwanted software) onto the recipient's computer.
• Paper Check Phone Call - In this telephone scam, a caller claims to be an IRS employee who is calling because the IRS sent a check to the individual being called. The caller says that because the check has not been cashed, the IRS wants to verify the individual's bank account number.

Note: Anyone wishing to access the IRS Website should initiate contact by typing the www.IRS.gov address into their Internet address window, rather than clicking on a link in an email or by opening an attachment. Those who have received a questionable email claiming to come from the IRS may forward it to a mailbox the IRS has established to receive such emails: phishing@IRS.gov, using instructions shown below in an article by the IRS titled,"How To Protect Yourself From Suspicious Emails or Phishing Schemes." - ABA Bank Risk News March 2008

Phishing, as it is called, is the act of sending an email to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft.

According to the Federal Trade Commission (FTC), the nation's consumer protection agency, phishers send an email or pop-up message that claims to be from a business or organization that you may deal with - for example, an Internet service provider (ISP), bank, online payment service, or even a government agency. The message may ask you to "update", "validate", or "confirm" your account information. Some phishing emails threaten a dire consequence if you don't respond. The messages direct you to a Web site that looks like a legitimate organization's site. But it isn't. It is a bogus site whose sole purpose is to trick you into divulging your personal information so the operators can steal your identity and run up bills or commit crimes in your name.

The IRS can use the information, URLs and links in the suspicious emails you forward to trace the hosting Website and alert authorities to help shut down the fraudulent sites.

Note: If you forwarded a message to phishing@irs.gov, thank you for your submission. The IRS is very concerned and aware of suspicious emails or phishing schemes. You may not receive an individual response to your email because of the volume of reports that are received each day.

DO NOT OPEN any attachments to questionable emails, which may contain malicious code that will infect your computer. Please be advised that the IRS does not initiate contact with taxpayers via emails. Also, the IRS does not request detailed personal information through email or ask taxpayers for the PIN number, passwords or similar secret access information for their credit card, bank or other financial accounts.

It is important that the original communication that was received is included, as well as Internet headers. The following instructions will assist you in forwarding a phishing communication to the IRS.

1. Create a new message.
2. Drag and drop the phishing email into the body of the new message. This ensures the original message is contained as an attachment with the appropriate Internet headers.
3. Address the message to phishing@irs.gov and send it.

1. Select Message>Forward.
2. Select the option Include Headers in quote. Click the Forward button.
3. Address the forwarded email to phishing@irs.gov.

In Netscape/Mozilla/Thunderbird Mail

1. Select View>Headers>All.
2. Select Message>Forward As> Inline
3. Address the forwarded message to phishing@irs.gov.

If you are using an alternative to these email clients, please consult your provider for instructions on how to forward messages with Internet headers.

If the suspicious email includes a file attachment, it is safer to simply highlight the message and forward it. Some configurations, especially in Windows environments, may allow the execution of arbitraty code upon opening and viewing a malicious email message.

The IRS can use the information, URLs and links in the suspicious emails you forward to trace the hosting website and alert authorities to help shut down the fraudulent sites. You may also report misuse of the IRS name, logo, forms or other IRS property to the Treasury Inspector General for Tax Administration, toll free at 1-800-366-4484.

You can also forward suspicious emails to the Federal Trade Commision at: spam@uce.gov or contact them at www.consumer.gov.idtheft 1.877.IDTHEFT (1.877.438.4338).

Here's a link to a helpful checklist from the Financial Industry Regulatory Authority, Inc. (FINRA) that can help you protect your financial information:

Safeguarding Your Financial Information: An Identity Theft Prevention Checklist