Taxpayers must remain alert regarding a new “smishing” scam that may cost them up to $1,400 or lead to compromised personal data.
Importance of Awareness
Scams can result in significant financial setbacks for taxpayers in the U.S., potentially placing a serious monetary burden on them. The incidence of scams usually escalates during the tax-filing season, which started for 2024 returns on January 27.
Key Information
Fraudsters impersonating Internal Revenue Service (IRS) officials are sending messages to taxpayers, requesting personal information in exchange for Economic Impact Payments (EIP), also known as the Recovery Rebate Credit (RRC).
“Smishing” is a fraudulent tactic that utilizes text messaging to deceive individuals into providing sensitive information, which could lead to financial harm or identity theft.
Smishing scams are increasingly common, with numerous reports this tax season regarding offers to help taxpayers qualify for EIP/RRC payments that could amount to $1,400. Earlier in the year, the IRS noted that these texts were targeting eligible individuals who had not claimed their federal stimulus checks from their 2021 tax returns.
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Scammers have been preying on unsuspecting taxpayers with these messages. A text reported by North Carolina news outlet WSOC-TV illustrates how these fraudsters impersonate the IRS.
The text reads: “You are eligible to receive a $1,400 Economic Impact Payment. Please provide your accurate personal information. We will deposit the amount into your bank account or mail a paper check within 1 to 2 business days.”
The Better Business Bureau has pointed out that these messages often contain “a fake link designed to resemble an official IRS website,” and clicking on it could lead to malware installation on your device or redirect you to “a counterfeit form asking for personal or financial details.”
However, the EIP/RRC payment process does not operate in this way. The IRS has clarified that payments are automatically distributed to those who qualify, meaning no extra steps are required if you’ve filed your 2021 tax return. Any unpaid EIP will be deposited directly into bank accounts or sent as checks, with recipients also receiving a separate notification from the IRS about the payment.
Preventing Smishing
Last month, the IRS issued advice on how to handle smishing attempts, confirming that “cyber criminals impersonate the IRS and Treasury Department in smishing schemes to gather personal and financial data from taxpayers.”
The agency also reminded taxpayers that “the IRS will not contact you through text message or social media asking for personal or financial information.”
“The IRS does not initiate contact via phone or email. If the IRS needs to reach out, it will typically start with a letter sent through the U.S. Postal Service.”
Community Reactions
The Better Business Bureau issued a warning in January: “Scammers are masquerading as the IRS to trick taxpayers into disclosing personal information, asserting that they qualify for a $1,400 stimulus check. These deceptive messages often seem legitimate but are part of a phishing effort to steal sensitive information.”
Next Steps
If you have not yet submitted your 2021 tax return, you have until the national deadline of April 15 to file for the credit and any other eligible refunds. The IRS will not accept 2021 tax returns filed beyond this date.
