April 1, 2015
Current Events
They are very convincing when they call. They have a Washington phone number and can recite your financial history down to the penny. They say you’re under investigation and in danger of losing your home, your car, your freedom — unless you immediately pay thousands of dollars on the spot.
But they’re not real and you’re not in trouble. This is a scam and the people calling are not the IRS.
According to Federal authorities, this is the largest IRS impersonation scam they’ve ever seen, which has swindled victims out of more than $15 million since it began in 2013.
“They have information that only the Internal Revenue Service would know about you,” said Timothy Camus, deputy inspector general for investigations with the Treasury Department. “It’s a byproduct of today’s society. There’s so much information available on individuals.”
Operating out of India and using identity theft phishing technology to make it appear they’re authentic IRS agents in Washington, the thieves have successfully victimized more than 3,000 people in the past 2 years. They harness stolen identities and use programs such as Google Earth to identity locations where their victims can transfer money. Camus says the IRS has recorded more than 366,000 reports of contact with the scammers and that number is increasing at a rate of 10,000 to 12,000 a week.
Most victims have lost about $5,000, however the largest loss reported was a staggering $500,000.
One of those victims was former NFL player and current sports radio host Frank Garcia. When he got the call, it sounded so authentic, he left the radio station in a panic, scrambling to get the money they demanded.
“The only thing running through my head is, I’m going to jail. I’m gonna be on television, in handcuffs, for tax evasion,” he recalled. “I had to follow specific steps not to be arrested. That the authorities had been contacted and in fact, they are on the way and will be there in 30 minutes.”
Current Events
Garcia spent 5 hours driving to various stores around Charlotte, NC depositing $500 each time into a PayPal account set up by the scammer, who refused to even let him hang up the phone. He ended up losing about $4,000.
“It sounded as legitimate as could be,” said North Carolina church pastor Al Cadenhead, who also fell victim. “They knew where I was. He told me where to go — to the Rite Aid, up 2 streets turn left to the Rite Aid. The names of the streets, it was really just incredible.”
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| Rev. Al Cadenhead |
Cadenhead said he didn’t come to his senses until he’d signed over $16,000.
“It was like I came out of a coma and realized this was not normal and this is not how you do business,” he said. “I know other people who’ve heard the story say ‘How did a guy with a PhD fall victim?’ I was the perfect victim. I’ve never been audited, never paid a traffic ticket. I don’t know how to pay fines. How do I know they aren’t stern and serious about everything?”
Fortunately, smart bank tellers or clerks at money wiring locations have warned potential victims to the scam and stopped from sending more money. Other victims simply snapped out of it and came to their senses on their own.
For Frank Garcia, the light came on when the woman on the phone asked him for another $8,000 after he thought his debt had been paid. Taking a chance, he decided to hang up and await the scammer’s promise that police were on their way and that he would be arrested. Of course, an arrest never came.
“I felt taken advantage of. I felt small. And I was naive,” he said. “I wasn’t aware. I didn’t understand the system. And didn’t blame anybody but myself for not taking more time to understand those things.”
Often, Camus says, immigrants are easy targets since they are threatened with deportation. The elderly are also a popular target, although the scam has grown so large, people of all ages, income levels and status are getting these calls.
Camus himself, a Treasury Department investigator, even received a scam call. He told them, “Your time is coming.”
Treasury Department officials are reminding the public that they will never call anyone to demand immediate money on the spot. Officials say if you get one of these calls, DO NOT give them money. The best way to handle it is to simply hang up and report the scam to federal authorities.
