This post will hopefully serve two purposes: a lesson in unethical behavior targeting Americans, and second, as a public service announcement. IRS Collection Scams are widespread and quite effective especially if you’re elderly and gullible.
Let me briefly start with the public service part of the equation. If you have an elderly parent or friend, please tell him or her that organizations such as the IRS do not collect money over the telephone and to never give out credit card information to anyone who calls representing themselves in any official capacity. I am afraid this is yet another argument for the elderly to get rid of their landlines and to buy a decent smartphone. IRS collection scams are real and something to guard against.
In a larger sense, this post focuses on unethical scams that take advantage of all of us, and maybe what can be done about it.
IRS Collection Scams – Targeted Americans
Police in India have just shut down a “scam” call center in Mumbai, India manned by nearly 700 workers who targeted Americans. The workers, speaking nearly accent-free English, were (amazingly) bringing in an estimated $150,000 a day.
The scammers followed a script which included telling people that their retirement plans would be frozen, they would lose their passports, and they could even go to jail and on and on unless they paid back fines and penalties to the IRS. This is an example of IRS Collection Scams that work based on fear.
Here is an important point to bring up at this time: the IG’s office (the Inspector General) for the U.S. Tax Administration has estimated that there have been 1.7 million complaints and people lost more than $47 million over the last three years.
While the low-life’s who were using IRS Collection Scams were placed under arrest, the money is long gone, most probably to hidden off-shore accounts. The arrested call center workers claim that they really thought the call center had a contract with the U.S. Government to collect money. The workers did the work for the promise of big commissions – and some made out very well, but they still claim they thought it was legitimate.
From an ethical standpoint, my first take is that the “crooks are crooks.” They cannot know, and they cannot relate, to what it is like to steal the life savings of an 85-year-old woman. But the IRS does, and that should be our focus. IRS Collection Scams are real and can be devestating to those defrauded.
IRS Warnings?
On the IRS website, there are warnings posted of what should constitute immediate “red flags” to anyone who receives one of these calls. The warnings include demands for immediate payment, demands without appeals, requiring a specific type of payment, asking for credit or debit card numbers over the phone or a threat to bring in the police.
While it is well and good that the IRS tells us these things, there is still a percentage of the population who are not computer savvy; who depend on landlines, not computers or digital devices, as the primary means of communication and who are elderly and/or easily confused. This is fertile ground for IRS Collection Scams!
My question: does the IRS have an ethical responsibility to expand efforts to thwart this kind of theft? I believe it does.
The IRS is in a position to create greater public awareness of fraud. If the IG’s office received 1.7 million complaints last year, it would not be beyond reason to estimate there were many multiples of that number in terms of people who received those calls and slammed down their receivers. Let’s say it was 5 million calls, or even 10 million. This suggests a serious problem. Why isn’t it being more aggressively addressed?
Given the incredible number of pieces of checks issued, the many opportunities to create public service announcements, the tens of millions of tax returns mailed, could the IRS not expand public awareness?
Could there not be an outreach to senior care facilities, religious institutions, radio and television advertising and other channels to reach older Americans?
Unethical behavior has no borders, that is true, but good ethical behavior should protect the vulnerable within our borders. The IRS is failing to do this.
YOUR COMMENTS ARE WELCOME!
I have received several calls and engaged in conversation once. They are extremely professional, with IRS Agent #, accent free English and surprising amounts of detail with urgency toward action. When I was asked to verify certain information I simply replied, “you called me so you should have this in front of you…”, suddenly his professionalism deteriorated and our call ended.