Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Brill discusses IRS impersonation scam before U.S. Senate, (Apr 15, 2015)

By Greg Hammond, J.D.

FTC Commissioner Julie Brill presented the prepared statement of the FTC today before the U.S. Senate Special Committee on Aging concerning the IRS Agent Impersonation Scam. In the prepared statement, the Commissioner discussed the Commission’s efforts concerning IRS imposter scams and tax identity theft, which frequently target senior citizens.

Government imposter scams are those in which scammers impersonate government officials, contact consumers, and seek personal information or claim that the consumers owe money. Brill noted that government imposter scam complaints rose from 65,000 in 2013, to more than 159,000 in 2014.

“These fraudsters go to great lengths to deceive consumers, taking steps such as threatening arrest or deportation for failing to pay, demanding immediate payment via wire transfers or pre-paid debit cards, and sending bogus emails to further their scheme,” said Brill.

Similarly, tax identity-theft typically occurs when a thief files a fraudulent tax return using another person’s Social Security number and receives a refund electronically. This type of identity theft frequently impacts older Americans, according to Brill, because they often share personal identifying information with a wide range of individuals and many times have accumulated assets that are attractive to con artists and identity thieves.

“To help address these challenges, the Commission has dedicated significant resources to educate consumers about IRS imposter scams and tax identity theft,” stated Brill. These educational efforts include partnering with AARP and the Treasury Inspector General for Tax Administration in hosting Tax Identity Theft Awareness Week to raise tax identity theft awareness and to provide consumers with useful tips on protecting themselves and what to do if they become victims; developing blogs to provide data security guidance for tax preparers and human resource professions, in addition to consumer blogs concerning IRS imposter scams; and developing consumer guidance on identifying and dealing with tax-related identity theft.

“Millions of consumers are victimized by identity thieves each year, collectively costing consumers and businesses billions of dollars and countless hours to repair the damage,” Brill said. “The Commission will continue to play a central role in the battle against IRS imposter scams and identity theft, and looks forward to working with the Committee on this important issue.”

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