Tax day in the United States is fast approaching and once again, scammers are on the rise. Some scammers are targeting victims by asking them to pay back taxes with iTunes gift cards.
Phone scammers are on the rise all year round, but during tax season more victims than ever are targeted. The process can be somewhat confusing and scammers use this to their advantage during the weeks leading up to April 15. Since October 2013, over 10,000 people have fallen victim to tax phone scams.
Phone scammers asking people to pay taxes and more via gift cards is not new, however, iTunes gift cards, in particular, are becoming a popular choice. The Treasury Department even specifically mentioned them in a statement to ensure taxpayers are aware:
“Any caller requesting taxpayers place funds on an iTunes gift cards or other prepaid cards to pay taxes or fees is an indicator or fraudulent activity,”
Scammers start by making threatening phone calls, telling victims they must purchase an iTunes gift card and then share the 16-digit code on the back. They’re told if they don’t, a warrant for their arrest will be issued.
CNBC’s Jim Pavia was one of those targeted:
“I played along with the IRS phone scammer who recently called me for as long as I could. However, there was no way I was able to contain my laughter when he instructed me to pay my “back taxes” by purchasing an iTunes gift card. I did “offer” to pay with my credit card, but the scammer said it was too late for that.
I was instructed to immediately buy an iTunes gift card and to stay on the phone the entire time; otherwise, “this final chance to avoid prison will disappear and the police will soon arrive and arrest” me.”
The IRS is very clear that they will never call demanding immediate payment via a specific method. They will also now threaten to immediately issue a warrant for their arrest, nor will they ask for credit or debit numbers over the phone.