Asked by Anonymous

does the us. gov. call you to give grant money but, you must first pay a 250.00 bank transfer fee?

Every year during tax season, scammers find new ways to steal money from taxpayers. In response, every year the Internal Revenue Service (IRS) publishes a list of common scams to help taxpayers avoid fraud.

This year the IRS is warning about a scam that promises fake tax refunds and targets senior citizens and low-income individuals. The agency says that in recent weeks this scam has been increasingly reported across the country.

Scam Offers Free Money

Scam artists promise tax refunds which are supposedly part of The American Opportunity Tax Credit, originally designed to help people with college expenses. They claim incorrectly that the refund is available, even if the person attended college decades ago.

In a twist, they are also telling victims that they can benefit from this credit if they even paid taxes on groceries while attending college.

The IRS says scam artists have been looking for potential victims at church gatherings and are targeting senior citizens and people with little or no income who don’t usually have to file taxes.

Victims Pay a High Cost

People who fall for these scams have a lot to lose.

For starters, they pay high fees for bogus tax preparing services. And when they figure out they have been scammed, criminals usually have already disappeared with their money.

“This is a disgraceful effort by scam artists to take advantage of people by giving them false hopes of a nonexistent refund,” said IRS Commissioner Doug Shulman in a statement. “We want to warn innocent taxpayers about this new scheme before more people get trapped.”

By law, taxpayers are legally responsible for the accuracy of their tax returns. If the IRS issues a refund by mistake, taxpayers are obligated to return the refund.

How to Protect Yourself

Unfortunately for many, tax season is also scams season. Warning signs of tax scams include:

• Promises of refunds based on false statements.
• Unfamiliar companies that sell refunds or credits to members of local churches.
• Internet ads or emails with toll-free numbers. When people call, they are asked for their Social Security number.
• Homemade flyers and brochures offering or implying credits or refunds to people who are not eligible.
• Offers of free money without requiring documentation.
• Promises of refunds for “Low Income – No Documents Tax Returns.”
• Unsolicited offers to prepare a return and split the refund.

How to get help

The IRS website has lots of resources. It includes links to forms and publications, information on how to file taxes online and instructions on how to arrange payment plans and installment agreements.

You can also call the IRS directly at 1 (800) 829-1040.

Frauds and scams come in a variety of forms—insurance fraud, ATM fraud, credit card scams, scholarship scams, and the list goes on and on. Learn more about frauds and scams so that you don’t become a victim.

The FBI identified a new phishing scam online that targets your bank accounts. The scam is called “Gameover.” Once the virus is on your computer, it can steal all of your user names and passwords before you realize what has happened.

How It Works

The Gameover scam will email you, pretending to be from the National Automated Clearing House Association (NACHA), the Federal Reserve Bank, or the Federal Deposit Insurance Corporation (FDIC). The email will say that there has been a problem with your bank account or a recent transaction, and will include a link to help fix the problem. The link will send you to a phony site, where the Gameover malware is automatically installed on your computer and starts stealing your bank account information.

If you think you’ve been victimized by this type of scheme, contact your financial institution to report it, and file a complaint with the FBI’s Internet Crime Complaint Center.

Learn more about the Gameover Scam.

The Securities and Exchange Commission (SEC) recently charged a man with trying to sell $500 billion worth of fake securities on the online social network LinkedIn. It’s a reminder that crime goes where the people go, and the people are on social media websites like LinkedIn and Facebook.

The SEC has advice to help you stay safe from online investment fraudsters.

• On the Internet, it’s easy for criminals to make scams that look real. Always use caution when considering an investment you found online.
• Be suspicious of unsolicited offers. If you didn’t ask for it, and you don’t know the source, there’s a good chance of bad intentions.
• The old rule about too good to be true still stands, even in new media. Compare the promised returns with the returns on well-known stock indexes. More signs of foul play include guaranteed returns and pressure to buy right now.
• Tighten your privacy settings. Fraudsters can use your private information to steal from you or scam you. “Don’t you remember me from college?”
• Is a financial service provider trying to Friend you? Feel free to say no. Friending someone can mean you let them see everything about you.
• When you’re on social media, never communicate your bank account and social security numbers. Always use firm-sponsored communication for brokers and advisers, like the telephone, letters, firm email, and the firm website.
• Affinity fraud is what the SEC calls it when the fraudster prays on what you have in common, like ethnicity or religion. Even if you know the person, check out everything first. They might have been fooled first.
• Another trick is manipulating the market with “Pump and Dump.” They’ll talk up a stock that doesn’t deserve it, then sell after everyone buys and the price is high.

If you’re a personal investor who spends time on the Internet, you may want to read these PDFs from the SEC on avoiding fraud and understanding your accounts.