Earlier in the summer, the Internal Revenue Service issued a warning for U.S. taxpayers of a surge of fake IRS agents attempting to scam many out of their hard-earned money. The callers would leave urgent requests for callback in order to settle an unnamed tax bill. The victim would then be threatened with legal action upon returning the phone call and the caller would demand gift cards in order to pay off the debt. After being tipped off last week, dozens were arrested in a call-center raid in India for their roles in the IRS fake debt scam.
First and foremost, consumers must be able to recognize the signs of a phone scam. In many cases, simply because a caller is using a threatening tone, the victim may feel pressured and obviously concerned if they were somehow unaware of a debt. Fake debt collectors will use many deceitful tactics in order to obtain information.
According to the IRS website, the scams change year-after-year and consumers need to be vigilant. The scams aren't only via phone and have also been seen through text messages, emails and computer malware. Read more about tax scams and how to report them here.
Even legitimate debt collectors are not allowed to call you on your cell phone unless you've given express written consent for them to do so. They are also not allowed to:
The Telephone Consumer Protection Act (TCPA) establishes rules for debt collection using the telephone, including when collectors can call and which devices can be used to make those calls. The Fair Debt Collection Practices Act (FDCPA) also offers protection for consumers against abusive or deceitful debt collection practices. Consumers also have rights under the Fair Credit Reporting Act (FCRA) that allows them to dispute inaccurate data on their credit reports at any time and with no time limits, especially if debt collectors have reported inaccurate information..
The most important thing you can do when on the phone with a fake debt collector is to stay calm and think clearly. Because you do have rights, you can report the collector to Consumer Financial Protection Bureau (CFPB) or your state attorney general's office. The IRS has specifically asked that taxpayers receiving scam phone calls report the incident to the Treasury Inspector General Tax Administration (TIGTA) or file a complaint with the Federal Trade Commission.
In order to report the collector, you will need to take note of a few things:
Don't give out any personal information and hang up the phone if you're feeling especially pressured or threatened. Report the scam as soon as you can.