IRS warns of phony e-mail scams

IRS warns of phony e-mail scams

	Published : Mon, 02 Apr 2007 20:27 By : Agencies Print this Story

WASHINGTON (AP) - Taxpayers should be on the lookout for phony e-mails that resemble the Internal Revenue Service's images and content but are designed to steal personal and financial data, the agency warned Monday.

The IRS said it does not send out unsolicited e-mails or ask for personal and financial data, such as bank account or credit card numbers or passwords.

'We have definitely seen an increase, an uptick in the number of scams out there,' said IRS spokesman Eric Smith. He added the phony e-mails increase during certain times of the year, including March and April.

The agency has previously warned the public about such 'phishing' scams, in which Web sites and e-mails mimic legitimate businesses or agencies to steal passwords and other sensitive data.

The IRS said the phony sites appear legitimate because most of the images and content are copied from actual IRS Web site pages.

Smith said the agency has been working with Internet providers to try to shut down fraudulent sites.

The phony e-mail schemes have a few variations.

In one, a fraudulent e-mail tells a taxpayer he or she is eligible for a certain federal tax refund, often $63.80. The taxpayer clicks on a link to complete a form, which asks for personal and financial data.

Another e-mail scam tells a taxpayer that the agency's antifraud commission has discovered some fraudulent activity, and asks him or her for bank account information or other data to unfreeze an account.

The agency said it neither has an antifraud commission nor the authority to freeze a taxpayer's credit card or bank account due to any potential theft or fraud.

A third e-mail scam asks a taxpayer to wire thousands of dollars to retrieve lottery winnings. The agency said it does not handle lottery distributions.

A year ago, the IRS created an electronic mail box to get copies of possible fraudulent e-mails involving use of the agency's name, logo or Web site. To date, it has received more than 17,700 e-mails reporting more than 240 different phishing scams.

Agency investigations revealed the scams originated from at least 27 different countries, including the United States.