Tax Refund and Social Security Scam Warning

It is that time of year and the scam artist will be out in full force!  If you feel that you are a victim of any of these scams please contact the appropiate officials listed here.  This email was sent to me with the following information.

Ladies and Gentlemen,

We have been contacted by the Office of Inspector General who adivsed that their Southeast Region office is currently working several scams involving tax refunds and social security. These scams seem to target older citizens. They have asked that we provide this information to our community as a crime prevention measure. Anyone targeted by these scams or with any information that may assist in their investigation should contact the Office of Inspector General at the below listed phone numbers. Please provide this information to members of your community.

Thanks.

Tax refund and social security scam warning

Investigative Highlights of Office of Inspector General Cases -

· OIG raised awareness of aggressive door to door sales representatives selling Medicare advantage prescription coverage. Also, there is a continued effort to defraud individuals with a scam which encourages individuals to release their bank account information for an alleged one time payment of $500 from SSA and/or the IRS.

· Another scam mentioned is a tax preparer encouraging seniors to file for back taxes on SSA benefits. They are told that 1099 Forms should be requested from SSA. Based on the last three years using the 1099 Forms, the phony tax preparer files for a fraudulent return showing the SSA benefits as income and takes the standard reduction which results in a refund. The SSA beneficiary is charged between $40.00 and $100.00 for his services. IRS issues a refund check, subsequently, IRS realizes the fraud and requires the SSA beneficiary to make the refund.

Social Security Warns about Potential "Scams"

Unfortunately, there always seem to be crooks who are trying "to put something over on us" and take our money. While anyone can be a target for such "scam artists," seniors are often among the most vulnerable.

Social Security recently has had to issue a warning about several ‘scams' that have surfaced throughout the southeast. Our agency has received many reports about telephone calls or visits from people who falsely claim to be Social Security employees. In each case, the person attempted to obtain personal information, such as a Social Security or bank account number, from the Social Security recipient.

The scam artists who identify themselves as Social Security employees have used a variety of approaches to get personal information. In one case, a caller said that Social Security was experiencing a power outage and needed to verify the person's information. In another, the caller posed as an employee who needed to verify the person's direct deposit information.

In a third scam, Social Security recipients were told that their monthly benefit payments were being cut because they have inherited a house from a relative --an event which, by the way, would not result in a reduction of Social Security benefits. To help make the fraud seem authentic, the caller then placed the person on hold and played the same on-hold recordings used by Social Security. When the caller got back on the line, the recipients were then told that proceeds from the sale of the house will be sent to them if they pay the back taxes.

Basically, we advise you to always take precautions when giving out personal information. You should never provide your Social Security number or other personal information over the telephone unless you initiated the contact, or are confident of the person to whom you are speaking. If in doubt, do not release information without first verifying the validity of the call.

If there is any doubt at all about someone who claims to be a Social Security representative, we recommend contacting your local Social Security office or calling Social Security's toll-free number at 1-800-772-1213 to verify the legitimacy of the call. (If you are deaf or hard of hearing, call Social Security's TTY number at 1-800-325-0778.)

In the meantime, our Office of Inspector General is working closely with other Social Security officials to investigate all reports of suspicious activity. To report suspicious activity, please call the OIG Hotline at 1-800-269-0271. (If you are deaf or hard of hearing, call the OIG TTY number at 1-866-501-2101.) A Public Fraud Reporting form is also available online at the OIG's Web site.

If you plan on buying or selling real estate please do not hesitate to give me a call, I would be happy to assist you.