Don't Get Fleeced by a Financial Scam

Friday, Oct 10, 2008

LITTLE ROCK--Scammers are trying to capitalize on the recent economic turmoil by rehashing some of their favorite solicitation schemes, like those involving the IRS and Treasury Department. Thus, today, Attorney General Dustin McDaniel issued this consumer alert to warn consumers about the latest wave of financial e-mail scams.

"These scam artists really have no shame," said McDaniel. "Using people's fears about the current economic situation to immorally and illegally make a profit is indefensible, and I hope Arkansans will continue reporting these incidents so we can better protect honest working citizens and their money."

Recently, the Internal Revenue Service (IRS) warned Americans about several new scams, including those that use refunds as bait. In one particular scheme that has been reported in Arkansas, the scammer sends an email, bearing the IRS name and logo. The email informs the consumer that she has a refund and that she only need to click on a link to an online form, which she must complete in order to get her money. In reality, however, the information she enters on that form will be used by the scammer to take her money or steal her identity.

To avoid falling victim to such schemes, here are some tips to remember:

- Never provide information in response to an unsolicited request;
- Verify the request for information directly with the entity involved by contacting it using a phone number from an independent source;
- Remember that the IRS never attempts to collect sensitive information via telephone or email;
- Don't open emails, click on attachments or links if you don't know or trust the sender; and
- If you receive an unsolicited e-mail communication claiming to be from the IRS, forward the message to phishing@irs.gov. Log onto www.IRS.gov to review instructions on how to forward suspicious emails. This year alone, the IRS has received 1,600 reports of phishing from American consumers.