Death and Taxes – Meet Stimulus Fraud

Over the past eight years, I’ve used this space to regale you with my financial scam encounters, fraudsters either demanding I pay off thousands in back taxes or risk hard prison time. Or, with “official security” inquiries to determine if the routing numbers on my checking accounts are accurate.

I won’t lie to you.

I often enjoy pretending to be a panicked and pearl-clutching consumer dreading the thought of becoming a guest of the government for several years and then suddenly putting them in an uncomfortable position by asking them questions that only employees of the IRS or Bank of America (my lending institution) would know.

That usually results in a quick hang-up along with me signing off and telling them that I hope they’re enjoying the weather in Bangalore or Estonia.

And thus, it was only a matter of time before similar scams surrounding the COVID-19 economic stimulus payments inevitably began to surface. So, this week I received an email warning me about the methods currently being used to separate deserving citizens out of their stimulus checks.

Sadly, Chez Carlino will not be receiving the government largesse this time around although in a selfish bit of full disclosure we could have used it. Our cranky dishwasher is literally operating on rubber bands and the brakes on my Volkswagen would have trouble stopping a baby carriage.

But I digress.

So, in my latest public service announcement, below are some caution flags associated with this latest scam to be aware of:

Any communication that uses the term “stimulus check” or “stimulus payment.” The official moniker is “economic income payment.”

Anyone asking the taxpayer to sign over their payment check directly to them.

Requesting by either phone, email or social media for verification of banking or personal information – claiming that it will speed up payment to them.

And my personal favorite, mailing the taxpayer a bogus check and then tell them to call a number to verify the routing information online in order to cash it.

For most of you, the payments are automatic, and no further action is needed.  In most cases, the IRS will deposit the money into the direct deposit account taxpayers previously provided on their tax returns.  If the IRS does not have a taxpayer’s direct deposit information, a check will be mailed to the address on file. So, if anyone calls or emails you about it, quickly delete it or simply hang up.

Some 231 years ago, in a letter to Jean-Baptiste LeRoy, Benjamin Franklin mused about the certainty of death and taxes.

In 2020, perhaps a stimulus check saved from fraud is one earned.