IRS phone scam is just tip of the iceberg

The phone numbers come up on the screen from across the U.S. as New York, Chicago and Seattle.

And the message left by a computerized voice might sound like this: "Don't disregard this message, do return the call. Now if you don't return the call and I don't hear from your attorney either, then the only thing I can do is wish you good luck as the situation unfolds on you. Goodbye."

That's in a nutshell a brief description of one of the more popular telephone scams around, the call from the IRS.

Calling the number back, if one can get through, is comedic relief as, first comes the standard "next available agent," whirlpool with annoying music blaring.

After over two minutes on hold, IRS agent James Belford answered, asking how he may help. When asked if he can spell his name the answer was a quick, "No." It's a busy place, this IRS office, with other voices audible in the background.

Surprisingly, or not, Mr. Belford has a distinct accent that begs of Mumbai or Delhi in India.

After a while looking up numbers, Mr. Belford asks, "Are you aware you owe the IRS money?" and that notification was sent. When told that no such letter was received and if they could send again - registered or certified, perhaps - Mr. Belford replied, "we are not sending any letters again."

But they were going to register the case in county court and then the defendant will be contacted by the sheriff's department within the next two hours with an arrest warrant. And that Sheriff Ozzie Knezovich was personally going to whisk them away in handcuffs to a fate uncertain.

But a good 90 days has passed and there have been no sheriff sightings, other than on TV.

Kirstin Davis, a spokesperson for the Better Business Bureau Northwest in Spokane said, "The IRS tax scam phone call is by far the most prevalent, is the one most attempted. However, it does have a pretty low success rate."

The BBB has done a good job of education on the subject, Davis said. "Rarely (do) people fall for it." An element of the scam was recently dismantled in, of all places, India. "They were bringing in $175,000 a day," she said.

"Volume wise it is for sure (the biggest), except for recently the 'Can you hear me,' phone call scam, this has been for a few years now the most prevalent," Davis said.

In a nutshell, a person finds they are in line for a great vacation. The agent asks, "Can you hear me," to which the answer is usually yes. Should the sales pitch be successful and credit card information is provided, the recipient does not receive a great deal on a dream vacation, but rather a big fat bill because their "Yes" response was secretly recorded and patched into an agreement tying them to a contract.

How close to home did that one hit? Davis's husband and son were contacted, but knew better.

It used to be that phone calls went through a switchboard, but now with cellular and computer technology, such is no longer the case.

"Phone scams, and identifying where that call is coming from - especially with voice over Internet protocol (VOIP) - that has changed dramatically," Davis said.

People can "spoof a number" and that's why a caller might look familiar, but really are not. It can be done anonymously to look like it is coming from anywhere in the country - or the world.

Cracking down on scams are a collective effort, Davis said. Multiple levels of law enforcement worldwide are tasked with chasing any number of ruses. "It's going to take a combination of consumers being educated and also getting to the root of the scammers," Davis said.

After the Indian IRS ring was busted, the Scam Tracker - an online reporting tool of the BBB's website - noted volume went from 200 instances a week to less than 10.

This is despite very little of what's happening actually being reported. "For every one scam that is reported, 40 go unreported," Davis said.

But the numbers also favor the scammers, Davis explained.

"When one does the kind of volume they do it only takes a small percentage of reaching out to 100,000 people a day," she said.

Consumers need to remember it is not just about getting money, that personal information can be more valuable - and damaging.

MORE INFO

For further information on scams that can harm consumers, contact the local Better Business Bureau at (703) 276-0100 or visit http://www.bbb.org/northwest.

Paul Delaney can be reached at [email protected].