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Covid-19: Alert Issued For Child Tax Credit Payment Scams

Opportunistic fraudsters have taken advantage of some consumers during the COVID-19 pandemic, this time targeting child tax credit payments that have been sent out to assist families.

scam alert

scam alert

Photo Credit: NY Senate

The IRS recently issued an alert after it began sending tens of millions of dollars to families, though scammers have been attempting to pull a fast one over on some to steal thousands of dollars in federal benefits.

According to the IRS, scammers have been reaching out to families using emails, text messages, and through social media, asking to verify personal information to receive the child tax credit payments. 

The fraudsters then use that information to hack into accounts and scam their victims.

Scammers have also used pre-recorded or threatening messages warning about a lawsuit or arrest, requesting payment to start the credit payments, asking for gift cards, wire transfers, or cryptocurrency.

Officials noted that payments will be sent out automatically to the bank account that is on file through tax filing, no effort is required. For those who have not filed taxes, an online tool has been provided to allow them to report the information.

IRS officials added that the agency will never reach out through email, text message, or social media channels to request personal information, noting that anyone asking for payment through gift cards or wire transfers is a scammer.

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