IRS warns of telephone tax scam involving fake caller IDs

The Internal Revenue Service warned about a growing tax scam in which fraudsters display an IRS phone number on the intended victim's caller ID and demand money. Particularly targeting recent U.S. immigrants, the scammer typically tells the targets over the phone that they owe money to the IRS and demands payment via a pre-loaded debit card or wire transfer, the IRS said. The victim's caller ID displays an IRS toll-free number in a deception known as caller ID spoofing. For added effect, the scammers often add background noise on the call that sounds like an official call center. They may also send follow-up emails from a bogus IRS address.