Scams, Fraud, and ID Theft

Tax Scams and Fraud

Learn to protect yourself from tax scams and fraud Read a warning from the IRS about the latest tax scams.

IRS tips to protect against phishing and malware

Phishing is a tactic used by identity thieves to get you to give them your personal information. Whether it be your bank account number, username and passwords, or social security number, identity thieves can use this information to empty your bank account, open a credit card in your name or steal your tax refund.

Beware of tax refund scams and cons

People perpetrating tax refund scams and frauds can be aggressive, intimidating and demanding. If successful they can steal your tax refund and cause you many headaches for years to come. Watch the IRS video below to learn how to identify these IRS scammers who pretend to be IRS officials to get you to send them money.

Is this call really from the IRS, or is it a scam?

5 things the real IRS will never do:

1. Call you about taxes owed without first mailing you a paper bill,
2. Demand you pay back taxes before giving you opportunity to appeal the amount,
3. Require a specific payment method, such as a prepaid debit card, or gift cards
4. Ask for credit or debit card numbers over the phone,
5. The IRS will never threaten to have you arrested.

Helpful tips

Avoid falling victim to these scams. Remember, the money for the child tax credit comes directly from the IRS. Do not respond to anyone reaching out to you. The IRS will not call, text or direct message you, asking for money or information. They won’t ask for wire transfers or gift cards either. Keep the following tips in mind if someone reaches out to you:

• Keep your personal information to yourself.
• Never give out your Social Security number.
• Never give out your bank or credit card information.

More

• IRS Warns of Latest Scam
• The IRS’s “Dirty Dozen” of tax scams
• Don’t Let the Unscrupulous Tax Preparer Waste Your Tax Refund

Online Scams

With the dramatic growth of Internet use by millions of users, many con artists who used to use telemarketing, infomercials, newspapers, magazines and the mail to attract consumers are now going on-line to promote their scams.

Beware of promotions for bogus stock offerings, credit repair services, and exotic or high-tech investment opportunities. Approach such offerings with the same skepticism you would use if such offers were presented through any other medium. Never make an investment or major purchase decision based on information from one source.

Some of the characteristics of such fraudulent schemes include overstated claims of product effectiveness such as a “hot” investment opportunity, exaggerated claims of potential earnings or profit, claims of “inside” information, and “pump and dump” promotions of cheap stocks promising high returns and promotions for exotic investments.

You also should beware of “disguised advertising” where seemingly harmless comments on bulletin boards or in chat rooms about the quality or performance of products or services may be ads in disguise. What may appear to be an open discussion could be a sales pitch in disguise. Read all ads and “conversations” with a healthy dose of skepticism.

Identity Theft and Victim Resources

What is identity theft?

Identity theft happens when someone steals your personal information and uses it without your permission. Thieves almost always commit this crime to steal money from you or someone else. It is a serious crime that can cost you a lot of money, ruin your credit history, and maybe your reputation. It can take a lot of time, money, and patience to fix.

For more information on how to recognize ID theft scams, protect yourself from identity theft, and how to fix the damage caused by identity theft, visit the Federal Trade Commission’s website.

What should I do if I suspect I am a victim of identity theft?

For a thorough, step-by-step guide on what to do immediately, what to do next, and what to do after the initial steps, visit the FTC’s identity theft action page.

The New Hampshire Department of Justice’s Consumer Protection and Antitrust Bureau also provides identity theft resources and maintains an active list of security breaches.

How does identity theft affect my credit report?

Check out our “Credit Reports” page for more information.

Mail, Phone, and Online Marketing and Solicitation

Chain letters and other pyramid schemes are illegal chain distributor schemes.

A chain distributor scheme is any scheme where a person, after making an investment of cash or property, is compensated by soliciting or recruiting others to make similar investments. The early entrants earn the ”return” on their investment from the payments made by the later entrants. It is a felony under New Hampshire law to operate a chain distributor scheme.

Anyone with a phone can be victimized by telemarketing scam artists.

These calls usually originate in a “boiler room,” a rented space with desks, telephones and experienced sales people who talk to hundreds of people across the country every day. You can be reached in a variety of ways such as: “cold calls” directly to your home; direct mail or email where you get a card or letter advising that you have won a contest or prize and need to call to claim it; or through television, newspaper or magazine ads.

The Federal Trade Commission’s Telemarketing Sales Rule prohibits misrepresentations, requires certain disclosures be made, and establishes rules for telemarketers. The rule covers most types of telemarketing calls to consumers, including calls consumers make in response to postcards or other materials received in the mail or by email.

This rule provides that it is illegal for a telemarketer to call you if you have asked not to be called or if you have registered with the federal Do Not Call List. Calling times are restricted to the hours between 8:00 a.m. and 9:00 p.m.

Telemarketers must tell you they are making a sales call and the name of the company doing the selling before they make their pitch. They are not allowed to misrepresent any information. Telemarketers must tell you the total cost of the products or services offered and any restrictions on getting or using them.

It is illegal for a telemarketer to withdraw money from your bank account without your express authorization. If you have the slightest doubt about a telephone offer, insist that the seller provide information in writing and check it out.

“Debt relief services,” for-profit companies that say they can renegotiate what you owe or get your interest rate reduced, are also covered by the Telemarketing Sales Rule. This includes calls you make to debt relief companies in response to advertisements and other solicitations. Debt relief companies aren’t allowed to charge you up front fees for their services, they can’t misrepresent their services, and they have to disclose certain information before signing you up for their services. Information they have to disclose includes how long it will take them to get results, how much it will cost, and the negative consequences that could result from using debt relief services.

Many scam artists who used to use telemarketing, infomercials, newspapers, magazines, and the mail to attract consumers have gone online to promote their scams.

Beware of promotions for bogus stock offerings, credit repair services, and exotic or high-tech investment opportunities. Approach such offerings with the same skepticism you would use if such offers were presented through any other medium. Never make an investment or major purchase decision based on information from one source. Some of the characteristics of such fraudulent schemes include overstated claims of product effectiveness such as a “hot” investment opportunity, exaggerated claims of potential earnings or profit, claims of “inside” information, and promotions of cheap stocks promising high returns and promotions for exotic investments. Also beware of ”disguised advertising” where seemingly harmless comments on bulletin boards, in chat rooms, or on social media about the quality or performance of products or services may be ads in disguise. What may appear to be an open discussion could be a sales pitch in disguise. Read all ads and “conversations” with a healthy dose of skepticism.

Home Repairs

Learn how to avoid problems when you hire someone to make repairs to your house.

Get written estimates and check out the company

Get several written estimates for the work you want done. Get estimates from companies that have been in business for a long time or from companies that your friends recommend.

Ask the company for the names and numbers of five former customers who are not family members, and call each of them.

Ask the company how long it has been in business and if it ever used a different name.

Call or email the Department of Justice’s Consumer Protection and Antitrust Bureau and ask if there have been any complaints filed against the company. The phone number is (603) 271-3641 and the email address is .

Complaints should be addressed to: Office of the Attorney General, Consumer Protection and Antitrust Bureau, 1 Granite Place South, Concord, New Hampshire 03301. You may also call the number above, email the address above, or download a complaint form or file a complaint online.

Call or email the Better Business Bureau and ask if there have been any complaints filed against the company. The phone number is (603) 224-1991 and an email form is available on their website.

Anyone doing business in the State of New Hampshire must register with the Secretary of State’s office. Check the company’s name at the Secretary of State’s website or call (603) 271-3242.

Sign a written contract

When you hire a company, you should read and sign a written contract. The contract should do the following:

• Describe the work the company will do,
• State the quality of materials the company will use,
• Give a start date and a finish date of the work, and
• Show the total cost and terms of payment written clearly. Be sure you understand what the terms are.

Read the contract carefully to see if you are signing up for any kind of financing. Instead of borrowing from the contractor, it is usually better to borrow from a bank or a lender with a good reputation

Do you have a consumer protection complaint?

Check out our “Protection from Unfair or Deceptive Business Practices” page for more information.

Protection Against Scams and Fraud

How scams work and how do I protect myself?

How can I find out if something is a scam?

Here are some ways you can tell you’re dealing with a scam:

• Scammers usually pressure you to act quickly. They don’t want you to have time to check what they’re saying.
• Scammers tell you to pay in a specific way. They want it to be hard to get your money back, so they’ll say to pay by gift card, by wire transfer, or with cryptocurrency.
• Scammers ask for your personal or financial information — things like your Social Security, credit card, or bank account number. NEVER PROVIDE THIS INFORMATION OVER THE PHONE OR BY TEXT OR EMAIL!

Before you act, type the company or product name into your favorite search engine with terms like “review,” “complaint,” or “scam,” and see what you find.

How do scammers reach me?

Scammers most commonly contact you through phone calls, emails, text messages, and mail. They almost always ask for your personal information. Personal information includes name, address, social security number, online username and password, bank account numbers, bank card PINs, and anything else that is unique to you.

Scammers use your personal information to commit fraud to get money. Sometimes the scammer targets your money, but other times it uses your name and personal information to take money from elsewhere – banks, tax refunds, credit cards, loans taken in your name, etc.

Ignore all unexpected requests for money. If someone calls and says there has been suspicious activity in one of your accounts, verify the story. Use a phone number, website, or app you know is real to contact the company. Don’t use contact information in the message you received.

Be suspicious of anyone who contacts you and pressures you to give personal information.

All your personal information should be kept safe and secret if possible, and you should never provide personal information to strangers over the phone or by text or email Scammers often use fear, intimidation, or promise of rewards or money to convince you to tell them your personal information.

New scams pop up all the time

Check out the Federal Trade Commission’s website for news on the latest scams.

“Imposter scams,” where scammers pretend to be your bank, a trusted friend or relative, a government agency, or even tech support, are very common today. Learn how to spot and stop them: How To Avoid Imposter Scams.

Section 8 housing waitlist scams continue to be popular in searches and on social media. Check out this warning from the National Low Income Housing Coalition on how you can protect yourself: State Housing Agencies Warn of Social Media Scam Involving HCV Waitlist Openings.

Did someone contact you claiming to be from the IRS and ask for personal information? Check out the IRS’s page on tax scams.

Scam Warnings, Active Scams

Protect yourself by knowing common or ongoing scams

Helpful tips

Scammers are always keeping up with the news. Avoid falling victim to scams. Remember, the money for the child tax credit comes directly from the IRS. Do not respond to anyone reaching out to you. The IRS will not call, text or direct message you, asking for money or information. They won’t ask for wire transfers or gift cards either. Keep the following tips in mind if someone reaches out to you:

• Keep your personal information to yourself.
• Never give out your Social Security number.
• Never give out your bank or credit card information.

Report a Fraud or Scam

Whenever you see a scam or suspicious business practice, report it to the Federal Trade Commission (FTC).

ReportFraud.ftc.gov makes it easy for people to report scams, frauds, and bad business practices.

Spanish speakers can go to ReporteFraude.ftc.gov to report scams.

• Did you order face masks online but did not get them? Report it.
• Do not give your social security number to a stranger. If someone calls and says they need it, it is a scam. Report it.
• Emails and texts saying you won money are a scam. Do not click on the link. Report it.
• A free prize for a fee is not free or a prize. Anyone who says something is free but you have to pay, is lying to you. Report it.
• If someone tells you to pay them with gift cards or by wire transfer (Western Union, MoneyGram), you are talking to a scammer. Do not pay them. Report it.
• Romance websites can help people find love. But scammers are on those sites too. Report it.
• Right now, people are looking for jobs and ways to make money. Scammers know that. They are charging up-front for jobs that do not exist. If you think you have spotted a money-making scheme, report it.
• Who doesn’t want a cure? But there is no pill that can cure everything. If you see ads for something that promises to cure cancer, MS, and COVID-19, stop. It is a scam. Report it.

Check out the FTC’s website for more information on avoiding and reporting scams.