Fake IRS Crypto Letters: How to Spot the Scam and Protect Your Identity
Scammers are targeting crypto users by sending fake IRS tax letters, claiming they owe back taxes. These letters often arrive via text, email, or social media direct messages and demand payment in cryptocurrency, gift cards, or wire transfers.
The IRS generally contacts taxpayers through physical mail first, listing a specific notice number that can be verified on IRS.gov. Legitimate notices include detailed instructions for responding to the notice, including payment options such as Direct Pay from a bank account or EFTPS. Scammers often use AI-generated videos and spoofed websites to impersonate IC3 and demand payment in cryptocurrency.
To spot a fake letter, look out for red flags such as generic 'Case ID' numbers, demands for crypto payments, and links that point to spoofed domains or third-party sites. Verify any notice by checking IRS.gov directly and using the phone number listed on the official site. If you're unsure about the authenticity of the notice, consult with a tax professional.
According to the FBI's Internet Crime Complaint Center, scammers are impersonating IC3 itself to 're-victimize' people, often by asking for new payments in cryptocurrency to supposedly recover earlier losses. This is a double con, and taxpayers should be wary of any demand for a 'recovery fee' in crypto.