IRS Warns of Scam Targeting Crypto Holders with Fake Compliance Portal

The IRS has issued a warning about a new scam targeting cryptocurrency holders. Scammers are sending counterfeit letters that appear to be from the IRS, asking recipients to enroll in a non-existent 'Digital Asset Compliance Portal'. These letters reference tax years spanning 2017 through 2026 and include a QR code that leads to a phishing site.

The scammers' goal is to harvest personal data and trick people into transferring their digital assets directly to them. The IRS has clarified that it does not operate any such portal and urges taxpayers to verify communications through official channels.

Coinbase, the popular cryptocurrency exchange, had flagged this threat two days before the IRS announcement. The company's consumer alert collaboration with security firm DarkTower highlighted how the letters use realistic formatting to bypass skepticism.

The timing of this scam is particularly concerning because the IRS has been sending legitimate educational compliance letters to individuals suspected of underreporting their digital asset activities since 2019. Scammers are banking on this familiarity and the fact that receiving mail from the IRS about crypto holdings is no longer unusual.