News/Events

Tax season is in full swing and scammers are posing as Internal Revenue Service (IRS) agents and sending emails with fake tax bills and transcripts to Arkansans. These malicious emails often include an attachment that is not a document from the IRS but rather something harmful that will infect the user’s computer with vicious malware once it is opened. The email may even threaten Arkansans with arrest if payment is not received immediately using a gift card, prepaid debit card or wire transfer.

“The IRS will never send unsolicited emails or accept payment from a prepaid gift card or wire transfer,” said Arkansas Attorney General Leslie Rutledge. “This scam to dupe Arkansans out of their hard-earned money, or steal their personal information, is just one more shameful attempt by criminals to line their own pockets.”

Attorney General Rutledge issued the following tips for anyone who receives an email from someone claiming to be from the IRS:

· Do not reply to the email.

· Do not open any attachments which can contain malicious code that may infect computers or mobile phones.

· Do not click on any links.

· Delete the original email.

Valentine’s Day is another opportunity for scam artists to take advantage of Arkansans putting their heart and money on the line to find love. Con artists are using dating apps, often pretending to be someone they aren’t, with false pictures and information, to get the attention of others with the intent of stealing money from the kind-hearted people they meet on these sites.

“Arkansans should have the opportunity to meet new people without the fear of someone taking advantage of them and their wallets,” said Arkansas Attorney General Leslie Rutledge. “On dating sites, Arkansans must be cautious and keep personal information private. Con artists know how to play on emotions to convince people they need help when they are only wanting to steal money and identities to open credit accounts.”

Attorney General Rutledge released the following tips for social media users:

• It’s called personal information for a reason—keep it to yourself!
• Do not give out personal information such as addresses and telephone numbers.
• Consider speaking by telephone before meeting in person, and when meeting in person, make plans to meet new people in a public venue, or bring a friend.
• Don't post any information that would let someone know you are away on vacation or your house is empty. Posting about being out of town for a few days could make someone a likely target for thieves.
• Don't post any information that can lead hackers to passwords for online banking or other accounts. For example, common questions for those who have forgotten their passwords for financial or other sites include: “What’s your mother’s maiden name?” or “What’s your favorite pet?” Criminals may be able to find those answers easily on social networking sites.

Identity theft is a constant concern for Arkansans, but tax time brings additional anxiety over protecting personal information. Tax refund fraud occurs when a Social Security number is stolen and used to file a tax return and the resulting refund is claimed by the thief. Unfortunately, many people are unaware that this fraud has occurred until they attempt to file their own taxes and discover that a return has already been filed using their Social Security number.

“Tax-related fraud is the most common form of identity theft,” said Arkansas Attorney General Leslie Rutledge. “As we begin the process to file taxes, Arkansans must remain vigilant in protecting personal financial information to try to avoid falling victim to this type of scam.”

Attorney General Rutledge released the following steps to take if you fall victim to tax refund fraud:

Scammers are recycling an old con to scare Arkansans into turning over prepaid debit cards or wiring money to pay off an unpaid utility bill. The Arkansas Attorney General’s office has received over 100 reports since the first of the year of con artists posing as utility company employees threatening to shut off utility services due to an unpaid bill.

“Arkansans should be skeptical of unsolicited calls in which the person is demanding immediate payment over the phone claiming that a water, electric or gas bill is late,” said Arkansas Attorney General Leslie Rutledge. “I urge Arkansans to hang up and reach out to the utility company directly using the number on their last bill or the company’s website to determine the status of their bill.”

Attorney General Rutledge released the following tips to ensure payment is sent to the utility company safely, securely and timely:

· Add the utility payment due date on a calendar when the bill is received.

· Drop off the payment at the utility office or an authorized payment location.

· Pay online on the utility company’s website with a credit card or call the company directly.

· Consider participating in an automated bank account draft system, if it is offered.

· Mail the payment to the company directly.

The scam involves Caller ID spoofing to make the name of the utility company display on the phone’s screen. Be cautious of unsolicited calls and consider hanging up and finding the company’s phone number from an independent source and calling them to confirm any outstanding balance.

Arkansans risk higher costs when using refund anticipation loans as a resource to plan for a tax refund this year. Some businesses are even offering refund anticipation loans (RALs) or refund anticipation checks (RACs) to offset the costs of larger purchases, but the interest rates offered may use more of the refund than expected.

“Refund anticipation loans and checks are just that, the anticipated amount of the tax refund,” said Arkansas Attorney General Leslie Rutledge. “A tax refund could be larger than anticipated, it could also be much smaller and leave consumers on the hook for the rest of the cost of the purchase. I encourage Arkansans to practice patience and wait for the government to issue any refund.”

Attorney General Rutledge released the following considerations before agreeing to have taxes prepared as part of a refund anticipation loan:

• Free or low-cost options such as the online Internal Revenue Service (IRS)
• Electronically-filed returns can be deposited in bank accounts in as few as eight days.
• The IRS can also provide refunds by check or prepaid debit card.
• Always get a written list of fees before entering into any agreement or requesting tax preparation assistance.

RALs are high-interest loans that must be repaid by the actual tax return proceeds, essentially borrowing the buyer’s own money. If the actual tax refund amount is less than estimated, the buyer is on the hook for the difference. RACs may be attractive to some consumers because businesses often waive tax preparation fees, but many Arkansans can obtain free tax preparation services.