Unclaimed IRS Refund Scams

Unclaimed IRS Refund Scams are a growing tactic used by fraudsters to steal personal and financial information. These scams often involve fake notifications claiming you have an unclaimed tax refund and require sensitive details to process it. Understanding how these scams work is essential to protect yourself from identity theft and financial loss.

Threat Type
This scam targets individuals by claiming they have an unclaimed tax refund, aiming to steal personal information under the guise of processing the refund.

Communication Method
Scammers typically send fraudulent letters in cardboard envelopes, often using private delivery services. These letters include fake IRS logos and language about “unclaimed refunds.” Emails or phone calls may also be used to follow up on the initial contact.

Demands or Actions Requested
Victims are asked to provide sensitive information such as Social Security numbers, bank account details, driver’s license copies, and contact information. Scammers claim this data is necessary to process the refund.

Red Flags

• Poorly written letters with odd punctuation or mixed fonts.
• Requests for personal or financial information via mail, email, or phone.
• Claims about “unclaimed property” instead of tax refunds (the IRS does not handle unclaimed property).
• Fake contact information or deadlines inconsistent with IRS policies.

Scammer Claims
Fraudsters assert that you are owed a tax refund and need to act quickly to claim it. They may use official-sounding language and fabricated deadlines to create urgency.

Psychological Manipulation Tactics
These scams exploit trust by mimicking IRS communications and creating urgency through false deadlines, making victims feel pressured to act immediately without verifying the legitimacy of the claim.

Target Audience
Unclaimed IRS Refund Scams often target individuals unfamiliar with IRS procedures, including seniors, immigrants, and young adults.

Impersonation Techniques
Scammers use fake IRS letterheads, logos, and terminology to appear legitimate. They may also include fabricated agent names or badge numbers to enhance credibility.

How to Verify Legitimacy
The IRS does not initiate contact via email, text message, or private delivery services requesting personal information for refunds. If you receive such a notice, contact the IRS directly at 1-800-829-1040 or check your refund status at irs.gov/refunds.

What to Do if Targeted

• Do not respond or provide any information requested in the notice.
• Report suspicious emails to [email protected] and forward fraudulent letters to the Treasury Inspector General for Tax Administration (TIGTA).
• Destroy any fake documents after reporting them.

Report Unclaimed IRS Refund Scams to:

• TIGTA at 1-800-366-4484 or tigta.gov
• The Federal Trade Commission at ftc.gov/complaint

Consequences of Falling Victim
Victims risk identity theft, financial fraud, and unauthorized access to their bank accounts if they provide sensitive details to scammers.

Preventive Measures

• Be cautious of unsolicited communications claiming you have an unclaimed refund.
• Verify all tax-related claims through official IRS channels before taking action.
• Stay informed about common tax scams and their warning signs.

By recognizing Unclaimed IRS Refund Scams and following these guidelines, you can protect yourself from falling victim to these fraudulent schemes.