Employment Threat Scams

Employment threat scams are a manipulative tactic used by fraudsters to exploit taxpayers’ fears about their job security. Scammers claim they will inform your employer about alleged tax issues unless you comply with their demands. These scams use intimidation to coerce victims into making payments or sharing personal information. Understanding how these scams operate can help you avoid falling victim to them.

Threat Type
This scam involves threats to contact your employer regarding unpaid taxes or tax-related issues, jeopardizing your job security.

Communication Method
Scammers typically use phone calls, often with spoofed caller IDs to appear as though the call is coming from the IRS. Emails and text messages may also be used but are less common for this specific scam.

Demands or Actions Requested
Victims are pressured to make immediate payments via unconventional methods like gift cards, wire transfers, or cryptocurrency. Scammers may also demand sensitive personal information, such as Social Security numbers or bank account details.

Red Flags

• Threats to contact your employer about alleged tax issues.
• Demands for immediate payment through untraceable methods like gift cards or cryptocurrency.
• High-pressure tactics designed to prevent you from verifying the claims.
• Lack of prior written communication from the IRS before the call or email.

Scammer Claims
Fraudsters assert that you owe back taxes and that they will notify your employer of your tax problems unless you pay immediately. They may even threaten that this notification could lead to job termination.

Psychological Manipulation Tactics
Scammers exploit fear and urgency by creating a false sense of panic, making victims believe their employment is at risk if they don’t act quickly. This pressure often leads victims to comply without verifying the claims.

Target Audience
Employees, especially those in sensitive positions or industries where job security is paramount, are common targets of this scam.

Payment Methods Demanded
Scammers often request payment through prepaid debit cards, wire transfers, or cryptocurrency—methods that are difficult to trace and recover once sent.

How to Verify Legitimacy
The IRS will never contact your employer directly regarding your tax situation without prior written communication with you first. If you receive a suspicious call or email making employment-related threats, hang up and contact the IRS directly at 1-800-829-1040 for verification.

What to Do if Targeted

• Do not provide personal information or make any payments during unsolicited communications.
• Hang up immediately if contacted by a scammer and report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484 or online at irs.gov.

Consequences of Falling Victim
Victims risk financial loss, identity theft, and emotional distress if they comply with scammers’ demands under false pretenses.

Preventive Measures
Stay informed about how the IRS communicates with taxpayers and educate yourself on common scams like employment threats. Always verify claims before taking action and never respond impulsively to threats involving your job security.

Seasonal Trends
Employment threat scams can occur year-round but may spike during tax season when taxpayers are more likely to believe they’ve made filing errors.