• Home
  • Cash
  • Stimulus Update: Scammers on the hunt for bumper stimulus money

Stimulus Update: Scammers on the hunt for bumper stimulus money

By on November 1, 2022 0

Image source: Getty Images

Scammers are the worst. Rather than taking action to earn money legitimately, they prey on unsuspecting people. And here’s the problem with scammers: they’re always there, waiting for the next opportunity to manipulate them. They are like rats, hiding in a corner, waiting for someone to drop a piece of bread.

When the first stimulus checks were released in 2020, the scammers had their heyday. They dedicated themselves to emailing, making calls, texting and otherwise contacting the stimulus funds due. A few months after the first checks Bank accountsAmericans had lost more than $211 million to COVID-related scams.

Check Out: This Credit Card Offers a Rare $300 Welcome Bonus

More: These introductory 0% APR credit cards made our top list

Between rounds of stimulus checks, the scammers slowed down. But now that the IRS estimates that about 9 million Americans have not received stimulus paymentsyou can bet these scammers will be back in full force.

If you or someone you love is among the 9 million owed, here are some of the most common red flags to watch out for.

Technology has made it possible for scammers to impersonate someone else. In this case, they are likely to say they are from the IRS, the Treasury Department, or your state unemployment benefits agency.

Your best bet is to ignore any unsolicited contact. If you happen to hear a message or open an email, don’t engage. Instead, contact the agency the scammer claims to represent.

For example, if you receive a call or someone leaves a message claiming to be from the IRS, call the official IRS number (800-829-1040). Explain your situation to a customer service representative and ask if anyone from the IRS is actually trying to contact you.

The answer will probably be no. You might be wondering why you would even want to call. If nothing else, it lets the IRS know the scammers are back.

Someone suddenly wants to be your best friend

If you engage with a scammer in any way, they will attempt to break through your defenses, act as if they are trying to do you a favor. The goal is to get your personal information.

For example, the person may tell you that your check has been returned. They will explain to you that they are “verifying” your home address, bank account number, or social security number.

Once they have this information, they go shopping and can easily steal your identity.

When the stimulus payments started, scammers were sending emails and text messages. These messages encouraged recipients to click on a link regarding stimulus payments. Once a person clicked on the link, they were taken to a fake app. This useless app asked for all kinds of private information, including social security number, address, and bank account numbers.

For a “small fee” we’ll speed things up

In this scam, scammers tell future beneficiaries that for a small processing fee, they can get them stimulus money sooner. This scam works especially well on those who need funds to cover their living expenses.

However, there is no advance payment. What the scammer hopes is that enough people pay the fee to make it worthwhile.

The scams are endless, limited only by a fraudster’s imagination. For example, another approach is to offer a “cash advance” on the money. What the scammer fails to tell his victim is that he will have to pay an astronomical interest rate on the loan.

Scammers feed on our desire to trust others. It’s up to you to protect yourself and the funds still owed to you.

Alert: The highest cash back card we’ve seen now has 0% introductory APR through 2024

If you use the wrong credit or debit card, it could cost you dearly. Our expert likes this first choicewhich offers an introductory APR of 0% until 2024, an insane repayment rate of up to 5%, and all with no annual fee.

In fact, this map is so good that our expert even uses it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We are firm believers in the Golden Rule, which is why editorial opinions are our own and have not been previously reviewed, approved or endorsed by the advertisers included. The Ascent does not cover all offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

  Cash