Bogus Checks Among Ways Scammers May Target Stimulus Payments

SAN FRANCISCO BAY AREA, CA — With coronavirus-related economic stimulus checks from the U.S. Treasury beginning to arrive via direct deposit into many Americans' bank accounts, authorities with the U.S. Attorney's Office Northern California District and IRS Criminal Investigation said this week that reports are swirling about bogus checks, in addition to a number of other potential scams.

"If you receive a 'check' in the mail now, it’s a fraud — it will take the Treasury a few weeks to mail those out," U.S. Attorney David Anderson and IRS Special Agent In Charge Kareem Carter, said in a joint statement Tuesday. "If you receive a 'check' for an odd amount (especially one with cents), or a check that requires that you verify the check online or by calling a number, it’s a fraud."

Anderson and Carter warned the public that everyone should be on the lookout, as criminals may see the stimulus checks as an opportunity for fraud.

The payments — meant to reinvigorate the U.S. economy amid historically high unemployment figures due in large part to coronavirus-related shutdowns of nonessential businesses — are to continue arriving over the coming days and weeks.

Under the $2-trillion Coronavirus Aid, Relief & Economic Security — CARES — Act, eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for one person or $2,400 for married couples. Parents also receive $500 for each qualifying child.

• California Residents: Check Your Stimulus Payment Status

Tax filers with an adjusted gross income of up to $75,000 for individuals, and $150,000 for married couples filing joint returns, will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the thresholds.

Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible to receive the payment.

For most Americans, the payment will come in the form of a direct deposit into their bank account. However, for taxpayers who traditionally receive tax refunds via paper check, including many elderly citizens and those who do not use banking services, the payments will be issued as a paper check.

"We all must remain alert," Anderson said. "All taxpayers—whether they expect to receive a direct deposit or a paper check—may be the target of fraud. Scammers will always try to think of creative ways to take your money from you. With the help of an alert public, we can bring them to justice before they can profit from their illegal schemes."

Carter said the scammers "prey on our hopes and fears to steal your money, your personal information, or both."

"As this deadly virus continues to impact every part of our lives, scammers are looking to take advantage of all the chaos," Carter said.

The U.S. Attorney's Office and IRS offer the following tips on how to spot and avoid scams related to COVID-19 economic impact payments:

• The IRS will deposit your check into the direct deposit account you previously provided on your tax return (or, in the alternative, send you a paper check).
• The IRS will not call and ask you to verify your payment details. Do not give out your bank account, debit account, or PayPal account information — even if someone claims it's necessary to get your check. It's a scam.
• If you receive a call, don't engage with scammers or thieves, even if you want to tell them that you know it's a scam, or you think that you can beat them. Just hang up.
• If you receive texts or emails claiming that you can get your money faster by sending personal information or clicking on links, delete them. Don't click on any links in those emails.

Those who think they may have been a victim of a scam or attempted fraud involving COVID-19 economic impact payments can report it without leaving your home through a number of platforms, including:

1. Contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at disaster@leo.gov.; or

2. Report the incident to IRS Criminal Investigation by sending an email to OaklandFieldOffice@ci.irs.gov.

Patch editors Dave Copeland and Bea Karnes contributed to this story