Consumer Alert: Scammers Push Consumers To Pay Back Taxes With An iTunes Gift Card

Scammers are constantly and creatively finding ways to get people to part with their hard-earned money. The latest scam is an effort to get people to pay back taxes by purchasing iTunes gift cards and sharing the code on the back of the card. AARP Fraud Watch Network is alerting consumers about this new scam and providing useful tips to help consumers protect themselves and their money against fraudsters.

 

“Consumers need to be aware of new and ongoing frauds and scams that threaten their financial resilience,” said Bob Gallo, State Director for AARP Illinois “The AARP Fraud Watch Network provides useful tools and resources consumers can use to protect themselves and their money.”

 

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HOW DOES IT WORK? 

 

A potential victim is contacted by an impostor claiming to be from the Internal Revenue Service informing them that they are behind in state and federal taxes, and that the potential victim will be arrested if they don’t pay back taxes immediately.

 

The caller directs the potential victim to purchase an iTunes gift card and put the amount they supposedly owe in back taxes, and then call back and provide the 16-digit code that is on the card to complete payment.  Finally, the con artist sells the codes on the online black market and pockets the cash.

 

WHAT SHOULD YOU KNOW?

• The IRS only accepts checks, cash and credit cards as forms of payment.
• Apple sells iTunes gift cards solely for purchases on the iTunes store and the app store. If you are not shopping on the iTunes or app stores, you should not be using an iTunes gift card.

 

WHAT SHOULD YOU DO?

• Never agree to pay anyone besides Apple with an iTunes gift card.
• If you are targeted with a scam like this, report it to the Federal Trade Commission.
• In 2014, AARP launched the Fraud Watch Network to arm Americans with the tools and resources they need to spot and avoid scams and identity theft. But scammers are still out there, making every attempt possible to cheat consumers out of their hard-earned money. The public can sign up for free to receive Fraud Watch Network alerts and more at www.aarp.org/fraudwatchnetwork