Scam Alert: IRS Impersonators Targeting Students with Bogus Federal Tax Claim

Con artists pressure college students to wire money immediately or face arrest

August 1, 2025

As summer term ends and students prepare for the upcoming academic year, scam artists are stepping up efforts to target young adults with fraudulent calls and messages. The Internal Revenue Service warns that impostors posing as IRS agents are contacting college students in North Carolina and nationwide, demanding payment of a phony “Federal Student Tax.” These con artists employ aggressive tactics, threatening police involvement, arrests, suspension of financial aid or even deportation—to intimidate victims into wiring money, purchasing gift cards, or sending cryptocurrencies immediately. With reports rising in 2025, it is critical that students, parents, campus administrators, and financial aid offices remain vigilant and know how to recognize and report these scams.

How the IRS Impersonation Scam Works

Scammers typically initiate contact by phone, text, email or sometimes through social media direct messages. They spoof caller ID to display “IRS” or a local IRS office number, making the call appear legitimate. In other cases, they send automated robocalls with urgent messages claiming the victim owes unpaid federal tax related to student status. The criminals demand immediate payment via nontraditional methods: prepaid debit cards, iTunes or Google Play cards, money orders, cryptocurrency transfers such as Bitcoin or gift card codes. If the student hesitates, the caller ups the pressure, threatening to notify campus police, suspend financial aid, report the student to immigration authorities or even have them arrested on campus. The urgency and fear tactics can lead panicked students to comply without verifying the call’s authenticity.

Recent Trends in 2025

Compared to earlier years, 2025 scam variants have grown more sophisticated. Fraud rings now pair phishing emails with deepfake voice technology to mimic IRS agents. Text messages include official-looking IRS logos, secure links that install malware, and fake payment portals. Scammers also harvest social media profile details, student names, college email addresses, scholarship information—to personalize calls and build credibility. Several North Carolina universities have reported attempts to breach student portals with fake IRS login pages, seeking direct deposit details. Reports to the Treasury Inspector General for Tax Administration (TIGTA) and campus law enforcement indicate a sharp uptick in complaints during summer orientation and registration periods.

Recognizing the Red Flags

Knowing the IRS’s actual procedures is the best defense. The IRS will never:

Call to demand immediate payment over the phone without first sending a notice by mail.
Threaten arrest, deportation or loss of financial aid if you do not pay immediately.
Require payment by prepaid debit card, gift card or cryptocurrency.
Ask for personal financial information, bank account numbers, PINs or passwords—via unsolicited calls or texts.
Leave urgent voicemail messages demanding immediate contact or payment.

Protecting Yourself and Your Students

Verify caller identity. If you receive a suspicious call, hang up and call the IRS directly at 1-800-829-1040 (for individual taxpayers) or 1-800-829-4933 (for businesses). Do not use numbers provided by the caller.
Do not share sensitive data. Never give Social Security numbers, bank account details or credit card information over the phone unless you initiated the call to a confirmed IRS number.
Scrutinize URLs and emails. IRS.gov is the only official domain. Beware of lookalike domains such as “.com” or misspelled URLs. Do not click unsolicited links or download attachments.
Educate your campus community. Universities and colleges should incorporate scam awareness into orientation, financial aid workshops and parent newsletters. Students should know where to report suspicious calls.
Use peer support. Encourage students to discuss unexpected calls with roommates, family members or resident advisors before sending any funds.

What to Do If You’re Targeted

Hang up immediately. Do not engage with the caller. Do not call back using numbers from caller ID or voicemail.
Report to TIGTA. File a complaint online at the IRS Impersonation Scam Reporting page or call 1-800-366-4484. TIGTA investigates IRS-related scams.
Notify the FTC. Submit a report at ReportFraud.ftc.gov. Include “IRS Telephone Scam” in the complaint notes.
Contact local law enforcement. If the scam involved threats or harassment, file a report with campus police or the county sheriff’s office.
Alert your financial institution. If you provided any payment information, notify your bank or credit card issuer immediately to freeze or change account details.
Monitor your credit. Consider a credit freeze or fraud alert with Equifax, Experian and TransUnion to prevent identity theft.

Additional Precautions for Parents and Guardians

Review communication preferences. Ensure your child’s campus email account and cell phone number are registered correctly with university alerts and that two-factor authentication is enabled.
Maintain open dialogue. Encourage students to ask questions before sending money or personal data. Emphasize that legitimate agencies will never demand instant payment.
Keep records. Save emails, text messages, call logs and screenshots of any scam attempts. These records support investigations by authorities.

North Carolina Resources

NC Department of Justice Consumer Protection Division: file complaints and get guidance at ncdoj.gov/consumers or call 1-919-716-6000.
NC Office of the State Treasurer: financial literacy and identity theft resources at nctreasurer.com.
Federal Trade Commission (FTC): report fraud and review scam alerts at ftc.gov.
Treasury Inspector General for Tax Administration (TIGTA): report IRS impersonation scams at treasury.gov/tigta.
Local campus police departments: most universities maintain 24/7 hotlines for student safety and fraud reporting.

IRS impersonation scams continue to evolve, exploiting technology and fear to swindle money from unsuspecting students. By staying informed, verifying every unsolicited contact and reporting suspicious activity immediately, students and families in North Carolina can protect themselves and help authorities shut down these operations. Share this alert with friends, roommates and campus organizations to spread awareness before the fall semester begins.