Crooks Use Tax Form to Sell Scam and Steal Your Money

Crooks Use Tax Form to Sell Scam and Steal Your Money
Image: NCCC
February 20, 2014

Watch out for scammers using a real tax form to try to trick you out of your money.

A North Carolina consumer recently got an email with tax form IRS Form W-2G, which is used to report gambling winnings. The form was already filled out with the consumer's name and address, and it showed that he had recently won $2.5 million dollars in a lottery.

Later, the consumer got a call telling him to be ready to pay $485 in cash to cover the fee for having the lottery check delivered to his home. The consumer agreed, but when the person delivering the check would not accompany him to the bank to deposit it, the consumer decided to keep his $485 and report the fraud.

Scammers often use the promise of a prize to get you to pay them money, claiming you owe taxes or fees before you can get your winnings. Once you've paid the first fee, they'll usually ask for another, and then another, but you never get the prize they've promised.

It's against the law to charge a fee before you can collect a prize, or get a loan or a credit card. When someone demands payment upfront in situations like these, close your wallet.

Report scams like this one to the North Carolina Attorney General's Office.