Every year, as tax season arrives, scammers ramp up one of the most effective cons in their playbook: pretending to be the IRS, Social Security Administration, or other government agencies. These scams cost Americans hundreds of millions of dollars annually, and they work because they're designed to trigger fear and urgency before you have time to think.
Knowing how these scams operate is your best defense.
How Government Impersonation Scams Work
Scammers contact victims by phone, text, email, or even fake websites, claiming to represent a government agency. They typically claim something that elicits fear and/or urgency, like one of the following:
- You owe back taxes and will be arrested if you don't pay immediately.
- Your Social Security number has been suspended due to suspicious activity.
- You're owed a refund, but need to verify your information to claim it.
- There's a problem with your identity and your accounts will be frozen.
The goal is always the same: get you to hand over money or personal information before you realize what's happening.
Red Flags to Watch For
| Red Flag | What It Looks Like |
|---|---|
| Demands for immediate payment | Caller insists you pay right now via gift card, wire transfer, cryptocurrency, or prepaid debit card |
| Threats of arrest or legal action | You're told police are on the way or a warrant has been issued |
| Requests for personal information | They ask for your SSN, bank account number, or login credentials to "verify" your identity |
| Unusual contact methods | Unsolicited calls, texts, or emails, the IRS initiates contact by mail, not phone or email |
| Pressure to stay on the line | Caller insists you not hang up or contact anyone else while you pay |
| Spoofed caller ID | The call appears to come from a government number (this is easily faked) |
What the Government Will Never Do
Real government agencies operate by strict rules. Knowing these boundaries makes imposters easy to identify:
- The IRS will never call to demand immediate payment without first mailing you a bill.
- The IRS will never require a specific payment method like gift cards or wire transfers.
- The IRS will never threaten to bring in police for not paying immediately.
- The Social Security Administration will never suspend your SSN over the phone.
- No government agency will ever ask you to keep a conversation secret or stay on the line while you purchase gift cards.
If any of these happen, you're almost certainly talking to a scammer.
What to Do If You're Contacted
- Don't engage. Hang up immediately. Do not press buttons, answer questions, or follow instructions, even to "opt out."
- Don't pay. Any payment made to a scammer is almost impossible to recover, especially via gift cards, wire transfers, or crypto. All of which are common requests.
- Verify independently. If you're genuinely concerned about a tax issue, hang up and call the IRS directly at 1-800-829-1040 or visit IRS.gov. Never use a phone number provided by the caller.
- File a report with:
- The IRS at phishing@irs.gov (for email scams) or 1-800-366-4484
- The FTC at ReportFraud.ftc.gov
- The Social Security Administration's fraud hotline at 1-800-269-0271
- Alert your financial institution. If you shared Climb account information or sent money, contact us immediately so we can help protect your accounts.
Already Been Scammed? Act Fast.
Time matters. If you've sent money or shared personal information:
- Contact your financial institution right away to freeze or monitor accounts.
- Place a fraud alert or credit freeze with the three major credit bureaus (Equifax, Experian, TransUnion).
- File an identity theft report at IdentityTheft.gov.
- Document everything (dates, amounts, what was said, etc.) for your report.
Stay One Step Ahead
Scammers count on surprise and fear. A few seconds of skepticism can save you thousands of dollars. When in doubt, hang up, look up the agency's official number, and call back on your own terms. This includes calls coming from Climb.
If you ever have questions or concerns about your accounts, we’re happy to help. Contact us directly, we'll never ask for your PIN, password, or full card number over the phone.
Safeguard your finances.
- Never share your online banking credentials or debit card information with anyone, even if they claim to be helping you.
- Be cautious of offers that sound too good to be true, especially if someone asks you to send money or gift cards back to them.
- Contact us directly if you are unsure about any loan offer or financial transaction.
Visit our Fraud Prevention Page to learn more about popular scams and how to spot fraud. If you suspect you have been a victim of fraud, please call us directly at (303) 427-5005 immediately so we can help.
