The feds have cracked down on a scam involving phone calls from what fake IRS agents threatening jail or deportation if the victim does not pay up, the Justice Department announced Thursday.
The far-flung scam stretched from India to the Chicago suburbs—and five area residents were in federal court on charges of conspiracy to commit money laundering and wire fraud.
“For nearly four years, this criminal network used a variety of schemes to trick frightened individuals over the phone by tapping into their worst fears,” said Assistant Attorney General Leslie Caldwell during a news conference.
The calls sounded legitimate and the caller ID on victims phones looked just like the Internal Revenue Service.
According to the Better Business Bureau, it was one of the biggest scams for the last two years.
Steve Bernas/CEO BBB Chicago. “We were getting reports of 200 reports a week to the Better Business Bureau system,” said Steve Bernas, CEO of the Better Business Bureau. “And now complaints are about 95 percent down.”
According to the Justice Department, the calls would come from phone banks in India. The gift cards and other financial assets within be liquidated by runners based here in the United States.
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IRS Commissioner John Kiskinen released a statement today saying "These actions mark a significant milestone in the battle against these outrageous scams, which have plagued so many taxpayers across the nation."
Now more than two dozen people are in custody in prison this country and more than 50 overseas in a scam that experts say should've raised red flags.
