Dec 27 2008
The Just Pay the Taxes Scam
This scam has been used and re-used many times. It works pretty simply. The scammer calls the victim and tells them that they have won a cash prize, usually around $250,000. There is just one hiccup the scammer will tell you. They need to have the income taxes pre-paid in order to release the funds.
Usually this is a relatively small fee compared to the prize, a few thousand dollars. Once the taxes are paid the funds can be released and you are on your way to wealth and fame.
Of course this is a complete scam. The IRS does not need a middleman to collect their taxes for them. They do a fine job all by themselves. In fact you have not won any kind of prize. In truth most legitimate cash prizes state quite clearly that they will not be responsible in any way for paying the taxes that you owe.
So just hang up on the scammer and then warn your friends.
