Fraud Stimulus Money Schemes Are In Effect

by Sonya Smith-Valentine on November 17, 2009

As the news spread earlier this year regarding the stimulus package from our government, fraudsters started capitalizing on this program.

Many Americans started receiving postcards that they could receive their portion of their stimulus package. The recipients were instructed to call a 1-800 number, provide personal information, and they would receive their money.

Many websites were created that even displayed a fake IRS logo on it, persuading people to fill out the online form to receive their portion of money owed to them by the government. The information that they entered on the website was information that was used to clear out bank accounts or to open accounts.

A group of state attorney generals have filed lawsuits against the individuals responsible for the fraud and has issued warnings to the public. The misconception is that people do not realize that the government is not issuing individual grants. A stimulus package can be awarded in different ways, such as a tax break, first time home buyer credit, or an expanded health coverage tax credit. Also the Cash for Clunkers program is another example of how stimulus packages are paid out.

The lesson learned is the next time you hear on the news that the government is issuing money to individuals, make sure you learn exactly how the stimulus package is being paid out. When reading information on the IRS website make sure it is the actual IRS website.

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