The Internal Revenue Service (IRS) recently warned of a new twist tied to an old scam aimed at international taxpayers and non-resident aliens. In this scam, criminals use a fake IRS Form W-8BEN to solicit detailed personal identification and bank account information from victims.
In the past, fraudsters typically target non-residents of the U.S. and use the W-8BEN format to acquire personal details such as:
- mother's maiden name
- passport number
- PIN numbers and passcodes
The legitimate IRS Form W-8BEN, does not ask for any of that information. The fraudulent forms use various angles that may claim, for example:
- Anti-money laundering regulations require a review of your client information and ask you to complete the form.
- You are exempt from tax reporting and withholdings on income including interest paid to you. To protect your exemption from tax please complete the attached form.
Now there is a new twist: Criminals mail or fax a letter indicating that although individuals are exempt from withholding and reporting income tax, they need to authenticate their information by filling out a phony version of Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting. Recipients are requested to fax the information back.
Criminals use many scams to get individuals to give them personal information. For a detailed list identified by the IRS see:
https://www.irs.gov/newsroom/tax-scamsconsumer-alerts
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.