The Internal Revenue Service's Criminal Investigation unit issued a fraud alert Thursday warning about fraudsters who are targeting cryptocurrency holders with convincing fake IRS letters directing recipients to register for a nonexistent "Digital Asset Compliance Portal."
IRS-CI noted that the letters do not come from the IRS, and the IRS doesn't operate a Digital Asset Compliance Portal. It said the emerging scam is designed to trick victims into disclosing sensitive financial and cryptocurrency account information.
The letters send recipients to a fraudulent website that mimics IRS.gov and instructs them to register for the fictitious portal. The IRS warned taxpayers not to respond to the scam letters.
"Criminals continue to exploit public trust in government agencies by creating convincing fake websites and official-looking correspondence," said IRS-CI chief Jarod Koopman in a statement. "Before responding to unexpected requests for personal information, stop, verify the source, and report potential fraud schemes to law enforcement."
Victims receive what appears to be an official IRS letter claiming they need to enroll in a "Digital Asset Compliance Portal" before a deadline. The letter instructs them to scan a QR code that takes them to a fraudulent website designed to look like IRS.gov. The site may ask for personal information, cryptocurrency wallet information, exchange account credentials, or other sensitive data that criminals can use to steal identities or digital assets.
IRS-CI noted that fraudsters increasingly use convincing websites, official-looking letters and urgent deadlines to trick victims. It warned taxpayers not to scan QR codes from unsolicited letters, emails or text messages, especially those claiming to be from a government agency.
Other tips include:
- Hang up if someone claims to be from a government agency and asks for payment or personal information. Contact the agency directly using information from its official website.
- Slow down and verify the situation; scammers create false urgency to push victims into quick decisions.
- Protect your personal and financial information, especially in response to unsolicited messages. Never share wallet recovery phrases or private keys.
- Consult a trusted family member, financial advisor, or attorney before sending money or making major financial decisions.
- Monitor financial accounts regularly and report suspicious activity immediately. Enable multifactor authentication on accounts.
- Be cautious of new online acquaintances and verify identities before engaging further.
- Report suspicious IRS-related communications immediately.
- If you or someone you know has been impacted by a fraud scheme, stop communicating with the fraudster; change the passwords for affected financial accounts; contact your financial institution or cryptocurrency exchange immediately if you shared credentials; preserve screenshots, emails and letters; and report information to IRS-CI at
www.IRS.gov/SubmitATip .
