BBB warns scammers demanding students pay fake 'federal student tax'

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Tuesday, August 23, 2016

CHICAGO (WLS) -- The Better Business Bureau has issued an alert about scammers pretending to be with the IRS calling students demanding that they pay a fake "federal student tax."

The BBB said that the callers usually have some piece of information, such as the name of the student's school, that makes them appear legitimate. They then demand to be wired money to pay the fake tax.

If the student or parent hangs up on the caller, they sometimes call back with spoofed caller-ID information showing that 911 or the U.S. government is calling.

The BBB said that the IRS will never ask for immediate payment over the phone and will not call about taxes owed without sending a mailed bill first. The IRS will also not threaten to immediately bring in law enforcement or ask for credit/debit card numbers over the phone.

If confronted by a scammer, the BBB said to hang up immediately and file a report to the Federal Trade Commission by visiting their website, and reporting it to the BBB Scam Tracker.