Scammers expected to target child tax credits, BBB warns

BBB warns of pyramid scheme that promises easy money via 'Blessing Loom'
Posted at 5:40 AM, Jun 28, 2021
and last updated 2021-06-28 05:40:39-04

BUFFALO, N.Y. (WKBW) — Child tax credits are coming soon and the Better Business Bureau is now warning scammers may target that money.

The IRS says it will begin sending out those tax credits, through the American Rescue Plan Act, to qualified recipients via direct deposit, paper checks or debit cards on July 15. People who are eligible will get up to half of the total tax credit through monthly payments this year, and the other half when they file their 2021 taxes.

But based on recent scam trends, the BBB is forecasting another surge in scammers trying to take advantage of you and your money.

They anticipate there will be an uptick in impostor scams, where the scammer pretends to be representing a government entity or will offer to "help" you get your tax credit more quickly.

The BBB says there are several signs of scams like these. Government agencies like the IRS or Social Security Administration will not call, text, DM, or email you, according to the BBB. The organization says you should not give your personal information, like social security number, bank account information or credit or debit card number to people who reach out to you, looking for this information.

The BBB has 10 steps to avoiding these scams, and a means to report one if you think you've fallen victim.

You can find links to those here: