Fake IRS agents scamming people out of cash

LOS ANGELES (KABC) -- The Internal Revenue Service says scam phone calls from people posing as IRS agents and demanding money for back taxes is becoming more and more prevalent. Thousands of taxpayers have been taken for millions of dollars.

A few weeks ago, Terry Johnston of Moreno Valley got a voice mail message - a message that ultimately cost her over $7,000.

"This is Officer Steven Benson from the investigation department of the Internal Revenue Services. The purpose of this call is just to let you know that we have received a legal notice regarding a tax fraud in your name," the message stated.

After hearing the message, Johnston grew fearful. She picked up the phone only to hear the caller threaten to take control of her assets.

"Freezing my bank account, my 401K, I wasn't going to get my social security," she described. "A lien would be put on my house. They would arrest me."

At this point, Johnston thought she was the bad person for not paying her taxes.

"I was frightened because I felt like I'm robbing the bank; I'm doing something I shouldn't be doing, and somebody is walking me through this and telling me I have to do it," she said.

To pay her alleged debt, Johnston was told to first draw out $7,100.

Altura Credit Union CEO Mark Hawkins said tellers are trained to try and stop the scam before it happens.

"Our people are very alert to watching for the signals that people may be under duress, they may be frightened, those kinds of things," said Hawkins.

But in the case of Johnston, she was told if anyone asked her questions, tell them it's personal - and she did.

Her next step was to go to the store and buy several prepaid cards with the cash. After she gave the scammers the numbers on the back of the cards, the crooks said she still owed another $4,000.

With that, Johnston got suspicious and went to the police. They told her there was very little chance she'd ever get her money back because the criminals were likely in another country.

The Department of Consumer Affairs said that no financial institution, credit card company, nor the IRS will ever ask for your personal information or demand money over the phone or by email.

"Whenever anyone calls us, pressures us to wire the money right away, clearly we shouldn't do it. We need to take our time, think about it, call the agency directly, make sure that in fact, they're trying to contact us," advised Rigo Reyes with the Department of Consumer Affairs.

Johnston hopes her experience is a warning to others.