BBB warns residents about phone scams involving fake banks, back taxes

BBB is warning people to be cautious of phone scams involving fake banks and loan-processing companies, as well as separate calls claiming you owe money in back taxes or have an unpaid balance. Those calls often come from individuals posing as representatives from legitimate financial institutions or infer affiliation/impersonation of a government agency such as the Internal Revenue Service.

Additional information including personal information is required to finalize a loan, verify account details or review program eligibility.

In many cases reported locally to BBB Scam Tracker, consumers report receiving multiple calls per day from different numbers, with nearly identical voicemail messages. The callers often provide a callback number and an application ID or agent ID to appear more convincing. While the message sounds urgent, it is all designed to pressure you into responding quickly without verifying the source. Their overall goal is to convince people into sharing sensitive information like a Social Security number, bank account details or income information, which can then be used for identity theft or fraudulent financial activity.

Tips to avoid preapproved loan and back-tax phone scams include the following:

—Verify before responding. If you receive an unexpected call about a loan or banking issue, hang up and contact your financial institution directly using verified contact information from their website or official documents. Recognize that it is very rare for a government agency to contact you by phone. Contact the IRS directly for trustworthy information about your tax situation and to confirm the existence of any programs being offered.

—Do not overshare. Never provide your Social Security number, bank information or other sensitive data over the phone or online unless you initiated the contact.

—Be skeptical of urgency. Scammers rely on pressure tactics. Real banks, lenders and government agencies will not demand immediate action, payment in specific, nontraceable methods or threaten consequences.

—Avoid calling back unknown numbers. Returning a suspicious call can connect you directly to scammers or result in unexpected fees.

—Check for scam reports. Search for the phone number or company name online before engaging. Check BBB Scam Tracker for similar scam reports and report scams you encounter.