Beware of Employee Retention Credit Scammers - IRS Exposes the Risks

Employee Retention Credit Scammers

The Employee Retention Credit (ERC) has been a lifeline for many businesses during the challenging times of the pandemic. However, scammers are now targeting this valuable relief program, putting businesses at risk. In this blog post, we will explore the tactics used by ERC scammers and provide guidance on how to protect yourself.

Scammers and Their Tactics:

ERC scammers are adept at exploiting vulnerabilities and manipulating unsuspecting businesses. They may pose as IRS representatives or tax professionals, reaching out via email, phone calls, or even social media. They employ various tactics, such as claiming to expedite ERC claims or offering services to maximize credit benefits. Remember, the IRS does not initiate contact through email or social media, nor does it charge fees for processing ERC claims.

How to Spot ERC Scammers:

To protect yourself from ERC scammers, it's crucial to be vigilant and knowledgeable. Here are some red flags to watch out for:

  1. Unsolicited Contact: Be cautious of unsolicited emails, calls, or messages from individuals claiming to help with ERC claims.

  2. Requests for Payment: The IRS does not charge fees for processing ERC claims. If someone asks for payment or personal financial information, it's likely a scam.

  3. High-Pressure Tactics: Scammers often create a sense of urgency to push businesses into making hasty decisions. Take your time and verify the legitimacy of any communication.

  4. Poor Communication Skills: Scammers may use broken English or exhibit unprofessional behavior. Official IRS representatives communicate clearly and professionally.


Q1: Can scammers hack into my business's ERC claim?

A1: While scammers can't directly hack into your ERC claim, they can manipulate you into providing sensitive information or making fraudulent payments.

Q2: What should I do if I suspect an ERC scam?

A2: If you suspect an ERC scam, report it to the IRS immediately. You can contact the IRS through their official website or by calling their dedicated fraud hotline.

Q3: How can I stay updated on legitimate ERC information?

A3: Rely on trusted sources such as the official IRS website, reputable tax professionals, or government announcements to stay informed about the ERC and related updates.

Protecting your business from ERC scammers is essential for maintaining your financial well-being. Stay informed, be cautious of unsolicited communication, and remember that the IRS does not charge fees for ERC claims. By remaining vigilant, you can safeguard your business and avoid falling victim to these fraudulent schemes.

Remember, the IRS is committed to helping businesses navigate the Employee Retention Credit safely. Don't let scammers jeopardize your eligibility or financial security. Stay alert, report suspicious activity, and keep your business protected.

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