Financial Crime World

Virgin Islands Warns Taxpayers of COVID-19 Scams

Staying Vigilant in Times of Crisis

St. Thomas, USVI - As the COVID-19 economic impact payments are set to arrive in May, federal law enforcement officials and government agencies are warning Virgin Islanders to be cautious of fraudulent schemes.

Fraudsters Will Be Held Accountable

According to U.S. Attorney Gretchen C.F. Shappert, “Fraudsters who prey on vulnerable victims will be held accountable for their criminal conduct.” This announcement comes ahead of the expected arrival of COVID-19 economic impact payments, which will be mailed to taxpayers via check at the address listed on their 2018 individual income tax returns.

IRS-CI Warns of Criminal Activity

Special Agent in Charge Michael J. De Palma of the Internal Revenue Service - Criminal Investigation (IRS-CI) cautioned that even during times of crisis, criminals continue to engage in heinous acts to further enrich themselves, demonstrating no sympathy by exploiting victims during their most difficult circumstances.

VI Bureau of Internal Revenue Reminds Taxpayers

Director Joel A. Lee of the VI Bureau of Internal Revenue emphasized that bona fide residents of the Virgin Islands should file and pay taxes to the Bureau, as the Economic Impact Payments will be coming directly from the Department of Finance. He also reminded those who fraudulently filed IRS returns or otherwise received an EIP from IRS must repay the IRS or face possible criminal prosecution.

Attorney General Warns of COVID-19 Fraud

V.I. Attorney General Denise N. George emphasized that there is a wave of COVID-19 fraud focusing on consumer vulnerability, and her office will vigorously prosecute violations of anti-fraud laws. However, she urged Virgin Islanders to remain vigilant by taking extra precautions to avoid becoming victims.

Warning Signs of Scams

To warn the public about potential scams, officials offered the following guidance:

  • The Bureau will mail checks to the last known address on your 2018 tax return.
  • Neither the Bureau nor IRS will call and ask you to verify payment details. Do not give out personal information, even if someone claims it’s necessary to get your check.
  • If you receive a call relating to your tax return, hang up the phone. Do not engage with possible scammers or thieves.
  • Delete any texts or emails claiming that you can get your money faster by sending personal information or clicking on links.

Reporting Suspicious Activity

The National Center for Disaster Fraud Hotline is available at 866-720-5721 or via email at disaster@leo.gov for reporting suspicious activity.

Staying Connected and Informing Others

In a statement, Shappert emphasized the importance of staying connected and informing law enforcement, family, and friends of any suspicious activity that may involve fraud. De Palma added that IRS-CI will continue to pursue criminals who violate the law and attack the community, working alongside the Department of Justice and law enforcement counterparts to identify scams and bring them to justice.

Additional Resources

For more information on COVID-19-related resources, visit the IRS website at www.irs.gov/coronavirus or the DOJ Website: http://www.justice.gov/coronavirus.