New York Issues Warning on ‘Inflation Refund’ SMS Phishing Scam Stealing SSNs and Financial Data
New York is currently experiencing a surge in SMS phishing scams disguised as notifications from the so-called “Inflation Refund” program — a purported state initiative that allegedly compensates eligible taxpayers for the rising cost of goods due to inflation. Fraudsters are sending messages impersonating the New York State Department of Taxation and Finance, urging recipients to file a declaration to claim a monetary refund. In reality, their true objective is to steal personal and financial information.
Clicking on the phishing link leads victims to a counterfeit website, where they are prompted to “check their status” by entering their name, address, email, phone number, and other personal details. Such information enables the attackers to commit identity theft, steal funds, or even take out loans in the victim’s name.
On September 28, the office of Governor Kathy Hochul issued a warning about this scheme, noting that the fraudsters are not limited to SMS but also use email and physical letters to deceive residents. The administration urged New Yorkers to ignore all requests for payment information and to report suspected scams to regulatory authorities.
The Department of Taxation and Finance emphasized that it never contacts residents regarding compensation payments through SMS, phone calls, or email — legitimate funds are distributed automatically to those who meet the program’s criteria.
Authorities advise following basic cybersecurity practices: avoid clicking on links in unsolicited messages or emails, hang up on unexpected tax-related calls, never agree to meet in person to “transfer payments,” and verify payment status only through the department’s official website.
Anyone who has received such messages or fallen victim to these scams is urged to file a report with the New York State Department of Taxation and Finance or the IRS.
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