WITHERS BROADCASTING, IL — Local financial institutions are warning the public the Child Tax Credit, a part of the American Rescue Plan Act of 2021 that took effect July 15, is already drawing the attention of scammers. The newly expanded Child Tax Credit (CTC) provides monthly payments of up to $300 per child for approximately 40 million households across the country.

There are several variations of the Child Tax Credit scam, each ultimately designed to trick parents and guardians out of their rightful CTC funds. In one variation of the scam, victims receive phone calls, emails or social media messages appearing to be from the IRS and asking them to authenticate their personal details or share sensitive information in order to receive their CTC funds. In lieu of pretending to represent the IRS, the scammer may also claim to be in the position of “helping” the victim receive their funds.

Unfortunately, in either scenario, if the victim follows the instructions of the contact, they will be playing right into the hands of a scammer. In another variation of the scam, victims land on a spoofed government website where they are prompted to input their personal information. This scam is especially common, as the IRS has announced that it will be launching two web-based portals for families who’d like to update their information for the CTC.

While the two separate sites will make the application process smoother for the IRS, they also open the door for more bogus sites to spring up and snag unsuspecting victims in their trap. As always, knowledge is your best protection against potential scams. You should know the IRS does not make unsolicited calls or emails. All official communications from the IRS are sent via standard USPS mail. The IRS will never call, email, text, or DM you asking you to share sensitive information.

Also, you do not need to take any action or share personal information to receive the Child Tax Credit. If you’ve filed taxes in 2020, or even in 2019, and you’re eligible to receive the CTC funds, they will arrive via paper check, debit card or direct deposit without any action on your part.

Finally, only the IRS will be issuing the Child Tax Credits. Anyone else claiming to “help” you receive the payments is a scammer.