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IRS warns consumers about identity theft

09:37 AM MDT on Friday, July 11, 2008

Associated Press

WASHINGTON -- The IRS is warning about a rash of identity theft scams.

The most common is said to involve tax refunds and the economic stimulus payments.

The IRS says people are getting e-mails saying they must supply personal information to get their money.

Another scam says the IRS is updating its files and people who don't respond risk more taxes. Those who comply will supposedly get nominal tax refunds.

Even entire companies are being targeted. The IRS says e-mails are asking companies to download an IRS report on the firm. The report includes software that can hijack the company's hard drive, giving the scammer remote access.

The IRS says almost 700 attempted incidents of identity theft were reported in May and June, and some 1,600 so far this year.