$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
EIN identity theft scam
Criminals use stolen business information to obtain a fraudulent Employer Identification Number or hijack an existing one to file fake tax returns and open fraudulent accounts.
“IRS scam”
↑ 193%Key indicators
Usually targetsSmall business owners
Often hitsSmall business owners
Common regionUnited States
Last updated2026-04-04
Estimated impact
$3.6K
median reported loss
Typical range$240 – $30K
Recovery rate~12%
Annual reports33,000
Scam breakdown
1
Scammers obtain business information from public filings, data breaches, or social engineering.
2
They apply for a new EIN or use the stolen EIN to file fraudulent business tax returns claiming refunds.
3
The fraudulent EIN is also used to open lines of credit or bank accounts in the business name.
What to do first
Monitor your business credit reports regularly for unauthorized accounts.
Related terms
business identity theftEIN fraudemployer ID number theftIRS and tax scamsWebsiteSurgingSmall business ownersSelf-employedSmall business ownersTech workers and developersCreators and online sellersUnited Statesbusiness identity theftEIN fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Michael, 45, a small business owners, encountered what appeared to be a legitimate irs and tax scams situation while using Website. Scammers obtain business information from public filings, data breaches, or social engineering.
Step 2
What happened next was calculated: They apply for a new EIN or use the stolen EIN to file fraudulent business tax returns claiming refunds.
Step 3
The pressure escalated quickly: The fraudulent EIN is also used to open lines of credit or bank accounts in the business name.
The outcome
Michael realized something was wrong when you receive irs notices about returns or tax liabilities you did not file. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Monitor your business credit reports regularly for unauthorized accounts. Michael's experience shows why you receive irs notices about returns or tax liabilities you did not file and a credit report shows business accounts or loans you did not open are the clearest early warning signs.
How to identify it
- You receive IRS notices about returns or tax liabilities you did not file
- A credit report shows business accounts or loans you did not open
- Your EIN application is rejected because the number is already in use
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Monitor your business credit reports regularly for unauthorized accounts.
- ✓Contact the IRS Business Identity Theft line if you receive notices for returns you did not file.
- ✓File IRS Form 14039-B (Business Identity Theft Affidavit) to report the fraud.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The IRS maintains a dedicated process for business identity theft and accepts Form 14039-B specifically for businesses that believe their EIN has been compromised.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Monitor your business credit reports regularly for unauthorized accounts.
- ✓Contact the IRS Business Identity Theft line if you receive notices for returns you did not file.
- ✓File IRS Form 14039-B (Business Identity Theft Affidavit) to report the fraud.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The IRS maintains a dedicated process for business identity theft and accepts Form 14039-B specifically for businesses that believe their EIN has been compromised.
FBI IC3 2024
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Small business owners, Self-employed
Geographic concentration
United States
Primary channel
Website — IRS and tax scams
Why this group is vulnerable
Small business owners are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The IRS maintains a dedicated process for business identity theft and accepts Form 14039-B specifically for businesses that believe their EIN has been compromised.
Source notes
- FBI IC3 2024
Frequently asked questions
Common questions about ein identity theft scam
How does the ein identity theft scam work?+
Scammers obtain business information from public filings, data breaches, or social engineering. They apply for a new EIN or use the stolen EIN to file fraudulent business tax returns claiming refunds. The fraudulent EIN is also used to open lines of credit or bank accounts in the business name.
What are the warning signs of ein identity theft scam?+
You receive IRS notices about returns or tax liabilities you did not file A credit report shows business accounts or loans you did not open Your EIN application is rejected because the number is already in use
What should I do if I encounter ein identity theft scam?+
Monitor your business credit reports regularly for unauthorized accounts. Contact the IRS Business Identity Theft line if you receive notices for returns you did not file. File IRS Form 14039-B (Business Identity Theft Affidavit) to report the fraud.
Who is most at risk for ein identity theft scam?+
This scam primarily targets Small business owners, Self-employed. It is most commonly reported in United States and typically appears on Website.
Is ein identity theft scam getting worse?+
EIN identity theft scam is currently surging — reports are increasing rapidly. It has been reported across US. Last updated 2026-04-04.
Related scams
Similar scams to watch out for
Government impersonation
↑ 121%Tax refund verification phishing scam
A fake refund or filing problem message pressures the victim to verify tax identity through a counterfeit government portal.
What to do first
Go directly to the tax authority website instead of using message links.
Targets
Tax filers
Seen in
U.S.
Smishing
↓ 16%Tax agency refund text link scam
A text says a refund or filing issue needs immediate identity confirmation through a mobile link.
What to do first
Use the tax authority's official website instead of the text.
Targets
Tax filers
Seen in
U.S.
Government impersonation
↑ 52%Census or survey data harvest scam
A fake government survey or census call collects identity, household, or banking data under the banner of compliance.
What to do first
Verify the survey through the agency website before participating.
Targets
Households
Seen in
Global
Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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