Scam artists pretending to be IRS officials then demanding payments are telephone scams in which people are threatened with arrest or legal action if they don't pay, notes Consumer Reports. Another telephone scam occurs when callers offer fake grants in return for processing fees.
Scammers posing as IRS officials call people and threaten them in order to gain false payments or to gather personal information such as dates of birth and Social Security numbers, states Consumer Reports. They then use this information to steal people's identities. Other scam artists call to offer grants that do not exist for things such as education, unpaid bills or home repairs. They then ask consumers for processing fees or checking account information.