Government Warns Black, Elderly To Beware Of Slavery Reparations Scams

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Slavery Reparations As Tax Scam

Scores of African Americans nationwide, particularly the elderly, have been duped out of money and sensitive personal information by con artists promising slavery reparations, the government recently said.

The issue of slavery reparations, which harkens back to the post-Civil war promise of 40 acres and a mule for freed slaves, is a hot topic today as politicians and academics fiercely debate over whether the U.S. Government owes descendants of slaves restitution. And criminals are using this polarizing issue to scam thousands of unsuspecting Blacks.

The Social Security Administration's Office of the Inspector General completed an investigation of flyers circulating nationwide that primarily target elderly. One flyer informed that the U.S. Government is refunding $5,000 to "anyone alive that was born up until the year 1992 due to the Slave Reparations Act." Another promise a lump-sum settlement or an increase in Social Security benefits.

However, the federal government warns that there is no such law as the Slave Reparations Act and no provision that allows for tax credits or refunds related to slavery reparations.

The flyers also required recipients to provide sensitive information such as name, address, Social Security number and date of birth in order to receive the funds.

"By falsely promising additional Social security payments, the anonymous mailings tricked seniors into parting with coveted personal information," said Social Security Administration Inspector General James G. Huse Jr. "Therefore, we are warning seniors to think twice before responding to any solicitations promising additional Social Security payments."

The Inspector General's office confirmed that more than 25,000 people across the country had been duped by these hoax flyers. Last fall, the IRS, which has received a growing number of slavery-reparations claims in the past few years, cautioned Blacks to beware of anyone offering to help them file for tax credits or refunds related to slavery reparations.

"It's despicable that some are stealing from innocent people by charging fees to prepare what they know to be baseless claims," said IRS Commissioner Charles O. Rossotti.

Even worse, con artists could use the victims' Social Security numbers and other personal information provided to open unauthorized charge accounts, authorities say.

The IRS says that if you hear about tax benefits that sound "too good to be true," check them out with a trusted tax professional or call the IRS toll-free help line (800-829-1040) before getting involved with claims that may be illegal. If you have questions about Social Security benefits, call the Social Security Administration at 800-722-1213. To report suspected tax fraud activity, call the IRS at 800-829-0433.