The Better Business Bureau launched its "Scam Tracker" earlier this year, and nearly a quarter of the over 10,000 scam reports processed by the BBB involved an imposter pretending to be with the Internal Revenue Service, or Canadian Revenue Agency.
BBB spokesperson Peggy Penders says in this kind of scam, someone claiming to be with the IRS contacts you and makes a threat saying you owe back taxes works.
She says this kind of scam works because the IRS is a name we all know.
Penders notes the IRS will never contact you by phone, they use the US Postal Services.
"We really need to pay attention to what we're doing so we don't fall victim. So always know who you are doing with, start with trust, and get comfortable with the idea of hanging up or not responding."
Penders says people should take the time to research the organization that contacted them to make sure they're legitimate.
She adds if people think they know of an illegal scheme or fraud, contact the Better Business Bureau's Scam Tracker, at bbb.org.