The report cites the case of Larry, a Pennsylvania retiree in his 70s who received a pop-up on his computer screen while trying to get into his retirement account. A scammer impersonating a Social Security Administration official tricked him into withdrawing his retirement funds and buying cryptocurrency. He had $765,000 stolen and owed the IRS more than $220,000, “which he did not have,” according to the report. 

The taxes came due in his case because the IRS taxes distributions from pretax retirement accounts, even though Larry never got to spend the money because it was in the hands of the scammers. He eventually had to tap what was left of his savings and borrow from his brother to cover the tax bill.