IRS Warns Americans After Fake 'October Stimulus Checks' Go Viral on Social Media

Millions of Americans have been swept up by viral posts falsely claiming the IRS is dropping fresh 'October stimulus' direct deposits worth between $1,400 (£1,048.35) and $2,000 (£1,497.64).

The rumor exploded across TikTok, Facebook and X, but there is no new federal stimulus program.

The IRS has repeatedly warned that scammers are hijacking these claims to phish for bank details and personal data, urging people to ignore unsolicited texts, emails or social DMs about 'instant deposits' or 'stimulus reactivation.'

How the Fake Stimulus Claims Began

The IRS direct deposit stimulus rumour began circulating in late September, as online users shared posts referencing an alleged fourth round of stimulus checks. Many of these posts reused images and wording from the 2021 Economic Impact Payments, creating an illusion of legitimacy.

Some viral videos even claimed that 'deposits will arrive on 15 October', while others urged viewers to check their bank accounts immediately.

According to Hindustan Times, social media speculation about new stimulus checks has been discredited, with some posts citing misleading or unverifiable sources.

The false promises have generated thousands of comments from Americans asking when their payments will arrive, demonstrating how rapidly misinformation can fuel public confusion.

IRS Denies New Stimulus Payments

In a statement released earlier this month, the Internal Revenue Service made clear that there are no new stimulus or direct deposit payments authorised for 2025. The agency explained that any new stimulus check programme would require approval from Congress before being implemented.

According to Southern Digest, the IRS and Treasury have explicitly confirmed that no 'fourth stimulus check' has been approved or announced.

Officials confirmed that the only ongoing payments relate to the 2021 Recovery Rebate Credit, which covers taxpayers who missed earlier pandemic relief. These payments, they said, are being automatically distributed to eligible individuals using existing IRS banking information.

The agency urged the public to verify any updates through its official website, IRS.gov, and warned against responding to unsolicited text messages or emails about 'stimulus eligibility'.

Real IRS Policy Change Fuels Misunderstanding

Part of the confusion stems from a genuine policy update. The IRS recently announced plans to phase out paper refund cheques from late 2025, moving almost entirely to electronic direct deposit.

The initiative, part of a broader modernisation drive, aims to streamline refund distribution and reduce processing costs.

However, this change has been widely misinterpreted online as a sign of a new IRS direct deposit stimulus rollout.

Advocacy organisations, including the Taxpayer Advocate Service, have raised concerns that the digital shift may disadvantage millions of unbanked or low-income Americans who rely on paper payments.

The overlap of real policy change and online speculation has created ideal conditions for scammers to thrive.

Phishing Scams Target Desperate Taxpayers

The IRS has issued multiple scam alerts warning that fake stimulus check offers are circulating through phishing emails, texts, and social media messages.

Fraudsters often claim to offer 'instant deposit verification' or 'stimulus reactivation', tricking victims into sharing bank account details.

Cybersecurity experts report an increase in fake websites mimicking the IRS's official payment portal, complete with cloned logos and forms. Victims are sometimes asked to pay small 'processing fees' to access the supposed funds.

Officials advise Americans to ignore any messages promising immediate deposits and to verify information through IRS.gov or trusted news sources.

Economic Strain Keeps Hope Alive

The widespread belief in a new stimulus check reflects ongoing financial strain across the United States. High inflation, stagnant wages, and growing household debt have left many Americans eager for renewed federal support.

Lawmakers such as Senator Josh Hawley have proposed measures like the American Worker Rebate Act of 2025, which could provide payments of up to $2,400 (£1,797.17), but no legislation has yet passed.

Experts say that until the economy stabilises, misinformation about IRS direct deposit stimulus payments is likely to continue spreading, feeding both false hope and digital fraud.