Slavery reparations scam facts for kids

The "Slave Reparations Act" is the name of a trick, or tax fraud, that tries to get people's money or information. This scam uses the idea of reparations for slavery, which means making up for the harm caused by slavery. The scam tells people they can get $5,000 or more money from Social Security if they are African-American and were born in the United States between 1911 and 1926.

The scam claims that African-Americans are owed a $5,000 tax credit because of slavery. Here's an example of how they might try to trick someone:

The main goal of this scam is to get people to send their personal details to the scammer. Once the scammer has this information, they can use it to pretend to be the victim. This is called identity theft.

What is the "Slave Reparations Act" Scam?

The "Slave Reparations Act" scam is a type of trick where people pretend the government is giving money to African-Americans as payment for slavery. They promise a large sum of money, like $5,000, or increased Social Security payments. However, this is not true. The government does not have such a program.

How the Scam Works

Scammers often reach out through mail, emails, or even phone calls. They create official-looking documents or messages to make their claims seem real. They might say that a special law was passed that allows these payments.

What Information Do Scammers Ask For?

To get the fake money, scammers ask for very important personal details. This includes your name, address, phone number, date of birth, and especially your Social Security number. Giving out your Social Security number to someone you don't trust is very risky. Scammers can use this information to open credit cards in your name, file fake tax returns, or even steal your identity completely.

The Real Story Behind "40 Acres and a Mule"

Another part of this scam sometimes mentions $43,209. This amount is supposedly the value of "40 acres and a mule." This phrase comes from a real historical event, but the scam twists it. The scam claims that a bill for this was passed by Congress in 1866 but was stopped by President Andrew Johnson. This is not true; no such bill was ever introduced in Congress in 1866.

General Sherman's Order

The idea of "40 acres and a mule" comes from a real order given by Union General William Tecumseh Sherman during the American Civil War. This order, called Special Field Order No. 15, was issued in 1865. It set aside land along the coast from Charleston, South Carolina to Jacksonville, Florida for the use of formerly enslaved people. Each family was supposed to receive about 40 acres of this land. It's not clear if President Abraham Lincoln or the War Department officially approved this action.

The Freedmen's Bureau and Land

After the Civil War, an organization called the Freedmen's Bureau was created to help formerly enslaved people. In 1865, this bureau controlled a lot of land that had been taken from former Confederates. Many officials wanted to give this land to black families. However, President Johnson began to give property back to its former owners. This made it hard for the Freedmen's Bureau to give land to freed slaves.

The Southern Homestead Act

In 1866, the Southern Homestead Act of 1866 was passed. This law did make some public land available to formerly enslaved people in certain states. However, much of this land was not good for farming, like swampy areas, or it was far from towns and roads. Also, lumber companies often claimed the best parts of this land.

What Happened with the IRS?

The Internal Revenue Service (IRS) is the U.S. government agency that collects taxes. In April 2002, the IRS received more than 100,000 attempts from people trying to claim these fake reparation tax credits. Sadly, the IRS paid out over $30 million in these incorrect refunds. The IRS continued to see these false tax credit scams and claims in 2003 and 2004. They warn people to be very careful about anyone offering such "reparation" payments.

See also

• Affinity fraud