Tax season is officially underway, and while refunds are one of the biggest things on consumers’ minds, scams should also be up there. This time of year is perfect for scammers to steal money, information, and data, all of which can leave consumers vulnerable.
New research from McAfee found that nearly a quarter of Americans have either been involved in a tax scam or know someone who has. On top of that, more than half of all tax scam victims lose over $1,000. And as artificial intelligence (AI) gets stronger, so do scammers.
Abhishek Karnik, Head of Threat Research at McAfee, shared with ConsumerAffairs about the biggest red flags to look out for, what to do if you fall victim to a scam, and everything consumers should know to stay safe this tax season – and beyond.
What are the signs of a tax scam?
According to Karnik, urgency is one of the biggest indicators that consumers are being targeted by scammers.
“If a message demands quick action, use caution before interacting with it,” he said. “It’s best to avoid engaging with any unsolicited messages – do not click any links provided and go directly to the source for more information, whether that’s the IRS or your tax provider’s official website.
“Consumers should ignore any unexpected messages demanding payment from the IRS. The IRS will typically contact you first by mail and will not reach out via phone call, text, email, or social media about your taxes. Any messages claiming otherwise are likely scams.”
Additionally, the rise of AI has made scammers harder to detect. This means consumers need to be more vigilant when interacting with unknown emails, texts, calls, websites, etc.
“One of the most common methods scammers exploit is creating fake messages that mimic trusted sources, including the IRS and well-known tax service providers like TurboTax or H&R Block,” Karnik said.
“Scammers use a range of tools to carry out their schemes, and AI is becoming an increasingly common part of their toolkit. They use it to craft convincing emails, texts, and even voice messages that sound or read just like the real deal. According to our latest report, nearly half (48%) of Americans have received fraudulent IRS communications, while 33% have received scam messages pretending to be from well-known tax preparation companies.”
What to do if you’re involved in a tax scam
If you happen to find yourself involved in a tax scam, immediately report it to the IRS.
“If someone’s Social Security Number or Tax Number has been stolen, they should immediately report the incident to IdentityTheft.gov,” Karnik advised. “Additionally, there are many valuable resources consumers can turn to for support, such as the IRS’ identity theft victim assistance program – or the Taxpayer Advocate service, which helps taxpayers protect their rights.
“Consumers should take further steps to secure their information, such as changing passwords, using unique passwords for every account, enabling two-factor authentication, and monitoring financial accounts for suspicious activity. Victims can place a fraud alert on their credit reports and even consider a credit freeze, which restricts access to their credit and makes it difficult for identity thieves to open new accounts.”
Is this a threat beyond tax season?
The short answer to that question: yes. Karnik said that scammers’ efforts are heightened during tax season; however, in the weeks and months following tax season, many scammers try to take advantage of consumers looking for refunds or falsely accuse them of owing money to the IRS.
“Consumers should remain vigilant and watch for unusual or unsolicited messages, even if they appear to come from a trusted source,” he said. “Be especially cautious after tax filing season, as scammers may send fake refund notices or PDFs as part of phishing schemes.
“Criminals often reuse personal data gathered during tax scams for future schemes, such as phishing attacks or financial fraud. Staying cautious year-round is essential to avoid falling victim to evolving tactics, including fake IRS messages, refund scams, and impersonations of trusted tax services.”
