Time has run out of your income tax, experts warn that waiting until the last minute may cost you.
At the last minute, rushing through this year’s chore can put you in greater danger than just making expensive mistakes – it may also make you more likely to fall into tax season-related scams and other attempts to steal refunds and personal information.
This story is Tax 2025CNET for the best tax software, tax tips and everything else you need to submit your return and track your refund.
Ahead of the annual deadline on April 15, the FBI warned consumers that criminals are stealing taxpayer identity and filing fraudulent proceeds for refunds. It noted that its Internet Crime Complaint Center (IC3) has received more than 1,000 reports in the past year, a 26% increase from the same period last year.
While consumers have long had to worry about scammers and cybercriminals wanting capitalizations in the tax season, experts say their threats will only grow as they increasingly use the power of AI tools to increase the scale and complexity of their attacks.
“Many social engineering scams are becoming more real and more credible,” said Abhishek Karnik, head of McAfee threat research.
For example, a person can receive a call from someone who claims to be an IRS agent, which sounds like an American accent. But they are liars from another country, not actually English-speaking people.
With AI tools, crooks can turn voice and voice patterns more convincing, which will likely be a scam that is easily discovered into something more dangerous, Kanik said.
More and more people are obsessed with these scams. In the MCAFEE survey released Thursday, nearly a quarter of people conducted the survey, saying they or people they know lost the tax scam. Additionally, 87% of people surveyed said they were concerned about using AI when generating more (more realistic) tax scams and fraudulent content.
While most of the AI-generated scam messages that McAfee researchers see now appear in the form of recorded calls, it’s only a matter of time before it can be, and even more persuasive real-time audio and video deep hits have become the norm.
Meanwhile, Scammers also uses AI to enhance the generation of its scam text and emails. These may also attempt to impersonate IRS or pretend to be from one of the big tax software brands such as TurboTax or H&R Block.
But instead of sending victims to the company’s real website, the scammers brought them to fake counterfeiters who collected money or the most private personal data. Kanik said that if the victim is tricked into downloading fake tax preparation software, he may also encounter malware on his computer.
Truman Kain, a security researcher at cybersecurity firm Huntress, said a new tax scam, and what cybersecurity researchers saw this year was wrongly committed to a $1,400 stimulus payment.
The scam stems from the IRS’s announcement in December that the news will pay filers who have not been received during the pandemic. The nonprofit’s Identity Theft Resource Center, dedicated to helping victims of identity theft, also warned of the scams earlier this year.
Kane said the liar made the announcement. “They know if people are eligible to qualify, so they send fake IRS texts to steal personal information,” Kane said.
But the IRS has made most of the payments and are making these payments automatically, so those eligible people don’t need to submit any personal information to get their information. This doesn’t stop scammers from sending fake IRS text messages saying they do so.
When people click on a link in the scam text, they are usually taken to a fake IIRS website that requires them to hand over personal information, such as their social security number and bank information.
“That’s everything that a liar needs to commit mature identity theft,” Kane said.
Most importantly, scammers can also use information to file tax returns in your name and steal potential refunds.
How to Avoid Tax Scams
This may sound daunting, but experts say that if people take a moment to stop and think, most scams can be avoided.
Here are some tips for IRS and experts to stay alert.
Don’t panic: Taxes are stressful, so scammers will exploit your anxiety by adding a sense of urgency to their message. They may say your refund is dangerous, or you may face jail time if you do not hand over the information, pay or download its software immediately. Kanik said such demand is a big red flag.
Early file: Kane said the IRS accepted the first reward they received. The earlier you submit, the less time the cybercriminals have to use your identity to commit fraud. Don’t forget that if you need more time, you can submit your extension.
Beware of phishing and smishing: The IRS never sends unsolicited emails or texts. Skip links and attachments and go directly to the IRS or applicable state and city websites. Usually, do not reply to emails or texts sent from unknown sources. And never open attachments to people you don’t know, nor send them your personal information, such as your Social Security number or tax number.
Beware of weird payment methods: The cashier’s cheque, wire transfer, gift card or cryptocurrency requirements are all scams. Karnik said the IRS would not accept these.
Know who you are dealing with: If you apply for yourself online, make sure you are using a reputable service and make sure you are using the right website for the service. If you hire someone to do it for you, make sure they are the ones they say. Check vouchers and eligibility using the IRS directory of the federal tax return preparer.
Get pins: Taxpayers who can verify their identity through the IRS can get an Identity Protection Pin, a six-digit code that prevents cybercriminals from filing fraudulent tax returns with your Social Security number. Kane said it’s a particularly good idea if you’ve been a victim of fraud in the past.
Always use good passwords and 2FA: These are essential items for any account related to your tax returns and documents. Make sure you are using good antivirus software and that it is up to date with the operating system. When you use it, back up your tax information to a removable drive or encrypted cloud storage. Paper copies and drives should be stored securely.
Chopped everything: Tax documents that are no longer needed must be properly destroyed. Trash bin diving still happens. Don’t try to throw them in trash or recycle.
If necessary, take action: If you find someone filed a tax return in your name, please complete the paper return and include Form 14039 (Identity Theft Affidavit). Report fraud to local law enforcement and the Federal Trade Commission. Monitor your credit reports and account statements and contact three major credit bureaus to request a freeze so that no one can ask for a new credit in your name.
Fight against fraud: Tax-related scams can be reported to the IRS, the FBI, the Federal Trade Commission, the Better Commerce Bureau and the Identity Theft Resource Center.
