During tax season, there is a significant amount of information and money at stake, which makes it an opportune time for scams to occur. Throughout the year, fraudsters employ various common tactics to steal identities, money, or other sensitive information. As individuals prepare their annual tax returns, due on April 15th, experts emphasize the importance of heightened vigilance.
This year, scammers may particularly exploit the uncertainty resulting from recent workforce cuts at the U.S. Internal Revenue Service (IRS), which have impacted thousands of jobs. The potential for additional widespread reductions raises concerns about the IRS’s capacity to respond to scams reported by consumers.
Taxpayers are advised to be aware of tax scams and measures to ensure safety. Tax scammers may reach individuals through various channels, including emails, texts, or phone calls impersonating the IRS, and unsolicited social media offers promising unusually high refunds. Common red flags include a sense of urgency, isolation tactics or threats, promises of significant financial gains, and suspicious website links. Cybersecurity experts highlight that scammers often prey on emotion, attempting to evoke fear or uncertainty.
The IRS advises that it will never initiate contact via email, text, or social media with requests for personal information. Consumers are urged to use trusted, accredited tax professionals if assistance is needed in preparing tax returns. Victims of scams are encouraged to report them, and further information is available on the IRS’s official website.
This year, experts caution that cybercriminals, also known as “social engineers,” might exploit the uncertainty surrounding IRS cuts. According to Dave Chronister, an ethical hacker and CEO of Parameter Security, scammers may use news of these cuts to impersonate the IRS and falsely promise taxpayers new filing methods. Similar tactics emerged during the height of the COVID-19 pandemic, with scammers making false claims about additional stimulus checks.
The IRS workforce cuts might slow the agency’s ability to respond to scams, leading to delayed removal of malicious websites or predatory social media campaigns and prolonged waits for victims of fraudulent returns. Chris Pierson, CEO of cybersecurity firm BlackCloak, warns of potentially reduced oversight, creating a riskier environment for consumers.
Scams are becoming more sophisticated, thanks to the rising use of generative artificial intelligence, enabling scammers to create hyper-realistic phishing messages and target more people at once through automation. Pierson also highlights the fallout from recent high-profile data breaches, such as the National Public Data breach, which leaked a significant amount of sensitive information. This could lead to more fraudulent filings or “confidence scams,” where cybercriminals use known information to gain trust and extract more data.
To protect their information and finances, individuals are encouraged to file taxes early, using familiar methods such as TurboTax or a known accountant. Chronister also recommends keeping information secure by password-protecting past filings and using a VPN on public Wi-Fi. The IRS suggests setting up an identity protection PIN and considers freezing credit as an additional defense against identity theft and fraud.
The IRS emphasizes that it will not contact individuals randomly by email, text, or phone. When in doubt, people should visit the official IRS website for direct assistance.
Avoiding scams often involves pausing before responding to any offers. Chronister advises taking a moment to assess whether something seems too good to be true and trusting one’s instincts. He stresses that social engineering relies on emotion rather than intelligence and that anyone can fall victim to such scams. Staying vigilant and relying on gut feelings can help individuals navigate these challenges. This information was initially published on Fortune.com.
