How to Avoid AI Scams This Tax Season

As we head into the final weeks of tax season and the pressure mounts to file your taxes by the April 15 deadline, experts recommend being on the look-out for AI-driven scams that can put your personal and financial information at risk.

According to security professionals at identity-theft protection provider LifeLock, taxpayers are increasingly targeted with plausible, highly convincing emails, texts and calls, including one scam where realistic AI-generated voices impersonate Internal Revenue Service (IRS) agents or tax professionals. LifeLock reports that as of earlier this month, 56% of individuals had already encountered an AI-powered voice tax scam.

The stats on tax scams have been getting progressively worse. According to LifeLock, in 2024, the IRS Criminal Investigation unit uncovered over $9.1 billion in tax fraud and financial crimes, nearly doubling from $5.7 billion in 2022. With 81% of people reporting being financially impacted after falling victim to a tax-related scam, these fraudulent schemes continue to pose serious risks. In addition to tax scams commonly seen in past years, LifeLock recommends that taxpayers look out for the following scams 2025:

W-2 phishing scams. Scammers are using AI-generated emails, voice deepfakes and even chatbot-assisted conversations to impersonate senior executives. By using AI to tailor their messages with company-specific details, scammers are able to create convincing messages in order to trick people into handing over sensitive tax documents like W-2s. Fraudsters can file a tax return using a stolen W-2 and steal the refund or take sensitive information on the W-2, such as a Social Security Number, to further steal someone's identity.

Disaster relief-fund tax scams. Fraudsters exploit IRS tax extensions for disaster-affected individuals, impersonating officials to steal sensitive data or payments.

'Offer in Compromise' (OIC) scams: While the IRS does offer a legitimate program called Offer in Compromise to help taxpayers settle their debts, scammers exploit this by making false promises of debt relief. With the help of AI, fraudsters now deploy large-scale robocalls, personalized email campaigns and even deepfake videos of supposed "tax professionals" endorsing their services. These scams prey on vulnerable people, convincing them to pay high upfront fees for services that never materialize.

According to LifeLock, you can help defend yourself against tax scams with the following best practices:

Use reputable tax preparation services. Ensure your tax preparer has a valid Preparer Tax Identification Number (PTIN) and is authorized to file returns.

Verify communications. The IRS will never reach out via email, text or social media to request personal or financial information, but scammers will. In fact, 59% of tax-related scam victims were contacted through email, 50% through text and 47% through social media. If you think the IRS or your tax preparer is trying to reach you, call them directly instead of responding to the message. Better yet, establish a safe word to use with your tax preparer to help make sure it's really them when they reach out to you.

Be cautious with personal information. Avoid sharing sensitive data over the phone or online unless you are certain of the recipient's identity.

Monitor financial accounts. Regularly check bank and credit accounts for unauthorized transactions.

Report suspicious activity. If you suspect a tax-related scam, report it to the IRS and the Federal Trade Commission (FTC) promptly.

Strengthen your defenses against fraud. Services like LifeLock can help you monitor and protect against identity theft, particularly during tax season.

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