You know it’s tax season when scammers are working harder than your accountant. This year, they’ve got an AI-powered upgrade, and they’re using it to pull off some of the most convincing scams we’ve ever seen. Let’s break it down so you don’t end up paying the wrong people this tax season.
Cybercriminals are using artificial intelligence to create highly convincing emails, text messages, and even deepfake voice calls. They’re impersonating IRS agents and tax professionals so convincingly that even cautious taxpayers are falling for their schemes. A recent study by LifeLock found that 56% of individuals have already encountered AI-powered tax scams.
How It Works: The Anatomy of an AI-Powered Tax Scam
- Impersonation Scams: AI-generated voice technology allows fraudsters to convincingly mimic IRS agents, tax professionals, or even company executives. They claim there’s an issue with your return, a payment due, or a tax relief offer.
- W-2 Phishing Attacks: AI-enhanced phishing emails and chatbot-assisted conversations target HR and finance teams, tricking them into handing over W-2 forms. Once obtained, scammers can file fake tax returns and steal refunds.
- Disaster Relief Tax Fraud: Taking advantage of tax extensions granted to disaster-affected individuals, scammers pose as IRS officials offering assistance while stealing personal and financial data.
- Offer in Compromise (OIC) Scams: Fraudsters pretend to be tax professionals offering to settle your IRS debt through the legitimate Offer in Compromise program, but they charge hefty fees and disappear before delivering any service.
Who’s Being Targeted?
- Individuals filing taxes, especially those expecting refunds
- HR and finance professionals handling sensitive tax documents
- Disaster victims applying for tax relief extensions
- People in financial distress seeking debt relief solutions
Why You Should Care
The IRS Criminal Investigation unit uncovered over $9.1 billion in tax fraud and financial crimes in 2024 alone, nearly doubling from $5.7 billion in 2022. Falling victim to a scam could mean losing your refund, having your identity stolen, or even facing fraudulent tax filings in your name. In fact, 81% of tax scam victims reported financial losses.
How to Protect Yourself This Tax Season
- Use Reputable Tax Preparation Services: Ensure your tax preparer has a valid Preparer Tax Identification Number (PTIN).
- Verify Communications: The IRS will never contact you via email, text, or social media. If you get a suspicious message, call the IRS or your tax preparer directly.
- Establish a Safe Word: If you work with a tax professional, agree on a verification code to confirm their identity.
- Be Cautious with Personal Information: Never share sensitive data unless you’re certain of the recipient’s identity.
- Monitor Financial Accounts: Regularly check your bank and credit accounts for unauthorized transactions.
- Report Suspicious Activity: If you suspect a scam, report it to the IRS and the Federal Trade Commission (FTC) immediately.
Quick Tips & Updates
Quick Tip #1: Did you know? Scammers often spoof IRS phone numbers to make their calls look official. If you get a call claiming to be from the IRS, hang up and call them back using the official number from their website.
Quick Tip #2: Pro Tip: AI scams often create a sense of urgency. If someone is pressuring you to act immediately regarding your taxes, it’s likely a scam.
Stay safe, stay informed, and make sure your refund goes to you, not a scammer!
Definitions of Keywords
- AI-Generated Voice Scams: Fraudulent schemes where artificial intelligence is used to mimic real human voices, making scam calls sound highly convincing.
- Phishing Scams: A type of cyberattack where fraudsters impersonate trusted entities to trick people into revealing sensitive information, such as login credentials or financial data.
- W-2 Phishing Scams: A specific type of phishing scam targeting HR and finance departments to steal employee tax documents, which can be used for identity theft or filing fraudulent tax returns.
- Disaster Relief Fund Tax Scams: Fraud schemes that exploit tax extensions and relief efforts for disaster-affected individuals by impersonating officials to steal sensitive data or money.
- Offer in Compromise (OIC) Scams: Fraudulent offers of tax debt relief that mimic the IRS’s legitimate Offer in Compromise program, often demanding high upfront fees for nonexistent services.
To read more, kindly find source article here