As tax season gets underway, the Federal Trade Commission (FTC) is alerting taxpayers to new and evolving identity theft scams. These schemes, part of an ongoing Identity Theft Awareness Week education effort, are increasingly using text messages and emails to target victims.
According to Kelle Slaughter, a Senior Investigator with the FTC office in Dallas, scammers are deviating from traditional phone call methods. They’re now using text messages and emails to steal personal information. “These text messages include statements like, ‘How to get your tax refund’ or ‘Here’s information about a tax rebate,’” Slaughter explained. “They lead to fake IRS websites where scammers capture your login details, or worse, install malware on your devices.”
The FTC reported over a million victim reports last year, with combined losses exceeding $10 billion. An NBC 5 team member received a fraudulent text message pretending to be from the Internal Revenue Service that offered bonus money and directed the recipient to a malicious web link. Slaughter confirmed that these sites are designed to steal personal data – which can include answers to security questions used on other platforms – when users enter login credentials.
The FTC advises taxpayers to avoid clicking on links in unsolicited communications. Instead, verify information by visiting IRS.gov directly.
The FTC also emphasizes that it will never threaten individuals, demand money transfers to protect it, or instruct people to withdraw cash or buy gold. The official FTC Consumer Advice site provides guidance on identifying and reporting scams.
To safeguard personal and financial information, Slaughter recommends several steps: freeze your credit with Experian, Equifax, or TransUnion; utilize strong passwords and multi-factor authentication; and be wary of unsolicited calls, texts, and emails. If you suspect the IRS is contacting you, call the agency directly using a verified number; the IRS will never request sensitive information like your Social Security number over the phone.
Filing taxes early can also reduce the risk of tax-related identity theft. Taxpayers can also use an IRS Identity Protection PIN to verify their identity during filing.
Identity theft remains a top concern for the FTC. In its 2023 Data Book, the FTC reported that impersonation scams and identity theft were the most frequent consumer complaints nationwide. Scammers are also targeting children; Slaughter urges parents to consider freezing their children’s credit due to the risk of compromised Social Security numbers. “By the time a child turns 18, they could already have terrible credit due to fraud,” she warned. “Unfortunately, we’re living in a day and age where we’ve experienced data breaches in schools. And a child’s Social Security number may be exposed and sold to other scammers.”
If you have been targeted by a tax-related scam, the FTC recommends reporting it immediately at IdentityTheft.gov. “When people report identity theft to the FTC, we share those reports with other law enforcement agencies that have the authority to investigate and take action,” Slaughter said. “Law enforcement is also analyzing those reports to determine how to shut down the scammers. It helps us to develop our casework.”
For more information on how to protect yourself this tax season, visit FTC.gov or IRS.gov.
