Tax Season 2025: Protecting Yourself from Scams and Fraud
As tax season nears, so does the risk of scammers attempting to steal your money and personal information. With the IRS facing uncertainty, vigilance is more important than ever.
Why Tax Season Attracts Scams
Tax season presents a prime opportunity for fraudsters. With significant amounts of money and sensitive data in play, criminals use various tactics to deceive taxpayers. If you’re among the nearly two-thirds of Americans concerned about tax season, understanding potential scams and protective measures is crucial.
Common Tactics of Tax Scammers
Fraudsters often use several strategies to steal your identity or money:
- Phishing: Scammers send look-alike emails, texts, or make phone calls pretending to be the IRS.
- Unsolicited Offers: Promises of unusually large refunds may lure you in.
- Sense of Urgency: Scammers create fear or uncertainty, pushing you to act quickly or click on malicious links.
- Isolation Tactics: Preventing you from consulting trusted sources like accountants or family members.
- Promises of Big Payouts: Some “ghost preparers” charge for tax preparation, promising maximum refunds but never signing the return. They file fraudulent returns with inflated income or deductions and redirect your refund.
What’s Different This Year?
This year, scammers may exploit uncertainty around the IRS cuts. According to Dave Chronister, a cybersecurity expert, uncertainty is a key emotion that social engineers capitalize on. Scammers might impersonate the IRS and falsely promise “new” ways of filing, using news of the workforce reductions to their advantage.
Additionally, IRS workforce cuts may slow the agency’s ability to respond to scams and take down malicious websites, potentially leading to longer wait times for victims of fraudulent returns. Chris Pierson of BlackCloak notes the potential for reduced oversight, creating a riskier environment for consumers.
Steps to Protect Yourself
Several steps can help protect your information and money:
- File Early: Filing your taxes as soon as possible can help secure your information before scammers act.
- Use Trusted Methods: Stick to tax preparation software or accountants you already rely on.
- Identity Protection PIN: Get an Identity Protection PIN (IP PIN) from the IRS to prevent others from filing in your name. This is particularly important for those who have previously experienced tax fraud. Each year a new PIN is issued.
- Freeze Your Credit: Freeze your credit with the three major credit bureaus (Equifax, Experian, and TransUnion). This prevents new credit accounts from being opened in your name.
- Be Wary of Contact from the IRS: They will not randomly contact you by email, text, or phone. If you have any concerns, go directly to the official IRS website.
- Pause and Evaluate: Before you take any action, breathe and ask yourself if something seems suspicious or too good to be true.
Staying Safe
Experts emphasize that anyone can be susceptible to scams. Vigilance and critical thinking are your best defenses.
