Tax Scams Grow Sneakier: 10 Ways to Safeguard Yourself Before It's Too Late

It's that time of year again—tax season. While you're busy gathering your W-2s and receipts, it's crucial to stay vigilant against the wave of tax-related scams that seem to surge right alongside the tax deadlines. A recent report from McAfee, released today, sheds light on the prevalent tax scams and provides valuable tips on how to safeguard yourself.

Also: 5 ways AI can help you do your taxes - and 10 tax tasks you shouldn't trust it with

McAfee's 2025 tax season survey reveals a startling fact: nearly half (48%) of respondents, or someone they know, have been contacted by someone pretending to be from the IRS or a state tax agency. These scammers aren't shy about their methods; they use everything from social media posts to emails, text messages, and phone calls to reach their victims.

Young adults aged 18 to 24 are the most vulnerable, with 40% reporting successful scams within their circle. However, it's the older adults aged 65 to 74 who face the most significant financial hit. Among those scammed, 40% reported losses between $751 and $1,000. Meanwhile, the 45 to 54 age group experienced the highest losses, with 10% losing over $10,000.

Cybercriminals are getting smarter, too, using advanced techniques like deepfake audios to mimic IRS agents and AI-generated phishing emails that look eerily similar to legitimate tax preparation service messages.

Also: What is vishing? Voice phishing is surging - expert tips on how to spot it and stop it

Over half of those surveyed believe these tax-related scam attempts are becoming more realistic, with many expressing concern that AI is making detection even harder.

How Tax Scams Work

McAfee's report details a typical tax scam scenario. You might receive a text or email that urgently claims your tax refund was rejected or that you owe back taxes. These messages often look authentic, complete with a link to click or a number to call. Once you engage, the scammer may request your Social Security number, bank account details, or credit card information under the guise of helping you. Falling for this puts your money and identity at risk.

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Based on the survey, scammers employ a variety of familiar tactics:

• Fake IRS messages - Almost half of those polled by McAfee have received messages from someone posing as an IRS official.
• Impersonating tax services - One-third of respondents reported being targeted by scammers pretending to be from TurboTax, H&R Block, or another tax provider.
• Baiting victims with fake refunds - Over a third of those surveyed received suspicious messages promising tax refunds with malicious links.
• Cryptocurrency scams - Men are three times more likely than women to fall for phony cryptocurrency tax payment schemes, according to the survey.

How to Protect Yourself from Tax Scams

To shield yourself from these tax-related scams, McAfee offers the following 10 tips:

1. File Early Before Cybercriminals Swoop In

The earlier you file your taxes, the less time scammers have to file fraudulent returns using your identity.

2. Monitor Your Credit Reports

Regularly check your credit reports for any unusual activity, such as unauthorized accounts or significant changes in your credit score. Consider using security software and services that monitor your personal details on the dark web and alert you to suspicious activities.

3. Watch Out for Phishing Attacks

Phishing is a common tactic in tax scams. Be cautious of emails or texts asking for personal or financial information. Always verify the sender directly. Remember, the IRS will never contact you via email, text, or social media to request personal information.

4. Beware of Spoofed Websites

Scammers often create fake tax preparation websites that mimic legitimate ones. Type the address of your tax prep site directly into your browser rather than clicking on links from emails or ads. If unsure, research the domain before entering any sensitive information.

5. Defend Yourself from Scam Messages

Stay alert for text messages that urge you to click a link for a refund or payment. A reliable text scam detector can help block access to suspicious or malicious sites.

Also: Why rebooting your phone daily is your best defense against zero-click attacks

6. Remove Any Personal Data Online

Scammers often harvest phone numbers and email addresses from data broker and people-finder sites. Use a data deletion service to remove your personal information from these sites.

Also: How to delete your personal info from Google Search - quickly and easily

7. Look Into Identity Theft Protection

An identity theft protection service offers personal and financial monitoring and can assist if your identity is compromised.

8. Ignore Messages Asking for Urgent Payment

Any message claiming to be from the IRS seeking payment is a scam. The IRS does not contact individuals via text, email, or social media to request payments.

9. Head Directly to a Reliable Source

For tax-related questions or concerns, visit the IRS website or your state tax agency directly. Avoid clicking on links in emails or messages, as they might lead to fraudulent sites.

10. Consider Using AI-Enabled Security Tools

These programs leverage AI to detect scam calls and texts before you become a victim.