Between increasingly frequent phone scams and constantly evolving online scams, bad actors are everywhere. And come tax season, the fraudsters are out in full force. According to the Internal Revenue Service (IRS) Criminal Investigation Division, 2025 saw $4.49 billion of tax fraud, and that’s just what people reported.
“Tax season is prime time for scammers, who take advantage of the urgency and confusion around filings, refunds and recent legislative changes,” says Sandra Glading, an online safety expert with digital security company McAfee. “With the help of AI, cybercriminals are constantly creating realistic phishing emails, deepfake phone calls and fake tax prep websites.”
So how can you stay aware and out of scammers’ clutches? We talked to seven fraud, cybersecurity and financial experts to learn more about the six tax scams you may encounter as you prepare to file, along with tips to avoid them. Keep reading to learn how to keep yourself safe this tax season.
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How common are tax scams?
Tax fraud is a full-time cybercrime business, and it’s only getting more widespread. The IRS identified twice as many cases of tax fraud in 2025 as in 2024. And Tony Sabaj, a cybersecurity expert at cybersecurity company Check Point, says reports of tax scams jumped 62% year over year in 2025.
As Darius Kingsley, the head of consumer fraud and scam prevention at financial institution J.P. Morgan Chase, points out, scammers tend to be more active during periods when financial transactions are most common, such as during the holiday-shopping rush or—you guessed it—when people are preparing to file their tax returns.
“Tax season can be a prime time for scammers to strike, given the amount of financial documentation that is exchanged in the form of W-2s, 1099s and other forms necessary for filing,” Kingsley says.
Who do fraudsters target with tax scams?
Scammers target anyone they think they can separate from their money and personal information, but David Trapp, the CEO of cybersecurity company ArmorPoint, told us that two groups are more vulnerable than others: Baby Boomers and Gen Z.
Trapp explains that older adults are less savvy to scammers and more likely to believe the IRS is actually calling them to verify their banking information. “They might not understand that this is in fact a phishing attempt from a scam artist and not a legitimate employee trying to help them,” he says.
On the other end of the spectrum, bad actors prey on young adults who might be filing taxes for the first time. “Younger generations are also using technology for their finances, which can lead to accidental data leaks or hackings—for example, asking ChatGPT a question on how to fill out a W-2 form and accidentally exposing their SSN [Social Security number], home address or earnings information,” Trapp says.
What scams might you encounter as you prep your taxes?
As you prep your taxes, keep in mind that fraud comes in many forms. Con artists are clever, and they keep changing the game to trick you into divulging your most private information. “Tax scammers are getting surgical,” Sabaj says. “They’re using breached data and convincing IRS look-alike messages to phish you before you even file.”
Read on for the tax scams you’re most likely to encounter while filing this season.
Stolen identity scam
Plenty of scams can give bad actors everything they need to steal your identity. But in this one—the most common form of tax fraud—a scammer steals your identity, files a tax return on your behalf and gets your refund.
How to recognize it
“This scam can be recognized by the taxpayer if they attempt to file their return and it gets turned away because they had already filed,” explains Nathan Goldman, professor of accounting at North Carolina State University’s Poole College of Management.
How to avoid it
Goldman says that the best way to avoid the stolen identity scam is to protect your identity and passwords. “Beyond that, filing early [before any potential fraudsters attempt to file] can cut off this opportunity,” he says.
IRS impersonation scam
In this scam, fraudsters pose as IRS representatives. Kinglsey says these bad actors will call you, demand immediate payments—sometimes for previous years’ returns—and threaten law enforcement action or suspension of benefits if the payment isn’t made.
How to recognize it
“Government agencies, like the IRS, will not call you to demand urgent action or threaten you. In most instances, they communicate via mail,” Kingsley says, adding that you can verify a piece of mail is from the IRS by searching for a letter or notice online. Just head to the IRS Notices & Letters Search function to check if yours is legit.
How to avoid it
Kingsley is clear about what to do if you get a call like this: “If you receive a call from someone claiming to be the IRS, a government agency or law enforcement, hang up.” Look up the official number for that agency and call them back directly. “Never rely on a number provided by the caller,” he says.
Tax preparer scam
The tax preparer scam involves bad actors posing as representatives of tax service companies. Kingsley says they’ll offer to help you prepare to file taxes in order to gain access to sensitive personal information, which gives them what they need to dupe you out of money.
How to recognize it
If someone contacts you and promises a bigger, faster tax return, they may be trying to scam you. Always remember that if something sounds too good to be true, it probably is.
How to avoid it
You can avoid the tax preparer scam by researching and vetting legitimate tax preparers. If you want to be even safer, Kingsley suggests seeking referrals from friends and family to ensure you are picking a trusted service. “Always look up your provider before paying for services or providing them with personal information to avoid ‘ghost preparers,’” he says. And if you encounter someone you suspect is a phony? Just say no to working with them.
Social media tax hacks scam
Social media platforms like TikTok and Instagram offer hacks for everything, but when it comes to your taxes, you want to be honest. Avoid advice spouted by influencers who might offer a corner-cutting hack or strategy for a smaller tax payment.
How to recognize it
Social media scams are easy to recognize: If an influencer is telling you how to pay less to the IRS, look away—or at least run the deduction by a verified accountant. “Legitimate tax strategies focus on allowable deductions and compliance with tax law, not shortcuts built around questionable credits,” says Terri Luttrell, the compliance and engagement director at Abrigo, a software company that helps prevent financial crime.
How to avoid it
Tax hacks circulating on platforms like TikTok, Instagram and Facebook often promote fabricated strategies to inflate refunds, such as inventing household employees or submitting false W-2 information. “The IRS has warned that these schemes can lead to rejected returns, penalties and increased audit scrutiny,” Luttrell says.
W-2 request scam
Glading says some scammers will ask for your W-2 to steal your sensitive information before you even submit your return.
How to recognize it
“You may receive an email that appears to come from HR, a payroll provider or even the IRS, asking you to upload or confirm your W-2,” Glading says. “The link will then direct you to a look-alike portal built to capture your Social Security number and other personal data.”
How to avoid it
Like many online scams, the red flag here is a message creating urgency. Scammers always push potential victims to click a link rather than log in to a platform they already use. “To say safe, never click directly from an email like this,” Glading advises. “Instead, go straight to your employer’s official payroll portal. If something feels off, confirm the request with HR using a separate channel [such as a separate email or a phone call].”
Phishing and smishing scams
These phishing and smishing messages mimic tax authorities or software providers and link to fake login pages. “Entering credentials gives scammers access to sensitive data,” warns Petros Efstathopoulos, PhD, a cybersecurity veteran and the vice president of research and development at RSAC, the leading cybersecurity conference.
How to recognize it
Traditionally, phishing emails and texts have come with several telltale signs of a scam: odd formatting, spelling errors and wording that sounds “off.” But as AI has improved, these fraudulent messages have become more believable. “AI allows scammers to craft these messages more convincingly and at a much larger scale, making them harder to detect,” Efstathopoulos says. One thing they still have in common: They sound urgent and include links that don’t match official URLs.
How to avoid it
Efstathopoulos says the first way to stay safe from phishing and smishing scams is to never click links in unsolicited messages. “Hover over links before clicking, verify the sender and type the agency’s URL directly into your browser,” he says.
How can you stay safe from scams during tax season?
It may seem like there’s a tax scammer lurking around every corner, and while that’s not entirely true, you can’t be too careful when it comes to safeguarding your personal information. In addition to the above tips, this advice from our experts will help you stay safe from scams during tax season:
- Get an identity protection PIN from the IRS. It prevents anyone from filing a return with your Social Security number without that six-digit code.
- If you are paying for tax software or professional services, use a credit card to ensure you can take advantage of the company’s fraud protection.
- Be mindful of what you share publicly. Oversharing on social media can provide criminals with the details they need to verify identities or reset account credentials. Information such as birthdates, job changes, address updates or family details can be used in social engineering schemes.
- Protect your personal information year-round—once your tax information is exposed, scammers can reuse it for years. Limit how often you share your Social Security number, shred tax documents before discarding them and store past tax returns securely, both physically and digitally.
- Monitor financial and tax records regularly. Early detection can significantly reduce damage if identity theft occurs. Review IRS account transcripts through the official IRS website, check bank and credit card statements frequently and obtain and review free annual credit reports through AnnualCreditReport.com.
- Understand how the IRS actually communicates. The organization typically initiates contact by mail. It does not demand immediate payment via gift cards or cryptocurrency, and it does not threaten arrest over the phone. Knowing these facts reduces the emotional leverage scammers attempt to use.
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About the experts
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Why trust us
Reader’s Digest has published hundreds of articles on personal technology, arming readers with the knowledge to protect themselves against cybersecurity threats and internet scams as well as revealing the best tips, tricks and shortcuts for computers, cellphones, apps, texting, social media and more. We rely on credentialed experts with personal experience and know-how as well as primary sources including tech companies, professional organizations and academic institutions. We verify all facts and data and revisit them over time to ensure they remain accurate and up to date. Read more about our team, our contributors and our editorial policies.
Sources:
- IRS: “Annual Report 2025”
- Sandra Glading, online safety advocate with McAfee; email interview, February 2026
- David Trapp, CEO at ArmorPoint; email interview, February 2026
- Darius Kingsley, JD, managing director and head of consumer fraud and scam prevention at J.P. Morgan Chase; email interview, February 2026
- Tony Sabaj, cybersecurity expert at Check Point; email interview, February 2026
- Nathan Goldman, PhD, CPA, is a dean’s professor of accounting at North Carolina State University’s Poole College of Management; email interview, February 2026
- Terri Luttrell, compliance and engagement director at Abrigo; email interview, February 2026
- Petros Efstathopoulos, vice president of research and development at RSAC; email interview, February 2026
The post Before You File Your Taxes, Make Sure You’re Not Falling for One of These Sneaky Tax Scams appeared first on Reader's Digest.
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