Tax season is upon us, and while many of you are preparing to file your returns, it’s crucial to be aware of the ever-evolving world of tax scams.
This year, it’s more important than ever to stay informed and on your guard.
New research by McAfee, a cybersecurity company, has shed light on how common these scams are and what kind of scams they are, revealing some surprising trends and highlighting the importance of protecting yourself.
Scam written on tax forms (Kurt “CyberGuy” Knutsson)
How Americans file and pay taxes in 2025
Before diving into the scams, let’s look at how people are handling their taxes these days. The McAfee research indicates that:
- A little more than half of Americans (53%) are e-filers, taking the online route through tax software or IRS Free File
- Nearly a third (31%) rely on professional tax preparers
- The vast majority (60%) handle payments and refunds electronically
- A large portion (52%) still receive their W-2s and 1099s the old-fashioned way: in the mail
- While others (31%) log in to payroll service portals (e.g., ADP, Workday, Paychex) to retrieve them
Illustration of tax prep tools (Kurt “CyberGuy” Knutsson)
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The unsettling reality of tax scams
The reality is that tax scams are more prevalent than we might prefer to acknowledge. Nearly one in four individuals (23%) say they know someone or have personally fallen victim to such scams. Let’s break down who’s being affected and how.
- Young adults (18-24): This group is, surprisingly, the most likely to fall victim to scams. They are also most likely to have their information compromised via Instagram and WhatsApp.
- Older adults (65-74): On the other end of the spectrum, older adults are the least likely to have encountered tax scams.
- Gender differences: Young men are significantly more likely to lose money to scams than young women.
And when people do lose money, the amounts can be substantial:
- 81% lost over $500
- 51% lost over $1,000
- A sobering 5% lost over $10,000
Scam written on a tablet surrounded by cash (Kurt “CyberGuy” Knutsson)
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Demands and threats: What scammers want
Scammers use a variety of tactics to trick people into giving up their money or personal information. The research shows that many people have received suspicious messages claiming to be from the IRS or a state tax authority via:
- Phone calls (30%)
- Text messages (27%)
- Facebook/Facebook Messenger (5%)
- WhatsApp (3%)
- Instagram/Instagram Direct Messages (2%)
These messages often include demands for:
- Social Security numbers or tax identification numbers (40%)
- Immediate payment of back taxes (27%)
- Bank account numbers (18%)
- Credit/debit card information (17%)
It’s important to note that the IRS generally doesn’t initiate contact via phone, text or social media to demand immediate payment.
A woman preparing her taxes (Kurt “CyberGuy” Knutsson)
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Who’s being targeted by which scam?
Different age groups are targeted with different scams. Here’s the breakdown.
- Older adults (65-74): This group is heavily targeted by payment scams, such as demands for back taxes or fake tax refund schemes.
- Middle-aged (35-54): This group is targeted by a mix of identity theft and payment scams, like requests for Social Security numbers or demands for back tax payments.
- Younger adults (18-24): Scammers often seek personal information from this group, like birth dates and bank account numbers.
A woman working on her taxes (Kurt “CyberGuy” Knutsson)
The cost of falling for scams
Many people have received emails or texts about their “tax refund” or “tax refund e-statement” with a link. A large portion of people (39%) clicked on these links. It’s definitely alarming how many people end up falling for these scams.
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Almost 40% of people who get a scam message or call actually send the scammer money. Younger adults are particularly vulnerable; more than half of 18- to 24-year-olds know someone who’s paid up. When people click those tempting links about tax refunds or e-statements, they’re playing a risky game: Almost 40% of people clicked on that email or text message, and that’s where scammers can really get you.
A woman working on her taxes (Kurt “CyberGuy” Knutsson)
AI’s role in the future of tax scams
Looking ahead, AI is making scams even scarier. A whopping 87% of people are worried about AI’s role in creating realistic tax scams, but only 40% feel confident they could spot a deepfake from the IRS. As a result, many people (41%) are second-guessing real tax communications. In fact, more than half of people say the tax scam messages they’ve received this year are more sophisticated or realistic than last year. It’s no wonder that most people are concerned about tax fraud this season.
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“Tax scammers are getting smarter, and many are using AI to make their tricks more convincing than ever, just when people are feeling the most pressure to file quickly,” said Abhishek Karnik, head of threat research at McAfee. “While not every scam uses AI, we predict a rise in more sophisticated, social engineering-focused tax fraud tactics as access to AI tools increases, including fraudulent emails, phone calls that use AI-generated audio and fake tax prep websites, making it easy for even the savviest filers to slip up.”
How to protect yourself from tax scams
OK, so the scam landscape looks pretty grim. What can you do to stay safe? Here are some practical steps to protect yourself.
1. Be skeptical of unsolicited contact: Remember that the IRS will never contact you via phone, email, text or social media to demand immediate payment or request personal information.
2. Avoid clicking suspicious links; use strong antivirus software: Do not click on links in emails or texts from unknown senders. The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe. Get my picks for the best 2025 antivirus protection winners for your Windows, Mac, Android and iOS devices.
3. Guard your personal information: Protect your Social Security number, bank account details and other sensitive data carefully.
4. Create strong, unique passwords: Be sure to use strong passwords on financial and tax websites. Make sure each password is unique, especially for financial accounts. Get more details about my best expert-reviewed password managers of 2025 here.
5. Enable two-factor authentication: This adds an extra layer of security to your accounts that will prevent a hacker from getting into your accounts.
6. Invest in personal data removal services: These services monitor your personal information and alert you to potential fraud. While no service promises to remove all your data from the internet, having a removal service is great if you want to constantly monitor and automate the process of removing your information from hundreds of sites continuously over a longer period of time. Check out my top picks for data removal services here.
7. Don’t respond to texts/calls from unknown sources: Whatever you do, don’t respond to texts/calls from unknown sources whatsoever.
8. Trust your gut: If something feels off, it probably is. Verify information independently by contacting the IRS or your state tax authority directly.
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Kurt’s key takeaways
Tax season doesn’t have to be a stressful time filled with worry. By staying informed, being on your guard and taking simple steps to protect yourself, you can confidently navigate the tax landscape and avoid falling victim to these scams. Be skeptical, be careful and always remember that when it comes to your taxes, it’s always better to be safe than sorry.
Have you or someone you know been targeted by a tax scam? Let us know by writing us at Cyberguy.com/Contact.
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