9 Tips for Avoiding Tax Season Cyber Scams

Accountants and IRS agents aren’t the only ones who see a spike in workload during tax season: it’s also one of the busiest times of the year for scammers. Every year, Americans lose almost $4.5 billion to tax fraud. Rates of tax scams are increasing as well: monthly tax scam reports rose 62% between 2024 and 2025.

Fake text messages, phone calls, emails, and other cyber scams are common ways tax scammers try to steal your personal information and money. Scammers are counting on a sense of urgency when they attack, as well as fears that the IRS will take legal action against perceived tax inconsistencies. Hackers also target taxpayers, making a secure network and reliable internet service essential.

Why Tax Season Is a Prime Target for Scams

It’s easy to see why tax season is like Christmas for scammers. Millions of Americans are online, sharing their personal and financial data. We share information that’s usually well protected, such as Social Security numbers, income, and bank account details, all of which are prime targets for scammers and identity thieves.

At the same time, tax time stresses people out. It creates a sense of urgency, increasing the risk we’ll make a mistake and overlook the warning signs of a scam, especially if the scammer poses as a trusted institution or service. Cyber scams may lure you in with “how to file taxes for free” emails, urgent-sounding texts that look like they come from your bank, or unnerving, threatening phone calls from fake IRS agents.

Common Tax-Related Cyber Scams to Watch For

Cyber scams come in a variety of flavors. Here are the most common:

Phishing and Smishing

Phishing emails and “smishing” texts may claim to be from the IRS, and are designed to make you believe urgent action is needed to avoid financial or legal consequences. The message may claim your account is on hold, or that you have a large refund awaiting verification. Many email and text-based cyber scams ask you to click on a link, which sends you to a spoofed website that asks you to log in or enter personal information. Others want you to download a “helpful” app that's actually malware.

Source: Matt Fowler KC/Shutterstock.com

IRS Impersonation Calls/Emails

Scammers often pose as IRS agents and contact you concerning “overdue taxes” or other penalties. The scammer uses the threat of arrest to frighten people and demand immediate payment. The key flaw in this plan is how they demand payment — often in untraceable wire transfers, cryptocurrency, or even gift cards.

Ghost Preparers

Ghost preparers promise large refunds or charge fees based on a percentage of the refund. They may invent income to claim fake deductions, and then direct the refund to their own bank account. A legitimate tax preparer will have a Preparer Tax Identification Number, which they include when they sign the return as a paid preparer. Ghost preparers will find ways to avoid giving this information.

Refund Theft

This one’s nasty, and can take months to sort out. If someone has access to your Social Security number, they can file a fraudulent tax refund early in the season, stealing your refund before you even file your taxes.

Fake Social Media Advice

Be wary of social media posts with links promising “how to file your taxes for free” or promising tax credits. Such posts often originate with scam artists. Scammers may also pose as charities to steal donations they claim are tax-deductible.

How Families Can Protect Themselves Online

• Remember that tax agencies never ask for account or personal information through email, text, or direct message.

• Any message that feels threatening or demands urgent action to prevent arrest or fines is suspect.

• The IRS typically initiates contact through official mailed correspondence and does not demand immediate payment by phone, email, or text.

• Switch to a trusted fiber internet provider. Use a secure, encrypted home network connection when filing taxes.

• Verify all sources before clicking on links or sharing data, and never click on a link or attachment from an email or text. Instead, open your browser and navigate to the relevant website yourself, or call the institution and ask if they sent the email.

• Use secure networks when filing or accessing financial accounts. If you are limited to rural internet options, choose the fastest, most reliable service available.

• Be cautious when searching “how to file taxes for free,” as tax-related third-party websites may be cyber scams.

• File taxes early to reduce the risk of scammers filing in your name.

• Use reputable tax software or a certified tax professional.

In addition, teach your family to identify general tactics used in cyber scams. Such tactics include:

• Creating a sense of fear or urgency, especially when coupled with demands for immediate payment or personal information.

• Promises of high-paying tax credits or stimulus payments out of the blue, or from people claiming they need to verify your account details to process your refund.

• Advice that seems too good to be true, or implies a simple way to complete your taxes.

• Demands for payment by prepaid debit cards, wire transfers, or gift cards. Despite what scammers want you to believe, the IRS does not take payment in Amazon gift cards!

Source: COOL IMAGES Studio/Shutterstock.com

The Role of Internet Security and Reliability

Don't underestimate the importance a secure, stable internet plays in reducing exposure to compromised connections and malicious actors. Monitoring your internet performance supports safer online activity, so start with an internet speed test to ensure your ISP delivers the advertised speed.

Secure your network with a strong password before filing taxes or accessing financial accounts, and enable multi-factor authentication (MFA) on all tax preparation software, as well as your bank and email accounts. When choosing a password, use a long, complex one for each financial account, and update them regularly.

Ensure your router and all devices receive regular updates to close potential security vulnerabilities, and never access financial accounts from public Wi-Fi, which is not secure.

The IRS recommends using a 6-digit Identity Protection PIN to prevent unauthorized access to your account. And a quick reminder: when using any IRS or financial website, verify that the URL starts with https://. The “s” indicates the site encrypts data, reducing the risk of stolen information.

Staying Informed During Tax Season

Cyber scams don’t have to threaten your tax refund. Just remember to stay alert and pause before replying to any email or text, especially those that threaten legal action or demand an immediate reply or payment. Report any suspected cyber scam to one of the following agencies:

• The IRS

• The Federal Trade Commission

• The Internet Crime Complaint Center

A little caution, coupled with a strong internet connection and secure home network, goes a long way towards protecting you from cyber scams. Stay vigilant, and here’s hoping you’re due a nice big tax refund!