Tax season is a stressful time for many Americans, but it also presents an opportunity for scammers to exploit unsuspecting taxpayers. Each year, criminals refine their tactics, using increasingly sophisticated methods to steal identities, refunds, and even entire bank accounts. 

With the rise of AI-generated fraud, the threat has never been greater. Recent surveys indicate that nearly half of Americans (48%) have received fraudulent messages claiming to be from the IRS or state tax authorities. These scams are not only widespread but also costly—10% of those who fell victim reported financial losses exceeding $10,000. 

Understanding how these scams operate, who they target, and how to avoid them is crucial for protecting your finances this tax season. 

Who Is Being Targeted? 

Tax scams impact all demographics, but certain groups are more vulnerable than others: 

  1. Gen Z (ages 18-24) is the most frequently targeted, with 40% reporting that they or someone they know has fallen victim to a scam. 
  2. Older adults (ages 65-74) are more likely to suffer significant financial losses. Among men who lost money, 40% reported losing between $751 and $1,000, while half of the women in this group lost between $2,501 and $5,000. 
  3. The 45-54 age group reported the steepest losses, with one in ten victims losing more than $10,000 to tax scams. 

These statistics underscore the evolving nature of tax scams and the importance of vigilance across all age groups. 

The Role of AI in Tax Fraud 

Traditionally, scammers have relied on phishing emails, fake phone calls, and fraudulent websites to steal personal information. Now, artificial intelligence is making these schemes even more convincing: 

  • Deepfake audio enables scammers to impersonate IRS agents or financial advisors with alarming accuracy. 
  • AI-generated phishing emails mimic official tax agency communications so well that even experienced taxpayers struggle to identify fraudulent messages. 
  • Automated chatbots engage with victims in real time, pressuring them into revealing sensitive financial information. 

A growing concern among consumers is the increasing realism of these scams. Surveys show that 55% of Americans have noticed tax scams becoming more sophisticated, and 87% worry that AI is making these scams even harder to detect. 

Common Tax Scams in 2025 

Scammers continually adapt their strategies to bypass detection. Some of the most prevalent tax scams this year include: 

  • Fake IRS messages: Nearly half (48%) of Americans have received fraudulent emails, phone calls, or text messages claiming to be from the IRS, often demanding immediate action. 
  • Impersonation of tax services: One-third of victims’ report being contacted by scammers posing as representatives from well-known tax preparation services. 
  • False refund notifications: More than 35% of Americans have received deceptive messages promising tax refunds that lead to malicious links. 
  • Cryptocurrency payment scams: Men are three times more likely than women to be targeted by schemes demanding tax payments in cryptocurrency. 

How to Stay Safe This Tax Season 

  1. File Early – Filing your tax return as soon as possible prevents fraudsters from submitting a return in your name. 
  2. Beware of Phishing Attempts – The IRS does not initiate contact via email, text, or social media. If you receive a suspicious message, visit IRS.gov directly. 
  3. Verify Tax Preparation Websites – Scammers create fake websites that resemble legitimate tax services. Always type the web address directly rather than clicking on links in emails or advertisements. 
  4. Monitor Your Credit and Identity – Regularly check your credit report for unauthorized activity. Identity monitoring services can alert you if your personal information is compromised. 
  5. Reduce Your Digital Footprint – Removing your information from data broker sites can limit scammers’ ability to target you. 
  6. Ignore Urgent Payment Demands – The IRS rarely contacts taxpayers directly about payments. Any message threatening legal action or demanding instant wire transfers should be treated as a red flag. 
  7. Verify Suspicious Communications – If you receive an unexpected tax-related message, contact the IRS or your tax preparer directly using a verified phone number or website. 
  8. Stay Informed About AI-Powered Scams – As fraud techniques evolve, awareness remains the best defense. Keeping up to date on scam tactics can help ensure that your refund reaches the right place—your bank account. 

How Netsweeper Helps Combat AI-Powered Tax Scams 

As tax scams become more sophisticated, Netsweeper provides a critical layer of protection by identifying and blocking fraudulent websites, phishing attempts, and malicious links before they can deceive users. Our advanced filtering technology and real-time threat monitoring help prevent scammers from exploiting unsuspecting taxpayers, ensuring safer online interactions during tax season and beyond. Additionally, Netsweeper collaborates with organizations like the Global Anti-Scam Alliance and ScamAdviser, leveraging cutting-edge intelligence to detect and disrupt scam networks. By continuously analyzing emerging threats, Netsweeper remains at the forefront of digital security, helping to protect individuals and organizations from evolving fraud tactics. 

Final Thoughts 

Tax scams are becoming more advanced, but with awareness and precaution, you can protect yourself from fraud. By staying vigilant, verifying financial communications, and following best practices, you can safeguard your identity and finances this tax season. 

If something seems suspicious, take a step back, confirm the source, and trust your instincts. In 2025, staying ahead of scammers is more important than ever.