It’s relentless. The deluge of sketchy texts and emails about undeliverable packages, unpaid tolls, or suspicious activity on our bank accounts is enough to make anyone bonkers, even when you can spot the scam from a mile away. And now it’s tax season, and scammers are on the prowl to steal our hard-earned cash by impersonating the IRS.
Imposter scams are the most prevalent type of fraud, with about one in five people losing money to them, according to the Federal Trade Commission.
The most popular schemes — where the fraudsters impersonate some type of business or government agency — have become far more common since the pandemic turbocharged life online.
In fact, Americans lost over $1.2 billion to these kinds of scams in the first nine months of 2024, more than three times as much as they did in all of 2020, the latest FTC data shows. The typical loss was $500 to $1,000, and no demographic was safe. Younger Americans actually reported losing money more often than seniors.
So why are scammers so effective? For one, they know when to strike, using major events to make their scams seem legitimate. As wildfires devastated Los Angeles, criminals tried to exploit people looking to donate to relief funds. After congestion pricing came to New York City, people started seeing fake texts about unpaid tolls. And excited Philadelphia Eagles fans are expected to be inundated by offers of bogus Super Bowl tickets.
Secondly, the digital age is giving criminals an increasingly advanced arsenal of weapons to try to steal your personal information. (You’ve heard of phishing, but how about smishing, and vishing?)
So what? Tax season is a prime time for scams. Consumers are eager for refunds and scared of fines, making ideal targets. The National Taxpayer Advocate, an independent inspector within the IRS, named tax-related scams as one of the agency’s most serious problems, citing progressively sophisticated use of artificial intelligence and social media.
Here’s the thing about the IRS: They always communicate through the mail — never by email or text.
And when you get texts or emails from anyone, whether they’re purporting to be a government agency, bank or other business, remember:
• Never click on links or open attachments.
• Beware of urgent language meant to scare you.
• Don’t share personal information such as passwords or Social Security numbers.
• Reject any requests to send money directly.
You might even want to test your antenna by taking this quiz from the American Bankers Association. (Can you choose which examples are legit? It’s harder than you’d think.)
Related Reading
• Tax Scams: What To Watch For in 2025 (CBS News)
• Will Your Bank or Investment Fund Stop a Transfer to a Scammer? Probably Not (Federal Trade Commission)
• 10 Steps to Avoid Scams (Better Business Bureau)
Image credit: Bernie Pesko/SoFi
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