In this blog, ACFE Training Director Jason Zirkle, CFE, shares practical tips on spotting potential scams and identity theft threats, explains why filing taxes early reduces your fraud risk and offers other advice to help you avoid becoming a victim.
Fraudsters are always searching for timely opportunities to exploit people for financial gain. It’s no surprise that tax season provides a significant opportunity to target unsuspecting taxpayers. But there are things that you can remember to keep your money safe when filing local, state and federal taxes.
ACFE Training Director Jason Zirkle, CFE, shares practical tips on spotting potential scams and identity theft threats, explains why filing taxes early reduces your fraud risk and offers other advice to help you avoid becoming a victim.
Beware of phishing: Zirkle says fraudsters often send fake emails or texts claiming to be from the Internal Revenue Service (IRS) and urging immediate action. These often include malicious links that install malware or are designed to trick you into divulging private information or entice you to log in to a fake website. Zirkle says that the IRS will never initiate contact through email, text or social media, so this sort of contact should be a red flag.
Ignore unsolicited IRS calls: “If someone calls claiming to be from the IRS and demands payment or threatens arrest, hang up,” says Zirkle. “These are fake, and the IRS would never resort to these kinds of tactics.”
News-themed tax scams: According to Zirkle, fraudsters will often use the news to tailor messages and trick consumers into divulging information or clicking a malicious link. Examples of this include messages framed to highlight “Trump’s new tax cuts” or “tariff-based dividends.” These scams target victims with their timeliness to current events and false promise of financial gain.
AI-powered scams: Zirkle says fraudsters are using generative AI to craft highly personalized phishing emails, fake IRS documents and even deepfake voice messages impersonating trusted figures. Before taking any action, you should always verify the validity of any documentation you receive by contacting the IRS directly.
Preempts fraudulent filings: According to Zirkle, the IRS typically processes the first valid return filed under a Social Security Number (SSN) and rejects duplicates. “By filing early, you block thieves from filing before you,” says Zirkle.
More time to correct errors: Zirkle says filing early means you have extra time to identify and fix mistakes or missing forms. This eases burdens and reduces risk.
Fraudsters like to create a sense of urgency: “Tax fraud scams spike in March to early April so fraudsters can exploit taxpayers’ fears of missing the April 15 U.S. tax filing deadline,” says Zirkle. “If you consistently file later in the tax season, you may be susceptible to falling victim to one of these messages.”
Use an Identity Protection PIN (IP PIN): Zirkle recommends using a free, six-digit PIN issued by the IRS that prevents other people from filing returns in your name using your SSN. This is available to any taxpayer who requests one.
Enable multi-factor authentication (MFA): Zirkle says you should use MFA on IRS and tax software accounts, as well as financial platforms and email.
Shred or securely dispose of personal documents: Tax forms like W2s, 1099s, and bank statements carry sensitive info that can be misused.
Monitor your credit regularly: Zirkle recommends you keep an eye out for signs of identity theft, such as new accounts or credit inquiries you didn't initiate. If you are unsure, consider freezing your credit just in case.
Recognize red flags: “Beware of urgent messages, grammar mistakes or pressured solicitations,” says Zirkle, “Especially those asking for personal or financial information.”
Be mindful of tax preparer fraud: The person you trust to prepare your taxes could be looking to defraud you. Follow these tips to avoid becoming a victim of tax preparer fraud.
Staying fraud aware and taking a few small preventative steps, this tax season will save you potential headaches down the road. Just remember to think like a fraud examiner this tax season and beyond.
