Staying Ahead of AI-Driven Fraud Tactics

The Rise of Cybercrime During Tax Season

Tax season poses significant risks as cybercriminals increasingly take advantage of this time to launch attacks. The use of advanced technologies, including artificial intelligence (AI) and deepfake content, is making scams more sophisticated and believable. Traditional scams that were easy to spot are evolving into advanced threats that demand greater vigilance from individuals and businesses alike.

How Cybercriminals Are Adapting

In tax season 2025, criminals are utilizing AI-generated phishing emails, deepfake impersonations of IRS agents, and even voice-cloning technologies. These developments make it challenging to identify fraudulent scams, as the methods used today are often eerily realistic. According to the IRS, more than $37 billion worth of tax and financial crimes were uncovered in 2023, illustrating how prevalent these malicious activities have become.

Casey Ellis from Bugcrowd points out, “We’re seeing a sharp rise in AI-driven attacks, especially around tax time.” Generative AI is now a critical tool for scammers, enabling the creation of personalized phishing attempts that can deceive even experienced professionals.

Targeting Individuals and Businesses

Not only are individuals at risk, but small and even large companies are also becoming targets. Adam Khan from Barracuda highlights that fake IRS calls have surged by 150%, leading to increased spear-phishing attacks aimed at companies and their employees. These attacks often impersonate essential personnel to extract sensitive information.

The Role of Advanced Technology in Fraud

Cybercriminals are now using AI to produce synthetic identities by combining stolen personal information with fabricated details. James Turgal from Optiv emphasizes that organized crime groups have adopted this tactic, leading to fraudulent filing of tax returns and illicit refunds rerouted to bogus accounts.

Additionally, the rise of deepfake technology has allowed attackers to create videos and audio messages that convincingly mimic trusted tax professionals and IRS representatives. Dustin Brewer from BlueVoyant advises that recognizing these scams is becoming increasingly difficult, as even grammar and spelling errors are less common due to advancements in language models.

Consequences of Falling Victim

The repercussions of falling prey to these scams can be severe. Victims often realize they’ve been targeted only after fraudulent tax returns have been filed in their name, which can lead to identity theft, credit fraud, and much more. For businesses, particularly CPA firms and tax preparers, the consequences can be dire. Ransomware attacks are increasing during tax season, with perpetrators focusing on payroll systems and W-2 data, leading to significant operational disruptions.

To illustrate the urgency, Ira Winkler from CYE notes, “Nobody is going to call or text you for a tax emergency.” It’s essential to maintain a healthy skepticism regarding any unexpected communication concerning tax-related matters.

Steps to Protect Yourself

To mitigate risks during tax season, it’s vital to adopt proactive habits. Here are some practical steps to help you stay secure:

• Be Cautious with Unsolicited Communication: The IRS won’t contact you through email, phone, or text.
• Double-Check Suspicious Messages: Reach out to organizations directly using known contact information.
• Utilize an IRS Identity Protection PIN (IP PIN): This helps safeguard your tax filings from being hijacked.
• Consider Freezing Your Credit: It’s a straightforward way to prevent new accounts from being opened in your name.
• Implement Multi-Factor Authentication (MFA): Use MFA on all tax-related accounts and opt for authenticator apps.
• Create Strong, Unique Passwords: Consider using a password manager for storing passwords safely.
• Secure Your Sensitive Documents: Use encrypted cloud storage for files and shred any physical documents you no longer need.
• Control Your Data Exposure: Limit what personal information you share on social media platforms.
• Conduct Regular Security Audits: This is particularly important for businesses and tax professionals to ensure defenses are strong.
• Stay Updated on Threats: Follow reliable cybersecurity experts for the latest information on potential scams and attacks.

Vigilance is Key

As technology continues to evolve, cybercriminals are finding new ways to exploit vulnerabilities during tax season. It’s crucial to be conscious and vigilant, as scams rely heavily on instilling a sense of urgency and trust in victims. By adopting strong security habits and remaining informed, individuals and businesses can better protect themselves from these sophisticated threats. Staying one step ahead is essential to safeguarding your identity and refund during tax season.