Cybercriminals try to cash in with sophisticated tax scams
It's that time again, as we approach the end of the tax year scammers are seeking to cash in with a raft of phishing emails, deepfake phone calls, and fake tax prep websites.
New research from McAfee shows 23 percent of Americans say they or someone they know has lost money to a tax scam and 61 percent of victims have lost more than $1,000.
According to the research, 33 percent of people say they or someone they know has received a fraudulent email or text claiming to be from a tax preparation service like TurboTax or H&R Block, urging them to click a link and sign in. In addition 48 percent of Americans have received a fake IRS message pressuring them to act fast or face penalties.
What's more, over half (55 percent) of people believe tax scam messages are more sophisticated or realistic than last year, and 87 percent are worried that AI is making these scams even harder to spot.
Interestingly it's young adults (18-24) who are the most frequent tax scam targets with 12 percent having personally lost money and 27 percent knowing someone who has been scammed. Nine percent of people aged 18-24 report losses between $0-$250 and 20 percent say they lost $751-$1,000. In contrast, just one percent of adults aged between 65 and 74 have lost money to a tax scam.
The threats vary by demographic group too. Young adults are most likely to be asked for information that could fuel identity theft, with 29 percent saying they've been asked for their birth date and 23 percent for bank account numbers. The 65 to 74 group meanwhile are the most likely to be asked for information that could be used to carry out payment scams, with 37 percent reporting they've received demands for immediate back tax payments and 45 percent receiving fake tax refund scams requesting banking details.
Middle-aged adults (35-54) face a mix of requests for information that could lead to identity and payment scams, with 44 percent of 35-44-year-olds saying they've been asked for their Social Security or Tax ID number, and 36 percent of 45-54-year-olds receiving back tax payment demands.
Men are three times as likely to be receive cryptocurrency scam messages as women, while women are more likely to receive tax debt threats, with 31 percent being told they owed back taxes and needed to pay immediately, compared to 24 percent of men.
"Scammers have long used tax season to exploit people sharing sensitive personal and financial information, but AI has made their scams more frequent and convincing than ever," says Abhishek Karnik, head of threat research at McAfee. "From deepfake audio that lets scammers impersonate IRS agents with local accents in convincing voice messages to fraudulent texts and emails that mimic real tax communications, these scams are harder to spot than ever. The best way to stay safe? Slow down, verify every message, go directly to the source, and use AI-powered online protection -- because one wrong click could cost you thousands."
You can read more about the findings and get tips on how to protect yourself on the McAfee blog.
Image credit: karenr/depositphotos.com