Before the new tax season, the Federal Trade Commission (FTC) is releasing a new consumer warning today regarding increased identity theft scams and cautioning taxpayers to watch out. The warning comes as the agency opens its activities for Identity Theft Awareness Week.
In 2023, the FTC received over a million complaints of identity theft, with victims losing more than $10 billion. “The bad guys are sharpening their game,” says Kelle Slaughter, a Senior Investigator for the Dallas office of the FTC. “Even phone scams continue in high volume, but thieves increasingly use texts and emails to steal individuals’ sensitive personal information.”
“Objectionable messages will have something like ‘How to get your tax refund’ or ‘Tax rebate news,’” Slaughter said. “They take you to copycat IRS pages that attempt to steal your login credentials—or worse, infect your computer with malware.”
NBC 5 personnel were also victims of these fraudulent messages. One recent spam message pretended to be from the IRS, promising “bonus money” and leading users to a fraudulent website to steal their personal information.
Slaughter explained that these phony sites are designed to look like the real IRS website. Consumers are tricked into entering their credentials or answering security questions, which can be used to access their accounts illegally.
FTC Tax Season Safety Tips
The FTC advises the following to stay safe during tax season:
- Never click on links in unsolicited texts or emails. Instead, go directly to IRS.gov to verify refund or rebate information.
- Ignore scam calls: The FTC will never call you to request money, threaten arrest, or ask you to buy gift cards or gold. If you receive such a call, it’s a scam—report it.
How to Protect Yourself
- Freeze Your Credit: Use Experian, Equifax, or TransUnion to place a free freeze on your credit and prevent unauthorized account openings.
- Use Strong Passwords & Multi-Factor Authentication: This protects your accounts even if your password is compromised.
- Don’t Respond to Unsolicited Contact: If you get an unexpected call, email, or message claiming to be from the IRS, don’t engage. Call the agency using a verified number.
- File Taxes Early: This helps prevent others from fraudulently filing using your identity.
- Enroll in an IRS PIN: A six-digit Identity Protection PIN from the IRS can add an extra layer of verification.
Scammers Targeting Children
Children’s Social Security numbers are also at risk. These can be used for years before the theft is discovered. Slaughter recommends that parents take proactive steps to freeze their child’s credit.
“They were identity theft victims before the age of 18,” she warned. “Credit thefts at school can put children’s information on the black market where it’s sold to thieves.”
What to Do If You’re a Victim
If you think you’ve been targeted by a tax scam, report it immediately at IdentityTheft.gov. The site offers step-by-step recovery instructions.
“It’s not really bad to report identity theft,” Slaughter noted. “Don’t be shy—this is the norm. When reported, the FTC directs these complaints to law enforcement to help shut down scammers.”
Upcoming Event
The FTC and AARP are hosting a Facebook Live event on Friday, Jan. 31 at 12 PM CT to share how to protect yourself from identity theft and what to do if it happens. Tune in to the conversation here.
