Wallet Watch is a new series on protecting your identity and financial well-being. For our next installment cyber security expert Jim Stickley stopped by the 3rd Hour of TODAY to share tips to keep yourself safe this tax season.
Tax scams affect thousands of people each year — and many of these scams peak during tax season. So before you file, here is what to keep an eye out for and how to best protect yourself.
Tax scams are more common than you think and the threat continues to grow. According to a recent study conducted by LifeLock, 35% of people who encountered a tax-related scam fell victim to it in 2025.
Tax schemes and scams including robocalls, scam texts and phishing emails are up this tax season compared to previous years, according to the Internal Revenue Service (IRS). With the growth of AI, criminals are able to create new scams faster and easier, often requiring them to do little to no work — which means these scams are only going to become more common. Each year, the IRS releases the "Dirty Dozen," a list of 12 of the most common and dangerous scams in an effort to make taxpayers aware of existing threats. Keep reading to learn more about a few scams on this year's list.
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Expert tax safety tips seen on 3rd Hour of TODAY
Common dangers you should be aware of
- IRS impersonation: This can happen through email, text and even phone calls. Scammers can use AI to call you through automated robocalls that seem very legitimate. They even spoof the phone number so that it looks like the call is really coming from the IRS. Once they get you on the phone, they try to trick you into providing personal information such as social security numbers or account numbers. With emails and texts, the scammers will send you messages that often seem alarming, warning you that you owe money or there is a problem with your refund. There is almost always a link to click or QR code to scan, leading you to a website that looks real and prompts you to provide personal information.
- Misleading tax advice on social media: The IRS has put out several warnings regarding social posts from individuals that offer to help with taxes, but they are actually scams. One of the biggest issues is that people assume that if something goes viral or receives hundreds or thousands of likes it must be legitimate. But really, posts that say things like, "use this tax hack to save money" often lead to major scams. There are also a lot of posts promoting so-called "tax experts" that will help you file your taxes for free. But beware: Scammers will help you file, but then you never receive a tax refund — the refund is rerouted to the criminal instead. In some cases victims can be misled into making false filings, which can lead to serious trouble including audits, fines and even criminal prosecution.
How to protect yourself against these types of tax schemes
- Remain vigilant at all times: The best way to protect yourself is to remain cautious year-round. Tax schemes can happen any time, not just during tax season.
- Beware of IRS impersonation through email, texts or phone calls: Be cautious about emails, texts and phone calls claiming to be from the IRS. Remember, the IRS will never send you an unsolicited email or text. So, if you receive an unsolicited email or text claiming to be from the IRS, simply delete it. When in doubt, you can call the IRS directly to eliminate any chance of a scam.
- Report any tax schemes or suspicious behavior immediately: Make sure you report any suspicious activity in your accounts. If you suspect someone has attempted to file on your behalf or you are aware of a scam, go to the IRS website and follow the steps posted on what you should do next. Reporting schemes as quickly as possible helps to protect taxpayers and stop suspicious activity.
- File early: The earlier you file, the less chance you have of a criminal filing on your behalf.
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Meet the expert
Our team features a range of qualified experts and contributors in our broadcast segments to reveal the latest in trends, remarkable sale events and all things shopping across a variety of categories.
- Jim Stickley is a cyber security expert with over 30 years in the industry.
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