Tax season can be frustrating enough without the added anxiety of scammers trying to steal your personal information or hard-earned money. Unfortunately, tax fraud schemes are becoming more sophisticated each year, and 2025 is no exception. Whether it’s phishing emails, fraudulent tax preparers, or fake refund schemes, knowing how to spot the warning signs can help you stay a step ahead. Benchmark FCU is committed to providing the knowledge and tools to help you better protect yourself. Here’s what you need to know to safeguard your finances this tax season.
Common Tax Scams to Watch Out For in 2025
1 Phishing Emails and Text Messages
Scammers often impersonate the IRS or reputable tax service providers to trick you into sharing sensitive information. These messages may claim there’s an issue with your tax return or offer a fake refund.
Red Flags:
- Messages with urgent language prompting immediate action
- Requests for your Social Security number or financial information
- Suspicious links or attachments
Action Plan: Never click links or download attachments from unknown sources. The IRS will never begin contact via harsh emails or text messages.
2 Fake IRS Phone Calls
In these scams, fraudsters pose as IRS agents and threaten legal action if you don’t make an immediate payment over the phone.
Red Flags:
- Threats of arrest
- Demands for payment via gift cards or wire transfers
- Caller ID that appears to be from the IRS
Action Plan: Hang up immediately. The IRS typically contacts taxpayers by mail first and does not demand payment over the phone.
3 Tax Preparer Fraud
While most tax preparers are honest professionals, some unscrupulous individuals take advantage of taxpayers by inflating refunds or stealing personal information.
Red Flags:
- Preparers who base their fee on the size of your refund
- Refusal to sign your return or provide a Preparer Tax Identification Number (PTIN)
- Promises of substantial refunds
Action Plan: Choose a reputable tax preparer with proper credentials. Always review your return carefully before signing.
4 Fake Refund Scams
Scammers may file a fraudulent return using your information and have the refund deposited into your account. They then contact you, posing as the IRS, and demand the money back.
Red Flags:
- Unexpected tax refunds
- Calls or emails claiming the IRS issued a refund in error
Action Plan: If you receive an unexpected refund, contact the IRS immediately to report the issue.
How to Protect Yourself from Tax Scams
Secure Your Personal Information
- Use strong, unique passwords for financial accounts.
- Enable multi-factor authentication when available.
- Keep sensitive documents in a secure location.
Get an Identity Protection PIN from the IRS
- This six-digit number provided by the IRS prevents someone else from filing a tax return using your social security number. Tap to get your identity protection PIN from the IRS.
- This proactive step may help protect you from tax-related identity theft.
Verify IRS Communications
- If you receive a suspicious communication, contact the IRS directly at 1-800-829-1040.
- Check your online IRS account for any notices or updates. You can sign up online on the IRS website. This will enable you to view data, check your refund, make and view payments, and more.
Monitor Your Financial Accounts
- Regularly review your credit union, credit card statements, and other financial statements for unauthorized transactions.
- Sign up for account alerts to stay informed of any unusual activity.
File Your Taxes Early
By filing your taxes early, you significantly reduce the window of opportunity for scammers to file a fraudulent return using your information. This proactive step puts you in control and helps you stay ahead of potential threats.
What to Do If You Fall Victim to a Tax Scam
- Contact the IRS: Report the incident to the IRS immediately by completing Form 14039, Identity Theft Affidavit.
- Notify Your Financial Institution: Alert Benchmark FCU so we can monitor your accounts for fraudulent activity.
- File a Report: Contact the Federal Trade Commission (FTC) at IdentityTheft.gov to create a recovery plan.
- Monitor Your Credit: Monitor your credit with the help of Benchmark FCU’s Credit Monitoring Services. It’s just one of the many perks of credit union membership. Consider placing a fraud alert or credit freeze on your credit reports. View Benchmark FCU’s Identity Theft Procedures to learn more about reporting, contacting the three major credit bureaus, and taking pro-active steps to protect yourself.
Stay One Step Ahead with Benchmark Federal Credit Union
At Benchmark FCU, we understand that tax scams can be daunting. That’s why we’re committed to providing you with the knowledge and tools to navigate tax season safely and confidently. If you have questions about protecting your finances or need assistance with fraud monitoring, don’t hesitate to reach out. We’re here to support you year-round.
Learn More
Read more tax season tips in our blog, “7 Proven Tips to Breeze Through Tax Season Stress-Free.”
Learn how to better protect yourself from the latest scams in our blog, “AI-Powered Phishing: Don’t Let a Clever Email Compromise Your Account.”