AI-powered tax scams are on the rise — here’s how to protect yourself

The tax filing season in 2025 has become increasingly dangerous as artificial intelligence enables scammers to create highly convincing impersonations of IRS agents and tax professionals. A recent LifeLock study reveals that 56% of individuals have encountered AI-powered tax scams featuring realistic voice simulations, while the IRS Criminal Investigation unit uncovered over $9.1 billion in tax fraud and financial crimes in 2024, nearly double the amount from 2022.

The evolving threat landscape: AI technology has transformed tax-related fraud by enabling scammers to create nearly indistinguishable fake communications and impersonations.

• Fraudsters now employ AI-generated voice scams that can accurately mimic IRS agents and tax professionals
• The IRS reports a significant surge in financial crimes, with fraud cases nearly doubling between 2022 and 2024
• 81% of victims report financial impacts after falling for tax-related scams

Emerging scam tactics: Three new sophisticated fraud schemes have emerged in 2025, leveraging AI to target taxpayers.

• W-2 phishing scams use AI to create personalized messages impersonating executives to obtain sensitive tax documents
• Disaster relief fund scams exploit IRS tax extensions by impersonating officials to steal data and payments
• Offer in Compromise (OIC) scams deploy AI-powered robocalls and deepfake videos to convince victims to pay upfront fees for nonexistent tax debt relief services

Essential protective measures: LifeLock experts recommend a multi-layered approach to guard against AI-powered tax fraud.

• Use only tax preparers with valid Preparer Tax Identification Numbers (PTIN)
• Remember that the IRS never initiates contact through email, text, or social media
• Establish a safe word with tax preparers to verify authentic communications
• Monitor financial accounts regularly for unauthorized activity
• Report suspicious activity to both the IRS and Federal Trade Commission
• Consider identity theft protection services that include scam detection tools

Looking ahead to future threats: The rise of AI-powered tax scams marks a significant shift in the cybersecurity landscape, requiring taxpayers to adopt more sophisticated protection strategies beyond traditional vigilance.

• The increasing sophistication of AI-generated content suggests that scams will become even more difficult to detect
• Partnership between taxpayers, legitimate tax professionals, and cybersecurity services will become increasingly crucial for protection against evolving threats
• The development of AI-powered defensive tools may become necessary to counter AI-enabled scams