Financial Losses from Tax Scams Top $1,000 on Average—and Gen Z is a Growing Target

Tax season is already stressful for many Americans, and to make matters worse, it’s also a golden opportunity for scammers.  

According to a new 2025 tax season survey conducted by McAfee, nearly half (48%) of people say they, or someone they know, has received a message via email, social media, phone call, or text message falsely claiming to be from the IRS or an official state tax authority. 

And when these deceptive messages and other manipulative AI practices work, research reveals it costs — a lot. 

The Findings: 10% of Tax Scam Price Tags Topped $10,000 

Gen Z adults (18-24) surveyed by McAfee reported experiencing the most scams, with nearly 40% saying they or someone they know has been scammed.  

While young adults face high rates of attempted fraud, older adults (65-74) are still at greater risk of large financial losses. Among men in that age group who lost money in such a scam, 40% reported losing between $751 and $1,000, and half of the women lost between $2,501 and $5,000.  

Meanwhile, the steepest losses overall were reported by those aged 45-54, with 10% saying they lost more than $10,000. 

How Tax Scams Work and The Growing Role of AI 

Criminals have long relied on phishing emails and fraudulent calls to obtain personal information—especially during tax season. Today, AI is raising the stakes.  

Deepfake audio lets scammers sound exactly like IRS agents, and AI-generated phishing emails perfectly replicate official communications from reputable tax preparation services. 

In fact, more than half (55%) of Americans say they’ve noticed scam attempts becoming more realistic than in previous years, and 87% worry AI is making them even harder to detect. 

Here’s how a typical tax scam might play out: It often starts with an urgent text or email claiming your refund was rejected—or that you owe back taxes and must pay immediately. These messages can look and sound incredibly convincing, prompting recipients to click a malicious link or call a fake helpline.  

Once scammers have your attention, they’ll ask for personal or financial information—like your Social Security number, bank details, or a credit card—to “fix” the supposed problem. Of course, it’s all a ploy to steal your identity or your cash. 

Popular Tactics of Tax Fraudsters 

McAfee highlights several tactics that have emerged in these AI-driven scams: 

• Fake IRS Messages: Nearly half (48%) of Americans have received fraudulent messages from someone posing as the IRS, often pressuring recipients to act quickly. 

• Impersonating Tax Services: One-third (33%) of respondents report they—or someone they know—were contacted by scammers pretending to be from trusted tax providers such as TurboTax or H&R Block. 

• Baiting Victims with Fake Refunds: Over a third (35%) encountered deceptive messages promising tax refunds and containing malicious links. 

• Cryptocurrency Scams: Men are three times more likely than women to be targeted with fraudulent cryptocurrency tax payment schemes. 

How To File Taxes Safely in 2025 

1. File early—before cybercriminals do it for you.
   Get your hands on your W-2 and file as soon as possible. The earlier you file, the less time scammers have to fraudulently file taxes in your name.
2. Keep an eye on your credit and identity.
   Regularly reviewing your credit report can help you spot unusual activity early—such as unauthorized accounts or big changes to your score. Consider services that monitor your personal info on the dark web and provide timely alerts if anything suspicious surfaces.
3. Beware of phishing attempts.
   Phishing remains the top tactic scammers use during tax season. Look out for suspicious emails or texts—especially those requesting personal or financial information. When in doubt, don’t click; verify the request with the official source. Remember, the IRS won’t initiate contact by email, text, or social media to request details.
4. Watch out for spoofed websites.
   Scammers can create phony web addresses that look strikingly similar to real do-it-yourself tax software sites. Type the address of your tax prep website directly into your browser instead of clicking on links in emails or online ads. If something looks off, investigate the domain before entering sensitive info.
5. Protect yourself from scam messages.
   Tax scam links can show up via text, social media, and email. Be wary of any message urging you to click on a link for a refund or urgent payment. Tools like a text scam detector can help you spot questionable URLs and block risky sites automatically.
6. Clean up your personal info online.
   Cybercriminals often gather phone numbers and email addresses from data broker sites or “people finder” platforms. Reducing your digital footprint by removing your info from these sites can limit the ways scammers can contact you in the first place.
7. Consider an identity theft protection solution.
   If your data is compromised, identity theft protection services can help you respond quickly. These services often include personal and financial monitoring along with recovery tools that can help you secure your identity if the worst happens.
8. Ignore ‘official’ messages asking for urgent payment.
   The IRS rarely, if ever, contacts taxpayers via text, email, or social media. Messages pushing immediate payment or threatening legal action should be treated with extreme caution.
9. Go directly to reliable sources.
   If you’re concerned about a tax issue, visit IRS.gov or call them directly using the number listed on their official site. Don’t rely on links from emails or internet searches where scammers may have placed look-alike websites.
10. Use AI-powered security tools.
    Tools like McAfee+ can detect and block fraudulent communications—which can be especially helpful as AI makes phishing attempts more realistic. 

Tax scams show no signs of slowing down in 2025. Whether you’re part of Gen Z, a senior, or somewhere in between, it pays to stay vigilant.  

By recognizing the signs of a scam, safeguarding your personal information, and taking proactive steps, you can help ensure your refund ends up where it belongs: in your pocket. 

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