Tax season: A playground for identity thieves?
Published on April 15, 2026
Tax filing season is often a time of stress and paperwork, but for cybercriminals, it’s the most profitable time of the year. While digital filing has made the process more convenient, it has also opened new doors for scammers to exploit taxpayers. According to the latest data, tax-related fraud is reaching unprecedented heights, threatening both individuals and government agencies.
Key takeaways
Recent reports from IRS Criminal Investigation opens in a new tab reveal a surge in financial crimes, with over $4.5 billion in tax fraud — a massive 111.8% increase from the previous year. This spike suggests that scammers are becoming more aggressive and sophisticated in their tactics to steal money.
The danger isn’t just to the government — individuals get scammed, too, with the average victim losses now exceeding $32,000 opens in a new tab. A 2025 analysis of BBB Scam Tracker reports opens in a new tab found that tax scam reports increased by 62% year-over-year, rising from 227 in 2024 to 368 in 2025. These scams often involve phishing emails that mimic official institutions to trick taxpayers into handing over sensitive data.
Identity theft remains the engine driving these attacks. In the 2025 filing season alone, the IRS flagged 2.1 million tax returns for potential identity theft opens in a new tab. This surge also reflects in public sentiment — research from NordVPN shows that 65% of people now worry about identity theft more than any other online threat.
To top off these deceptive tactics, scammers are now using AI to generate even more convincing phishing messages. So this tax season, a high level of skepticism and proper cybersecurity routine are your best bets against tax fraud.
