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It’s relentless. The deluge of sketchy texts and emails about undeliverable packages, unpaid tolls, or suspicious activity on our bank accounts is enough to make anyone bonkers, even when you can spot the scam from a mile away. And now it’s tax season, and scammers are on the prowl to steal our hard-earned cash by impersonating the IRS. Imposter scams are the most prevalent type of fraud, with about one in five people losing money to them, according to the Federal Trade Commission. The most popular schemes — where the fraudsters impersonate some type of business or government agency — have become far more common since the pandemic turbocharged life online. In fact, Americans lost over $1.2 billion to these kinds of scams in the first nine months of 2024, more than three times as much as they did in all of 2020, the latest FTC data shows. The typical loss was $500 to $1,000, and no demographic was safe. Younger Americans actually reported losing money more often than seniors. So why are scammers so effective? For one, they know when to strike, using major events to make their scams seem legitimate. As wildfires devastated Los Angeles, criminals tried to exploit people looking to donate to relief funds. After congestion pricing came to New York City, people started seeing fake texts about unpaid tolls. And excited Philadelphia Eagles fans are expected to be inundated by offers of bogus Super Bowl tickets. Secondly, the digital age is giving criminals an increasingly advanced arsenal of weapons to try to steal your personal information. (You’ve heard of phishing, but how about smishing, and vishing?) So what? Tax season is a prime time for scams. Consumers are eager for refunds and scared of fines, making ideal targets. The National Taxpayer Advocate, an independent inspector within the IRS, named tax-related scams as one of the agency’s most serious problems, citing progressively sophisticated use of artificial intelligence and social media. Here’s the thing about the IRS: They always communicate through the mail — never by email or text. And when you get texts or emails from anyone, whether they’re purporting to be a government agency, bank or other business, remember: • Never click on links or open attachments. • Beware of urgent language meant to scare you. • Don’t share personal information such as passwords or Social Security numbers. • Reject any requests to send money directly. You might even want to test your antenna by taking this quiz from the American Bankers Association. (Can you choose which examples are legit? It’s harder than you’d think.) Related Reading • Tax Scams: What To Watch For in 2025 (CBS News) • Will Your Bank or Investment Fund Stop a Transfer to a Scammer? Probably Not (Federal Trade Commission) • 10 Steps to Avoid Scams (Better Business Bureau) Image credit: Bernie Pesko/SoFi Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision. The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content. Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners. OTM20250203SW

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