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Don’t fall for these sneaky tax scams that are out to steal your identity and money

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Don’t fall for these sneaky tax scams that are out to steal your identity and money

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Tax season isn’t fun for most people, but it can be downright miserable if you fall for a scam. This year, there’s been a noticeable uptick in scam callers impersonating IRS officials, and with the rise of AI-voice programs, these scams have become more convincing than ever.

The IRS flagged 2.4 million tax returns with refunds totaling roughly $13.8 billion for possible identity theft. Identity thieves use stolen information — like your SSN, name, address and more — to file fraudulent tax returns in your name. 

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Meanwhile, the Better Business Bureau’s (BBB) Scam Tracker collects reports on tax scams from the public. For scams reported as tax collection to BBB’s Scam Tracker in 2023, the median dollar loss was $2,100. 

Here are some of the scams the BBB warns you to look out for this tax season.

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“Tax time” post-it on tax documents. (Kurt “CyberGuy” Knutsson)

1. Phone scams

Scammers pretend to be someone from the IRS and call you to ask to make back payments or send over personal information that can’t be found in the IRS system. They often pressure you to act immediately, threatening arrest or fines if you don’t comply.

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In 2024, phone scammers have gotten so sophisticated that they will create fake badge numbers, get a fake caller ID name that appears to be from the government or leave official-sounding robocalls with the help of AI voiceovers.

NEW IRS CRACKDOWN ON ‘HIGH-INCOME’ TAX CHEATS OWING HUNDREDS OF MILLIONS

2. Phishing email scams

Phishing emails are scam emails designed to get personal information from you. Scammers will text, email or even message you on social media, claiming to be an IRS agent, and they will send you a link to a fake IRS website designed to steal your Social Security number and other sensitive personal data. Always remember: the IRS will never communicate with you via email but instead by physical USPS mail.

A person preparing their tax documents. (Kurt “CyberGuy” Knutsson)

3. Signs of tax-related identity theft

1. If you try to file your tax return by mail and receive a letter from the IRS stating that they have already received a return in your name, that could mean your identity has been compromised.

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2. Also, if you go to file your tax return electronically and the IRS alerts you that someone filed for your return using your Social Security number, then you have likely been a victim of identity theft.

3. Lastly, if the IRS sends you a letter stating that you have created a new online account and you know you didn’t do this, that is a dead giveaway that your identity may have been stolen.

Tax documents. (Kurt “CyberGuy” Knutsson)

MORE: THE URGENT PAYPAL EMAIL SCAM YOU CAN’T AFFORD TO IGNORE

Stay safe with these 8 tips from the Better Business Bureau

Tip 1 – File early

Filing early is one of the most sure-fire ways to keep yourself safe during tax season. If you file as soon as possible, there’s less of a chance someone can steal your identity by filing your taxes before you do. Always make sure to have all of your tax documents ready when you start to file.

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Tip 2 – Know how the real IRS will contact you

The IRS doesn’t send emails, and their agents will never text you or contact you on social media. Typically, the IRS will only contact you through postage mail, but there is a chance that an IRS agent may perform an in-person visit, but only after confirming the visit via postage mail.

Tip 3 – Get an identity protection PIN (IP PIN) from the IRS

An easy way to add an extra layer of security to yourself is by getting an Identity Protection PIN, or IP-PIN, from the IRS. An IP-PIN is a six-digit number that the IRS uses to confirm your identity. It can help identify you even when someone nefarious has accessed your Tax ID and Social Security number. Signing up for an IP-PIN is easy and can be done online at IRS.gov, and the IRS will mail you a new IP-PIN after you opt-in every December.

Calculator and tax documents. (Kurt “CyberGuy” Knutsson)

MORE: BEWARE OF THE ‘SAY YES’ PHONE SCAM

Tip 4 – Know how the IRS accepts payments

The IRS never demands immediate payment and will never ask for a credit card number or bank information over the phone. Never, under any circumstances, pay any money to someone claiming to be an IRS agent asking for cryptocurrency, digital gift cards or wire transfers.

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Tip 5 – Know the signs of fraud

If the IRS informs you that either your return has already been filed or that you received wages from an employer you aren’t familiar with, you need to visit an IRS office in person as soon as possible to ensure you haven’t fallen victim to fraud.

Tip 6 – Protect your information

Ensure you keep all documents related to your taxes in a secure location, such as a home filing cabinet or on a password-protected computer. Generally, never give out your Social Security number unless absolutely necessary.

Tip 7 – Only use secure filing websites

Always make sure you are accessing the real IRS website by checking that the URL is spelled correctly. Look for the lock symbol next to the URL in your browser’s search bar to tell you that your connection to the IRS’s website is secure.

Tip 8 – Report any suspected scams

If you receive a phone call or email asking for important tax information, hang up immediately. Report the call first to the IRS. Next, you should make a report to the Federal Communications Commission. Finally, head to the Better Business Bureau and report the scam to their scam tracker.

Person upset by what he sees. (Kurt “CyberGuy” Knutsson)

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MORE: HOW SCAMMERS USE GOOGLE VOICE VERIFICATION CODES TO STEAL YOUR IDENTITY AND MONEY

5 things to do if you are a victim of identity theft

1. Complete IRS Form 14039, the Identity Theft Affidavit: This is the form that all victims of fraud have to fill out for the IRS. This will let them know that the person who is claiming to be you is a fraud. You can find the form on the IRS website.

2. Request a copy of the fraudulent tax return from the IRS: You can do this by going to this page on the IRS website on dealing with fraudulent returns and following the instructions to order a copy.

3. Alert national credit bureaus: Let the national bureaus like Experian, Equifax and TransUnion know that there has been fraud and place a freeze on your account so that the scammers cannot get to it.

4. Report the crime to the Federal Trade Commission: The FTC is there to help track down scammers, and your report can also help them keep a record of how many scams are happening in a single year so that they can better improve how to warn others. You should also report the crime to identitytheft.gov

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5. Check your online bank accounts: Make sure there aren’t any suspicious transactions on any of your accounts.

A woman is upset while preparing her taxes. (Kurt “CyberGuy” Knutsson)

MORE: TOP WAYS TO SAFEGUARD AGAINST SOCIAL SECURITY NUMBER FRAUD

How can you protect yourself from tax-related identity theft?

Use an identity theft protection service: Identity theft companies can monitor personal information like your Social Security number (SSN), phone number and email address and alert you if it is being sold on the dark web or being used to open an account. They can also assist you in freezing your bank and credit card accounts to prevent further unauthorized use by criminals. 

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One of the best parts of using some services is that they might include identity theft insurance of up to $1 million to cover losses and legal fees and a white glove fraud resolution team where a U.S.-based case manager helps you recover any losses. See my tips and best picks on how to protect yourself from identity theft.

Have good antivirus software: The best way to protect yourself from clicking malicious links that install malware that may get access to your private information is to have antivirus protection installed on all your devices. This can also alert you of any phishing emails or ransomware scams. Get my picks for the best 2024 antivirus protection winners for your Windows, Mac, Android & iOS devices.

Kurt’s key takeaways

Going from winter into spring may seem like an intense time with scammers due to the tax season immediately following the holiday shopping season. However, the reality is that scammers work around the clock and are active all year. These tips from the Better Business Bureau are a helpful reminder of ways to keep yourself safe from scammers throughout the year.

How do you feel about the rise of AI-voice programs and their use in phone scams? Does it make you not even want to pick up the phone? Let us know by writing us at Cyberguy.com/Contact

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For more of my tech tips & security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Cyberguy.com/Newsletter

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Copyright 2024 CyberGuy.com. All rights reserved.

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Microsoft’s Edge Copilot update uses AI to pull information from across your tabs

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Microsoft’s Edge Copilot update uses AI to pull information from across your tabs

Microsoft Edge is adding a new feature that will allow its Copilot AI chatbot to gather information from all of your open tabs. When you start a conversation with Copilot, you can ask the chatbot questions about what’s in your tabs, compare the products you’re looking at, summarize your open articles, and more.

In its announcement, Microsoft says you can “select which experiences you want or leave off the ones you don’t.” The company is retiring Copilot Mode as well, which could similarly draw information from your tabs but offered some agentic features, like the ability to book a reservation on your behalf. Microsoft has since folded these agentic capabilities into its “Browse with Copilot” tool.

Several other AI features are coming to Edge, including an AI-powered “Study and Learn” mode that can turn the article you’re looking at into a study session or interactive quiz. There’s a new tool that turns your tabs into AI-powered podcasts as well, similar to what you’d find on NotebookLM, and an AI writing assistant that will pop up when you start entering text on a webpage.

You can also give Copilot permission to access your browsing history to provide more “relevant, high-quality answers,” according to Microsoft. Copilot in Edge on desktop and mobile will come with “long-term memory” as well, which can tailor its responses based on your previous conversations. And, when you open up a new tab, you’ll see a redesigned page that combines chat, search, and web navigation, along with the Journeys feature, which uses AI to organize your browsing history into categories that you can revisit.

Meanwhile, an update to Edge’s mobile app will allow you to share your screen with Copilot and talk through the questions about what you’re seeing. Microsoft says you’ll see “clear visual cues” when Copilot is active, “so you know when it’s taking an action, helping, listening, or viewing.”

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Apple’s $250M Siri settlement: Are you owed cash?

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Apple’s 0M Siri settlement: Are you owed cash?

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If you bought a newer iPhone because Apple made Siri sound like it was about to become your personal artificial intelligence sidekick, you may want to pay attention.

Apple has agreed to pay $250 million to settle a class-action lawsuit over claims that it misled customers about new Apple Intelligence and Siri features. The case centers on the iPhone 16 launch and certain iPhone 15 models that were marketed as ready for Apple’s next wave of AI. The settlement still needs court approval, and Apple denies wrongdoing.

The lawsuit argues that Apple promoted a smarter, more personal Siri before those features were actually available. For some buyers, that was a big deal. A new iPhone can cost hundreds of dollars, and many people upgrade only when they think they are getting something meaningfully new.

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WHY IPHONE USERS ARE THE NEW PRIME SCAM TARGETS

U.S. buyers of certain iPhone 16 and iPhone 15 Pro models may qualify for payments if a judge approves Apple’s proposed settlement. (Getty Images)

What Apple is accused of promising

Apple introduced Apple Intelligence in June 2024 and promoted it as a major step forward for iPhone, iPad and Mac. A key part of that pitch was a more personalized Siri that could understand context, work across apps and help with everyday tasks in a more useful way.

The lawsuit claims Apple’s marketing made consumers believe those advanced Siri features would arrive with the iPhone 16 or soon after. Instead, buyers received phones that had some Apple Intelligence tools, but not the full Siri overhaul that many expected.

That gap is the heart of the case. Plaintiffs say customers bought or upgraded devices based on AI features that were not ready. Apple says it has rolled out many Apple Intelligence features and settled the case, so it can stay focused on its products. 

How much money could iPhone owners get?

The proposed settlement creates a $250 million fund. Eligible customers who file approved claims are expected to receive at least $25 per eligible device. That amount could rise to as much as $95 per device, depending on how many people file claims and other settlement factors.

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That means this will not be a huge payday for most people. Still, if you bought one of the covered phones, it may be worth watching for a claim notice. A few minutes of paperwork could put some money back in your pocket.

Which iPhones may qualify?

The proposed settlement covers U.S. buyers who purchased any iPhone 16 model, iPhone 15 Pro or iPhone 15 Pro Max between June 10, 2024, and March 29, 2025.

Covered iPhone 16 models include the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max and iPhone 16e. The settlement also includes the iPhone 15 Pro and iPhone 15 Pro Max, but not every iPhone 15 model.

The key details are the device model, the purchase date and whether the phone was bought in the United States.

HOW YOU CAN GET A SLICE OF APPLE’S $250M IPHONE SETTLEMENT

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Apple has agreed to pay $250 million to settle claims it misled customers about Apple Intelligence and Siri features on newer iPhones. (Michael Nagle/Bloomberg)

How will you file a claim?

You do not need to do anything immediately. The settlement still needs a judge’s approval. Once the claims process opens, eligible customers are expected to receive a notice by email or mail with instructions on how to file through a settlement website.

That notice matters because scammers love moments like this. A real settlement notice should not ask for your Apple ID password, bank login or payment to claim your money. If you receive a message about this settlement, do not click blindly. Go slowly, check the sender and look for the official settlement administrator details once they are available.

Why this case matters beyond one Siri feature

This case hits a bigger nerve. Tech companies are racing to sell AI as the next must-have feature. That creates a problem for shoppers. You are often asked to buy now based on what a company says will arrive later.

That can be frustrating when the feature is the reason you upgraded. A smarter Siri sounds useful. A phone that can understand your personal context, search across apps and help with daily tasks could save time. But if those tools are delayed, limited or missing, the value of the upgrade changes.

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This settlement also sends a message about AI marketing. Companies can talk about future features, but consumers need clear timing and plain explanations. “Coming soon” can mean very different things when you are spending $800, $1,000 or more.

We reached out to Apple for comment, but did not hear back before our deadline.

FIRST 15 THINGS TO DO OR TRY FIRST WHEN YOU GET A NEW IPHONE

Apple denies wrongdoing but agreed to settle claims tied to its marketing of Apple Intelligence and Siri features. (Qilai Shen/Bloomberg)

What this means to you

If you bought a covered iPhone during the settlement period, keep an eye on your email and regular mail. You may qualify for a payment if the court approves the deal.

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You should also keep your receipt or proof of purchase if you have it. Your Apple purchase history, carrier account or retailer receipt may help if the claim process asks for details.

More broadly, this is a reminder to treat AI features like any other big tech promise. Before you upgrade, ask one simple question: Can the feature do what is being advertised today, or is the company asking me to wait?

That question can save you from buying a device for a future feature that may arrive much later than expected.

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Kurt’s key takeaways

Apple has built its brand on making technology feel polished, personal and easy to use. That is why this Siri settlement hits a nerve. People were buying phones they use every day for texts, photos, directions, reminders and everything in between. Many expected AI to make those everyday tasks easier, which is why the delay felt frustrating. The proposed payout may be modest, but the bigger issue is trust. When a company sells AI as a reason to upgrade, customers deserve to know what actually works now and what is still coming later.

Would you still buy a new phone for promised AI features, or would you wait until they actually show up? Let us know by writing to us at CyberGuy.com.

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Instagram hits the copy button again with new disappearing Instants photos

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Instagram hits the copy button again with new disappearing Instants photos

Instagram is once again cribbing from competitors like Snapchat and BeReal with a new photo-sharing format it calls “Instants,” which are ephemeral photos that you can’t edit and that you can only share with your close friends or followers that follow you back. Instants are available globally beginning on Wednesday as a feature in the inbox in the Instagram app and as a separate app that’s now in testing in select countries.

To access Instants from the Instagram app, go to your DM inbox and look in the bottom-right corner for an icon or a stack of photos. After you post a photo, your friends can emoji react to it and send a reply to your DMs, but after they see it, the photo disappears for them. Instants also disappear after 24 hours, and they can’t be captured in screenshots or screen recordings.

However, your Instants will remain in an archive for you for up to a year, and you can reshare them as a recap to your Instagram Stories if you’d like. You can also undo sending an Instant right after you post it or delete it from your archive.

The Instants mobile app, which popped up in Italy and Spain in April, gives you “immediate access to the camera” and only requires an Instagram account, Instagram says. “Instants you share on the separate app will show up for friends on Instagram and vice versa. We’re trying this separate app out to see how our community uses it, and we’ll continue to evolve it as we learn more.”

Instagram, in its testing, has seen that people “tend to use Instants to share much more casual, much more authentic moments about their day,” according to Instagram boss Adam Mosseri. “And we know that this type of sharing of personal moments with friends is a core part of what makes Instagram Instagram, but we also know that a lot of people don’t really share a lot to their profile grids anymore.”

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