Technology
How scammers use AI tools to file perfect-looking tax returns in your name
When you think of “tax fraud,” you probably think of people who find ways not to file their taxes honestly. But with the advancement of artificial intelligence, there’s a new type of tax fraud out there.
This one involves hackers using a form of identity hijacking to file a tax return in someone else’s name and get the refund sent to them.
The dark web is revealing that tax fraud is on the rise. Here’s what you need to look out for to avoid becoming a victim.
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Post-it note on a tax form (Kurt “CyberGuy” Knutsson)
What is AI-powered fraud and identity hijacking?
AI-powered fraud is when hackers utilize AI’s abilities to commit sophisticated acts of fraud. One type of AI-powered fraud is known as identity hijacking, which is when hackers not only steal someone’s identity but impersonate them in all sorts of ways. One example is through deepfakes, which can have scary consequences for more than just the person being impersonated.
WHAT IS ARTIFICIAL INTELLIGENCE (AI)?
Another is through AI tax fraud, which is when the hacker uses AI to take your sensitive information and use it to ultimately get your tax return sent to them.
But how exactly do they do this?
Laser scanner over a person’s face (Kurt “CyberGuy” Knutsson)
MORE: DON’T FALL FOR THESE SNEAKY TAX SCAMS THAT ARE OUT TO STEAL YOUR IDENTITY AND MONEY
How fraudsters are using AI to commit tax fraud
This new type of tax fraud was reported by the CEO of LexisNexis Risk Solutions’ Government group, Haywood Talcove, a cybersecurity and data analysis company.
The acceleration of fraud through AI
Historically, tax fraud has involved the use of stolen Personally Identifiable Information (PII), which refers to data that can be used to identify you. It includes both sensitive and non-sensitive information.
Sensitive PII: Full name, Social Security number, driver’s license, mailing address, credit card details, passport information, financial records and medical history. Companies often use anonymization techniques to protect sensitive PII when sharing data.
Non-sensitive PII: Zip code, race, gender, date of birth and even information available on social media sites. While non-sensitive PII is less critical, it can still contribute to identifying you.
Thanks to AI, criminals can now more efficiently exploit stolen (PII) Personally Identifiable Information for fraudulent activities.
The process: From PII theft to fake IDs
Hackers may acquire PII through various means, such as phishing scams or malware. This information is then used to create fraudulent IDs, complete with the victim’s details but the fraudster’s photograph.
Exploiting facial recognition for IRS access
With a fake ID in hand, fraudsters can bypass the IRS’s facial recognition security measures, allowing them to file tax returns in the victim’s name and redirect refunds to their accounts.
IRS documents (Luke Sharrett/Bloomberg via Getty Images)
The call for enhanced verification measures
Experts are urging government agencies to implement more robust verification processes, such as cross-referencing IDs with DMV records, to combat this sophisticated form of tax fraud.
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How to determine if someone filed a tax return in your name
When the IRS identifies issues with your tax return, it will send you a letter before issuing any refunds. This notification provides an opportunity for you to flag the initial return as fraudulent and proceed with filing normally.
The IRS employs systems to detect suspicious returns. However, if its algorithms fail to identify anomalies and process a fraudulent return, you won’t discover it until you attempt to file your own return and encounter rejection.
In most cases, the second option is more common. Taxpayers typically receive an e-file rejection notice, which indicates a problem. Unfortunately, these notifications lack specific details. Instead, they merely highlight an issue related to the Social Security number. If you haven’t accidentally transposed any digits, it’s likely that tax identity theft caused the rejection.
What happens after the scammer files a fake tax return in your name?
The primary consequence of a fake tax return is the theft of your tax refund. The scammer essentially impersonates you and diverts your rightful return into his bank account. But the trouble doesn’t stop there. When you try to file your legitimate return, the IRS system will likely reject it due to a duplicate filing. This throws you into a bureaucratic maze to resolve the issue and prove your identity.
Adding to the frustration, tax identity theft is a growing crime, and the IRS processes for resolving these situations are still evolving. This can mean extended delays and uncertainty while you straighten things out.
Scam written on tax documents (Kurt “CyberGuy” Knutsson)
MORE: HOW IMPOSTERS ARE TRYING TO EXPLOIT YOUR GRIEF AND WALLET IN A NEW FUNERAL SCAM
6 ways to protect yourself from AI tax fraud
Again, since this is a relatively new scam, cybersecurity experts are still learning a lot about what it looks like and, therefore, how to mitigate it. However, now that you are aware it’s out there, here are six things you can do to keep yourself safe.
1. File your taxes as early as possible. If you beat them to it, they can’t commit the fraud.
2. Never share your personal information, especially your Social Security number or other PII information, on messaging apps or during a phone call with someone you don’t know. Many phishing attempts lead people to give this information away before they’ve even realized what has happened.
3. Use strong passwords and reset them often. Create strong passwords for your accounts and devices, and avoid using the same password for multiple online accounts. Consider using a password manager to securely store and generate complex passwords. It will help you to create unique and difficult-to-crack passwords that a hacker could never guess.
4. Use an identity theft protection service: Using an identity theft protection service can be a crucial step in safeguarding yourself against tax fraud. Identity theft companies can monitor personal information like your Social Security number, 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. See my tips and best picks on how to protect yourself from identity theft.
5. Don’t click on links or files when you don’t know what they are, even if they are from a trusted friend. That friend could have been hacked, and now someone is after you. 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.
6. Do your best to make sure your sensitive data is not easy to find online. While no service promises to remove all your data from the internet, having a removal service is great if you want to constantly monitor and automate the process of removing your information from hundreds of sites continuously over a longer period of time. Check out my top picks for removal services here.
If you suspect you’ve been a victim of tax fraud, the official IRS website provides step-by-step guidance on how to handle the situation.
Kurt’s key takeaways
It’s no doubt scary to think about all the different ways hackers and scammers can take advantage of you. And because AI is making their work easier, it’s hard to keep up. What will they think of next? That’s why, here at CyberGuy, we do our best to keep you up to date on the latest hacking news, so you can stay one step ahead of the crooks.
In light of the growing threat of AI-powered fraud, what additional security measures do you think the government should implement to safeguard your personal information? Let us know by writing us at Cyberguy.com/Contact
For more of my tech tips and 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.
Microsoft’s Office 2019 apps for Mac will stop working next month, because the company isn’t renewing a certificate that validates Office licenses. Owners of Office 2019 for Mac are being warned they’ll have to purchase Office 2024 or a Microsoft 365 subscription if they want to continue editing documents.
Microsoft previously promised that “all your Office 2019 apps will continue to function,” when it announced end of support in 2023. The company then quietly updated that support note last month to remove the mention of apps continuing to function, replacing it with “Rest assured that all your Office 2019 apps won’t lose any data.”
Starting on July 13th, Office 2019 for Mac and Office 2021 for Mac will both run in “reduced functionality mode,” allowing people to open files but not edit, save, or create new documents. The reduced functionality will impact Word, Excel, PowerPoint, Outlook, and OneNote.
While Microsoft is providing a certificate update for Office 2021 as it’s still supported until October 13th, 2026, the company is leaving Office 2019 for Mac users out in the cold as support for these apps ended a few years ago. “Office 2019 for Mac reached end of support on October 10, 2023, and no longer receives updates,” says Microsoft. “Because Office 2019 cannot be updated to the required version, this issue cannot be resolved by updating or reinstalling Office 2019 for Mac.”
JimmyTech points out that old versions of Microsoft 365 apps on Mac and iOS will also be affected by this certificate issue, but a simple update will fix it for those users.
Microsoft regularly ends support of software and there’s always the risk you could run into issues running older apps or versions of Windows. It’s still surprising to not see Microsoft make an exception here though, particularly because this certificate issue breaks the main functionality of an app you’ve paid a one-time license fee for.
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You know that little moment when your phone rings and the name on the screen makes you drop everything?
Maybe it says your spouse, your daughter, your boss or your best friend. You answer because you trust the name. Then the voice sounds familiar too.
That is exactly what makes the latest phone scams so dangerous.
Android’s fake call detection can warn you when a caller may be pretending to be someone saved in your contacts. (Silas Stein/Picture Alliance)
Scammers no longer have to call from a strange number. They can spoof a trusted contact’s phone number. Then they can use AI voice tools to sound like someone you know. Android is now rolling out a new feature called fake call detection to help warn you when that familiar call may be a fake.
FAKE AGENT PHONE SCAMS ARE SPREADING FAST ACROSS THE US
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What is Android fake call detection?
Android fake call detection is a new protection built into Phone by Google. It is designed to spot suspected spoofed calls when both people on the call use Phone by Google.
Think of it as your phone quietly asking, “Is this call really coming from that person’s device?” If the answer looks suspicious, your phone can show a warning and advise you to hang up. That small alert could stop a scam before fear, panic or confusion takes over.
ANDROID SECURITY UPGRADES OUTSMART SCAMS AND PROTECT YOUR PRIVACY
How Android fake call detection works
The feature works automatically in the background. You do not need to answer a quiz, scan a code or press a button during the call. When a trusted contact calls you, their phone sends a silent confirmation signal to your phone. That signal helps prove the call really came from their device.
If a scammer spoofs your contact’s number, that confirmation signal may be missing. Your phone then checks with your contact’s actual device. If the real device says it is not placing a call, your screen can warn you that the call may be fake.
The system uses end-to-end encrypted RCS technology, so the check happens privately. You can also turn the feature off in Phone by Google settings.
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Why fake calls are getting harder to spot
For years, caller ID gave people a sense of control. If the name looked familiar, most of us felt safer picking up. That old habit now works in the scammer’s favor.
Scammers can use internet-based calling tools to spoof numbers. That means your phone may display the name of someone you trust, even though the call comes from somewhere else.
Then comes the AI voice trick. With today’s audio tools, scammers can make a fake voice sound shockingly real. They may pretend to be a family member in trouble, a bank employee warning about fraud or a manager asking for urgent help.
SCAMMERS EXPLOITED MOM’S FEARS TO STEAL HER ENTIRE LIFE’S SAVINGS
That combination makes the call feel personal and immediate. It also makes you more likely to act before you think.
Why Android is adding this protection now
Impersonation scams have become a major global problem. INTERPOL’s March 2026 Global Financial Fraud Threat Assessment cited impersonation fraud as one of the leading contributors to more than $400 billion in global losses.
In the U.S., impersonation scams remain one of the top fraud categories reported to the FTC. Losses reached $2.95 billion in 2024.
GLOBAL SCAM CRACKDOWN LEADS TO 276 ARRESTS
Those numbers tell you why this feature deserves attention. Scammers go where the money is. Right now, they know trusted voices and trusted names can open the door.
Which Android phones get fake call detection?
Google says fake call detection is rolling out globally in Phone by Google this month, starting with Pixel devices.
The feature is available on Android 12 and newer devices with Phone by Google, Contacts and Google Messages installed. It also requires RCS capability in Google Messages.
SAMSUNG MESSAGES ENDING? WHAT ANDROID OWNERS MUST KNOW
There is one key limitation. Both you and the person calling you must use Phone by Google for fake call detection to work.
Phone by Google already comes as the default phone app on many Android devices. If your phone uses a different calling app, you can install Phone by Google from the Play Store and set it as your default phone app.
How Android fake call detection protects you
This feature gives you an extra warning at the exact moment you need it most. That timing is important. Scam calls often rely on emotion. The caller may say someone got arrested, a loved one had an accident or a bank account faces an urgent threat.
SSA IMPERSONATION SCAMS ARE GETTING MORE PERSONAL
When the voice sounds familiar, your guard drops. A warning on your screen can interrupt that emotional rush. It gives you a reason to stop, hang up and verify the story another way.
What Android fake call detection cannot do
This new tool helps, but it cannot protect you from every scam. It may not work if the other person does not use Phone by Google. It also may not cover calls from businesses, unknown numbers or contacts using unsupported devices. So you still need basic scam rules.
If someone asks for money, gift cards, crypto, account codes or remote access to your device, hang up. Then call the person or company back using a number you already trust.
Also, never stay on the line just because the caller tells you to. That is one of the oldest pressure tactics in the scammer playbook.
A spoofed call can look familiar on your screen, even when it is really coming from a scammer. (Kurt CyberGuy Knutsson)
How to protect yourself from AI voice scams
AI voice scams work because they sound personal, urgent and believable, so your best defense is to slow the conversation down before you act.
1) Create a family safe word
Pick a simple word or phrase that only your close family knows. It should be easy to remember but hard for a scammer to guess. Then, if someone calls with an emergency and asks for money, ask for the safe word. If they cannot give it, hang up and verify the story another way.
9 WAYS SCAMMERS CAN USE YOUR PHONE NUMBER TO TRY TO TRICK YOU
2) Pause when the call feels urgent
Scammers want you scared because fear makes people act fast. That is why fake emergency calls often sound intense, emotional and rushed. Take a breath before you do anything. A real loved one, bank or employer will let you verify what is happening.
3) Call back using a trusted number
If a call feels suspicious, hang up. Then call the person back using a number saved in your contacts or one you know is real. Do not use a number, link or instruction the caller gives you. That could send you right back to the scammer.
4) Never send money or codes during the call
Do not send gift cards, crypto, wire transfers or payment app transfers because a caller sounds convincing. Also, never share a one-time passcode, PIN or account login code over the phone. Once scammers get that information, they can move fast.
5) Turn on scam protections on your phone
Use the built-in protections already available on your device. Pixel and Samsung users can enable Scam Detection in the Phone by Google app to help flag suspicious calls. Also, consider using strong antivirus software that includes AI-powered scam protection to help detect scams in texts, online content and deepfake videos. Keep an eye on call warnings too. If your phone tells you something looks risky, treat that alert seriously. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android & iOS devices at Cyberguy.com
6) Keep your phone apps updated
Update Phone by Google, Google Contacts and Google Messages when updates are available. These tools work best when your apps and phone software stay current. Updates often include security improvements, bug fixes and new scam protections.
Here’s how to check for updates on Android:
- Open the Google Play Store app.
- Tap your profile icon in the top right corner.
- Tap Manage apps & device.
- Under Updates available, tap See details.
- Look for Phone by Google, Google Contacts and Google Messages.
- Tap Update next to each app, or tap Update all.
You can also turn on automatic app updates by opening the Google Play Store app, tapping your profile icon, then going to Settings > Network preferences > Auto-update apps. From there, choose whether to update apps over Wi-Fi, over Wi-Fi or mobile data, with limited mobile data or not at all.
Kurt’s key takeaways
If a call feels urgent or suspicious, pause before you respond and verify it another way. (Tristan Spinski/The Washington Post via Getty Images)
Android’s fake call detection is a smart step in the fight against AI-powered phone scams. It recognizes something many people already know: the name on your caller ID no longer proves the person calling you is real. This feature gives Android users another layer of protection when scammers try to hijack trust. Still, the safest move remains simple. Slow down, verify the call and never let panic make the decision for you.
Should the government do more to stop scammers from using AI voices to impersonate the people you trust? Let us know by writing to us at CyberGuy.com
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Copyright 2026 CyberGuy.com. All rights reserved.
Congress narrowly voted to fund President Donald Trump’s mass deportation agenda, giving the Department of Homeland Security $70 billion over the next three years.
The house voted 214 to 212 in favor of the reconciliation bill Tuesday, following the Senate’s 52-47 vote last Friday morning. The vote fell largely along party lines. Sen. Lisa Murkowski (R-AK) was the only Senate Republican to vote against it. Rep. Tim Walberg (R-MI), initially voted against the bill — meaning it would have failed — but changed his vote after huddling with House Majority Leader Steve Scalise (R-LA) and Appropriations Chair Tom Cole (R-OK), according to The Hill. No Democrats voted in favor of the funding bill, which was done through a budget reconciliation process to avoid a Democratic filibuster.
In a speech on the House floor ahead of the Tuesday vote, Rep. Mary Gay Scanlon (D-PA) criticized Republicans for using the budget reconciliation process to avoid negotiating with Democrats, and emphasized ICE’s lack of popularity with the American people.
“At its core, this Republican reconciliation budget bill is a statement about priorities, and the priorities represented in this budget bill could not be more out of step with the needs and values of the American people,” Scanlon said.
Scanlon noted that DHS has yet to spend $100 billion of the nearly $200 billion it received under Trump’s One Big Beautiful Bill Act. She added that Trump has not only expanded ICE’s reach by increasingly going after legal immigrants but also weaponized DHS against its critics. The bill, she said, will “supercharge” Trump’s abuses.
After the House markup last Friday, Rep. Rosa DeLauro (D-CT), ranking member of the House Appropriations Committee, noted that the bill not only lacks sufficient reforms but also cuts funding for cybersecurity and TSA, whose workers went weeks without pay during the DHS shutdown.
The funding bill comes at a time of deep unpopularity for ICE. One recent poll found that just 33 percent of voters approve of how the agency is doing its job.
And it comes amid yet another threat from border czar Tom Homan to flood New York City with ICE agents. In an interview with Fox News on Monday, Homan said he would send “more ICE agents than you’ve ever seen” to New York City if the state government passed a bill limiting cooperation with DHS.
“Providing a quarter trillion dollars to an administration promising that the public ‘ain’t seen shit yet’ when it comes to mass deportation is a historic mistake,” Todd Schulte, president of the immigration reform group FWD.us, said in a statement. “Supercharging the funding for these already out of control systems will come with terrible human consequences and continue to be met with increasing opposition from voters.”
Correction, June 9th: A previous version of this story said Rep. Tim Walberg voted against the funding bill. He initially voted against it but then changed his vote to support it.
Update, June 9th: This story has been updated to include comment from FWD.us president Todd Schulte.
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