Technology

How scammers use AI tools to file perfect-looking tax returns in your name

Published

2 years ago

March 17, 2024

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How scammers use AI tools to file perfect-looking tax returns in your name

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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.

MORE: WHY YOU SHOULD NEVER CARRY THESE THINGS IN YOUR WALLET

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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Technology

Did Live Nation punish a venue by taking Billie Eilish away?

Published

7 hours ago

March 4, 2026

Press Room

Did Live Nation punish a venue by taking Billie Eilish away?

John Abbamondi had orders to let the CEO of Ticketmaster down easy.

In April 2021, Abbamondi was the CEO of BSE Global, the company that ran Brooklyn arena the Barclays Center. BSE Global’s existing Ticketmaster contract would expire at the end of September, and Abbamondi and his team had evaluated proposals from SeatGeek, AXS, and Ticketmaster. The economics of Ticketmaster offer, according to Abbamondi, “was nowhere near as good as the other two.” SeatGeek’s technology was “superior” to Ticketmaster’s on balance, on top of better financial terms including an equity stake in the company, the arena decided. It clinched their decision to go with a newer, smaller player in the field.

When Abbamondi called to break the news to Michael Rapino, the Live Nation Entertainment CEO, the meeting became tense — and a recording of it came back to haunt Rapino in this month’s Live Nation-Ticketmaster monopoly trial. Abbamondi was one of two witnesses who took the stand Wednesday, alongside Mitch Helgerson, the chief revenue officer for the Minnesota Wild hockey team. Both men said that when they considered switching their venues’ ticketing platform from Ticketmaster, executives there threatened them with the loss of vital Live Nation-promoted concerts. It’s the behavior, the Justice Department and 40 state and district attorneys general say, of a monopolist — a charge Live Nation-Ticketmaster denies.

Abbamondi, identifying the voices on the 2021 call to a Manhattan jury Wednesday, said that “the nervous guy was me and the angry guy was Michael.” The few minutes played in court captures an exchange that went “sideways,” as Abbamondi put it, when he tried to thread a delicate needle: rejecting Ticketmaster’s services while trying to hold its parent company Live Nation to a separate contract promising to fill Barclays Center with concerts. At one point, Rapino dropped an F-bomb while discussing his frustration over a contractual dispute. He told Abbamondi he believed they were never planning to renew with Ticketmaster in the first place.

Rapino reminded Abbamondi about the new UBS Arena in Queens, which could draw more Live Nation-promoted shows away from Barclays. Though Ticketmaster theoretically operates separately from Live Nation, Abbamondi took this as a “not-so-veiled” threat — cut off the left arm, and the right arm would swing back. Abbamondi hung up feeling like he’d failed to “do my job there, which was to land the plane smoothly.”

The venue “saw a dramatic decline in Live Nation shows that were booked at the arena”

Abbamondi still signed the deal with SeatGeek, which began in October 2021. Then, he testified, the venue “saw a dramatic decline in Live Nation shows that were booked at the arena.” Artists were just beginning to fill stadiums again after the start of the covid pandemic, including Billie Eilish, who’d had to cancel shows in New York venues including Barclays in 2020. Normally, Abbamondi would have expected Live Nation to rebook her show there next time she was on tour. But when she began touring again in 2021, she booked at the new venue Rapino had warned about — the UBS Arena. When Barclays asked about it, they were told it was the “artist’s decision.” Other promoters, he said, hadn’t reduced their bookings at Barclays by nearly as much.

In 2022, mere months into the SeatGeek contract, Abbamondi was fired. Less than a year later, Barclays announced it was going back to Ticketmaster.

Ticketmaster, in the witnesses’ telling, wasn’t the best option for a ticketing vendor, but Live Nation’s power as a concert promoter forced their hand. In the case of the Minnesota Wild, which played at the then-Xcel Energy Center in St. Paul, Helgerson said the fear of losing Live Nation shows was a large driver behind its decision to stick with Ticketmaster — even though it found it would make $1 million a year more switching to SeatGeek.

The arena was already engaged in tight competition for concerts with the Target Center across the river in Minneapolis, a similarly-sized venue. So when the Wild kicked off negotiations over renewing its contract with Ticketmaster in 2018, the ticketing service knew how to hit them where it would hurt. When the Wild staff mentioned they were planning to consider a proposal from SeatGeek too, a Ticketmaster executive told them that Live Nation could move all of their shows to the Target Center if they switched ticketing vendors, Helgerson testified. “We took it as a credible threat,” he said. “Losing those shows would be almost catastrophic to our organization.”

“We took it as a credible threat”

To ease the risk, SeatGeek offered what it called “Live Nation retaliation insurance” — a promise to compensate the arena for concerts booked at the Target Center on dates Xcel had open. SeatGeek offered the arena a higher upfront bonus and fee share that overall would make the venue an additional $1 million a year compared to Ticketmaster’s offer. But even retaliation insurance couldn’t make up for the loss of the “vibrance of the venue” and the impact on its own employees should Live Nation pull its shows. Ticketmaster’s alleged threat created an “insurmountable challenge.” The venue signed another contract with Ticketmaster.

There were complicating factors in both these cases, which Live Nation pointed out on cross-examination. It was both risky and a lot of work to move to a new ticketing platform. Like switching any enterprise software, it would take a while for staff to get up to speed, and Abbamondi admitted that while SeatGeek’s technology gave them more options over things like how to price individual seats, it was less user-friendly. An executive whom Helgerson worked with worried that SeatGeek’s lack of an interface for concert promoters at the time would be an obstacle to getting them to bring shows to the arena. Abbamondi also said he’s personal friends with SeatGeek’s co-founder, and he testified he wasn’t fired because of the SeatGeek deal — he was given two other reasons.

SeatGeek offered what it called “Live Nation retaliation insurance”

There was also a separate legal dispute between the Barclays Center and Ticketmaster, which appeared to be at least part of the reason that the call between Abbamondi and Rapino broke down. Barclays believed their contract with Ticketmaster would expire at the end of September 2021, as originally stated. But Ticketmaster believed that because the Covid pandemic shortened the regular NBA season, a clause in the contract had been triggered to extend that contract another year. On top of that, in an earlier, unrecorded call between Abbamondi and Rapino, the Ticketmaster CEO suggested that they should be given the chance to counter any offer Barclays received. Abbamondi said he tried his best to respond in a “noncommittal” way, but the implication was that Rapino might have seen it differently.

The jury will have to decide whether the threats Abbamondi and Helgerson described were really as menacing as they believe, one of many factors that will determine whether Live Nation-Ticketmaster should face penalties — including the possibility of a breakup.

In one text exchange, Live Nation executive Patti Kim, a friend of Abbamondi’s, wrote that he should “think about the bigger relationship” with Live Nation, not just who’s writing the bigger check. She added a winky face. “That was my friend saying, ‘you know what I mean,’” Abbamondi said. This week, the jury is expected to get the chance to hear from the rival allegedly offering those bigger checks: SeatGeek CEO Jack Groetzinger.

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Lauren Feiner

Technology

Scams that aren’t illegal (but should be)

Published

7 hours ago

March 4, 2026

Press Room

Scams that aren’t illegal (but should be)

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Every year during National Consumer Protection Week, you hear warnings about phishing emails, fake IRS calls and identity theft. Those threats are real, but there is another risk that gets far less attention, and it is completely legal.

Right now, hundreds of companies collect, package and sell personal information, including your home address, phone number, family members, income estimates and even your daily habits. They are not targeting you because you did anything wrong. Instead, they profit simply because your data is valuable.

Unlike traditional scams, this does not happen in the shadows. It happens out in the open, every single day. As a result, most people only realize it is happening after someone uses their personal information against them.

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Data brokers build detailed profiles using information pulled from public records, apps and online activity. (Kurt “CyberGuy” Knutsson)

Your personal information is a product

Data brokers are companies most people have never heard of, but they know a surprising amount about you. They collect information from public records, online activity, retail purchases, app usage and hundreds of other sources.

Then they build detailed profiles and sell them to advertisers, marketers and anyone else willing to pay. A typical profile may include:

Full names, ages and phone numbers
Home addresses
Names of relatives and household members
Estimated income, home value and net worth
Shopping habits and interests
Political, health and lifestyle indicators

This information often appears on people-search sites, where anyone can look you up in seconds. Scammers use these same databases to find and target victims. But even legitimate companies use them in ways most consumers never knowingly agreed to.

People-search sites expose more data than you realize

Search your own name online, and you may find pages listing your address, relatives’ names and contact details. These sites present themselves as “background check tools” or “public records directories.” But their business model depends on making personal information easy to find.

That creates real-world risks. Criminals use these sites to:
Impersonate banks, government agencies, or delivery services
Convince victims they already “know” them
Locate elderly or vulnerable individuals
Target family members using shared address history.

Even strangers can learn where you live, who your relatives are and how to contact you. No hacking required.

CRIMINALS ARE USING ZILLOW TO PLAN BREAK-INS. HERE’S HOW TO REMOVE YOUR HOME IN 10 MINUTES

People-search websites make your address, phone number and even family connections easy to find in seconds. (Serene Lee/SOPA Images/LightRocket via Getty Images)

Your browsing history is being tracked and sold

Many websites and apps track what you click, read and buy. Incogni’s research found that popular apps like TikTok, Alibaba, Temu and Shein collect numerous personally identifiable data points and share them with third parties, like advertising networks and data brokers.

Even web extensions track what you do online. Popular Chrome extensions like the AI-powered Grammarly or Quillbotinvade your privacy, require extensive permissions and collect sensitive data.

Over time, this data collection builds a behavioral profile. It can reveal:

Financial stress or debt concerns
Health interests or medical conditions
Major life events like moving, retirement, or the loss of a spouse
Online purchases and brand preferences.

This is why you may suddenly receive highly specific emails, calls, or ads that feel uncomfortably personal. Someone already knew what to say.

AI is accelerating data collection

AI makes personal data more valuable and easier to collect than ever before. These systems scrape public websites, social media profiles, images and videos to pull identifying details. They also connect scattered pieces of information into a single, detailed identity profile, which can include:

Photos connected to your name
Voice recordings from public videos
Employment history
Locations you’ve lived at or visited.

Once collected, this information can circulate indefinitely. You can delete a social media post, but copies of that data may already exist elsewhere.

5 SIMPLE TECH TIPS TO IMPROVE DIGITAL PRIVACY

The more accessible your personal data is, the easier it becomes for scammers to target you with convincing, personalized attacks. (Kurt “CyberGuy” Knutsson)

Most AI companies collect data by default, unless you opt out

Are you using ChatGPT, Gemini, or even LinkedIn? Then your data is automatically collected from your chatbot conversations, posts, and more. They collect user interactions like prompts, voice recordings, uploaded photos and behavioral data to improve the AI system.

In some cases, you have to manually disable this in settings, but it’s buried in countless opt-out guides or obscure labels. For example, to opt out of LinkedIn data collection, you need to:

Go to Settings and find the Privacy tab.
Find the toggle named ‘Data for Generative AI Improvement.’
Review other default data sharing options.
Disable everything from personal demographic information to social, economic and workplace research.

AI-powered apps and services continuously switch it up and make it harder for you to opt out. Why? Your data is fueling their business model. The more data points they have, the better they can train their AI and the more money they make.

Why this matters for your safety, not just your privacy

Most people think data collection is just about targeted ads. But the same information can be used to make scams far more convincing. Instead of sending generic phishing emails, scammers can reference your real address or recent activities.

For example: “Hi, Mr. Smith, this is your bank. We noticed unusual activity on your bank account, ending in 0123. Please confirm your information.”

Because the details are accurate, the message feels legitimate. This dramatically increases the chances someone will respond. In many cases, the information came from data broker databases that were legally purchased or accessed.

Consumer protection starts with reducing your digital footprint

National Consumer Protection Week is meant to empower people to protect themselves. That protection shouldn’t stop at obvious scams. It should include limiting how easily your personal information can be found in the first place.

A data removal service helps remove your personal data from data brokers and people-search sites that collect and sell it. Instead of submitting dozens or hundreds of manual requests yourself, they automate the process and continue removing your data as it reappears.

Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting Cyberguy.com.

Get a free scan to find out if your personal information is already out on the web: Cyberguy.com.

Kurt’s key takeaways

When most people think about scams, they imagine criminals hiding in the shadows. But some of the biggest threats to your personal information are operating out in the open. Data brokers legally collect and sell detailed profiles about you. People-search sites make your address, phone number and even relatives easy to find in seconds. Your browsing activity is tracked, packaged and monetized. And now AI is speeding up how quickly that information can be gathered, connected and reused. This is not just about annoying ads. The more accessible your personal data is, the easier it becomes for scammers to sound convincing and target you with precision. Real consumer protection is not only about avoiding suspicious links. It is about limiting where your information lives and who can access it. The less strangers know about you, the harder it is to use your own data against you.

Have you ever searched for your name online and been surprised by what you found? Let us know by writing to us at Cyberguy.com.

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Kurt “CyberGuy” Knutsson is an award-winning tech journalist who has a deep love of technology, gear and gadgets that make life better with his contributions for Fox News & FOX Business beginning mornings on “FOX & Friends.” Got a tech question? Get Kurt’s free CyberGuy Newsletter, share your voice, a story idea or comment at CyberGuy.com.

Technology

MacBook Neo versus an old MacBook Air: good luck

Published

19 hours ago

March 4, 2026

Press Room

MacBook Neo versus an old MacBook Air: good luck

My first thought when Apple announced the MacBook Neo today was “okay, but why not just get an older Air?” If you’re thinking that too, you might be right. If you can find one.

The Neo starts at $599 with an A18 Pro processor, 8GB of memory, and 256GB storage, and ends at $699 with the same specs plus TouchID and 512GB of storage. It has two USB-C (not Thunderbolt) ports, a pretty basic-looking screen, a mechanical trackpad instead of haptic, and various other cost-saving measures. It’s the cheapest new MacBook you can get now.

The new M5 MacBook Air starts at $1,099 with 16GB of memory and 512GB of much faster storage, a bigger and brighter screen, a better webcam, better Wi-Fi and Bluetooth, more speakers, Thunderbolt 4, a faster charger, and so forth. It’s $100 more than last year’s model, probably because of the Neo. Or you can get an M4 MacBook Air for $1000, with a slightly slower processor than the M5 (but still faster than the Air), and otherwise pretty much the same specs.

If you could still get a new M1 Air from Walmart for $700, it’d be a pretty tough call between that and the Neo. That machine came out in 2020, but is still better in most respects. Unfortunately, they’ve been out of stock since last month — probably because of the Neo — so that’s the end of that. You can probably find a refurb one. Same with the M3 and M4: if you can find one for around the same price as the Neo, especially with 16GB of RAM, you should get one of those. But they’re pretty thin on the ground, and I’d expect them to become thinner. (Keep an eye on Apple’s refurb site, though — a refurb M4 Air for $750 is pretty dang good.)

The modern Air is unquestionably a better computer. The thing about $1,000 is it’s a lot more money than $600. $600 is already more than most non-Mac people want to spend on a laptop, but it’s a lot less than an Air, and the gap between the two is big enough that it’s harder to justify the jump unless you know you’re gonna need more than 8GB of RAM, if you’re ever gonna use Thunderbolt, and so forth. I wouldn’t buy the Neo for myself.

The Neo isn’t meant to compete with the Air, though. It’s aiming for the first-time MacBook buyer. It’s Apple trying to pick up the cheap Windows laptop crowd who are annoyed by Windows. With its $499 price for education, it’s also an attempt to break the Chromebook’s stranglehold on the K-12 market, to turn iPad kids into MacBook Neo teens into Air adults. Heck, when it’s time for my kids to turn in their school-issued Chromebooks, and I have to choose between a Chromebook, a Windows laptop, and a MacBook Neo for them? That’ll be interesting.

And that’s how they get you!

I honestly don’t think the Neo vs Air debate is going to be that hard for most people, just because most people aren’t spending a thousand bucks on a laptop in the first place. The processor’s probably going to feel about the same as an M1 Air’s, which is to say fast enough for most things. The toughest parts are going to be figuring out if you’re satisfied with 8GB of RAM (rough!), if you ever really need Thunderbolt (maybe not?), and if you care about that fancy webcam (eh). If you already know the answer, you already know the answer. And you should probably grab that refurb Air while you can.

A cynical part of me thinks this is Apple trying to get MacBooks onto the same upgrade cycle as its phones. If you bought the cheapest MacBook Air six years ago, it’s probably still fine. If you buy the cheapest MacBook Neo today, is it going to feel fine in six years? Maybe! Or maybe you’ll decide you need to spring for an Air next time. And up the funnel you go.