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The taxing truth: A state-by-state analysis of tax-time trickery

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The taxing truth: A state-by-state analysis of tax-time trickery

We are less than a week away from the tax deadline, and McAfee is out with new data on tax season that can help ensure you stay safe this tax season. 

With tax return scams on the rise, rushing to get your taxes done before the deadline can be one of the ways you are more vulnerable to becoming a victim of one of these scams.

So, how can you strike the balance of utilizing tax filing software to support you in getting those taxes on time while ensuring you’re protecting yourself from the various tax scams that are out there?

Steve Grobman, senior vice president and chief technology officer at McAfee, a cybersecurity company, advises that filing your taxes on time is a key step in avoiding tax scams.

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Woman stressed out while doing her taxes (Kurt “CyberGuy” Knutsson)

What are the most common tax scams?

Tax scams have become more sophisticated over the last few years, but they are in no way new. However, with AI becoming more commonplace, scammers can utilize this technology to expedite their malicious scams. These scams can come in many different forms, but some of the most common ones are:

Phone scams: Scammers impersonate IRS officials to solicit back payments or personal information over the phone, using threats of arrest or fines to pressure immediate compliance. They may use fake badge numbers, caller IDs or robocalls enhanced with AI voice-overs.

Phishing email scams: Scammers commit fraud by sending emails or messages pretending to be from tax authorities or reputable tax software companies. They entice recipients to click on links that lead to fake websites designed to steal personal and financial information or directly request sensitive data under the guise of tax filing or refunds.

Tax-related identity theft: This occurs when identity thieves use stolen personal information to file fraudulent tax returns. Signs of such theft include receiving a letter from the IRS about a tax return already filed in your name, an electronic filing rejection because a return has already been filed using your Social Security Number, or a notification about the creation of a new online IRS account you did not initiate.

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The word SCAM over data (Kurt “CyberGuy” Knutsson)

MORE: DON’T FALL FOR THESE SNEAKY TAX SCAMS THAT ARE OUT TO STEAL YOUR IDENTITY AND MONEY

What you need to know about tax filing software

Today’s tax landscape is dominated by online engagement, with nearly nine out of 10 (89%) individuals turning to online platforms for at least one part of the tax filing process. More than half of consumers (54%) struggle to differentiate between scams and legitimate messages. In February alone, cybersecurity firm McAfee blocked more than one million attempts to engage with malicious, tax-related URLS.

Steve says, “With less than a week left until Tax Day, early filers are awaiting refunds and tax procrastinators are likely feeling the pressure and stress of the deadline. Scammers exploit these heightened emotions by offering easy filing, faster refunds or urgent information requests, so it’s not surprising that Americans report an average of $8,199 per person lost to tax-related email and text message scams.”

“We encourage people to maintain healthy skepticism, pause before sharing sensitive information online, and to use the right tools to protect their privacy, identity and personal information during tax season and beyond.”

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Fraud written on a tablet (Kurt “CyberGuy” Knutsson)

How scam attempts and detection look in different states

According to Steve, “Our recent tax scam survey uncovered notable disparities in scam susceptibility. Residents of some states – particularly Texas, New York, California, Alaska and Arkansas – have a much higher rate of receiving fraudulent tax refund messages than others.”

“These messages often contain malicious links or malware, increasing vulnerability to scams, so we encourage people to be extra alert and use AI-powered online identity and information protection measures to safeguard themselves against potential scams.”

Here’s some more information by state:

Texas: Despite being highly confident in spotting tax-related scams, Texas has a significant percentage (66%) of people who have lost money to online tax scams, indicating a gap between confidence and reality.

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New York: While New Yorkers are confident in identifying tax-related scams, 70% have received messages purporting to be from tax authorities, and 80% have received requests for personal information, suggesting a significant issue with scam attempts.

MUST-KNOW TAX SEASON TIPS FOR FAMILIES WITH COLLEGE STUDENTS

West Virginia: Although West Virginia has a high confidence level in spotting fake tax preparation services, 88% of its residents are likely to click on links from supposed tax software companies, indicating vulnerability to scams.

Kansas: Despite being less likely to click on links from purported tax preparation software companies, Kansas has a relatively high percentage (88%) of people who wouldn’t recognize a scam message from the IRS or state tax authority, suggesting a need for awareness and education on tax scams.

Tennessee: 100% of Tennessean respondents who clicked on links from supposed tax software companies lost money, and all respondents who received messages about tax refunds clicked on those links, highlighting a vulnerability to scam messages in the state.

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Woman preparing taxes (Kurt “CyberGuy” Knutsson)

MORE: HOW SCAMMERS ARE USING AI TOOLS TO FILE PERFECT-LOOKING TAX RETURNS IN YOUR NAME

How to protect yourself from tax-related identity theft

There are several ways you can protect yourself from tax-related identity theft:

Smart Selection: Utilize tax software to get your taxes done faster and on time, but be sure to research and check the reviews.

IRS Impersonation Alert: The IRS will NEVER call you and ask you to make any sort of payment over the phone.

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Secure Your Identity: Request an Identity Protection PIN from the IRS. This will help to ensure your account is protected going forward and make it less likely that someone can file a fake tax return in your name.

Early Bird Advantage: In the future, try to file your taxes as early as you can. By doing this, you’re essentially beating the scammer to it. Once you file the return, they will be unable to commit fraud by filing a return in your name.

Beware of Phishing: Don’t click on suspicious links, even if you recognize the name of the tax software company. 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.

Steve adds, “The rise of AI-generated tax scams has made it incredibly challenging for Americans to tell the difference between real and fake communications. Cybercrooks can now easily create malicious robocalls that sound like they could come from a neighbor and send error-free text and email messages.”

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With 1 in 4 Americans losing money to online tax scams, it’s crucial for consumers to stay informed about the latest scams, exercise skepticism when something seems too good to be true, and utilize AI-powered tools to protect their privacy, identity and personal information.”

MORE: TOP WAYS TO SAFEGUARD YOUR SOCIAL SECURITY NUMBER

What to do if you’re a victim of a tax scam?

The hope is that by being aware of the different tax scams that are out there – especially when the deadline for filing your taxes is right around the corner – you’ll be less likely to become a victim of one. That being said, we know that these scammers are pretty clever. So, if you do find that you’ve been a victim of a scam, follow these steps:

1. Complete IRS Form 14039, the Identity Theft Affidavit. This is the form that all victims of fraud must fill out for the IRS. It will let them know that the person 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.

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3. Alert national credit bureaus: Let the national bureaus, such as Experian, Equifax and TransUnion, know that there has been fraud and freeze your account so that the scammers cannot access 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 record how many scams are happening in a single year to improve better how to warn others. You should also report the crime to identitytheft.gov/.

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

6. Use an identity theft protection service: As tax season approaches, the risk of tax fraud significantly increases. It’s crucial to be vigilant and proactive in protecting your personal information. One effective measure is to enlist the help of an identity theft protection service. 

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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.

One of the best parts of using an identity theft protection service is that it 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.

A Post-it on tax documents (Kurt “CyberGuy” Knutsson)

MORE: DON’T CLICK THAT LINK! HOW TO SPOT AND PREVENT PHISHING ATTACKS IN YOUR INBOX

Kurt’s key takeaways

Taxes are a necessary evil that we have to do every year. Because it can be complicated, many people resort to software to help get the job done. Whatever route you take, be on the lookout for suspicious links from these software companies and any strange messages or phone calls claiming to be from the IRS – and claim your IRS Identity Protection PIN ASAP.

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Considering the advancements in cybersecurity, what steps should companies take to protect their customers’ sensitive financial data? Let us know by writing us at Cyberguy.com/Contact.

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

Ask Kurt a question or let us know what stories you’d like us to cover.

Answers to the most asked CyberGuy questions:

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Copyright 2024 CyberGuy.com. All rights reserved.

Technology

Here’s your first look at Kratos in Amazon’s God of War show

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Here’s your first look at Kratos in Amazon’s God of War show

Amazon has slowly been teasing out casting details for its live-action adaptation of God of War, and now we have our first look at the show. It’s a single image but a notable one showing protagonist Kratos and his son Atreus. The characters are played by Ryan Hurst and Callum Vinson, respectively, and they look relatively close to their video game counterparts.

There aren’t a lot of other details about the show just yet, but this is Amazon’s official description:

The God of War series storyline follows father and son Kratos and Atreus as they embark on a journey to spread the ashes of their wife and mother, Faye. Through their adventures, Kratos tries to teach his son to be a better god, while Atreus tries to teach his father how to be a better human.

That sounds a lot like the recent soft reboot of the franchise, which started with 2018’s God of War and continued through Ragnarök in 2022. For the Amazon series, Ronald D. Moore, best-known for his work on For All Mankind and Battlestar Galactica, will serve as showrunner. The rest of the cast includes: Mandy Patinkin (Odin), Ed Skrein (Baldur), Max Parker (Heimdall), Ólafur Darri Ólafsson (Thor), Teresa Palmer (Sif), Alastair Duncan (Mimir), Jeff Gulka (Sindri), and Danny Woodburn (Brok).

While production is underway on the God of War series, there’s no word on when it might start streaming.

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300,000 Chrome users hit by fake AI extensions

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300,000 Chrome users hit by fake AI extensions

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Your web browser may feel like a safe place, especially when you install helpful tools that promise to make your life easier. But security researchers have uncovered a dangerous campaign in which more than 300,000 people installed Chrome extensions pretending to be artificial intelligence (AI) assistants. Instead of helping, these fake tools secretly collect sensitive information like your emails, passwords and browsing activity.

They used familiar names like ChatGPT, Gemini and AI Assistant. If you use Chrome and have installed any AI-related extension, your personal information may already be exposed. Even worse, some of these malicious extensions are still available today, putting more people at risk without their knowing.

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More than 300,000 Chrome users installed fake AI extensions that secretly harvested sensitive data. (Kurt “CyberGuy” Knutsson)

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What you need to know about fake AI extensions

Security researchers at browser security company LayerX discovered a large campaign involving 30 malicious Chrome extensions disguised as AI-powered assistants (via BleepingComputer). Together, these extensions were installed more than 300,000 times by unsuspecting users.

Some of the most popular extensions included names like AI Sidebar with 70,000 users, AI Assistant with 60,000 users, ChatGPT Translate with 30,000 users, and Google Gemini with 10,000 users. Another extension called Gemini AI Sidebar had 80,000 users before it was removed.

These extensions were distributed through the official Chrome Web Store, which made them appear legitimate and trustworthy. Even more concerning, researchers found that many of these extensions were connected to the same malicious server, showing they were part of a coordinated effort.

While some extensions have since been removed, others remain available. This means new users could still unknowingly install them and expose their personal data. Here’s the list of the affected extensions:

  • AI Assistant
  • Llama
  • Gemini AI Sidebar
  • AI Sidebar
  • ChatGPT Sidebar
  • Grok
  • Asking ChatGPT
  • ChatGBT
  • Chat Bot GPT
  • Grok Chatbot
  • Chat With Gemini
  • XAI
  • Google Gemini
  • Ask Gemini
  • AI Letter Generator
  • AI Message Generator
  • AI Translator
  • AI For Translation
  • AI Cover Letter Generator
  • AI Image Generator ChatGPT
  • Ai Wallpaper Generator
  • Ai Picture Generator
  • DeepSeek Download
  • AI Email Writer
  • Email Generator AI
  • DeepSeek Chat
  • ChatGPT Picture Generator
  • ChatGPT Translate
  • AI GPT
  • ChatGPT Translation
  • ChatGPT for Gmail

FAKE AI CHAT RESULTS ARE SPREADING DANGEROUS MAC MALWARE

These malicious tools were listed in the official Chrome Web Store, making them appear legitimate and trustworthy. (LayerX)

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How the fake AI Chrome extension attack works

These fake extensions pretend to offer helpful AI features, such as translating text, summarizing emails, or acting as an AI assistant. But behind the scenes, they quietly monitor what you are doing online.

Once installed, the extension gains permission to view and interact with the websites you visit. This allows it to read the contents of web pages, including login screens where you enter your username and password.

In some cases, the extensions specifically targeted Gmail. They could read your email messages directly from your browser, including emails you received and even drafts you were still writing. This means attackers could access private conversations, financial information and sensitive personal details.

The extensions then sent this information to servers controlled by the attackers. Because they loaded content remotely, the attackers could change their behavior at any time without needing to update the extension.

Some versions could also activate voice features through your browser. This could potentially capture spoken conversations near your device and send transcripts back to the attackers.

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If you installed one of these extensions, attackers may already have access to extremely sensitive information. This includes your email content, login credentials, browsing habits and possibly even voice recordings.

We reached out to Google for comment, and a spokesperson told CyberGuy that the company “can confirm that the extensions from this report have all been removed from the Google Web Store.”

BROWSER EXTENSION MALWARE INFECTED 8.8M USERS IN DARKSPECTRE ATTACK

Once installed, the extensions could read emails, capture passwords, monitor browsing activity and send the data to attacker-controlled servers. (Bildquelle/ullstein bild via Getty Images)

7 ways you can protect yourself from malicious Chrome extensions

If you have ever installed an AI-related Chrome extension, taking a few simple precautions now can help protect your accounts and prevent further damage.

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1) Remove any suspicious or unused browser extensions

On a Windows PC or Mac, open Chrome and type chrome://extensions into the address bar. Review every extension listed. If you see anything unfamiliar, especially AI assistants you don’t remember installing, click “Remove” immediately. Malicious extensions depend on going unnoticed. Removing them stops further data collection and cuts off the attacker’s access to your information.

2) Change your passwords

If you installed any suspicious extension, assume your passwords may be compromised. Start by changing your email password first, since email controls access to most other accounts. Then update passwords for banking, shopping and social media accounts. This prevents attackers from using stolen credentials to break into your accounts.

3) Use a password manager to create and protect strong passwords

A password manager generates unique, complex passwords for each account and stores them securely. This prevents attackers from accessing multiple accounts if one password is stolen. Password managers also alert you if your login credentials appear in known data breaches, helping you respond quickly and protect your identity. Check out the best expert-reviewed password managers of 2026 at Cyberguy.com.

4) Install strong antivirus software and keep it active

Good antivirus software can detect malicious browser extensions, spyware, and other hidden threats. It scans your system for suspicious activity and blocks harmful programs before they can steal your information. This adds an important layer of protection that works continuously in the background to keep your device safe. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android & iOS devices at Cyberguy.com.

5) Use an identity theft protection service

Identity theft protection services monitor your personal data, including email addresses, financial accounts, and Social Security numbers, for signs of misuse. If criminals try to open accounts or commit fraud using your information, you receive alerts quickly. Early detection allows you to act fast and limit financial and personal damage. See my tips and best picks on how to protect yourself from identity theft at Cyberguy.com.

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6) Keep your browser and computer fully updated

Software updates fix security vulnerabilities that attackers exploit. Enable automatic updates for Chrome and your operating system so you always have the latest protections. These updates strengthen your defenses against malicious extensions and prevent attackers from taking advantage of known weaknesses.

7) Use a personal data removal service

Personal data removal services scan data broker websites that collect and sell your personal information. They help remove your data from these sites, reducing what attackers can find and use against you. Less exposed information means fewer opportunities for criminals to target you with scams, identity theft or phishing attacks.

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 takeaway

Even tools designed to make your life easier can become tools for cybercriminals. Malicious extensions often hide behind trusted names and convincing features, making them difficult to spot. You can significantly reduce your risk by reviewing your browser extensions regularly, removing anything suspicious and using protective tools like password managers and strong antivirus software.

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Have you checked your browser extensions recently? Let us know your thoughts by writing to us at Cyberguy.com.

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Malicious browser extensions hit 4.3M users
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Anthropic refuses Pentagon’s new terms, standing firm on lethal autonomous weapons and mass surveillance

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Anthropic refuses Pentagon’s new terms, standing firm on lethal autonomous weapons and mass surveillance

Less than 24 hours before the deadline in an ultimatum issued by the Pentagon, Anthropic has refused the Department of Defense’s demands for unrestricted access to its AI.

It’s the culmination of a dramatic exchange of public statements, social media posts, and behind-the-scenes negotiations, coming down to Defense Secretary Pete Hegseth’s desire to renegotiate all AI labs’ current contracts with the military. But Anthropic, so far, has refused to back down from its two current red lines: no mass surveillance of Americans, and no lethal autonomous weapons (or weapons with license to kill targets with no human oversight whatsoever). OpenAI and xAI had reportedly already agreed to the new terms, while Anthropic’s refusal had led to CEO Dario Amodei being summoned to the White House this week for a meeting with Hegseth himself, in which the Secretary reportedly issued an ultimatum to the CEO to back down by the end of business day on Friday or else.

In a statement late Thursday, Amodei wrote, “I believe deeply in the existential importance of using AI to defend the United States and other democracies, and to defeat our autocratic adversaries. Anthropic has therefore worked proactively to deploy our models to the Department of War and the intelligence community.”

He added that the company has “never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner” but that in a “narrow set of cases, we believe AI can undermine, rather than defend, democratic values” — going on to specifically mention mass domestic surveillance and fully autonomous weapons. (Amodei mentioned that “partial autonomous weapons … are vital to the defense of democracy” and that fully autonomous weapons may eventually “prove critical for our national defense,” but that “today, frontier AI systems are simply not reliable enough to power fully autonomous weapons.” He did not rule out Anthropic acquiescing to the military’s use of fully autonomous weapons in the future but mentioned that they were not ready now.)

The Pentagon had already reportedly asked major defense contractors to assess their dependence on Anthropic’s Claude, which could be seen as the first step to designating the company a “supply chain risk” – a public threat that the Pentagon had made recently (and a classification usually reserved for threats to national security). The Pentagon was also reportedly considering invoking the Defense Production Act to make Anthropic comply.

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Amodei wrote in his statement that the Pentagon’s “threats do not change our position: we cannot in good conscience accede to their request.” He also wrote that “should the Department choose to offboard Anthropic, we will work to enable a smooth transition to another provider, avoiding any disruption to ongoing military planning, operations, or other critical missions. Our models will be available on the expansive terms we have proposed for as long as required.”

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