Technology
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.
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.”
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.
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.
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.
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.”
“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.”
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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.
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.
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.
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.
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Copyright 2024 CyberGuy.com. All rights reserved.
Though Tim Cook is shedding his CEO title for the role of Apple’s executive chairman, it appears he’ll keep one of his most important duties: that of the company’s Trump whisperer.
“As executive chairman, Cook will assist with certain aspects of the company, including engaging with policymakers around the world,” Apple writes in a press release. Translation: he’s sticking around to deal with thorny political relationships — in particular the one with President Donald Trump.
Throughout his tenure, Cook has navigated Apple through tricky political terrain. He’s had to balance the company’s massive business interest in China with US policymakers’ concerns, and he’s worked to appease Trump for favorable regulatory decisions, without alienating too many Apple employees and customers in the process.
Cook has navigated Apple through tricky political terrain
The task of wooing Trump has repeatedly placed Cook in embarrassing situations: Cook showed the president around a factory in Texas in 2019, where Trump wrongly boasted that because of his policies, Apple was building a new manufacturing plant in the US. Last year, he presented Trump with a symbolic gift of “Made in the USA” glass from Apple supplier Corning set in 24-karat gold.
Recently, Cook took criticism from Trump critics for attending a movie night at the White House, for a screening of the documentary Melania, the same day that Alex Pretti was killed by federal agents on the streets of Minneapolis during a protest against Immigration and Customs Enforcement. Cook later vaguely referred to the “events in Minneapolis,” and referenced a “good conversation with the president.”
As Apple’s senior vice president of hardware engineering John Ternus takes over as CEO, the company will need to overcome significant policy challenges, including global efforts to regulate AI, and a push for app stores to verify user ages. Lucky for Ternus, Cook will still be there to take on that job.
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Just about every day, we receive emails from readers who have encountered new scams. Many involve cryptocurrency. The pattern keeps repeating. Someone receives a message that feels urgent, emotional or exciting. The person on the other end sounds confident and persuasive. Before long, the victim is being asked to send money through cryptocurrency. Once the money is sent, it often disappears forever.
Cryptocurrency appeals to scammers for a simple reason. Transactions move quickly, often cross international borders and usually cannot be reversed once completed. That combination makes crypto payments especially attractive to criminals.
Kate recently wrote to us with a great question.
“Could you do an article that illustrates the scripts used by scammers to lure people to send money using cryptocurrency. Those scripts must be very convincing to get so many reasonably intelligent people to send money. Maybe five or six examples of the scripts, so people, especially seniors, will know what to watch out for.”
Kate is absolutely right. These scripts are convincing because scammers practice them constantly. They use psychology, urgency and emotion to push people toward quick decisions.
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Crypto scammers use polished scripts built on urgency, trust and emotion to pressure victims into sending irreversible payments. (gpointstudio/Getty Images)
Let’s break down some of the most common crypto scam scripts, so you know what they sound like before they reach your inbox or phone.
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The investment opportunity script
This script often begins with a friendly introduction through social media, email or even a text message.
Example script:
“Hi, I work with a private investment group that trades cryptocurrency. We’ve helped many people earn steady returns. If you invest $500 today, you could earn $5,000 within weeks. I can show you proof of other investors’ success.”
The scammer may send fake screenshots of profits. Some will even allow a small withdrawal early on to build trust. Eventually, they push the victim to send larger deposits. Once the larger transfer is sent, the account suddenly stops responding.
The romance crypto script
This scam often starts with a simple message on a dating app, Facebook or Instagram. The first contact is friendly and low-pressure.
Example initial script:
“Hi, insert name here, I hope you don’t mind me saying hello. Your profile caught my attention, and you seem like a very kind person. How has your day been?”
After a few days of conversation, the scammer begins sharing details about their life. They often claim to work overseas as an engineer, doctor or business owner. Eventually, they mention cryptocurrency trading as something they do on the side.
Later message in the script:
“I have been doing some short-term crypto trading after work. It has helped me save a lot faster. If you are interested, I can show you the platform I use. It is very easy to start with a small amount.”
From there, the scammer guides the victim to a fake trading site or asks them to transfer cryptocurrency to a wallet they control. At first, the account may show fake profits. The victim believes the investment is working and sends more money. Eventually, the victim cannot withdraw any money.
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From romance schemes to fake government threats, scammers often follow repeatable crypto scripts designed to sound convincing. Knowing the pattern can help you stop the fraud early. (Nhac NGUYEN / AFP via Getty Images)
The government impersonation script
Scammers often pretend to represent government agencies or law enforcement.
Example script:
“This is an urgent notice regarding your tax account. Your Social Security number has been linked to suspicious activity. To prevent legal action, you must verify your identity and pay the outstanding balance today using cryptocurrency.”
Government agencies do not demand payment through cryptocurrency. The goal is to scare you into acting quickly without checking the facts.
The tech support emergency script
This scam often begins with a pop-up warning or an unexpected phone call.
Example script:
“Your computer has been compromised by hackers. Your bank information may be at risk. To secure your system, we need you to transfer funds temporarily into a protected cryptocurrency wallet.“
The scammer claims the funds will be returned once the system is secure. In reality, the transfer moves the money directly to the criminal.
The crypto giveaway script
This scam frequently appears on social media or video platforms.
Example script:
“We are celebrating a new crypto launch. Send 0.1 Bitcoin to this wallet, and we will immediately send back double the amount.”
The message may appear to come from a well-known company or public figure. The wallet address belongs to the scammer. Anyone who sends funds receives nothing in return.
The fake recovery service script
This scam targets people who have already lost money.
Example script:
“We specialize in recovering stolen cryptocurrency. Our investigators located the wallet that received your funds. To begin the recovery process, we require a small crypto payment to unlock the legal tracing tools.”
The victim believes they are hiring professionals to recover their money. Instead, they are being scammed again.
Why these scripts work so well
These scams succeed because they exploit human behavior. First, they create urgency. Victims feel pressured to act quickly.
Second, they create trust. The scammer may sound friendly or sympathetic.
Third, they promise rewards. Investment scams offer profits that feel life-changing.
Finally, cryptocurrency adds confusion. Many people are still learning how it works. Criminals take advantage of that uncertainty.
Understanding these scripts is the first step to protecting yourself. Once you recognize the patterns scammers use, it becomes much easier to stop the conversation before money is involved.
How to protect yourself from crypto scams
Crypto scammers rely on urgency, trust and confusion to pressure victims into sending money. These practical steps can help you recognize warning signs and avoid costly mistakes.
1 CLICK COST A FATHER $4 MILLION IN BITCOIN TO VISHING SCAMMERS
Criminals favor cryptocurrency because transactions move fast, cross borders easily and usually cannot be reversed. That makes crypto a powerful tool for scammers. (Mario Tama/Getty Images)
1) Slow down when money is involved
Scammers depend on urgency to push victims into fast decisions. If someone pressures you to send money immediately, treat it as a warning sign. Pause the conversation and verify the situation independently. Contact the company, agency or person through a known phone number or official website. Taking even a few minutes to step back can stop a scam before money leaves your account.
2) Never send cryptocurrency to someone you do not know
Cryptocurrency transactions work very differently from credit cards or bank transfers. Once funds are sent, they usually cannot be reversed. Scammers prefer crypto because it moves quickly and often crosses international borders. If someone asks for payment through Bitcoin, Ethereum or another digital currency, assume the request is suspicious until proven otherwise.
3) Verify investment opportunities independently
Many crypto scams promise fast profits or guaranteed returns. Legitimate investments never guarantee profits. Before investing, search the company name, website and contact information online. Look for warnings from regulators or consumer protection agencies. If you cannot find reliable information about the company, that is a major red flag.
4) Use strong antivirus software on your devices
Scammers frequently use phishing links, fake websites and malicious downloads to trick victims. Strong antivirus software can help detect these threats before they cause damage. Strong antivirus software can warn you about suspicious websites, block malicious downloads and help stop phishing attempts that try to steal your financial information. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android and iOS devices at Cyberguy.com.
5) Reduce the personal information scammers can find online
Scammers often research their targets before sending messages. They may gather details from public records, social media or data broker websites. Limiting the amount of personal information available online can make it harder for criminals to craft convincing messages. Removing your data from people search sites with a data removal service can reduce the chances of becoming a target. 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.
6) Be cautious with online relationships
Romance scams often begin with friendly messages on dating apps or social media. Over time, the scammer builds trust and eventually introduces a crypto investment opportunity. If someone you have never met begins discussing cryptocurrency investments or asks you to move money, take a step back. Real relationships do not require financial transfers to strangers.
7) Never trust screenshots or profit dashboards
Crypto scammers often show screenshots of trading accounts that appear to generate large profits. These images are easy to fake or are displayed on fraudulent websites controlled by the scammer. Even if a platform shows profits, it does not mean the money exists. If you cannot withdraw funds easily through a verified exchange, the investment may be fake.
8) Watch for requests to move conversations off the platform
Many scams begin on social media, dating apps or messaging platforms. After the first contact, scammers often ask victims to continue the conversation on WhatsApp, Telegram or another private messaging app. Moving the conversation helps them avoid detection by the original platform. If someone quickly asks you to switch apps, treat it as a warning sign.
9) Talk to someone you trust before sending money
Scammers often isolate their victims and discourage them from discussing the situation with friends or family. Before sending cryptocurrency or making a large investment, pause and talk to someone you trust. A second opinion can often spot warning signs that are easy to miss when emotions are involved.
What to do if you already sent cryptocurrency to a scammer
If you believe you sent cryptocurrency to a scammer, act quickly. Contact the exchange or platform you used to send the funds and report the transaction immediately. Some exchanges may be able to flag the receiving wallet and help investigators track suspicious activity.
You should also report the scam to the FTC at reportfraud.ftc.gov and notify your local law enforcement agency. If the scam began on a social media site, dating app or messaging platform, report the account there as well so it can be investigated and removed.
While recovering funds can be difficult, reporting the incident can help authorities identify larger fraud networks and potentially prevent others from becoming victims.
Kurt’s key takeaways
Cryptocurrency scams continue to grow because the scripts are polished and carefully tested. The criminals behind them understand human psychology. They know when to apply pressure, when to build trust and when to promise rewards. Recognizing these patterns is one of the most powerful ways to stop them. When you know the script, the scam becomes much easier to spot.
Have you ever received a message that tried to convince you to send cryptocurrency, and did the script almost sound believable? Let us know by writing to us at Cyberguy.com.
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Copyright 2026 CyberGuy.com. All rights reserved.
As if there weren’t already enough devices listening in on everything being said in your home, Prego, the pasta and pizza sauce brand, is releasing a device designed to record everything said around the dinner table for posterity. The Connection Keeper, which looks like an oversized pasta jar lid, was created in collaboration with StoryCorps, the nonprofit organization focused on preserving the stories of Americans in a collection housed at the Library of Congress’ American Folklife Center. There’s no AI, Wi-Fi, or Bluetooth, but you can optionally upload recordings to StoryCorps’ website to make them easier to share with family.
Prego says the goal of the device is to encourage families to make memories through conversation during dinner instead of staring at their phones — but only for a small number of families. The company is only planning to make less than 100 of them. The Connection Keeper will be available for purchase online starting on April 27th for $20 as part of a bundle that includes the device, a jar of Prego sauce, spaghetti noodles, and a deck of cards featuring conversation prompts and ideas.
Using the device is as easy as plopping the Connection Keeper down in the middle of everyone at the table and pressing one button to start recording. Using a pair of microphones, it captures CD-quality audio to a 16GB microSD card for up to eight hours when fully charged.
When dinner’s over, the recordings can be transferred to a computer over USB-C and then uploaded to a dedicated microsite created by StoryCorps where they’re preserved and accessible only by the uploader, unless they choose to share them with other StoryCorps users or the general public. You even have the option to archive them within the Library of Congress, which makes them public automatically, so hopefully your family talks about more than just stealing brainrots.
The recordings can be accessed on a smartphone through the StoryCorps app, but Prego intentionally left phones out of the rest of the process to discourage their use at the table. It’s also why the Connection Keeper lacks a screen. The goal was to minimize interactions with the device so family members instead focused on talking with each other.
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