Tax season is prime time for scammers. According to the IRS, thousands of Americans fall victim to tax-related identity theft every year. In 2023 alone, the IRS flagged over 1 million suspicious tax returns for further review, saving taxpayers more than $6 billion in fraud attempts.

At Listerhill Credit Union, we want to help you protect your identity, your refund, and your peace of mind. Whether you're a member or not, here's what to know about 2025 tax return scams, how to recognize the warning signs, and what steps to take if you think you've been targeted.

What Is a Tax Return Scam?

Tax return scams happen when criminals use your stolen personal information to file a fraudulent tax return - often before you've had a chance to file yourself. The scammer may:

• Steal your Social Security number, file a fake return, and pocket your refund.
• Deposit a fake refund into your real account, then impersonate the IRS and demand repayment through gift cards, wire transfers, or cryptocurrency.
• Pose as an IRS agent and trick you into sharing sensitive info like your bank account, driver's license, or login credentials.

These scams can be devastating - and they're growing more sophisticated every year.

Red Flags to Watch For

Fraudsters often rely on pressure and fear to manipulate their victims. Stay alert to these common warning signs:

• You receive a refund before filing. If money lands in your account and you haven't filed your return, it's likely a scam.
• The "IRS" contacts you by email, text, or social media. The IRS never initiates contact this way.
• You're told to pay immediately using a specific method like prepaid debit cards, gift cards, or wire transfer.
• Someone threatens arrest, deportation, or license revocation if you don't act fast.

How to Avoid Tax Return Scams in 2025

1. File early and electronically.

Identity thieves often file returns as early as January using stolen information. So, the sooner you file, the less time scammers have to beat you to it. Use trusted, IRS-approved tax software or consult a licensed tax professional.

2. Use secure, private Wi-Fi.

Never file taxes over public internet. Hackers can easily intercept your data on unsecured networks.

3. Protect your personal information.

Shred old tax documents, never share your SSN or IRS PIN over the phone, and use strong, unique passwords on financial accounts.

4. Enable multi-factor authentication.

Wherever possible, add an extra layer of security to your online tax and banking platforms.

5. Use the IRS Identity Protection PIN (IP PIN).

This six-digit PIN prevents someone else from filing a tax return using your Social Security number. You can request one through the IRS IP PIN tool.

What to Do If You've Been Targeted or Scammed

If you suspect a tax return scam or identity theft:

1. Report it to the IRS. Visit the IRS Identity Theft Central website. Complete Form 14039: Identity Theft Affidavit and follow submission instructions.
2. Check your refund status. Use the IRS Where's My Refund? tool. If it shows a refund has been issued but you haven't received it, call 1-800-829-1040.
3. Alert your bank or credit union. If a suspicious deposit or withdrawal appears in your account, contact your financial institution immediately. At Listerhill, we're here to help secure your accounts and guide you through next steps.
4. Place a fraud alert on your credit reports. Contact one of the three major credit bureaus (Experian, Equifax, or TransUnion). You only need to notify one - they'll alert the others.
5. Report phishing attempts. In 2024, tax scams involving voice phishing (vishing) and AI-generated emails increased significantly, mimicking real IRS language and branding. Always forward suspicious IRS emails to phishing@irs.gov, report IRS impersonation scams to the Treasury Inspector General for Tax Administration (TIGTA), and report fraud to the FTC's Identity Theft website.

Final Thoughts

Tax return scams may be evolving, but so are the ways to fight back. By filing early, staying informed, and knowing the warning signs, you can stay one step ahead of fraud - and keep your refund where it belongs. With you.

At Listerhill Credit Union, your security is our top priority. We monitor accounts 24/7 for unusual activity, offer tools like transaction alerts, and educate our members year-round through our Scam & Fraud Center.