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Tax Identity Theft Surges as Filing Deadline Nears

Experts urge use of the IRS Identity Protection PIN to block refund fraud.

Overview

  • Tax experts report a rise in refund fraud as the deadline approaches, with the IRS flagging millions of returns each year for possible identity theft.
  • A state-level review of FTC reports points to Florida, California, Georgia, New Jersey, Texas and Nevada as high-risk areas for identity and tax fraud.
  • Criminals increasingly use generative AI and phone or email impersonation, including fake TurboTax or IRS contacts, to steal data.
  • Officials advise filing early, turning on multifactor logins, monitoring records, and using the IRS Identity Protection PIN, which any taxpayer can now obtain.
  • The fallout can be severe, from $4.5 billion in losses and average 675-day case backlogs to employment fraud that sticks victims with tax bills for wages they never earned.