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AI-Fueled Tax Scams on the Rise: LifeLock Experts Share Tips on How to File Safely

1. AI-driven scams surge via convincing emails and texts. New threats emerge. 2. LifeLock, Gen’s brand, reports 56% encounter realistic AI-powered tax scams. Urgency is highlighted. 3. IRS uncovered $9.1B in tax fraud in 2024. Financial risks are significant. 4. Experts urge education and robust security tools. Scam sophistication is rising.

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Why Bullish?

The article shines a spotlight on escalating AI-enabled scams that increase consumer demand for identity theft protection. Historical trends show that when security threats surge, providers like Gen see elevated subscription growth and investor interest.

How important is it?

The coverage directly links to LifeLock's core business, under Gen. The elevated threat environment is expected to drive near-term growth and customer acquisition, making the news quite impactful.

Why Short Term?

The timing—this tax season—suggests an immediate boost in subscriptions and investor sentiment, similar to previous spurts following heightened cybersecurity awareness.

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Look out for W-2 phishing scams, disaster relief scams and fake debt relief scams TEMPE, Ariz. and PRAGUE, Feb. 25, 2025  /PRNewswire/ -- As AI-driven scams surge this tax season, taxpayers face unprecedented challenges in safeguarding their personal and financial information. Taxpayers are increasingly targeted with plausible, highly convincing emails, texts and calls. In one alarming trend, fraudsters use AI-generated voice scams to impersonate IRS agents or tax professionals with voices and conversation that sound realistic. With the ability to create and widely spread these realistic voice scams, taxpayers have to be vigilant to ensure they don't get tricked by scammers this year. According to a recent study conducted by LifeLock, the leader in identity theft protection in the U.S. and part of Gen™ (NASDAQ: GEN), 56% of individuals have already encountered AI-powered tax scams featuring realistic voices. "We're in a new era of tax scams, where AI gives fraudsters an unprecedented advantage," notes Ian Bednowitz, General Manager of LifeLock. "The challenge isn't just that these scams exist—it's that they're becoming nearly indistinguishable from legitimate communications. Taxpayers can no longer rely on gut instinct alone to spot a scam. This tax season, the best defense isn't just caution—it's education, verification, and the right security tools to stay ahead of these threats." In 2024, the Internal Revenue Service (IRS) Criminal Investigation unit uncovered over $9.1 billion in tax fraud and financial crimes, nearly doubling from $5.7 billion in 2022, highlighting the widespread threat to taxpayers nationwide. With 81% of people reporting being financially impacted after falling victim to a tax-related scam, these fraudulent schemes continue to pose serious risks. In addition to tax scams commonly seen in past years like ghost tax preparation services and fake tax prep websites, taxpayers also face the following in 2025: Protective Measures for TaxpayersCybercriminals are using increasingly sophisticated tactics, making it more critical than ever to stay alert and aware. By following best practices for data protection and relying on trusted tax services, people can strengthen their defenses against these evolving threats. LifeLock experts recommend the following: For more information on how to protect your identity and finances this tax season, please visit  https://lifelock.norton.com/learn/identity-theft-resources/irs-tax-scams-to-watch-out-for. About LifeLockLifeLock is the leader in identity theft protection in the U.S., and a brand of Gen™ (NASDAQ: GEN), a global company dedicated to powering Digital Freedom through its family of trusted consumer brands. Millions of customers trust LifeLock to help protect their identities. LifeLock detects and alerts people to possible identity threats, and its dedicated Identity Restoration Specialists help people restore their identity if they do become a victim. All LifeLock members also have coverage through LifeLock's Million Dollar Protection™ Package which provides additional coverage for stolen funds and lawyer and expert support. Learn more at LifeLock.Norton.com and GenDigital.com. Jenna Torluemke Courtney Rowles Gen [email protected] Edelman for Gen [email protected] SOURCE Gen Digital Inc.

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