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AI-Powered Scams in 2024 Tax Season: A Looming Threat to Your Refunds and Identity
The Rising Menace of AI-Driven Tax Fraud: How Criminals Exploit Personal Data for Refund Theft
According to axios, tax season in 2024 is expected to witness a surge in fraudulent activities as cybercriminals harness the power of artificial intelligence to craft convincing impersonations of taxpayers aiming to steal their refunds. With AI advancements scammers can generate lifelike images and videos making it harder for both the IRS and tax professionals to detect fraudulent activities. Victims of tax related identity theft often endure lengthy waits averaging around 19 months for the IRS to rectify and issue their refunds highlighting the serious repercussions of such fraud.
These criminals typically collect personal information from various sources including public databases, stolen data through phishing emails and legal or illegal databases. Subsequently they file fake tax returns ahead of the genuine filings exploiting the once per year transactional nature of tax refunds. The IRS received over 294,000 complaints of identity theft in 2023 underscoring the magnitude of the issue. Despite efforts by the IRS to upgrade its technology and increase audits the lack of federal privacy legislation exacerbates the situation ensuring ample personal data remains accessible to fraudsters.
Tax Refund AI-Fueled Threatens Unsuspecting Taxpayers – Smart Scammers Strike!(PHOTO: getty images)
Staying Ahead of AI-Fueled Tax Scams: IRS Tips for Early Filing and Secure Refunds
As tax season approaches the IRS emphasizes preventive measures such as filing early using direct deposit for refunds and creating an IRS online account to thwart scammers. However tax professionals remain vulnerable as cybercriminals attempt to obtain sensitive client data by posing as legitimate taxpayers. While the IRS’s increased use of AI aids in identifying fraudulent transactions it also raises concerns about false positives and bureaucratic delays. Ultimately, taxpayers are advised to file their returns promptly and accurately to mitigate the risk of falling victim to tax related identity theft amidst the evolving landscape of cybercrime.
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