IRS Tax Scams: How to Spot Them & Protect Your Refund

How to Spot IRS Tax Scams and Protect Your Refund

Tax season isn’t just busy for filers—it’s prime time for scammers. Fraudsters often impersonate the IRS to steal personal information and tax refunds, using convincing tactics to catch people off guard.
 
Stephanie Bunke, WaterStone Bank’s Fraud Investigator, shares how these scams work, and how you can stay protected this tax season.

IRS Impersonation by Email and Text

Scammers frequently send emails or text messages that appear to come from the IRS, complete with official-looking logos and urgent language designed to push you into acting quickly.
 
Clicking on links in these messages can take you to fake websites built to capture your personal or financial information.
 
“During tax season, people are expecting communication about refunds, so fraudulent messages can feel more believable,” says Bunke. “Remember: The IRS does not initiate contact through email or text. If you didn’t expect it, don’t engage.”

What to remember:

• The IRS will not contact you via email or text first
• Don’t click links or download attachments from unexpected messages
• When in doubt, go directly to IRS.gov instead of using links provided

Fake Tax Preparation Services

Some scams go beyond digital messages and appear as offers to help you file your taxes.
Watch for red flags like:

• Promises of unusually large refunds
• Pressure to act quickly
• Requests for sensitive personal or financial information upfront
• Payment requests via cash, gift cards, or unusual methods

“A legitimate tax professional won’t rush you or guarantee a specific refund,” says Bunke. “If it sounds too good to be true, it probably is.”
 
Always work with a trusted, reputable tax preparer. And make sure your refund is deposited into an account in your name—not a third-party or so-called “secure” account.

When Someone Files Before You Do

One of the most disruptive scams happens behind the scenes: a criminal files a tax return using your Social Security number before you even get the chance.
 
“Often the first sign of tax-related identity theft is when your return is rejected,” Bunke says. “At that point, it becomes a process of proving your identity and trying to reclaim your return.”
 
To help prevent this, the IRS offers an Identity Protection PIN (IP PIN). This six-digit number adds an extra layer of security, ensuring only you can file a return using your Social Security number or Individual Taxpayer Identification Number.

What to Do if You Suspect a Scam

If you think you’ve been targeted or your information may be compromised, act quickly.

• Visit IRS.gov for official guidance and reporting steps
• Monitor your financial accounts closely
• Contact your bank for support

“Our fraud team is here to help customers navigate suspicious situations,” says Bunke. “If something doesn’t feel right, it’s always worth asking.”
 
You can also contact WaterStone Bank for assistance:

During business hours (8:30 a.m.–5:30 p.m.)
Fraud Department: 414-459-4175
Customer Support: 414-761-1000

After hours
1-800-236-2442