Every year, billions of dollars vanish in the United States, siphoned quietly through screens, phones and inboxes. The Federal Trade Commission (FTC) tracks the damage, and the numbers keep climbing. When tax season arrives, the danger spikes.
This is the season where people wait, sometimes anxiously, for messages that could change their finances overnight: a refund they desperately need, a payment they can't afford or a deadline they thought they missed. That expectation can create the perfect storm, and scammers know it.
"Tax season mixes money, deadlines and fear," said Kevin Wicks, Group Manager in Fraud Education for TD. "Even cautious people can let their guard down when the pressure is on."
People are already bracing for contact from the Internal Revenue Service (IRS), their bank or tax software providers. So, when a message appears to be official and urgent in this season, it doesn't feel suspicious; it feels expected. And that's exactly the trap.
Uncertainty plays right into scammers' hands, according to Mark Jayasatria, Group Manager in Fraud Education for TD. If someone isn't sure what a real IRS message looks like or who they are supposed to hear from, manipulation becomes easier.
Why the same scams pop up every year
In recent years, the same tax season scams resurface dressed in new language by using impersonation, phishing and Artificial Intelligence. The messages arrive by email, text, phone calls or social media. They claim to be from the IRS, the Federal Trade Commission (FTC), or a trusted bank. The wording sounds official; the logos look real. The request feels legitimate: just click this link and confirm your information and you better act now.
This one wrong move can send someone to a fake website designed to steal login credentials or convince them to hand over deeply personal information such as a Social Security number, bank details, passwords or a home address.
Scammers often rely on emotional tactics, not technology. Fear is one of their favorite tools. A victim is told they owe money to the government and could face penalties or even be arrested if they don't pay immediately. Kevin noted that urgency often involves fake deadlines, threats of consequences, and demands for immediate action. When panic takes over, it can blur red flags like misspellings, strange email addresses, and requests that don't match normal procedures.
Sometimes scammers flip the script and use excitement instead of fear. They promise a large refund or tax credit and then request personal information or money. That promise can be persuasive, especially for people who are already hoping for good news regarding a tax refund.
How to stay safe
The most effective defense is simple, but not easy — it's simply to slow down, according to Mark.
Avoid sharing personal information over the phone, by text or through social media messages, especially if you did not initiate the contact. Be careful about clicking links in emails and texts, even if the message looks official. A safer option is to open a browser, search for the organization yourself, and sign in through the official site on a secure network.
Watch for pressure. Legitimate institutions don't threaten, rush or demand immediate action. Be skeptical of any message that insists you act now or face punishment. Check the sender carefully as scammers can spoof phone numbers and email addresses to make it look real.
“If something makes your heart race, stop. Hang up and don't reply or click,” Kevin said. Then verify the situation using trusted contact information, like the number listed on your bank's official website. Remember one major red flag: the IRS and legitimate businesses never demand payment in gift cards, cryptocurrency or wire transfers.
What to do if you are a victim of fraud
If you believe you have been targeted and scammed, act quickly. Mark and Kevin recommend notifying your financial institution right away, contacting local authorities, such as the police. You may also file a report with the FTC. If sensitive information has been exposed, especially a Social Security number, contact your bank and the three major credit bureaus to either put a temporary or permanent freeze on your credit and accounts to limit further damage. Continually check your accounts to see if money has been taken.
TD resources to help avoid scams
TD offers important fraud prevention tips and educational materials on its online Security Center. TD also runs the TD SAFE (Security Awareness for Everyone) program, which provides presentations in its stores and community centers throughout the bank's footprint to help educate the public on recognizing scams and protecting personal information. This program also brings education to your community with a curriculum for elderly, middle aged, small business, commercial clients and soon to launch, youth curriculum. Check with your local TD store to find out if there are programs in your community.
Educational programs like these reinforce an important message for tax season and beyond: awareness and verification are your best defenses, and the most powerful move you can make is to pause before you act.
We hope you found this helpful. This article is for informational purposes only and is based on information available as of February 2026 and is subject to change. This content is not intended to be used or acted upon with respect to any client's specific circumstances. For specific advice about your unique circumstances, consider talking with your qualified professionals.
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