ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Research Reveals 1 in 4 Americans Fall Victim to Tax Scams; Here's how to Stay Safe

According to the study, 54% of respondents struggle to differentiate between legitimate and illegitimate messages.
PUBLISHED MAR 23, 2024
Cover Image Source: McAfee security software | Getty Images | Photo by Justin Sullivan
Cover Image Source: McAfee security software | Getty Images | Photo by Justin Sullivan

As fraudulent schemes continue to target Americans in every walk of life, scammers are also on the prowl as people are attempting to figure out taxation in the United States, and nearly 25% of American citizens fall victim to online tax scams. In its 2024 Tax Scams study, McAfee surveyed 2,500 US adults and revealed alarming findings. For instance, in February alone, McAfee identified 146,000 malicious URLs related to tax, marking a 30% increase compared to December figures. Despite these growing threats, the company has remained vigilant in safeguarding its users, successfully blocking over one million attempts to access fake tax websites.

Americans are losing their savings to online tax scams. Image Source: Unsplash|Photo by Dmytro Demidko
Image Source: Unsplash | Photo by Dmytro Demidko

The findings of the study highlight the heightened activity of scammers during the tax filing season, posing significant challenges for ordinary citizens in discerning the legitimacy of messages they receive. According to the study, 54% of respondents struggle to differentiate between legitimate and illegitimate messages, with those falling into the trap more likely to suffer financial losses.

"People are now desensitized … so they feel like if they’re talking to a person, telling them to go click on a URL or something like that it’s probably more legit when it absolutely is not," explained Keatron Evans, principal of cybersecurity advisor at Infosec.

Shockingly, almost 68% of individuals who clicked on scam links ended up losing money, with 29% losing amounts ranging from $2,500 to $10,000, and 17% losing over $10,000 to such fraudulent schemes.

Pexels | Leeloo
Image Source: Pexels | Photo by Leeloo

What makes matters worse is the increasing investment that Americans are making in cryptocurrencies, leading scammers to exploit this trend by sending cryptocurrency-related tax messages, resulting in 76% of respondents who clicked on such links losing money.

"A lot of times, these software are vulnerable to attack and exploitation because bad guys know that at this time of year, people are going to have these things installed on their computers. So they target them for vulnerabilities," Evans said.

Image Source: Pexels | Karolina Grabowska
Image Source: Pexels | Photo by Karolina Grabowska

To further deceive unsuspecting victims, scammers are employing advanced technologies like deepfake, utilizing AI-generated calls with native accents that make it difficult for individuals to discern their authenticity. The study found that 49% of respondents lack confidence in identifying deepfake videos and audio, with an alarming 29% unaware of the existence of such technology.

McAfee's Chief Technology Officer, Steve Grobman, emphasized the escalation of cybercriminal activity during tax season. "As tax season ramps up, so too does cybercriminal activity. What's new this year is the scale and sophistication of scams we're now seeing thanks to artificial intelligence," he said.

"From AI-generated robocalls with regional accents to very realistic and convincing fake emails, websites, and scam texts, cybercrooks are utilizing all the AI tools available to them, and so too should consumers to stay safe."

 Logo in the Headquarters of McAfee in Alcobendas | Getty Images | Photo by Cristina Arias
Image Source: Logo in the Headquarters of McAfee in Alcobendas | Getty Images | Photo by Cristina Arias

"With less than half of people feeling confident about the tax filing process, scammers are counting on uncertain consumers clicking on unsafe links during the rush for refunds," Grobman said. 

"We urge people to balance convenience with caution, practice good cyber hygiene, and use the latest in AI-powered online protection to keep their privacy, identity, and personal information safe to help ensure a scam-free tax season," he advised.

MORE ON MARKET REALIST
While all the Sharks were out, Mark Cuban saw the potential in "Garage Celebrations."
13 hours ago
The loss was ironic as the retired teacher coulnd't get a phrase commonly used in classrooms.
15 hours ago
The recalls were issued for a range of products including tires, air conditioners and power banks.
16 hours ago
The guest who got the item as a gift from a neighbor had little to no idea about its significance.
18 hours ago
Harrison got a good deal for the fossil although it wasn't what he had thought.
1 day ago
The player, Beth Barbee left everyone in the dust with her impressive puzzle solving skills.
1 day ago
Given her celebrity status, Harrison cut her some slack in the negotiations.
1 day ago
The deal ultimately fell apart as the seller, Scotty was looking to get $375,000.
2 days ago
The guest was blown away by the six-figure appraisal for his father's John Falter illustration.
2 days ago
Harvey just couldn't believe that the contestant could come up with an answer like that.
3 days ago
Antoinette's win was even more special because she needed a car more than anything at that point.
3 days ago
The player, Catrice Sandt, nearly blew the Bonus Round puzzle by saying too many words in the end.
4 days ago
The co-founders of Nature's Wild Berry left the Sharks in shock with their miraculous product.
4 days ago
The contestant named Whitney could barely control her emotions as she celebrated with Ryan Seacrest.
4 days ago
The player named Kathy Young missed out on the Showcase Showdown as she had to leave.
5 days ago
Harrison closed a mega deal by scooping up three post cards for the price of one.
5 days ago
The guest who brought his father's prized possesion, had already made up his mind.
5 days ago
Harvey got a genius solution to avoid asking an awkward question to Carson Kressley's family member.
6 days ago
The player could barely control her excitement as she had a near-perfect game on the show.
6 days ago
Harrison knew it was too good of a collection to let go, and he decided to raise the stakes.
7 days ago