IRS and BBB warn of rising tax identity theft scams, with fraud reaching $4.49 billion in 2025.

The IRS and BBB are warning Americans of a surge in tax identity theft scams ahead of the 2026 filing season, with fraud totaling nearly $4.49 billion in 2025—up $2.37 billion from the prior year. Scammers are using phishing emails, smishing texts, and fake social media advice to steal personal data and file fraudulent returns early. The IRS urges taxpayers to file early, use an Identity Protection PIN, verify preparers, avoid public Wi-Fi, and report suspicious activity to 1-800-908-4490.