Avoiding scams isn’t just about being careful — it’s a core part of financial planning. In 2025, scams are more sophisticated than ever, targeting your identity, your refunds, and even your retirement accounts. And once a scammer gets in, the tax, cash flow, and credit ripple effects can last for years.
Clients often ask me things like: “How can I tell if the IRS is really contacting me?” or “What should I do if someone steals my Social Security number?” This FAQ answers the most common concerns I hear — so you can protect your money with the same urgency that you plan to grow it.
Frequently Asked Questions
1. How do I know if a call or email from the IRS is real?
Start here: the IRS will never call, email, or text you first. In 2025, IRS communications always begin with a letter — not a call threatening arrest or demanding gift cards.
If you receive a suspicious message:
- Hang up or don’t reply
- Go directly to irs.gov to verify any notices
- Call the IRS using the number listed on their official site (not the caller ID)
Here’s what I tell clients: If it feels urgent, emotional, or threatening — it’s almost certainly a scam.
2. What’s the most common tax scam I should watch for?
Right now, it’s identity theft during tax season. Criminals use your Social Security number to file a fake return and steal your refund.
Red flags include:
- IRS rejection notices for a return you didn’t file
- Receiving tax documents or refunds you weren’t expecting
CPA Insight: One mistake I see often is clients delaying their tax filing — scammers beat them to it. File early when possible, and consider setting up an IRS IP PIN for extra protection.
3. What is an IP PIN and should I get one?
An Identity Protection PIN (IP PIN) is a 6-digit number that locks your IRS file. Without it, no one — including scammers — can file a return using your Social Security number.
In 2025, any taxpayer can opt into the program. It’s especially useful if:
- You’ve been a victim of identity theft
- Your information has been part of a data breach
- You want to proactively lock down your tax records
Client example: I helped a retiree who had her return stolen two years in a row. We enrolled her in the IP PIN program and stopped the fraud cold.
4. What should I do if someone files a fake tax return in my name?
You’ll need to:
- File Form 14039 (Identity Theft Affidavit) with the IRS
- Submit your return by mail, not electronically
- Monitor your credit with all three bureaus
It may take several months to resolve, but you’ll eventually get your refund. In the meantime, the IRS will flag your account for extra review in future years.
5. Are my retirement accounts safe from scammers?
Not automatically. In 2025, online access to IRAs and 401(k)s means scammers can target them just like a bank account.
Protect yourself by:
- Using multi-factor authentication (MFA)
- Creating strong, unique passwords
- Monitoring your accounts monthly
Here’s what I tell clients: Treat your retirement login like the keys to your future. Don’t share it, store it in browsers, or ignore suspicious login alerts.
6. Can scams affect my Medicare or Social Security benefits?
Yes. Common scams include:
- “Medicare card renewal” requests that ask for personal information
- Fake SSA calls about suspended benefits
The Social Security Administration will never call asking for your bank info. When in doubt, hang up and call 1-800-772-1213 to verify.
Client example: A client received a call saying her Medicare account had been compromised and she needed to confirm her SSN. We stopped her just before she gave out the number — a near miss.
7. I run a side business — are there scams I should worry about?
Definitely. Scams often target small business owners with:
- Fake domain renewal notices
- Bogus business registration fees
- Spoofed IRS letters demanding payroll records
If you receive a suspicious invoice or notice:
- Search for the company name online
- Confirm with your state’s business portal
- Don’t pay until verified
CPA Insight: One client almost paid a $495 “labor law poster” invoice that looked official. It wasn’t — and we saved her from throwing away money.
8. Are there scams related to the Inflation Reduction Act or energy credits?
Yes. With energy tax credits now expanded under the Inflation Reduction Act, scammers have started marketing fake rebates and solar upgrades.
If someone:
- Promises an immediate federal refund
- Asks for payment to “unlock” credits
- Pushes high-pressure tactics
…it’s likely a scam. All legitimate credits, like the Residential Clean Energy Credit or Energy Efficient Home Improvement Credit, are claimed on your tax return — not paid in advance.
9. What if a scammer gets into my bank or investment accounts?
Act quickly:
- Contact your bank or brokerage immediately
- Freeze your credit with all three bureaus
- File a report with the FTC at identitytheft.gov
Consider filing a police report for added documentation
Then work with your CPA to flag any questionable tax activity, such as unauthorized withdrawals from retirement accounts.
Client example: A client had $8,000 drained from a brokerage account due to a SIM-swap scam. Fast action helped recover most of the funds — but response time was critical.
10. Can fake charities impact my tax return?
Yes. Scammers often set up fake charities to solicit donations, especially after disasters or crises.
Before donating:
- Use the IRS Tax-Exempt Organization Search Tool
- Check GuideStar.org or Charity Navigator
- Ask for an EIN or IRS determination letter
Only donations to IRS-qualified 501(c)(3) organizations are tax-deductible.
Avoid donating via gift card, cryptocurrency, or wiring funds
11. What’s the risk of clicking suspicious links in texts or emails?
Clicking phishing links can:
- Install malware on your device
- Expose login credentials
- Give access to banking, investment, and tax data
Always:
- Hover over links to preview URLs
- Avoid clicking unknown attachments
- Use antivirus software and browser-based protection
Here’s what I tell clients: If an email asks for sensitive info and you didn’t expect it — assume it’s a scam until proven otherwise.
12. What happens if I fall for a scam? Can I recover anything?
Sometimes. Steps that may help:
- Report the scam to the FTC and your local police
- Dispute fraudulent charges with your bank or card issuer
- Request a fraud alert with credit bureaus
Monitor your IRS records for unauthorized filings
Unfortunately, not all losses are recoverable — which is why proactive prevention is the best defense.
13. Are there special protections for seniors?
Yes, and rightly so. Seniors are often targeted with:
- Grandparent scams (someone claiming to be a relative in distress)
- Medicare and tech support scams
- Romance or companionship fraud
I recommend:
- Blocking unknown callers
- Freezing credit proactively
- Appointing a trusted contact on brokerage and bank accounts
Client example: I helped a client set up her financial dashboard with alerts that notified her daughter of any large transactions. It stopped a scam attempt within hours.
14. Should I freeze my credit as a standard precaution?
Yes — freezing your credit is one of the best steps you can take. It prevents anyone from opening new credit in your name, even if they have your SSN or birthdate.
You can freeze and unfreeze your credit for free at:
- Equifax
- Experian
- TransUnion
It won’t affect your existing accounts or credit score.
15. How do I protect myself year-round, not just during tax season?
Make these habits part of your financial hygiene:
- Review credit reports at least 3 times per year
- Enable 2FA on all banking, brokerage, and government portals
- Use strong, unique passwords via a password manager
- Check your IRS and SSA accounts annually
Here’s what I tell clients: Fraud prevention is not a one-time fix — it’s an ongoing practice, just like good budgeting or tax planning.