New York Attorney General Letitia James issued a consumer alert on Apr. 1 warning New Yorkers about potential tax preparation fraud, with particular attention to scams using artificial intelligence during the current tax season.
The alert comes as the deadline for filing taxes approaches, raising concerns about evolving scam tactics that target personal and financial information. The Office of the Attorney General encourages residents to report any suspected scams.
“Each time more, scammers are using sophisticated artificial intelligence programs to create more deceptive schemes during this tax season,” James said. “As New Yorkers file their taxes, I urge everyone to remain vigilant against scammers who try to steal your money and personal information. I urge everyone to follow my office’s advice and contact us immediately if you believe you have been targeted or victimized by a scam.”
James outlined several new types of fraud involving AI technology, including fake videos featuring government officials or celebrities giving false tax information, convincing phishing emails designed to steal personal data, and cloned phone calls that imitate Internal Revenue Service (IRS) representatives or tax preparers. She also warned about manipulated Google AI Overview results that may display false contact numbers alongside legitimate information.
Other common schemes highlighted include impostors demanding payment for supposed back taxes via prepaid cards or cryptocurrency, claims that legitimate IRS refunds were sent in error requiring repayment, fraudulent offers of free tax preparation services that later require payment, misleading promises of faster refunds with high fees attached, and unsolicited communications requesting sensitive account details.
To help protect consumers, James recommended verifying unexpected calls by returning them through trusted numbers; checking suspicious emails before responding; remembering that real government agencies will not threaten arrest over unpaid debts nor demand payment via gift cards or cryptocurrencies; reviewing loan terms carefully if offered loans for paying owed taxes; confirming legitimacy of free filing services such as IRS Free File or Volunteer Income Tax Assistance centers; researching preparers’ credentials through the Better Business Bureau; ensuring preparers sign returns with their Preparer Tax Identification Number (PTIN); and reviewing all service statements for extra charges.
Any New Yorker suspecting they are a victim can file complaints online with the Office of the Attorney General or call its hotline. Suspected federal tax-related scams should be reported directly to the Treasury Inspector General for Tax Administration.
The New York Attorney General operates as a public law enforcement and legal advocacy agency for New York according to its official website. The office promotes social justice and community well-being through civil rights enforcement and consumer advocacy according to its official website. It provides services such as consumer fraud investigations, charities oversight, tenant dispute mediation according to its official website, protects New Yorkers’ rights while preserving public safety and defending civil rights according to its official website, operates regional offices across the state addressing local legal issues according to its official website, and is led by Letitia James according to its official website.
