AI is being increasingly used by cybercriminals to scam taxpayers, particularly in the domain of tax fraud and IRS scams.
AI-powered phishing attacks have become more sophisticated, with hyper-realistic emails impersonating the IRS or financial institutions, as well as deepfake voice calls mimicking IRS agents or company executives.
AI is also being utilized for automated tax fraud and identity theft, generating fraudulent tax returns, creating fake taxpayer profiles, and exploiting the IRS refund system.
To combat these threats, corporations need a multi-layered defense strategy, including employee training, AI-based fraud detection systems, MFA, strict verification procedures, and dark web monitoring. Individuals should monitor their credit, use authorized tax software, file electronically, and employ the IRS IP PIN for added security.