The Internal Revenue Service (IRS) is warning millions of Americans to be on high alert for fraud and identity theft as the Christmas shopping season ramps up.
Why It Matters
The holidays are now one of the busiest times of year for tax-related scams and identity theft, especially as they overlap with the lead-up to tax filing season.
This combination creates a prime window for criminals to target shoppers, taxpayers, tax professionals, and businesses across the country.
Rising losses tied to identity theft and increasingly sophisticated online schemes have pushed the IRS and its Security Summit partners to strengthen public warnings and defensive measures this December.
What To Know
This week marks the 10th annual National Tax Security Awareness Week, led by the IRS and its Security Summit partners. The partnership includes:
- State tax agencies
- Tax preparation firms
- Software developers
- Payroll providers
- Financial institutions
Together, they coordinate efforts to protect both the tax system and individual taxpayers from identity theft and related fraud, particularly as scam activity spikes around Christmas and ahead of tax season.
The IRS is flagging several fast-growing scam tactics:
- Phishing and smishing: Criminals send fake emails (phishing) or text messages (smishing) pretending to be from tax authorities, delivery services, or financial institutions. Their goal is to steal personal information or infect devices with malware. Clicking links in these messages can compromise your data or damage your device.
- Social media scams: Posts and videos may promote bogus tax advice, misleading schemes, or fake opportunities to claim credits and refunds. These posts can funnel people directly to scammers or encourage them to share sensitive information.
- Targeting older adults: People over 65 or nearing retirement are frequent targets. Scammers may pressure them for personal details, banking information, or cash, often returning to demand more money. Some even push victims to dip into retirement accounts, risking tax penalties and long-term financial harm.
- Risks for businesses and tax professionals: The IRS is reminding tax professionals that they are legally required to maintain a Written Information Security Plan and to use multi-factor authentication. Businesses are urged to tighten cybersecurity, review internal controls, and stay vigilant against phishing, ransomware, and other cyber threats.
One key protection tool is the Identity Protection PIN (IP PIN)—a unique six-digit code that helps prevent someone else from filing a tax return using a taxpayer’s Social Security number or Individual Taxpayer Identification Number.
Taxpayers who don’t yet have an IP PIN can request one as a proactive shield against tax-related identity theft. Anyone with an SSN or ITIN, including those living outside the United States, is eligible to obtain an IP PIN.
What People Are Saying
IRS CEO Frank Bisignano emphasized the heightened risk this time of year:
“With the holiday shopping season underway and tax season quickly approaching, we are urging taxpayers and tax professionals to take extra steps to protect their financial and tax information.
During this holiday season, people face the heightened risk of identity theft as criminals ramp up efforts to trick people into sharing sensitive personal information: identity thieves might use this information to try filing false tax returns and stealing refunds.”
What Happens Next
The IRS and its partners plan to intensify public education efforts throughout December and into the 2025 filing season.
In a press release, they noted that many Security Summit members have joined together as the Coalition Against Scam and Scheme Threats, which will play an increasingly active role during the upcoming tax season.
Anyone who suspects they are a victim of identity theft can visit Identity Theft Central on the IRS website for detailed guidance on what to do next and how to protect their tax account going forward.
