Published on April 6, 2026 11:03 am
Last Updated on April 6, 2026 11:03 am
Tax scams are surging in 2026, and the numbers are alarming. Nearly one in four Americans has either fallen victim to a tax-related scheme or knows someone who has, with losses averaging $8,000 per person. As artificial intelligence gives fraudsters more sophisticated tools, First Mid Bank & Trust (First Mid) is raising awareness about the latest fraud trends and how to protect your identity and wallet.
Each year, the IRS releases its “Dirty Dozen” list spotlighting the worst tax scams targeting taxpayers. At the top of the list are impersonation and phishing scams delivered through email and text. Scammers send messages that appear to come from the IRS, often using urgent language to prompt immediate action to verify accounts, enter personal information, or claim fraudulent refunds.
“Tax season is like open season for fraudsters. It involves refunds, W-2s, and increased financial activity that creates a wealth of opportunities for bad actors,” said Barb Nesler, BSA & Fraud Officer at First Mid. “Awareness is the most powerful protection consumers can have. AI technology can make scams appear more realistic, and it can be very hard to differentiate real from fake these days. The key is to always remember that financial institutions, the IRS, law enforcement, and any other reputable organization will never contact you demanding immediate payment or asking for personal information. We already have that on record.”
Tax season also heightens the risk of account takeover and direct deposit scams, where fraudsters attempt to access email or online bank accounts through fake fraud alerts or phishing messages. If successful, they can redirect payroll or ACH payments, change direct deposit details, apply for loans using stolen identities, and even file fraudulent tax returns before victims file their own.
“Prevention works best when everyone sees themselves as the first line of defense,” explained Nesler. “Consumers may not realize it, but scammers can find the answers to their security questions from social media – your hometown, the school you attended, your pet’s name, the first car you owned. It’s so important to be mindful of what we share online to keep our personal information out of the wrong hands.”
Last year, more than $5.7 million was lost to tax scams, with IRS impersonation being the most common.
Steps to Protect Yourself From Scams:
· Enable multifactor authentication
· Set up PINs where available
· Shred sensitive documents before discarding them
· Be mindful of personal information shared online
· Monitor your credit and accounts regularly for suspicious activity
· Never share account information, PIN numbers, or authentication codes
· Do not click suspicious links in emails or text messages
· Independently verify any request before sharing personal or financial information
