$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
child tax credit advance payment scam
Fraudulent messages claim parents can receive an advance child tax credit payment by providing personal and banking information, exploiting confusion about eligibility and payment timelines.
“debt scam”
↑ 83%Key indicators
Usually targetsParents
Often hitsParents and families
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Scammers send texts or emails claiming parents can receive early or increased child tax credit payments by verifying their information.
2
The phishing link leads to a fake IRS portal that captures SSN, bank routing numbers, and personal data.
3
Stolen data is used to file fraudulent tax returns and claim the victim's actual tax credits.
What to do first
Check your child tax credit status only at irs.gov/credits-deductions/child-tax-credit.
Related terms
CTC advance phishingfake child tax credit textFinancial relief scamsSMSRisingParentsLow-income familiesSingle parentsParents and familiesUnited StatesCTC advance phishingfake child tax credit text
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Lisa, 38, a parents, encountered what appeared to be a legitimate financial relief scams situation while using SMS. Scammers send texts or emails claiming parents can receive early or increased child tax credit payments by verifying their information.
Step 2
What happened next was calculated: The phishing link leads to a fake IRS portal that captures SSN, bank routing numbers, and personal data.
Step 3
The pressure escalated quickly: Stolen data is used to file fraudulent tax returns and claim the victim's actual tax credits.
The outcome
Lisa realized something was wrong when text or email claims you qualify for a special advance ctc payment outside normal irs timelines. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Check your child tax credit status only at irs.gov/credits-deductions/child-tax-credit. Lisa's experience shows why text or email claims you qualify for a special advance ctc payment outside normal irs timelines and asks for your social security number and bank details to process the payment are the clearest early warning signs.
How to identify it
- Text or email claims you qualify for a special advance CTC payment outside normal IRS timelines
- Asks for your Social Security number and bank details to process the payment
- The IRS does not send texts or emails about tax credit payments
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Check your child tax credit status only at irs.gov/credits-deductions/child-tax-credit.
- ✓The IRS never requests personal information via text or email.
- ✓Report IRS impersonation to [email protected] and to TIGTA.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Save the full chat or call log before blocking the sender so the reporting path still has the original context.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The IRS Criminal Investigation division flagged child tax credit fraud as a priority enforcement area in 2024, noting thousands of fraudulent returns claiming stolen CTC credits.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Tell close contacts if a phone or text scam used your identity, so scammers cannot reuse the same story against people around you.
- ✓Check your child tax credit status only at irs.gov/credits-deductions/child-tax-credit.
- ✓The IRS never requests personal information via text or email.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The IRS Criminal Investigation division flagged child tax credit fraud as a priority enforcement area in 2024, noting thousands of fraudulent returns claiming stolen CTC credits.
IRS Criminal Investigation Annual Report 2024
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Parents, Low-income families, Single parents
Geographic concentration
United States
Primary channel
SMS — Financial relief scams
Why this group is vulnerable
Parents are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The IRS Criminal Investigation division flagged child tax credit fraud as a priority enforcement area in 2024, noting thousands of fraudulent returns claiming stolen CTC credits.
Source notes
- IRS Criminal Investigation Annual Report 2024
Frequently asked questions
Common questions about child tax credit advance payment scam
How does the child tax credit advance payment scam work?+
Scammers send texts or emails claiming parents can receive early or increased child tax credit payments by verifying their information. The phishing link leads to a fake IRS portal that captures SSN, bank routing numbers, and personal data. Stolen data is used to file fraudulent tax returns and claim the victim's actual tax credits.
What are the warning signs of child tax credit advance payment scam?+
Text or email claims you qualify for a special advance CTC payment outside normal IRS timelines Asks for your Social Security number and bank details to process the payment The IRS does not send texts or emails about tax credit payments
What should I do if I encounter child tax credit advance payment scam?+
Check your child tax credit status only at irs.gov/credits-deductions/child-tax-credit. The IRS never requests personal information via text or email. Report IRS impersonation to [email protected] and to TIGTA.
Who is most at risk for child tax credit advance payment scam?+
This scam primarily targets Parents, Low-income families, Single parents. It is most commonly reported in United States and typically appears on SMS.
Is child tax credit advance payment scam on the rise?+
child tax credit advance payment scam is currently on the rise with growing reports. It has been reported across US. Last updated 2026-04-04.
Related scams
Similar scams to watch out for
AI impersonation
↑ 34%AI voice clone family emergency scam
A caller sounds exactly like a family member in distress and pressures the victim to send money immediately before verifying the story.
What to do first
Hang up and call the family member back directly using a known number.
Targets
Parents
Seen in
U.S.
Smishing
↑ 27%Bank verification text phishing scam
A text message claims a suspicious bank event happened and pushes the victim to a fake login page before they stop to verify the sender.
What to do first
Do not tap the link from the text.
Targets
Mobile banking users
Seen in
Global
AI impersonation
↑ 34%AI school injury parent call scam
A caller with a child's cloned voice says there has been a school injury and demands immediate payment before the parent verifies the story.
What to do first
Call the school or student directly using a known number before taking any action.
Targets
Parents
Seen in
U.S.
Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.