$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
fake tax software scam
Scammers create counterfeit tax preparation software or fake versions of popular platforms that harvest personal and financial information entered by users.
“tax refund scam”
↑ 204%Key indicators
Usually targetsTaxpayers
Often hitsTech workers and developers
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 build convincing clones of popular tax software sites or create new brands advertising free or heavily discounted filing, then promote them through ads and SEO spam.
2
Users enter their Social Security number, income data, and banking information into what they believe is legitimate software.
3
The data is exfiltrated to the scammers who use it to file fraudulent returns, steal refunds, or sell the information.
What to do first
Only use IRS-authorized e-file providers listed at irs.gov/e-file-providers.
Related terms
counterfeit tax appfake TurboTax scamTax season scamsWebsiteSurgingTaxpayersDIY filersYoung adultsTech workers and developersEducators and studentsOnline shoppersUnited StatesCanadacounterfeit tax appfake TurboTax scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Emily, 35, a taxpayers, encountered what appeared to be a legitimate tax season scams situation while using Website. Scammers build convincing clones of popular tax software sites or create new brands advertising free or heavily discounted filing, then promote them through ads and SEO spam.
Step 2
What happened next was calculated: Users enter their Social Security number, income data, and banking information into what they believe is legitimate software.
Step 3
The pressure escalated quickly: The data is exfiltrated to the scammers who use it to file fraudulent returns, steal refunds, or sell the information.
The outcome
Emily realized something was wrong when tax software advertised through unsolicited pop-up ads or social media posts with prices far below market rate. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Only use IRS-authorized e-file providers listed at irs.gov/e-file-providers. Emily's experience shows why tax software advertised through unsolicited pop-up ads or social media posts with prices far below market rate and website url does not match the official brand domain are the clearest early warning signs.
How to identify it
- Tax software advertised through unsolicited pop-up ads or social media posts with prices far below market rate
- Website URL does not match the official brand domain
- Software requests more personal data than typically needed to file a return
- 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
- ✓Only use IRS-authorized e-file providers listed at irs.gov/e-file-providers.
- ✓Access tax software by typing the URL directly into your browser rather than clicking ads or links.
- ✓Report fake tax software to the IRS at [email protected] and the FTC at reportfraud.ftc.gov.
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.
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 removed over 300 fraudulent tax preparation websites during the 2024 filing season, many of which were clones of TurboTax and H&R Block.
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.
- ✓Only use IRS-authorized e-file providers listed at irs.gov/e-file-providers.
- ✓Access tax software by typing the URL directly into your browser rather than clicking ads or links.
- ✓Report fake tax software to the IRS at [email protected] and the FTC at reportfraud.ftc.gov.
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 removed over 300 fraudulent tax preparation websites during the 2024 filing season, many of which were clones of TurboTax and H&R Block.
IRS Security Summit 2025
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
Taxpayers, DIY filers, Young adults
Geographic concentration
United States, Canada
Primary channel
Website — Tax season scams
Why this group is vulnerable
Taxpayers are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in 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 removed over 300 fraudulent tax preparation websites during the 2024 filing season, many of which were clones of TurboTax and H&R Block.
Source notes
- IRS Security Summit 2025
Frequently asked questions
Common questions about fake tax software scam
How does the fake tax software scam work?+
Scammers build convincing clones of popular tax software sites or create new brands advertising free or heavily discounted filing, then promote them through ads and SEO spam. Users enter their Social Security number, income data, and banking information into what they believe is legitimate software. The data is exfiltrated to the scammers who use it to file fraudulent returns, steal refunds, or sell the information.
What are the warning signs of fake tax software scam?+
Tax software advertised through unsolicited pop-up ads or social media posts with prices far below market rate Website URL does not match the official brand domain Software requests more personal data than typically needed to file a return
What should I do if I encounter fake tax software scam?+
Only use IRS-authorized e-file providers listed at irs.gov/e-file-providers. Access tax software by typing the URL directly into your browser rather than clicking ads or links. Report fake tax software to the IRS at [email protected] and the FTC at reportfraud.ftc.gov.
Who is most at risk for fake tax software scam?+
This scam primarily targets Taxpayers, DIY filers, Young adults. It is most commonly reported in United States, Canada and typically appears on Website.
Is fake tax software scam getting worse?+
fake tax software scam is currently surging — reports are increasing rapidly. It has been reported across US, CA. Last updated 2026-04-04.
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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.