$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
tax preparer identity theft scam
Fraudulent or unlicensed tax preparers collect clients' personal information under the guise of filing returns, then use that data to commit identity theft or file fraudulent returns.
“tax refund scam”
↑ 204%Key indicators
Usually targetsTaxpayers
Often hitsTech workers and developers
Common regionUnited States
Last updated2026-04-04
Estimated impact
$1.4K
median reported loss
Typical range$90 – $9.0K
Recovery rate~15%
Scam breakdown
1
Unlicensed individuals set up storefront or online tax preparation businesses, often targeting underserved communities with promises of maximum refunds.
2
They collect Social Security numbers, W-2s, and banking information, then file legitimate returns while secretly copying all personal data.
3
The stolen identities are used to file additional fraudulent returns, open credit accounts, or are sold on identity theft markets.
What to do first
Verify your tax preparer has a valid PTIN at irs.gov/tax-professionals and check for any disciplinary actions.
Related terms
ghost preparer scamfake tax preparer fraudTax season scamsWebsiteSurgingTaxpayersLow-income filersImmigrantsTech workers and developersImmigrants and visa holdersOnline shoppersUnited Statesghost preparer scamfake tax preparer fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Carlos, 35, a taxpayers, encountered what appeared to be a legitimate tax season scams situation while using Website. Unlicensed individuals set up storefront or online tax preparation businesses, often targeting underserved communities with promises of maximum refunds.
Step 2
What happened next was calculated: They collect Social Security numbers, W-2s, and banking information, then file legitimate returns while secretly copying all personal data.
Step 3
The pressure escalated quickly: The stolen identities are used to file additional fraudulent returns, open credit accounts, or are sold on identity theft markets.
The outcome
Carlos realized something was wrong when tax preparer refuses to sign the return or include their ptin (preparer tax identification number). By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Verify your tax preparer has a valid PTIN at irs.gov/tax-professionals and check for any disciplinary actions. Carlos's experience shows why tax preparer refuses to sign the return or include their ptin (preparer tax identification number) and preparer guarantees a large refund before reviewing your documents are the clearest early warning signs.
How to identify it
- Tax preparer refuses to sign the return or include their PTIN (Preparer Tax Identification Number)
- Preparer guarantees a large refund before reviewing your documents
- Preparer asks you to sign a blank 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
- ✓Verify your tax preparer has a valid PTIN at irs.gov/tax-professionals and check for any disciplinary actions.
- ✓Never sign a blank or incomplete return, and always review the completed return before filing.
- ✓Report suspected fraudulent preparers to the IRS using Form 14157.
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 identified over 1.1 billion dollars in fraudulent refunds linked to unscrupulous preparers in 2024, leading to criminal prosecutions in all 50 states.
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.
- ✓Verify your tax preparer has a valid PTIN at irs.gov/tax-professionals and check for any disciplinary actions.
- ✓Never sign a blank or incomplete return, and always review the completed return before filing.
- ✓Report suspected fraudulent preparers to the IRS using Form 14157.
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 identified over 1.1 billion dollars in fraudulent refunds linked to unscrupulous preparers in 2024, leading to criminal prosecutions in all 50 states.
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
Taxpayers, Low-income filers, Immigrants
Geographic concentration
United States
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 identified over 1.1 billion dollars in fraudulent refunds linked to unscrupulous preparers in 2024, leading to criminal prosecutions in all 50 states.
Source notes
- IRS Criminal Investigation Annual Report 2024
Frequently asked questions
Common questions about tax preparer identity theft scam
How does the tax preparer identity theft scam work?+
Unlicensed individuals set up storefront or online tax preparation businesses, often targeting underserved communities with promises of maximum refunds. They collect Social Security numbers, W-2s, and banking information, then file legitimate returns while secretly copying all personal data. The stolen identities are used to file additional fraudulent returns, open credit accounts, or are sold on identity theft markets.
What are the warning signs of tax preparer identity theft scam?+
Tax preparer refuses to sign the return or include their PTIN (Preparer Tax Identification Number) Preparer guarantees a large refund before reviewing your documents Preparer asks you to sign a blank return
What should I do if I encounter tax preparer identity theft scam?+
Verify your tax preparer has a valid PTIN at irs.gov/tax-professionals and check for any disciplinary actions. Never sign a blank or incomplete return, and always review the completed return before filing. Report suspected fraudulent preparers to the IRS using Form 14157.
Who is most at risk for tax preparer identity theft scam?+
This scam primarily targets Taxpayers, Low-income filers, Immigrants. It is most commonly reported in United States and typically appears on Website.
Is tax preparer identity theft scam getting worse?+
tax preparer identity theft scam is currently surging — reports are increasing rapidly. It has been reported across US. 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.
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