$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
tax refund check scam
Fraudsters file fake tax returns using stolen personal information to intercept refund checks or direct deposits.
“check scam”
↑ 34%Key indicators
Usually targetsJob seekers
Often hitsSmall business owners
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Criminals obtain personal information through data breaches, phishing, or stolen mail.
2
They file a fraudulent tax return early in the season claiming a large refund.
3
The refund is deposited into an account controlled by the scammer before the real taxpayer files.
What to do first
File your tax return as early as possible each year to reduce the window for fraud.
Related terms
stolen tax refundtax identity theftrefund fraudCheck and money order scamsWebsiteRisingJob seekersSellersSmall business ownersSmall business ownersPayroll, HR, and finance teamsTech workers and developersUnited StatesCanadaUnited Kingdomstolen tax refundtax identity theft
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Samantha, 29, a job seekers, encountered what appeared to be a legitimate check and money order scams situation while using Website. Criminals obtain personal information through data breaches, phishing, or stolen mail.
Step 2
What happened next was calculated: They file a fraudulent tax return early in the season claiming a large refund.
Step 3
The pressure escalated quickly: The refund is deposited into an account controlled by the scammer before the real taxpayer files.
The outcome
Samantha realized something was wrong when irs rejects your tax return because one was already filed using your social security number. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
File your tax return as early as possible each year to reduce the window for fraud. Samantha's experience shows why irs rejects your tax return because one was already filed using your social security number and you receive a tax refund check or deposit you did not request are the clearest early warning signs.
How to identify it
- IRS rejects your tax return because one was already filed using your Social Security number
- You receive a tax refund check or deposit you did not request
- IRS notice states you have income from an employer you never worked for
- 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
- ✓File your tax return as early as possible each year to reduce the window for fraud.
- ✓Request an Identity Protection PIN from the IRS at irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin.
- ✓If you suspect tax identity theft, file IRS Form 14039 and contact one of the three credit bureaus to place a fraud alert.
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 reported preventing over 20 billion USD in fraudulent refund claims during the 2024 filing season.
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.
- ✓File your tax return as early as possible each year to reduce the window for fraud.
- ✓Request an Identity Protection PIN from the IRS at irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin.
- ✓If you suspect tax identity theft, file IRS Form 14039 and contact one of the three credit bureaus to place a fraud alert.
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 reported preventing over 20 billion USD in fraudulent refund claims during the 2024 filing season.
FTC Consumer Sentinel 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
Job seekers, Sellers, Small business owners
Geographic concentration
United States, Canada, United Kingdom
Primary channel
Website — Check and money order scams
Why this group is vulnerable
Job seekers 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 reported preventing over 20 billion USD in fraudulent refund claims during the 2024 filing season.
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about tax refund check scam
How does the tax refund check scam work?+
Criminals obtain personal information through data breaches, phishing, or stolen mail. They file a fraudulent tax return early in the season claiming a large refund. The refund is deposited into an account controlled by the scammer before the real taxpayer files.
What are the warning signs of tax refund check scam?+
IRS rejects your tax return because one was already filed using your Social Security number You receive a tax refund check or deposit you did not request IRS notice states you have income from an employer you never worked for
What should I do if I encounter tax refund check scam?+
File your tax return as early as possible each year to reduce the window for fraud. Request an Identity Protection PIN from the IRS at irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin. If you suspect tax identity theft, file IRS Form 14039 and contact one of the three credit bureaus to place a fraud alert.
Who is most at risk for tax refund check scam?+
This scam primarily targets Job seekers, Sellers, Small business owners. It is most commonly reported in United States, Canada, United Kingdom and typically appears on Website.
Is tax refund check scam on the rise?+
tax refund check scam is currently on the rise with growing reports. It has been reported across US, CA, UK. 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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