New York Attorney General Letitia James issued a consumer alert on Apr. 1 warning residents about tax preparation frauds, especially those using artificial intelligence technologies, as Tax Day approaches. The alert urges New Yorkers to remain vigilant and report suspected scams to the Office of the Attorney General.
The announcement comes at a time when scammers are using increasingly advanced methods to deceive consumers during tax season. “Scammers are increasingly using sophisticated AI programs to create more deceptive schemes this tax season,” said Attorney General James. “As New Yorkers file their taxes, I encourage everyone to be on the lookout for scammers who try to steal their money and personal information. I encourage everyone to follow the tips from my office and contact us immediately if you believe you have been targeted or victimized by a scam.”
James outlined several AI-powered tactics used by fraudsters, including fake videos featuring government officials or celebrities giving false tax advice, highly convincing phishing emails created with AI tools, and clone phone calls that mimic IRS officials or tax preparers using voice replication technology. She also warned that scammers can manipulate Google’s AI Overview search results to display false contact information alongside legitimate sources.
Other common scams include demands for payment through prepaid cards or cryptocurrency under the pretense of owed taxes, claims that legitimate refunds were sent in error requiring repayment, deceptive offers of free tax preparation services that turn out not to be free, and high-interest loans offered by some preparers claiming quick refunds.
To protect themselves, consumers are advised by James’s office to verify unsolicited communications independently before responding; avoid paying debts via unconventional means; review loan terms carefully; confirm legitimacy of free filing offers such as IRS Free Filing and Volunteer Income Tax Assistance sites; check qualifications of any paid preparer through resources like the Better Business Bureau; and ensure all forms include proper identification numbers.
Letitia James heads the New York Attorney General’s office according to the official website. The agency operates through regional offices across New York State addressing local legal issues according to its official website, promotes social justice through civil rights enforcement and consumer advocacy according to its official website, protects public safety and upholds consumer protections according to its official website, provides services such as consumer fraud investigations and tenant dispute mediation according to its official website, and functions as a public law enforcement agency for New York according to its official website.
Anyone who suspects they have been targeted is encouraged by James’s office to report incidents online or call 1 (800) 771-7755.
