New York Attorney General Letitia James issued a consumer alert on Apr. 1, warning residents about increasing tax preparation scams and offering advice to avoid common fraud during the current tax season. The alert highlights concerns over the use of artificial intelligence by scammers and urges vigilance as the tax filing deadline approaches.
The advisory matters because it addresses new forms of fraud that leverage advanced technology, making scams harder to detect and potentially putting personal and financial information at risk for many New Yorkers.
James said, “Each time more, scammers are using sophisticated artificial intelligence programs to create more deceptive schemes during this tax season.” She continued, “As New Yorkers file their taxes, I urge everyone to stay alert for scammers trying to steal their money and personal information. I urge everyone to follow my office’s tips and contact us immediately if they believe they have been targeted or victimized by a scam.”
The warning outlines several tactics used by scammers: creating fake videos of officials or celebrities spreading false tax information; sending convincing phishing emails disguised as official notices; cloning phone calls from trusted numbers with AI-generated voices; manipulating Google’s AI-generated summaries with fraudulent links or phone numbers; demanding payments through prepaid cards or cryptocurrency under false pretenses; claiming legitimate IRS refunds were errors requiring repayment; advertising free services that result in hidden charges; and offering loans with high fees under misleading terms.
James provided practical advice for consumers: hang up on suspicious callers and verify contacts through trusted sources, scrutinize unexpected emails about taxes before responding, remember that legitimate government agencies do not threaten arrest over unpaid debts nor demand payment via unconventional methods like gift cards or cryptocurrency. She also recommended verifying preparers’ credentials through the Better Business Bureau and ensuring all paperwork is properly signed with appropriate identification numbers.
Letitia James heads the New York Attorney General’s office according to the official website. The agency operates as a public law enforcement body across regional offices statewide according to the official website, promoting social justice through civil rights enforcement and consumer advocacy according to the official website. Its services include investigating consumer frauds, overseeing charities, mediating tenant disputes according to the official website, protecting public safety, defending civil rights, upholding consumer protections, preserving the environment according to the official website.
Any resident suspecting a scam is encouraged to report it online or call 1 (800) 771-7755. Tax-related scams can also be reported directly to federal authorities at 1 (800) 366-4484.
