James's office warned New Yorkers about emerging AI-powered tax scams with two weeks remaining until Tax Day on April 15, 2026. The consumer alert specifically highlighted four types of AI-enhanced fraud schemes that have become increasingly sophisticated, including fake videos of government officials, AI-generated phishing emails, voice-cloning phone calls, and manipulated Google AI Overview results.
The attorney general's office cautioned that AI technology allows scammers to create "lifelike videos of well-known figures who may push fake tax incentives or deductions" and send "highly convincing, personalized emails disguised as tax notices." James noted that these AI-powered schemes can bypass traditional fraud detection methods, as the technology eliminates telltale signs like typos or awkward grammar that previously helped consumers identify phishing attempts.
Beyond AI-enhanced schemes, the alert outlined traditional tax season frauds, including demands for payment through prepaid cards or cryptocurrency, false claims about erroneous refunds requiring repayment, and deceptive promises of free tax preparation services. The office warned against tax preparers who claim to expedite refunds for high fees or offer loans with terms worse than IRS payment plans.
The consumer protection advisory comes as tax season reaches its peak period, with Attorney General James's office continuing its broader consumer protection efforts. New York has historically seen increased fraud activity during tax filing periods, prompting annual consumer education campaigns from the state's top law enforcement office.
"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," James said. "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."
The attorney general's office recommended several protective measures, including hanging up on suspicious calls and calling back on trusted numbers, thoroughly vetting unexpected tax-related emails, and using legitimate free filing services like IRS Free Filing or Volunteer Income Tax Assistance sites. For consumers using paid preparers, the office advised checking qualifications through the Better Business Bureau and ensuring preparers sign returns with their Preparer Tax Identification Number.
New Yorkers who suspect tax fraud can report incidents to the Attorney General's office online or by calling 1-800-771-7755, with additional reporting available through the U.S. Treasury Inspector General for Tax Administration. The warning represents part of ongoing state efforts to combat consumer fraud during high-risk periods like tax season.