James issued a consumer alert highlighting the growing threat of AI-enhanced tax scams, including deepfake videos of government officials and celebrities providing false tax information, highly convincing phishing emails, and voice cloning technology used to impersonate IRS agents or tax preparers. The alert comes with two weeks remaining until Tax Day and follows a pattern of scammers leveraging emerging technologies to create more deceptive schemes.
"Increasingly, scammers are using sophisticated artificial intelligence programs to create more deceptive schemes during this tax season," James stated. "As New Yorkers file their tax returns, I urge everyone to stay alert for scammers trying to steal their money and personal information." The Attorney General emphasized that AI technology allows fraudsters to create realistic videos promoting false tax incentives, send personalized phishing emails without telltale grammar errors, and manipulate caller ID systems while referencing victims' recent credit card transactions to appear legitimate.
The alert identifies specific AI-powered tactics including fake videos of celebrities promoting fraudulent tax deductions, sophisticated phishing emails that are nearly impossible to distinguish from legitimate tax notices, and voice cloning technology that enables scammers to impersonate IRS officials convincingly. James also warned about manipulated Google AI Overview results showing false phone numbers alongside legitimate tax information, making it harder for consumers seeking tax assistance to identify authentic resources.
Beyond AI-enhanced schemes, the alert addresses traditional tax season scams including demands for payment via prepaid credit cards or cryptocurrency for alleged tax debts, false claims about erroneous IRS refunds requiring repayment, and deceptive promises of free tax preparation services. James noted that legitimate government agencies never threaten arrest or deportation for unpaid debts and never insist on payment through gift cards or cryptocurrency.
The Attorney General provided specific guidance for New York consumers, recommending they hang up on unsolicited calls and return calls to trusted numbers, verify unexpected emails about tax obligations before taking action, and ensure any tax preparer includes their Preparer Tax Identification Number on completed returns. James directed consumers to utilize legitimate free filing options like IRS Free File and Volunteer Income Tax Assistance programs rather than potentially fraudulent "free" services.
New Yorkers who suspect they are victims of tax scams can file complaints with the Attorney General's office online or by calling 1-800-771-7755, with tax-related fraud also reportable to the Treasury Inspector General for Tax Administration. The alert emphasizes the importance of verifying tax preparer qualifications through the Better Business Bureau and carefully reviewing all service statements for additional charges or interest rates that may exceed IRS payment plan terms.