Tax season is busy. And yes, that's exactly why it’s prime time for scammers. But here's the good news: with a few smart moves, you can protect yourself and your sensitive financial information.

The growing risk

The numbers are real. According to the IRS Criminal Investigation (IRS-CI) Fiscal Year 2025 Annual Report, approximately $4.5 billion resulted from tax fraud investigations — an increase of 111.8% from the year before.* The most common scheme? Scammers using stolen names, Social Security numbers, and personal information to file fake tax returns and claim refunds that should be yours.

The tricky part is that many victims don't discover the fraud until they attempt to file their own return. That’s when they discover that one's already been processed in their name. By then, the damage is done.

Watch out for impostors

One of the fastest-growing scams involves criminals pretending to be government officials. The Federal Bureau of Investigation reported a 63% increase in these impersonation crimes in 2023.*

Here's what you need to know: In most cases, the IRS initiates contact through regular mail delivered by the U.S. Postal Service. They typically send letters before ever calling. The IRS does not initially contact you by phone, email, text, or social media to demand personal information. They won't threaten you with immediate law enforcement action. They won't ask you to pay via gift cards, wire transfers, or cryptocurrency. And they don't demand immediate payment without giving you the opportunity to question or appeal what you owe. If someone claiming to be from the IRS is doing any of those things, it's a scam.

6 Smart steps to protect yourself

1. Keep documents secure. Use the U.S. Postal Service carefully. This means mailing documents directly from the post office instead of dropping them in a corner mailbox where they can be intercepted. Even better, use encrypted email or a reputable delivery service to send sensitive information to your tax preparer or financial advisor.
2. Verify before you share. If someone asks for personal information like your Social Security number, bank account details, or access codes, call them back using a number you know is legitimate. Don't use contact information from the request itself. This simple habit stops most scams cold.
3. File early. Once your tax return is filed with the IRS, a scammer can't use your information to file one in your name.
4. Choose your tax preparer wisely. Make sure anyone helping with your taxes has strong cybersecurity practices and fraud prevention controls in place to protect your data.
5. Monitor your accounts. Set up alerts on your bank and credit card accounts so you're notified of unusual activity right away. The faster you spot something wrong, the faster you can respond.
6. Strengthen your digital defenses. Install security software on all your devices. Shred important documents before throwing them away. Be skeptical of unsolicited emails or calls asking for financial information — this is called social engineering, and it works on more people than you'd think.

The LMCU difference

We're here to help you stay ahead of these threats. With eAlerts on all your accounts and multi-factor authentication protecting your online banking login, you've got layers of defense working for you.

If you've opted into estatements, your 2025 tax documents will be available in online banking as early as January 31—giving you everything you need without the stress of waiting for mail. If you haven't signed up for estatements yet, now's a great time. You'll get faster access to your tax documents plus all your statements securely delivered to your inbox. Ready to switch? Learn how to set up estatements.

And if you ever spot something suspicious on your LMCU accounts, our fraud prevention team is standing by. We work hard for you every single day, and that includes keeping your financial information safe.

For more resources on tax safety and fraud prevention, visit our Security Center. Questions about your tax documents? Check out our Income Tax Year-End Information guide.

We're here to help. That's what being your financial partner means.

Sources:

• Internal Revenue Service Criminal Investigations, FY 2025 Annual Report
• Federal Bureau of Investigation, 2023 Internet Crime Report