4 Tax Scams Retirees Should Watch Out For in 2026
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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In 2026, tax risks extend beyond filing errors or missed deductions. As communication methods have evolved and financial systems have become more automated, bad actors are finding new ways to infiltrate people’s finances. The resulting scams can cost retirees big money and undue stress.
Three tax and fraud experts explained what to look out for and how retirees can protect themselves.
Why Retirees Are Prime Targets for Tax Scams
Retirees tend to have predictable income and established routines, which can make unexpected disruptions of the kind that scammers introduce feel urgent and threatening, according to Chad Silver, a tax attorney and the CEO and founder of the Silver Tax Group.
Add to this, factors like social isolation and less familiarity with digital technology, and older adults are more vulnerable to scammers, said Darius Kingsley, head of fraud and scam prevention at Chase.
1. IRS and Social Security Impersonation Scams
“A common scam is for scammers to pose as representatives from the IRS or other government agencies,” Kingsley said. They tend to call demanding immediate payments and threatening law enforcement action which can make vulnerable adults panic. Silver echoed this, adding, “Today, fraudsters often intimidate victims by purporting to block their Social Security benefits or revoke Medicare coverage until such victims pay an artificial fine.”
They might also call with promises to help claim tax credits you don’t qualify for or to help reduce past tax obligations, Kingsley noted.
Any scam that demands urgency and penalties for not taking action should immediately raise a red flag.
2. AI and Deepfake Scams
Advances in generative AI have also shifted how scammers operate, Kingsley said. Rather than relying on sloppy emails or unfamiliar voices, many now can look and sound like legitimate officials. These tactics are “even more convincing and difficult to spot as scammers are easily able to create fake images, spoof phone numbers and even clone voices,” Kingsley warned.
Silver pointed out that fraudsters also have the ability to duplicate faces of individuals using generative AI with as little as three seconds of audio or video from a chat or telephone conversation.
Additionally, deepfake video calls “in which a computerized image of a government official requires instant payment of superficial tax debts increase” are on the rise, Silver said.
3. Demands To Pay With Crypto or Wire Transfer
Despite the sophistication of new tactics, there are still giveaways retirees can learn to spot. “One of the most serious warning signs is any demand to be paid through gift cards, cryptocurrency or wire transfer since the IRS does not accept [those],” Silver said.
Robert Tsigler, an attorney and founder of the Law Offices of Robert Tsigler PLLC, also urged retirees not to panic in response to threats of legal action. “If a retiree receives a call threatening to arrest them immediately or if a scammer demands the retiree pay money via cryptocurrency to clear their name, the retiree must hang up immediately.”
It’s also important to note that federal agencies never communicate with individuals via video interrogation or accept cryptocurrency payments, he added.
4. Emerging Scams That Are Catching Retirees Off Guard
Some newer scams go beyond a single call or email, instead using sustained psychological pressure to keep victims engaged and isolated. These schemes are designed to override normal decision-making processes.
Tsigler explained that there have been cases where a scammer held a retiree on the phone “for upwards of 70 hours to prevent the retiree from reaching out to family members or attorneys for assistance.”
The key is to disengage.
What To Do Immediately If You Suspect a Tax Scam
The minute you suspect a scam, stop communication and discontinue all contact with the scammer immediately to prevent further damage, Kingsley stressed.
Next, document everything. “Take note of all relevant information, including the scammer’s contact details and any information that may be useful when reporting the incident,” Kingsley said.
Kingsley recommended taking these other steps, as well:
- Contact your bank/financial institution. Let them know what happened and verify recent transactions
- Report the incident. File a police report or an inquiry to the FTC.
- Monitor for identity theft. Sign up for a service that alerts you to suspected scams.
- Change passwords. Update passwords everywhere to be safe.
- Share your experience. Let friends and family know what happened to raise awareness.
Then, stay alert for follow-up scams. If scammers know you’ve fallen victim once, they may try again, Kingsley warned.
How Retirees Can Reduce Their Risk Before Filing Season
The best way to prevent being scammed is to protect yourself in advance, Tsigler said. For those vulnerable to tax filing scams, he recommended obtaining an Individual Protection Pin prior to the start of each year’s filing season. “An IP PIN is a six-digit password that serves as a lock on your identity.”
Ultimately, err on the side of caution. Verify identities and communications, limit exposure and add formal identity safeguards to significantly narrow the window scammers rely on.
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