Text ‘Your tax refund has been approved’? It’s a scam

Tax season is prime hunting season for scammers. The FTC just issued a warning about a wave of fake “tax refund approved” messages designed to steal your personal information — and possibly your entire refund.

This phishing scam is becoming more sophisticated every year, and now that AI-generated messages have become indistinguishable from real ones, you need to know exactly what to look for.

How this scam works

You receive a text message or email that looks like it’s from the IRS or a state tax office. The message claims that they have “processed” or “approved” your tax refund claim.

To “verify your identity” and “send you money,” they ask you to click on a link and enter information such as:

• Your citizen service number
• Your bank account and routing numbers
• Your date of birth
• Your address

This way you won’t find out about a real tax refund. If you click and share your information, the scammer can steal your refund, file fraudulent returns in your name, or open accounts using your identity.

Red flags to look out for

These scams work on the same emotional triggers as fake debt collection scams: they create urgency around money you expect (or fear) and then exploit that emotion to make you take action without thinking.

What to do if you receive one of these messages

• Do not respond or click on links – Not even to “unsubscribe”
• Check your real refund status – Go directly to IRS.gov/refunds or USA.gov
• Report the text – Forward it to 7726 (SPAM) or use the “junk advertising” function on your phone
• Mark emails as spam – This helps email providers block similar messages
• Report to the FTC – File op ReportFraud.ftc.gov
• Delete the message – Once reported, remove it from your inbox

Already clicked? Here’s what you need to do

If you have already clicked a link or entered information:

• Contact your bank immediately – If you have entered bank account information, notify your financial institution
• Post a fraud alert – Contact one of the three credit bureaus (Equifax, Experian, TransUnion)
• Consider a credit freeze – This prevents new accounts from being opened in your name
• Report identity theft – Go to Identitytheft.gov
• Keep an eye on your credit – Be aware of unknown accounts or questions

Visit IdentityTheft.gov/steps to learn how to protect yourself before identity theft happens.

The Bigger Picture: Why Scammers Are Targeting Tax Season

Tax season creates the perfect storm for scammers:

With billions in refunds rolling in and people emotionally invested in getting their money, the conditions are perfect for manipulation. That’s why the FTC and the IRS are sounding the alarm now – before peak filing season.

If you’re expecting a refund and wondering what to do with it, especially if you’re in debt, check out the guide on what to do with your tax refund if you’re in debt.

The IRS will never text you about your refund. Period. If you receive a message it is a scam, no exceptions.–Steve Rhode

Frequently asked questions

Does the tax authorities ever send text messages?

No. The IRS does not contact taxpayers via email, text, or social media to request personal or financial information. Such a message is a scam, no matter how official it looks.

How do I actually check my refund status?

Use the official ‘Where’s my refund?’ tool at IRS.gov/refunds or the IRS2Go mobile app. You can check your status 24 hours after e-filing or 4 weeks after sending a paper return.

What if the lyrics come from what looks like an official song?

Scammers can “spoof” phone numbers to give the impression that text messages are coming from legitimate sources. Do not trust the sender’s information; the IRS simply doesn’t contact people this way.

I entered my social security number on a fake site. What now?

Go to IdentityTheft.gov immediately. Place a fraud alert with the credit bureaus, consider a credit freeze and keep a close eye on your accounts. You may also want to file an IRS Identity Protection PIN application to prevent fraudulent tax returns in your name.

How do I know if a tax-related email is legitimate?

The IRS will not contact you via email. If you receive an email about taxes, don’t click on any links. Instead, go directly to IRS.gov by typing the address into your browser. All legitimate IRS correspondence comes through the mail first.

(Source: Federal Trade Commission)