GREENSBORO, N.C. — The average tax refund is now $3,213. The IRS confirms that it is up from last year by $134. Scammers know the refund totals are up.
"Tax refunds are one of the biggest sources of scams these days — scammers are just really taking advantage of this opportunity," said Scott Braddock, Scott Braddock Financials.
The IRS flagged over one million tax returns for identity fraud in March 2023. The refunds tied to those returns were estimated to be about $6.3 billion. We're waiting for updated numbers for this year.
When a scammer has your Social Security number, they fill out the tax return and pretend to be you. The IRS doesn't know it's not you until that same Social Security number is used to file a second return.
"The IRS will only file one tax return per social security number, so if you get yours in early, you are less likely to be taken advantage of by a scammer who has your Social Security number and file a return and get your refund," said Braddock.
Here's another way to protect your identity and your refund: Get an IP PIN with the IRS. This is a six-digit number that verifies your identity with the IRS. It used to be only for folks who had their tax return stolen, but now, any taxpayer can get one. Every year, you get a new IP PIN. To get the initial IP PIN, you need to go through an identity process that includes uploading several documents.