5/4/2023

Artificial Intelligence and IRS Tax Scams

A bipartisan group of Senate Finance Committee members is raising concerns with the IRS over potential use of artificial intelligence (AI) to generate what they term persuasive, tailored messages to steal personal financial information.

In a letterĀ to IRS the Commissioner, lawmakers urged the IRS to prepare for, and counter, AI-generated tax scams by educating taxpayers and tax professionals about the existence of such tax scams and what to watch out for. Senators also asked the IRS whether it expects these AI-generated tax scams to become more common and how these scams might evolve over time.

According to recent reporting, one cybersecurity expert demonstrated how artificial intelligence can be used to generate scam messages from the IRS targeting families, older Americans, and small businesses. For example, AI generated a fake email from the IRS claiming that in order to receive a specific tax refund amount, an individual needed to respond with their personal financial information.

The lawmakers requested answers on how the IRS plans to address a possible increase in scams using AI tools, how it plans to educate taxpayers and tax professionals on the matter, and whether the IRS has received any reports of AI-generated scam.

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