Fraud Watch February 2026: Modern Tax Scams

In the past 5 years, the Georgia Department of Revenue has blocked over $1.07 billion in fraudulent tax returns. As we move through tax season, fraudsters are working just as hard as taxpayers. This month's Fraud Watch highlights modern tax scams, along with business email compromise, and check fraud.

Modern Tax Scams

Scammers often pose as the IRS or tax preparation services using fake promotional emails, text messages, or phone calls that claim you owe back taxes that require immediate attention, you're guaranteed a large refund, and more.

How to Protect Yourself:

• Use secure, reputable tax preparation services
• Never click on suspicious links or share personal information

Business Email Compromise

Business Email Compromise (or BEC) is reportedly one of the costliest fraud categories for businesses according to the FBI Internet Crime Complaint Center. BEC occurs when criminals gain access to or copy a legitimate business email address to request fraudulent wire transfers or other personal or financial information.

How to Spot a BEC Scam:

• Impersonating family, friends, or co-workers requesting urgent payments
• Fake invoices that appear legitimate
• Changing vendor payment information without verification

How to Protect Your Business:

• Verify payment changes using a known, trusted communication channel
• Require dual approval for wire transfers
• Use multi-factor authentication on email accounts

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Check Fraud

The number of checks being written is down, but check fraud is rising - and check fraud is very prevalent in Georgia. Criminals may steal checks from mailboxes, "wash" them to change payee names and amounts, or use counterfeit checks to withdraw funds.

How to Protect Yourself:

• Use secure mail drop locations when sending checks and check your mailbox often
• Monitor your accounts regularly and report suspicious activity to your banker immediately - sign up for BankSouth mobile app notifications
• Consider electronic payments when possible