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Nearly two-thirds of U.S. consumers say they’re concerned scammers will steal their personal information to file a tax return and pocket the refund, according to a survey by Allstate.
Sixty-four percent of taxpayers are worried about fraudulent activity and subsequent identity theft, the data showed, with one in three U.S. consumers (33%) admitting they’ve done nothing to protect themselves from tax-related identity theft.
“The best way to stay safe is to file early, use an IRS Identity Protection PIN and stay alert,” said Caroline Slane, senior vice president of business operations at Allstate Identity Protection. “Taking proactive steps now can safeguard your personal information and ensure your tax refund stays in the right hands.”
Allstate said some victims wait nearly two years to recover their stolen tax refunds.
Meanwhile, U.S. consumers say they’d rather deal with major financial setbacks than fall victim to fraud:
- Fifty-nine percent say they’d rather lose their wallet with all of their credit cards.
- Fifty-eight percent say they’d rather have their phone hacked.
- Fifty-eight percent say they’d rather see their credit score drop 100 points overnight.
- Fifty-four percent say they’d rather lose their job unexpectedly.
- Fifty-two percent say they’d rather have their bank account drained.
Also in 2025, one in five U.S. consumers (20%) say they’re more worried about tax-related identity theft. According to Allstate, identity theft fears are primarily driven by news about rising tax fraud (43%), IRS delays and staffing shortages (42%) and a rise in AI-powered fraud (42%).
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