Gen Z trails behind other age demographics when it comes to knowledge of common tax fraud, such as email scams, ghost tax preparers and identity theft.
The ACI Worldwide report finds that 30% of Gen Z and 21% of Millennial respondents said they would pay their taxes following Google search recommendations from friends and family – a move that may lead to filing taxes on phoney websites.
“Because overall awareness of payments fraud is down this tax season, we must continue to focus on consumer education — especially among younger members of our workforce”, said Ron Shultz, head of the biller segment at ACI Worldwide. “It’s important that we urge all taxpayers to be on high alert for potential fraud and protect their digital identity. Taxpayers also need to obtain information from official sources like the Internal Revenue Service (IRS) to ensure their filings are secure and properly completed”.
The number of fraudulent activities has drastically increased over the last years, with Covid forcing people to shift their spending habits online. A GlobalData report titled “Trends in Payment Fraud”, published in February 2023, states that fraud losses reached 0.04% of global card payment value in 2022.
As a result, the ACI Worldwide report highlights that the total number of American adults who plan to consult a tax professional to help them with their taxes will reach 30% in 2023, up from 27% in 2022.
“The data suggests that more people are turning to tax professionals to ensure their tax filing is made correctly. Taxpayers continue to adopt new forms of digital payment that are faster and safer than mailing a check to the IRS. However, we do see some differences in the types of digital payments each generation is comfortable using”, Shultz added.