Anytime major laws change, confusion will follow. And, unfortunately, when confusion rises, so do scams. The One Big Beautiful Bill Act (OBBBA) introduced significant tax changes for the 2026 tax filing season, including new deductions for tips, overtime pay, seniors, and even auto loan interest. While these updates will benefit many taxpayers, they also created the perfect environment for fraud.
Scammers are already using these new tax provisions to trick young workers, retirees, and families into handing over sensitive personal information. To help keep you safe from these new scams, we’ll break down how these scams work, what the new tax changes actually mean, and how you can protect yourself during tax season.
Why New Laws Create Scams
Any time rules and regulations shift, people look for simple explanations. Unfortunately, scammers exploit that desire for clarity to prey on unsuspecting consumers.
Fraudsters rely on confusion about new terminology, offers that sound helpful or authoritative, and pressure to act quickly.
When something feels unfamiliar, it’s easier to believe someone who claims they can explain a complicated new rule or secure a larger refund for you. This instinct is understandable, but it’s also what fraudsters are counting on.
Let’s look at the most common new scams popping up in relation to the OBBBA.
Scam #1: The “No Tax on Tips” Social Media Trap
The OBBBA created a new deduction for select types of tip income. This change has led to a wave of online advice that is, at best, misleading and, at worst, outright fraudulent.
How the Scam Works:
Social media posts may claim that you can reclassify wages as tips to reduce or even eliminate your tax bill. Some online sellers offer templates, software, or “secret methods” they claim will unlock huge refunds.
The Reality:
Tips must be reported accurately. The IRS has clear rules and regulations for reporting income. You cannot reclassify your income to fit into a more favorable category. Misreporting your income could lead to legal issues and result in hefty fines and penalties.
Remember, if someone claims they have “exclusive knowledge” of a loophole the IRS wants kept quiet, that’s not a loophole. It’s almost always a scam.
Scam #2: The “Overtime Refund” Text Scam
The OBBBA also introduced a new deduction for eligible overtime pay. Fraudsters have already begun sending fraudulent messages to taxpayers, hoping to confuse them with this new regulation.
How the Scam Works:
You may receive a text or email congratulating you for qualifying for an “OBBBA Overtime Refund.” When you click the link in the message, it redirects you to a website that may look legitimate. The site then prompts you to provide your Social Security number or financial account information to claim documents supporting your overtime pay qualifications.
The Reality:
Any overtime deductions are claimed on your tax return and are listed on your employer-provided tax forms. There is no separate portal you need to access to claim your refund or to obtain supporting documents. This is a scam. The IRS does not text or email taxpayers, nor does it send direct deposit requests via text or email.
Scam #3: The “Auto Loan Validation” Phishing Call
Since the OBBBA allows deductions for paid auto loan interest on certain vehicles, scammers have launched a new wave of phone scams claiming to “validate” auto loans.
How the Scam Works:
A caller may claim to be from a car dealership, lender, or “tax advocate” group. They ask to verify your loan number, VIN, or other sensitive information pertaining to your vehicle or financial account.
The Reality:
You don’t need to activate or preauthorize anything to claim this deduction. Ignore any calls or messages claiming to need verification of your loan details to qualify for tax deductions.
Scam #4: The “Double Deduction” Ghost Preparer
Many tax preparer scam artists attempt to take advantage of confusion surrounding new regulations by promising unusually large refunds.
How the Scam Works:
Fraudulent tax preparers will insist they can get you a substantially higher tax refund through processes called “double deductions.” They create false tax returns that show a very high tax refund for the taxpayer. Then, they charge a percentage of that refund upfront as payment – before you ever submit your return. A giveaway to this scam is that they will often “forget” or say it’s unnecessary for them to sign your prepared tax forms.
The Reality:
Every professional tax preparer is required to sign the tax return. If they guarantee a refund before even reviewing your documents, that’s a huge red flag. Remember, anyone claiming to get you a “guaranteed” refund or exceptionally high deposit is likely a scammer.
Scam #5: The “HSA Re-Registration” Threat
The updated rules regarding HSA-eligible expenses have also inspired new scams.
How the Scam Works:
A fraudster calls and claims your Health Savings Account must be re-verified immediately, otherwise you risk losing your tax advantages. They then request your account login credentials to complete the verification process.
The Reality:
HSAs do not require re-registration or re-verification under the new OBBBA provisions. Any calls claiming to require access to your HSA are simply attempts to access your account.
Scam #6: The “Social Security Refund” Call
Older adults are often on the receiving end of the more aggressive scam attempts. This is because fraudsters prey on their confusion, lack of technical knowledge, and fear. Scam artists know that any changes to deductions and benefits are confusing for anyone, especially some seniors, so they try to exploit any uncertainty. Misinformation continues to spread about Social Security benefits not being taxed due to the OBBBA, which makes for an enticing scam opportunity.
How the Scam Works:
A scammer calls to claim you qualify for a large tax refund that can be deposited immediately once you provide your financial account information or Social Security number. Some scammers even go the extra mile, sending fake IRS letters in the mail to make them appear official.
The Reality:
Any deductions you qualify for are applied when you file your tax return. The IRS does not need to call you to initiate your tax refund or verify your direct deposit information. Any time the IRS requests your financial account information over the phone, email, or text, it is a scam.
Red Flags for Everyone
No matter what your age or tax situation, certain warning signs appear consistently across nearly all scams.
If you encounter any of the following red flags, pause before proceeding.
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Messages that demand immediate action.
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Promises of special loopholes or guaranteed refunds.
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Threats that your government benefits will be suspended.
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Requests for payment via gift cards, cryptocurrency, or peer-to-peer payment apps (like Cash App, Zelle, Venmo, etc.).
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Requests for passwords, account numbers, login credentials, or security codes.
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Texts, emails, or social media messages claiming to be from an official government entity, such as the IRS.
Bonus Tip: Be wary of unexpected calls that sound like someone you know. With the rise of AI voice-cloning technology and caller ID spoofing, scammers can mimic the familiar voices of your loved ones or call using spoofed numbers that appear to be from a legitimate person or company, such as the IRS or the credit union.
Protect Yourself this Filing Season
The best protective measures you can take are to use caution and always verify anything that seems unfamiliar or urgent.
Enforcing these small habits can make a big difference:
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File your taxes early to minimize the risk of fraud.
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Work only with reputable, credentialed tax preparers.
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Verify any IRS notice through IRS.gov.
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Don’t click links sent through unrecognized texts or social media messages.
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If anything seems questionable, don’t hesitate to contact the credit union for guidance.
We’re Here to Help!
The One Big Beautiful Bill Act (OBBBA) may offer valuable tax relief opportunities, but it does not require rushed decisions, special activation calls, or online enrollment links. Understanding how the new tax provisions work is one of the most effective ways to protect yourself from OBBBA-related fraud.
If you receive communication about your taxes, Social Security benefits, or credit union account that does not feel right, please contact the credit union for assistance and do not respond to it. If you have been a victim of fraud, we are ready to help you get back on track.
As always, the credit union is here to provide resources, verify information, and help you protect your finances. Please stop by any of our convenient branch locations or call XXX-XXX-XXXX to speak with a team member today.