Fraud Watch July 2026: Bogus Tax Refunds, Insurance Scams, and Email Compromise

Elder fraud accounted for 24% of all fraud reports in 2025, reminding us that it’s more important than ever to question unexpected phone calls, emails, texts, and even traditional mail. In this edition of Fraud Watch, we’re breaking down a mix of classic and new threats targeting every generation of our community. Read on to learn how to handle fake IRS refund alerts, spot Medicare fraud, and protect yourself when engaging with emails.

Fraudulent IRS Refunds

Even outside of the traditional spring tax season, scammers send fake emails and text messages claiming you have a pending IRS tax refund or state rebate waiting to be claimed. These messages often include official-looking logos and links to fake websites designed to look like the real IRS website. Once there, you are asked to enter your Social Security number, bank account details, or personal information to “process” your payment. This gives identity thieves exactly what they need to drain your accounts or steal your identity. Remember, a tax refund is not a gift. It means you’ve overpaid and are eligible for a refund.

How to Avoid This Scam:

• The IRS will never initiate contact with taxpayers via email, text message, or social media to request personal or financial information.
• Never click on links in unexpected tax-related emails or text messages. If you’re unsure, go directly to IRS.gov by typing the address into your browser.

Medicare & Health Insurance Scams

Scammers frequently pose as Medicare representatives or health insurance agents, calling or emailing to claim you need a new medical card, owe a sudden fee, or qualify for “free” medical supplies. Their true objective is to steal your Medicare number, Social Security number, or financial details. With this information, they can commit identity theft or fraudulently bill the government for services and equipment you never received.

How to Avoid Health Insurance Scams:

• Never give your Medicare number, Social Security number, or banking details to anyone who contacts you out of the blue.
• Remember that Medicare will never call you uninvited to ask for personal information or try to sell you products.
• Review your Medicare Summary Notices (MSN) or health insurance statements carefully to ensure you aren’t being billed for services you didn’t receive.

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Email Compromise — Not Just for Businesses

Email Compromise is a sophisticated scam that affects both businesses AND consumers. Cybercriminals hack or spoof the email accounts of businesses and use these accounts to send “urgent” emails to consumers and employees asking you to take action immediately. They may ask you to click a link or call a number to confirm an order, complete an application, or update account information. Because these requests appear to come from companies or people you often email, it’s easy to fall for the scam.

How to Avoid Email Compromise:

• Always verify urgent or unusual payment requests by calling the sender directly using a known, trusted phone number; never use the phone number listed in the suspicious email.
• Carefully inspect email addresses for slight, easy-to-miss variations.
• Implement strict fraud prevention measures, like multi-step verification and dual approvals, for any changes to how you manage your personal or business finances.

Pause Before You Pay

Does something feel off? Is the offer too good to be true? Feel like you need to discuss with someone? Stop. Think. Call. Get more fraud prevention tips from our Fraud Center. Don’t forget to check out our latest episode of the BankSouth Fraudcast. where we cover the latest fraud trends affecting our community.