Income Tax Dept warns of fake refund SMS scams targeting taxpayers awaiting payouts, urges portal verification

The Income Tax Department has raised concerns over a rise in scam messages that falsely inform taxpayers of delayed income tax refunds. According to the department, fraudsters are targeting individuals by sending convincing fake communications that closely resemble genuine tax notifications. These messages include links to counterfeit websites designed to harvest sensitive personal and financial details, putting recipients at risk of identity theft and banking fraud. The warning comes as many taxpayers await legitimate refund updates, making them susceptible to such deceptive tactics.

Taxpayers are being specifically targeted through messages that urge them to act quickly, with phrases such as “Dear taxpayer, your refund is pending. Click now to avoid penalty https://incometax-refund-claim.xyz”. The department has highlighted that such messages often come with urgent calls to action, making them appear especially convincing to recipients who are expecting refunds.

A common trait of these scam messages is the use of alarming language, including phrases such as “Refund Pending”, “Click Now”, “Urgent Action Required”, and “Important Alert… submit a request for payment of your unclaimed and overdue tax refund.” Such wording is designed to pressure taxpayers into providing their details without due caution. The department has reiterated that it never requests sensitive information via SMS, email, or unofficial websites.

The Income Tax Department, through its official social media channels, has explained the mechanism of these scams, noting, "Victims are requested to submit personal information, bank account data, PAN numbers and OTPs, says the Income Tax Department in its post. This method of extracting confidential data significantly raises risks for unsuspecting taxpayers.

Providing further insight, the department stated, "Explaining how these scammers target taxpayers waiting for a refund, the I-T Department says such scammers send them messages claiming that their income tax return is delayed, incomplete or stuck." The department identified that these scams specifically prey on the anxiety and urgency surrounding refund delays.

Fraudulent tax alerts

The fraudulent texts frequently warn of penalties or verification lapses if recipients do not respond promptly. The official advisory notes, "The text will use alarming words like ‘urgent action required’, ‘refund pending’, or the ‘penalty if not verified’" link will be included in the message." These tactics aim to exploit taxpayer concerns regarding compliance and timely refunds.

To help taxpayers avoid falling victim, the department has urged the public to rely solely on the official tax portal. As emphasised, "The I-T Department has asked citizens to verify all tax-related information only through its official website, www.incometax.gov.in, and avoid clicking on links received via email, SMS or social media claiming refund updates."

The Income Tax Department’s message on X underscores this caution: "Fake messages may claim a refund or urgent action and push you to click a link. Don’t fall for it — never share OTPs or bank details. The department has asked taxpayers to verify communications on the official portal (https://incometax.gov.in). Report suspicious messages to webmanager@incometax.gov.in and mark a copy to incident@cert-in.org.in." The department continues to advise vigilance and prompt reporting of any suspect communications.