Tax refund scam alert: How one taxpayer lost Rs 1.5 lakh to fake ‘refund delay’ message

The Income Tax Department has issued a fresh warning over a surge in fraudulent messages falsely claiming delays in income tax refunds, after a taxpayer reportedly lost Rs 1.5 lakh to a scam disguised as an official communication. Tax advisory platform Tax Buddy highlighted the case on X, describing how the victim was duped through a convincing “refund delay” message that closely mimicked legitimate tax notifications.

According to Tax Buddy, the scam begins with a message informing the recipient of a “pending refund” that requires urgent verification. The message typically includes a link redirecting the taxpayer to a fake portal designed to resemble the official Income Tax e-Filing website. Once there, victims are prompted to enter sensitive details such as PAN, login ID, OTPs, and bank account information. This data is then harvested and misused, leading to financial losses.

How the scam works

Tax Buddy outlined the sequence commonly used by fraudsters:

A message claims a refund is pending or delayed.

The taxpayer is urged to verify details immediately.

A link redirects to a fraudulent website.

The victim is asked to provide PAN, login credentials, OTP, and bank details.

Personal and financial information is stolen.

The Income Tax Department, through its official social media channels, confirmed that victims are requested to submit personal information, bank account data, PAN numbers, and OTPs. This method of extracting confidential data significantly increases the risk of identity theft and financial fraud.

Why taxpayers fall victim

Tax Buddy noted that refund delays often create anxiety among taxpayers, making them more susceptible to manipulation. Scammers exploit urgency, fear of losing money, and “final notice” language to trigger panic.

The department explained that fraudsters specifically target individuals awaiting refunds, sending messages that claim returns are delayed, incomplete, or stuck. These communications frequently include alarming phrases such as “urgent action required,” “refund pending,” or warnings of penalties if verification is not completed immediately. Links embedded in such messages are used to lure taxpayers into fraudulent portals.

The psychological pattern is straightforward: panic leads to a quick click, which results in compromised data.

Red flags to watch

Tax Buddy has urged taxpayers to remain alert to warning signs, including:

Suspicious sender IDs
Poor spelling or grammatical errors
Threats such as “refund will lapse”
Requests for OTP or passwords

“If someone asks for OTP, it’s not legitimate,” Tax Buddy cautioned.

What the Income Tax Department does not do

The advisory also clarified that the department:

Does not send refund verification links via SMS

Does not ask for OTP over calls or messages

Does not collect bank details through unsolicited emails

Refund status can be checked only through the official Income Tax e-Filing Portal.

The department has emphasised that taxpayers should verify all tax-related information exclusively through its official website, www.incometax.gov.in, and avoid clicking on links received via SMS, email, or social media claiming refund updates.

What taxpayers should do

Tax Buddy recommends:

Logging in directly to the official portal by typing the web address manually

Checking refund status within the secure account dashboard

Never clicking on refund links from unsolicited messages

Never sharing OTPs or login credentials

Suspicious messages should be reported to the Income Tax Department’s official grievance email or to CERT-In (Indian Computer Emergency Response Team) to help prevent further scams.

The department reiterated a final reminder: refund delays are common, but urgent requests for OTPs or random verification links are almost certainly fraudulent.