Allstate adds tax refund advance to identity protection offering

Allstate is expanding its identity protection services with a new feature that advances customers their expected tax refund if it is stolen through fraud.

The update comes as identity theft activity rises. According to Allstate, total identity theft cases increased 50% during the 2025 tax season compared with the prior year, with fraudulent credit applications up 65% and new account fraud up 45%. The company also noted that adults in their 20s reported significantly more incidents than older age groups.

The new benefit is included in the Allstate Identity Protection Blue Plan and is positioned as an industry first. If a fraudulent tax return is filed using a customer’s information, eligible members can receive the amount of their expected refund within a few business days after filing a claim. The advance is repaid over time with no interest.

The Blue Plan provides year-round monitoring, alerts, and identity restoration support, along with guidance on tax-related scams. Allstate said the enhancement reflects growing risks during tax season, when increased data sharing and more sophisticated AI-driven scams make fraud attempts more convincing.

Consumer plans start at $19 per month and are also available through employer-sponsored programs, which currently cover more than 1.4 million employees and their families.