We've all heard the famous Benjamin Franklin quote, "Nothing is certain except death and taxes." While not an issue in Ben's day, we can update that quote to add one caveat for tax season — cyber tax scams.
Every year without fail, cybercriminals take advantage of tax season to steal money from innocent people trying to be good citizens. Although you can't prevent cyber criminals from preying, you can help protect your clients by arming them with the knowledge needed to avoid falling victim to tax scams.
Cyber criminals have become experts in the art of deception, making it increasingly difficult for people to tell the difference between legitimate websites, emails and texts from those that are fake. They also like to instill fear and a sense of urgency in their victims. A common tactic during tax season is pursuing individuals with the claim that they, the unassuming taxpayer, owe money to the IRS. Some threat actors will go so far as scanning public records to see who owes money.
Another devious approach that cyber criminals use is targeting people who have recently received their tax refund. Threat actors will claim that the refund was erroneous and needs to be sent elsewhere, and that they will send the proper refund. We witnessed similar attacks timed with stimulus payments.
There is also an uptick in phone-based social engineering scams, both calls and texts. Text scams in particular have risen consistently over the past several years. These messages, claiming to be from the IRS, frequently include a URL and ask recipients to click for details on their pending refund. Hyperlinks, if not infected with malware, often direct targets to fill out a fraudulent form that asks for personal information.
It is important that people understand that the IRS will almost never call, text, or email someone about tax-related issues; this is especially true when an accountant is filing information on their behalf. And if for some reason they did, they would not outsource the call to an operator in a foreign country.
The internet has opened a gateway for criminals to access bank accounts, install malicious software, and steal identities to commit fraud. Deploying technology and following the proper procedures to protect client data must be a top priority.
Because death and taxes aren't the only thing inevitable in today's digital world, the following tips will help your clients — and you — avoid falling victim to cyber criminals this tax season and beyond.
- Navigate directly to tax websites. Safely searching for tax forms, advice on deductibles, tax preparers, etc. requires not getting fooled into landing on malicious sites. People should know the site(s) they are looking for and travel there directly.
- If it seems too good to be true, it likely is. Tax rebates, great deals on tax preparation, and a free tax calculator tool are just some of the appealing scams cyber criminals will use to lure victims. To learn more about timely scams, visit the
IRS warning page . - Never send sensitive information in email. Basic email is not secure; it can be easily intercepted by criminals. Only share information electronically via secure file-sharing methods. Password protection and two-factor authentication are a must.
- Deploy antivirus and email threat protection software. If a computer is infected with malware, criminals can steal every piece of information entered on it, from Social Security numbers to bank account information. Keep antivirus software and other apps up to date.
- Invest in identity protection. Anti-virus software with identity protection provides an extra layer that extends protection beyond devices to include identity and privacy in the event the uncontrollable happens.
- Use a reputable tax preparer who follows strict data security guidelines. Despites a client's best effort, data can still be at risk if the tax preparer they are working with doesn't take the necessary steps to ensure the safety of the data they share. Communicating what processes you have in place to secure data won't just put your clients at ease, it can also serve as a competitive differentiator.
