Business | Unsplash by Tyler Franta
Business | Unsplash by Tyler Franta
W-2s and 1099s have been sent. The scramble to compile receipts and itemizations has begun. Tax professionals are gearing up for their busiest time of the year, even as free tax filing options become more available. And—surprise, surprise—cybercriminals are taking advantage.
Cybersecurity experts and government agencies have issued several recent bulletins about hackers working hard to steal sensitive information. The Internal Revenue Service (IRS), state tax agencies, and tax industry specialists say that phishing scams targeting tax preparers are proliferating. These scams typically involve someone posing as a potential client looking to make an appointment or a regulatory body asking for sensitive information.
For consumers, tax returns continue to be one of the biggest targets for cybercrime. In 2022, the IRS Criminal Investigation division reported more than 2,500 data breaches involving tax professionals, compared to 250 in 2018—a more than 1,000% increase. The IRS has also received increasing reports of cybercriminals posing as IRS e-Services, asking tax pros to sign into their accounts using an illicit link. The link, however, sends tax pros to a fake e-Services site that steals their usernames and passwords.
Hackers thrive on confusion this time of year, often flooding targets with many different forms of schemes and phishing attempts. Individuals often find that a cybercriminal has filed a fraudulent return before they even have the chance to complete a legitimate one. More than 5 million fraudulent returns were filed in 2020, rushing to take advantage of pandemic-related payouts.
Large refunds can be deposited in fake bank accounts or in taxpayers’ real ones, at which point criminals double down on their ruse. They then pose as debt collectors and reach out to consumers to notify them that the refunds had been sent in error. The victims are then requested to forward the money to another contact. It becomes incredibly complicated to untangle these types of crimes—and bad actors benefit from the IRS’ growing backlog of audits and investigations.
What Can Tax Preparers and Consumers Do to Stay Safe?
As tax season approaches, CMIT Solutions recommends the following strategies, all of which should be backed by the support and consultation of trusted IT partners and reliable tax professionals who keep their own systems safe
With tax season ramping up, the potential for security breaches increases. If you want to enhance cybersecurity and protect your sensitive information as Tax Day approaches, contact CMIT Solutions today.
We have more than 25 years of experience working with tax preparers, financial professionals, and businesses of all sizes across North America to safely navigate these challenging times
Original source can be found here.
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