Tax Season Cyber Threats Surge: Safeguarding Your Financial Data

At a glance

• Increased Cyber Threats: Scams and attacks rise every tax season, aimed at individuals and businesses.
• Emerging Tactics: Criminals use phishing emails and malware to steal Social Security numbers and bank details.
• Key Players: Security vendors and agencies such as the IRS and FTC are warning taxpayers.
• Preventive Measures: Simple steps that protect your financial data while you file.

Why tax season draws scammers

As the filing deadline nears, criminals step up attacks on taxpayers and tax preparers. Phishing leads. Fake messages are built to steal Social Security numbers and bank account information, and a stolen Social Security number can be used to file a fake return and claim a refund before the real taxpayer has even opened their own forms.

The scams to watch for

Phishing and fake IRS messages

Criminals send emails and texts that look like they come from the IRS or tax software companies. Some carry malware. Others link to fake websites that ask for login details or personal information, and the fakes are getting harder to tell apart from the real thing.

Ransomware against tax preparers

Ransomware hits tax professionals too. Attackers encrypt client files and demand payment to unlock them, which can halt a preparer’s business at the busiest time of the year. Back up often.

Who is fighting back

Security vendors such as Norton, McAfee and CrowdStrike sell tools that detect and block these threats. Government agencies, including the IRS and FTC, publish warnings and guidance each filing season to help taxpayers spot scams.

Protect yourself before you file

Check before you click

Treat any unexpected message about your taxes with suspicion. The IRS usually makes first contact by mail. If a call or email claims to be from the IRS or your tax service, contact the agency or company directly through its official website.

Keep your software updated

Use reputable security software. Install operating system and app updates promptly.

Turn on multifactor authentication

Turn on multifactor authentication for your tax software, email and bank accounts. A stolen password alone then won’t let a criminal in.

File early, stay alert

Scams rise every tax season. Checking messages before acting, keeping software current and turning on multifactor authentication will stop most of them. Filing early also helps, because it leaves less time for someone else to file a fake return in your name.

Frank Jones, CISSP

Frank Jones has loved computers from the age of 13. Frank got his hacking career started when he downloaded a war dialing program that he used to detect dial up modems in his hometown of Chicago. Frank Jones now works as a JAVA coder and cyber security researcher.