Tax pros: The thieves are getting smarter

Identity theft is nothing new, but bad actors are trying new ways to steal sensitive tax information from preparers. The IRS continues its partnership with the Security Summit to protect the tax system against tax-related identity theft and fraud. Here are trending scams: 

• The new client. In this spear phishing scheme, fraudsters pretend to be real taxpayers seeking tax pros’ help and use emails to try to get sensitive information or gain access to a practitioner’s client data. They may send malicious attachments or link to sites that collect information or load malware. The IRS received hundreds of reports about this scam last year. 

• Number phishing. In an oldie but goodie, scammers continue to use phishing to gain access to tax professionals’ ID numbers like EFIN, PTIN or CAF. By accessing the number, thieves can then file a tax return that looks legitimate. 

• Correspondence. Thieves are using phone calls and text messages to gain access to Social Security numbers, birth dates and banking info; they target both taxpayers and preparers. Artificial intelligence is being used to generate false correspondence and create fake IRS letters. Bad actors will try to convince taxpayers about non-existent “Zero Tax” programs promising IRS refunds. Tax practitioners are encouraged to educate clients about these schemes. 

Avoid and report scams! 

• Review the Data Breach Response guide from the Federal Trade Commission. 

• Ensure you have an updated Written Information Security Plan, as required by the IRS. 

• Report to the appropriate authorities: 

• Report a data breach with the Federation of Tax Administrators 

• Email Virginia’s IRS Stakeholder Liaison, which will alert the appropriate IRS offices. 

• Email the IRS directly about a phishing scheme.