FS-ISAC Security Tips Newsletter
Security is Everyone’s Responsibility
‘Tis the Tax Fraud Season
It’s that time of year again, and the possibility of phishing scams takes the usual tax-time anxiety to a whole new level. The IRS warns that fraudulent tax professionals are behind tax-related identity theft and financial harm.
Phishing Scams
These scams trick recipients into disclosing personal information or sending money to scammers. Be aware of these common tactics:
- Phishing/smishing: Trick recipients into revealing sensitive info via email (phishing) or text (smishing).
- Spear phishing: Personalized scams that seem more legitimate.
- Whaling: Targets executives with access to large amounts of sensitive information.
Common Tax Fraud Methods
- Charity Impersonators
- COVID-19 Pandemic Scam
- Credits and Refund Misinformation
- Disaster Fraud
- Dishonest Tax Preparers
- Email and Text Message Impersonators
- Senior Fraud
- Social Media Bad Tax Advice and Scams
- Tax Debt Settlement and/or Relief Services
- Unclaimed Tax Refund
- Unemployment Claims Identity Theft
- Unexpected Tax Bill
- W-2 Form Fraud
Cloud-Based Schemes Aimed at Tax Preparers
Scammers create phishing emails leading to fake cloud storage sites to steal credentials. Use multi-factor authentication for security.
Red Flags for Choosing a Tax Professional
- “Ghost” preparers: Avoid preparers who don’t sign tax returns.
- Valid ID: Ensure your preparer has a valid PTIN.
Safe Tax Preparers for Employers
- Certified Professional Employer Organization (CPEO): Handles employment tax filing and payments.
- Reporting Agent: Authorized to manage payroll tax filings with the IRS.
Reporting an IRS Impersonator
The IRS does not contact individuals by email, text, or phone for personal or financial information. Report scams via:
- Email scams
- Letter or notice scams
- Social media message scams
- Text message scams
- Phone call scams
- Fax scams
If your Social Security number or ITIN was stolen, report it to IdentityTheft.gov.
If You’re a Victim?
Change any compromised passwords immediately. Report attacks to IC3.gov and the police, and file a report with the Federal Trade Commission.
Getting Help
If you notice suspicious activity with your financial institution, contact them immediately.
