Scammers target tax agencies for your info

Impersonate customers, IRS agents seeking data

By: Susan Topor
Detroit Free Press

DETROIT - For most of us, the typical phishing scam starts with an urgent text or email from what looks like your bank. Or con artists hide behind a fake FedEx notice that says there's a delivery problem. We're not getting texts, yet from celebrities.
..... So, who could imagine being tricked by a text from Drake? the D Rake in this scam, though, isn't the rapper. It's a tax software company, and scammers are impersonation Drake to target tax professionals and CPAs.
..... Tax season, which kicked off January 29 [2024] when the Internal Revenue Service started accepting and processing 2023 federal income tax returns, is prime time for scammers to hit us with phony emails and texts.
..... The IRS expects more than 146 million individual tax returns to be filed this tax season, which has an April 15 [2024] deadline.
..... Tax-related phishing scams and unsolicited texts grabbed a top spot on the annual IRS "dirty Dozen" list for scams in 2023. Some scammers, according to an IRS warning, will use the IRS logo in phishing attempts and claim something like "Action Required: Your account has now been put on hold."
..... Bottom line: "the IRS initiates most contacts through regular mail and will never initiate contact with taxpayers by email, text or social media regarding a bill or tax refund," the IRS says.
..... The frightening part is that scammers are going after lots of data when the target a tax pro.

Targeting tax professionals:

..... Cybrcriminals can be "masquerading as real taxpayers looking for help," according to the IRS. Or they're impersonating the IRS, sate tax agencies, software providers, and banks and credit unions.
..... The text relating to Drake asks the target to provide a copy of their electronic filing identification number account summary from IRS e-Services, with a status of completed to Drake for verification. The identification number is sued by tax professionals for the electronic filing of tax returns - and it's not something you'd wan tot had over to scammers.
..... Increasingly, though, scammers are trying to steal a tax professional's e-Service account passwords and electronic filing identification number. Sometimes, the IRS notes in an alert, the scammers will pose as the IRS or e-Services.
..... The IRS said it continuously reviews electronic filing identification numbers and will inactivate numbers that are found to be compromised. but tax professionals are told to take steps, including using strong passwords and not opening links or attachments from suspicious emails.
..... Now, even an email form a "new client" needs to be treated suspiciously.
..... One scam that is targeting tax professionals, the IRS warns, involves emails that pretend to be a "potential new client" who might say "I am searching for another CPA to help handle my taxes."
..... Tax professionals say they're being inundated with such phishing scams. The new phishing email might appear to be from a name you recognize, maybe a friend, colleague or recognized name in the community. That's often because your friend, colleague or other well-known name had their email account tercentennial stolen.

How to handle scams

..... Fake emails present a great risk, especially if a tax professional download a potential client's tax information or when accessing a site with the potential client's tax information.
..... When that happens, the IRS says ,cybercriminals could collect the preparer's email address, password and possibly other information - or load malware onto the tax pro's computer to gain access to the system.
..... The IRS recommends that tax professionals reach out to report data theft immediately to the local IRS stakeholder liaison. the liaison will notify IRS Criminal Investigation and others with the agency. "If reported quickly, the IRS can take steps to block fraudulent returns in clients' names and take other steps to protect the tax professional their clients,: the IRS says.
..... We're also being warned about fake emails involving a request for an e-signature, which allow you to sign a document digitally. you might be asked to provide a password or other personal information. Or there might be a malicious attachment that could lead to downloading malware.
..... Impostors have been known to sue forged documents, which you're asked to sign and then add some of your confidential information.
..... Amber Gray-Fenner, an enrolled agent who regularly prepares tax returns for individuals and small businesses in Albuquerque, New Mexico, said she has received several phishing emails, and some requesting e-signatures "almost look legitimate."
..... Some red flags to consider, she said, include: any hand-drawn squiggles on the graphic; and a notice that "E-signature sent you a document." though that would happen when a user hasn't set up their e-signature account properly, she said, it's still a red flag. Also, any indication that the email was "sent with high importance."
..... Gary-Fenner noted that most e-signature requests she receives are from such as real estate agents. And they don't come high importance.
..... Verify the identity of the sender by calling a phone number obtained elsewhere. you do not want to call the number provided in the email or text.

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