Being Careful About Tax Notices This Time of Year: A Comprehensive Guide to Cybersecurity During Tax Season

Introduction: Understanding the Risks of Tax Season Scams

As tax season approaches, cybercriminals are gearing up for their annual phishing expedition. The increasing trend of cyber scams during this crucial period has become a significant concern for individuals and businesses alike. With the rise of sophisticated phishing and social engineering tactics, it’s more important than ever to be vigilant with tax-related communications.

Jason Vanzin, CISSP and founder of Right Hand Technology Group, emphasizes the gravity of the situation: “Tax season is prime time for cybercriminals. They know people are expecting communications about their taxes, making it easier to exploit their trust and urgency.”

This article will outline the risks associated with tax season scams and provide strategies to protect yourself and your business from falling victim to these malicious activities. By understanding the tactics used by scammers and implementing robust cybersecurity measures, you can ensure a secure tax season for yourself and your organization.

1. Identifying Common Tax Season Scams

1.1 Recognizing IRS Impersonation Scams

One of the most prevalent tax season scams involves criminals posing as IRS officials. These scammers often use threatening language, claiming that the victim owes money or faces imminent arrest or deportation. They may even provide fake badge numbers to appear more legitimate.

To spot these scams, keep in mind that the IRS will never:

• Demand immediate payment over the phone
• Threaten to involve law enforcement for non-payment
• Ask for credit or debit card numbers over the phone

“Scammers often prey on fear and urgency,” warns Jason Vanzin. “Remember, the IRS will always give you the opportunity to question or appeal the amount they say you owe.”

For more information on IRS impersonation scams, visit the official IRS website.

1.2 Understanding Email Phishing Tactics

Email phishing remains a popular method for cybercriminals to steal sensitive information. During tax season, scammers often send emails that appear to be from the IRS or tax software companies. These emails may contain malicious links or attachments that, when clicked, can install malware or lead to fake websites designed to collect personal information.

Common email phishing tactics include:

• Using official-looking logos and branding
• Creating a sense of urgency or threat
• Requesting personal or financial information
• Containing suspicious attachments or links

To protect yourself from email phishing:

1. Verify the sender’s email address carefully
2. Hover over links before clicking to see the actual URL
3. Be wary of unexpected attachments, especially executable files
4. Look for poor grammar or spelling, which can be a red flag

2. Protecting Yourself from Scams

2.1 Verifying Emails and Contacts

When it comes to tax-related communications, verification is key. The IRS primarily uses postal mail for official correspondence, so be skeptical of any unexpected emails or phone calls claiming to be from the IRS.

If you receive a suspicious email:

• Do not click on any links or download any attachments
• Forward the email to [email protected]
• Delete the original email from your inbox

For phone calls, hang up and call the IRS directly using a verified number from their official website. Never share personal information like Social Security numbers or bank details over the phone or via email.

“Always err on the side of caution,” advises Jason Vanzin. “It’s better to take a few extra minutes to verify a communication than to fall victim to a scam that could have devastating consequences.”

For guidance on reporting tax-related scams, visit the IRS Tax Scams/Consumer Alerts page.

2.2 Implementing Two-Factor Authentication

Two-factor authentication (2FA) adds an extra layer of security to your online accounts, making it significantly harder for cybercriminals to gain unauthorized access. This is especially important for email accounts and financial services during tax season.

Benefits of using 2FA include:

• Protection against password theft
• Reduced risk of unauthorized access even if passwords are compromised
• Enhanced overall account security

To set up 2FA:

1. Check if your email provider or financial institution offers 2FA
2. Enable the feature in your account settings
3. Choose your preferred second factor (e.g., SMS, authenticator app, security key)
4. Follow the setup instructions provided by the service

For a step-by-step guide on setting up 2FA for various services, check out Google’s 2-Step Verification guide.

3. Educating Employees and Monitoring Accounts

3.1 Reporting Unsolicited Emails

Educating employees about the importance of reporting suspicious emails is crucial for maintaining organizational cybersecurity. Establish a clear process for reporting potential phishing attempts and ensure all employees know how to forward suspicious emails to the IT department or designated security team.

If you or an employee falls victim to a tax-related scam:

1. Report the incident to the Treasury Inspector General for Tax Administration
2. File a complaint with the Federal Trade Commission
3. Contact your bank and credit card companies to freeze accounts if necessary

“Creating a culture of cybersecurity awareness is essential,” says Jason Vanzin. “Encourage employees to report suspicious activities without fear of repercussion, as early detection can prevent widespread damage.”

For more information on reporting scam losses, visit the FTC’s Identity Theft website.

3.2 Monitoring Your Accounts and Identity

Regular monitoring of bank and payroll accounts is crucial for detecting any suspicious activity early. Consider setting up alerts for unusual transactions or changes to your account information.

Additional steps to protect your identity during tax season include:

• Signing up for an Identity Protection Personal Identification Number (IP PIN) from the IRS
• Using complex, unique passwords for all online accounts
• Regularly updating passwords, especially after any security breaches

“Think of your online security like your physical health,” Vanzin suggests. “Regular check-ups and preventive measures can save you from major problems down the line.”

For more information on securing your personal information and accounts, visit the IRS’s Identity Protection page.

Conclusion: Ensuring a Secure Tax Season

As we’ve explored, staying vigilant during tax season is crucial for protecting yourself and your business from cybercriminals. By understanding common scams, implementing strong security measures, and educating employees, you can significantly reduce your risk of falling victim to tax-related fraud.

Remember these key strategies:

1. Be skeptical of unexpected communications claiming to be from the IRS
2. Use two-factor authentication for all important accounts
3. Regularly monitor your financial accounts for suspicious activity
4. Educate employees about cybersecurity best practices
5. Report any suspected scams to the appropriate authorities

By following these guidelines and staying informed about the latest cybersecurity threats, you can ensure a safer tax season for yourself and your organization.

For additional resources on cybersecurity during tax season and beyond, visit our Cybersecurity Resources page.