The IRS has recently highlighted a significant rise in sophisticated scams targeting tax professionals. These scams, often involving phishing schemes, aim to steal sensitive information such as Electronic Filing Identification Numbers (EFINs), Preparer Tax Identification Numbers (PTINs), and Centralized Authorization File (CAF) numbers. The Security Summit—a coalition comprising the IRS, state tax agencies, and the tax industry—emphasizes the need for heightened vigilance and robust security measures to protect against these threats. Optima Tax Relief sheds light on the trending scam and how to avoid becoming a victim of it.
Phishing Scams Targeting Tax Professionals
Phishing scams remain a prevalent threat. Cybercriminals frequently pose as potential clients, sending fraudulent emails that appear legitimate. These emails and texts attempt to steal personal information. Tax professionals should be particularly cautious of unsolicited emails and verify the identity of senders.
New Client Scam
In a form of spear phishing, scammers pose as genuine taxpayers seeking tax assistance. They use emails to solicit sensitive information or access to a tax professional’s client data. These fraudsters may send malicious attachments or links to deceptive websites, which collect the tax pro’s credentials or install malware to compromise their system. This scam, while not new, persists as a significant threat. It is particularly enticing to tax professionals or their staff, especially during tax season, but remains a danger year-round.
Scams Involving EFINs, PTINs, CAF Numbers
There’s a widespread scam this year targeting tax professionals through phishing attempts. Scammers aim to acquire crucial identification numbers like the Electronic Filing Identification Number (EFIN), Preparer Tax Identification Number (PTIN), and Centralized Authorized File (CAF) number. These numbers enable them to submit fraudulent tax returns that appear legitimate. Scammers typically impersonate the IRS via emails or texts, instructing tax professionals to enter these details into a form on a fake IRS website designed to mimic the real one.
For instance, if a fraudster gains access to a compromised CAF number, they can exploit it to obtain tax transcripts and other sensitive personal information, leading to identity theft, refund fraud, and related criminal activities. In many cases, the scammer not only acquires the practitioner’s CAF number but also accesses their personal data.
Other Correspondence Scams
Tax professionals should also remain vigilant against a recent surge in scams targeting taxpayers, where identity thieves employ phone calls and text messages to obtain Social Security numbers, birthdates, and banking details from victims. These schemes not only pose a threat to taxpayers but also potentially target tax professionals and their clients. Specific schemes currently prevalent include:
1.Utilization of artificial intelligence (AI) to generate counterfeit IRS letters sent via mail, aiming to deceive recipients.
2.The “Zero Tax” program, where callers falsely promise to eliminate tax debts in exchange for Social Security numbers, which they misuse for illicit purposes. Tax professionals should be alert for clients who report encountering this scheme.
3.Social media scams disseminating false or misleading tax information, such as fabricating tax documents like Form W-2 or making fraudulent claims for credits like the Fuel Tax Credit, Sick and Family Leave Credit, and household employment credits.
4.Scammers contacting individuals via phone or text, tricking them into giving sensitive financial information by falsely promising IRS refunds or benefits.
Security Summit Recommendations
The Security Summit has issued several recommendations for tax professionals to enhance their security measures. First, always confirm the identity of new clients, especially those who contact you via email. Regularly check your EFIN, PTIN, and CAF accounts for unusual activity. Ensure that all employees are aware of the latest scams and know how to handle suspicious communications. Last, be sure to promptly report any suspicious emails or activities to the IRS.
Conclusion
The IRS provides various resources to help tax professionals protect their businesses and clients from these evolving threats. Staying informed about the latest scams and implementing robust security practices are crucial steps in preventing identity theft and fraud.
