Security Summit Alert: New Two-Stage E-mail Scheme Targets Tax Professionals

[Elrod]

WASHINGTON – The Internal Revenue Service, state tax agencies and tax industry leaders today warned tax professionals to be alert to an email scam from cybercriminals posing as clients soliciting their services.

A new variation of this phishing scheme is targeting accounting and tax preparation firms nationwide. The scheme's objective is to collect sensitive information that will allow fraudsters to prepare fraudulent tax returns.

These latest phishing emails come in typically two stages. The first email is the solicitation, which asks tax professionals questions such as "I need a preparer to file my taxes." If the tax professional responds, the cybercriminal sends a second email. This second email typically has either an embedded web address or contains a PDF attachment that has an embedded web address.

In some cases, the phishing emails may appear to come from a legitimate sender or organization (perhaps even a friend or colleague) because they also have been victimized. Fraudsters have taken over their accounts to send phishing emails.

The tax professional may think they are downloading a potential client's tax information or accessing a site with the potential client's tax information. In reality, the cybercriminals are collecting the preparer's email address and password and possibly other information.

The IRS urges tax professionals and tax preparation firms to consider creating internal policies or obtain security experts' recommendations on how to address unsolicited emails seeking their services.

One tip: Never respond to or click on a link in an unsolicited email or PDF attachment from an unknown sender. As the IRS, states and the tax industry make progress in the fight against identity theft, cybercriminals are becoming more sophisticated in their efforts to steal additional client information. Criminals need more data in their effort to impersonate clients and file fraudulent returns to claim refunds, and schemes like this can help in this effort.

Read more at Protect Your Clients; Protect Yourself, the Security Summit initiative to increase awareness about the tax professional community.

https://www.irs.gov/uac/newsroom/security-summit-alert-new-two-stage-email-scheme-targets-tax-professionals

[TAXMAN]

Got one of those last week. Deleted it asap

[SaraEA]

The one I got this week asked me to "process their employees refund."  Hmmmm, already knew there was a refund.  Then asked me to "revert as soon as possible."  Cheap translation software I guess.  I did not bother to open the "financial affidavit" attachments.  In the past year or so I have gotten over a dozen of these, some using better English.  WHY does the IRS publish/sell our contact info?  They are taking all these steps now to warn us about crooks trying to get our info, yet they are causing the problem or at least enabling it.

[Terry D EA]

Other than being alert and diligent, what else can be done to protect yourself?? I am just curious as I have not received any of these e-mails yet. I have had client's compromised so I guess you just never know. One practice I have is to never open e-mail attachments. My clients do not and I repeat do not send me any of their information via e-mail. Took everyone's suggestion and purchased a PO box for that.

[easytax]

22 hours ago, SaraEA said:

  WHY does the IRS publish/sell our contact info?  They are taking all these steps now to warn us about crooks trying to get our info, yet they are causing the problem or at least enabling it.

Again, we are dealing with the government. At times there is NO PERCEPITION of what really happens in the REAL WORLD.

  Here is an excerpt from a tax newsletter // shares what the GOVERNENT is telling all about 2016 and NOW 2017 wait times: 

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Wait times on IRS’s toll-free help line should be about the same as last year,

according to the head of the agency. During the 2016 filing season, 73% of callers

were able to get through, and the average wait time was just less than 12 minutes.

Ditto for the Service’s practitioner priority line. Last year, tax pros waited

seven minutes on average when calling with questions about their client’s accounts.

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The IRS commissioner has stated (my (easytax) gist of the article) that the "taxpayer" during 2016 received and will receive during 2017 all the same timely services through the mail and at the IRS offices as the taxpayer always has.  (NO MENTION that "office service" needs an appointment BEFORE you go -- no walk-ups allowed and that many smaller offices are/have closed).

       Again --- spin and spin.           THANK YOU,  rant over.