The Security Summit has issued a stern warning to tax professionals, urging them to heighten their awareness of indicators of identity theft as part of the ongoing “Protect Your Clients; Protect Yourself,” initiative. The IRS and its coalition of partners emphasized the shifting strategies of identity thieves, who are targeting tax professionals to access detailed client tax information for fraudulent tax filings.
IRS Commissioner Danny Werfel said that compromised systems often remain undetected for extended periods, allowing perpetrators ample time to exploit stolen data. To counter these threats, tax professionals were advised to familiarize themselves with potential warning signs to mitigate risks to both their clients and their own businesses.
Since its inception in 2015, the Security Summit — a collaboration among state tax agencies, industry partners, and the IRS — has been steadfast in safeguarding the integrity of the tax system against identity theft and fraud. The current awareness campaign coincides with the ongoing “Protect Your Clients; Protect Yourself” series, now entering its third week of an eight-part rollout.
Tax professionals were urged to remain vigilant for specific red flags, such as unauthorized activity in IRS Online Accounts or unexpected receipt of tax transcripts. They were also counseled to monitor for anomalies such as unusual network behavior or tax return rejections linked to duplicate Social Security numbers.
In the event of a confirmed data breach, immediate reporting to IRS Stakeholder Liaisons and state tax agencies was stressed as crucial to swiftly mitigating the risk of fraudulent filings and protecting affected clients.
The Security Summit’s approach includes implementing a written information security plan (WISP) designed to provide tax professionals with practical guidelines for safeguarding sensitive information. Detailed protocols for responding to data theft incidents, including guidance on obtaining Identity Protection PINs or filing Identity Theft Affidavits, were also outlined to bolster defenses.
This initiative reflects a concerted effort to fortify defenses against evolving cyberthreats, underscoring the critical necessity for tax professionals to uphold stringent cybersecurity measures throughout the year.
Werfel highlighted a significant increase in phishing scams and cloud-based schemes aimed at tax professionals throughout the year, not just during tax season. These attacks, often numbering in the hundreds, aim to deceive tax professionals into disclosing sensitive information.
“We continue to witness a relentless wave of email and related attacks intended to deceive tax professionals and gain unauthorized access to their confidential data,” Werfel stated. “These schemes can be sophisticated and intricate, appearing highly convincing to unsuspecting individuals.”
Tax professionals, he said, “must maintain heightened vigilance and educate their staff to protect their clients and business interests.”
The IRS has identified scams including traditional phishing emails and personalized “spear phishing” tactics, where attackers tailor messages based on detailed research into specific individuals. There is also concern over “whaling” attacks targeting executives with access to extensive information resources.
The IRS highlighted a newer threat: clone phishing, in which legitimate emails are duplicated and resent to the original recipient with malicious attachments or links designed to extract sensitive information.
The IRS issued this warning against a backdrop of recent cyber incidents, such as the breach at AT&T that compromised call logs for a significant portion of its wireless and mobile virtual network operator customers.
This alert highlights the ongoing challenge for tax professionals and organizations to maintain vigilance against evolving cyberthreats, stressing the importance of robust cybersecurity measures throughout the year.
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