Flashpoint, a risk intelligence and open-source intelligence (OSINT) provider, recently warned of increased tax fraud and security threats and what organizations can do to protect themselves. The Internal Revenue Service (IRS) has identified a record $5.7 billion in tax fraud schemes in the past year. This represents over twice the amount reported in 2021, highlighting the increasing frequency of tax-related cyber attacks. Threat actors are attracted to tax season for several reasons, including the large volume of personal and financial data that is exchanged, the time-sensitive nature of filing taxes, and the increase in communication frequency from tax resources, including CPAs, the IRS, and employees’ HR departments.
To commit tax-related identity theft, threat actors use “fullz”, which refers to a complete set of an individual’s personal information, including their name, date of birth, social security number, address, and financial account information. This data can be purchased on the dark web or stolen through data breaches. Attackers may also use phishing tactics to trick an employee of a company into sharing their W-2 form by sending an email that appears to be from a company’s HR department, requesting that the employee email their W-2 form back to the department.
To protect against tax season threats and scams, organizations can take several steps, such as educating employees on how to recognize and respond to tax-related threats and scams, using security software, implementing strong passwords and multi-factor authentication, securing data and systems, monitoring for suspicious activity, verifying requests for information or payments, and staying up-to-date on threats and scams.
Individuals can also safeguard their data and money from threat actors by being wary of unsolicited calls, emails, or messages, verifying the authenticity of requests, using security software, securing personal information, filing taxes early, and staying informed about current tax season threats and scams.
By taking proactive measures and staying informed about the latest trends and tactics used by threat actors during tax season, individuals and organizations can avoid becoming a victim of tax fraud and protect their sensitive information from a breach.
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