As businesses and individuals prepare for tax season, cybercriminals are gearing up for their own version of tax fraud—phishing scams. With sensitive financial and personal data in circulation, attackers take advantage of unsuspecting victims using fake IRS communications, fraudulent tax software updates, and social engineering tactics.
In this blog, we’ll explore the most common tax-related phishing scams, how to identify them, and best practices to keep your business secure during this high-risk period.
Common Tax-Related Phishing Scams
Fake IRS Emails and Calls
Scammers often impersonate the IRS, sending emails or making phone calls claiming:
- You owe unpaid taxes and must pay immediately.
- Your tax refund is delayed and requires identity verification.
- There are discrepancies in your tax filings.
Red Flag: The IRS never contacts taxpayers via email, text, or social media to request personal or financial information.
Fraudulent Tax Software Updates
Cybercriminals create fake websites mimicking popular tax software platforms, tricking users into downloading malware-infected files.
Red Flag: Always update tax software directly from the official website and never click on unsolicited email links.
Business Email Compromise Scams
Scammers target finance and HR departments by impersonating executives or tax professionals, requesting:
- Employee W-2 forms
- Payroll details
- Banking credentials
Red Flag: Verify any unexpected financial requests through a direct phone call to the sender.
Malicious Tax Document Attachments
Attackers send emails with attachments labeled “Tax Refund Form” or “W-2 Details”, which contain malware that can steal credentials or encrypt data for ransom.
Red Flag: Do not open unsolicited tax-related attachments—contact the sender directly for verification.
Best Practices to Protect Against Tax Scams
Educate Employees on Phishing Awareness
- Train staff to recognize suspicious emails and verify requests before sharing sensitive data.
- Conduct phishing simulations to test and improve employee responses.
Implement Multi-Factor Authentication (MFA)
- Require MFA for all account logins, especially those handling financial data.
- This adds an extra layer of security, even if credentials are compromised.
Use Email Security Tools
- Enable spam filters and email authentication protocols (SPF, DKIM, DMARC) to block phishing emails.
- Flag external emails that mimic internal addresses.
Verify IRS Communications
- The IRS does not initiate contact via email or phone. Always confirm tax-related messages at IRS.gov.
- Report phishing attempts to phishing@irs.gov.
Backup Sensitive Data Regularly
- Keep secure backups of critical financial data in case of ransomware attacks.
Tax season is a prime time for cybercriminals to launch phishing attacks, but with the right awareness and security measures, businesses can stay protected.
At SixWatch, we help companies safeguard their financial data through advanced security solutions, employee training, and 24/7 monitoring. If you need assistance with cybersecurity solutions, contact Sixwatch today to ensure your business stays safe from phishing scams and fraud.
