Tax season is not only a time of gathering financial documents and crunching numbers—it’s also a prime window for cybercriminals to strike. Since 2020, about 74% of financial institutions have reported an increase in cybercrime. As more of our lives move online, fraudsters are constantly devising new ways to trick us into downloading harmful files, clicking on dangerous links, or handing over personal information.

Stay Alert: What the IRS Will—and Won’t—Do

It’s important to know exactly how the IRS communicates so you don’t fall prey to scams. Remember:

The IRS Will Not:

• Send unsolicited emails claiming you’re due a refund or need to update your account.
• Call or text you with threats of jail time or legal action.
• Request sensitive information, like your Social Security number, via email or text.
• Offer “ransom deals” to clear penalties or fees.
• Use alarming subject lines like “Account Closure!” or “24 hrs to Block Your Account.”

The IRS Will:

• Encourage you to report any fraudulent attempts.
  • If you get a suspicious email, forward it to phishing@irs.gov.
  • If you receive a scam call claiming to be from the IRS, report it at tigta.gov.

Practical Steps to Safeguard Your Personal and Financial Information

With tax deadlines approaching, it’s crucial to adopt a few simple, yet effective, security measures:

• Pause Before You Act: If you get an unexpected email, text, or call claiming to be from the IRS, take a moment to verify the information. Visit the official IRS website to confirm any details.
• Be Cautious with Attachments and Links: Only open attachments or click on links if you’re sure of the sender’s identity.
• Secure Your Online Activities: Use websites that begin with “https” and keep your browser’s bookmarks updated with the correct web addresses of your frequently visited sites.
• Protect Your Documents: Store old tax returns and related records securely, whether that’s in a locked filing cabinet or an encrypted digital folder.
• Shred Sensitive Paperwork: Before tossing out any documents with personal information, shred them properly.
• Keep Your Software Up-to-Date: Ensure your operating systems, antivirus, and anti-spyware programs are current. Replace default passwords with strong, unique ones and enable multi-factor authentication wherever possible.
• Educate the Entire Family: Teach children how to recognize suspicious emails and links. Simple education can go a long way in preventing cyber mishaps.
• Consider Monitoring Tools: Utilize credit or identity theft monitoring services to keep an eye on any unauthorized use of your personal data.

New Scam Tactics: How Cybercriminals Are Evolving

Cybercriminals are getting smarter by using advanced techniques like search engine optimization (SEO) to create fake websites that mimic reputable financial institutions. Here’s how one common scam unfolds:

1. Fake Websites: Fraudsters design counterfeit sites that closely resemble those of trusted financial custodians.
2. Credential Capture: These sites prompt you to log in, only to display an error message and urge you to call a provided hotline.
3. Impersonation: Once you call, a scammer impersonates a representative, claims there’s a security breach, and tries to convince you to download harmful software.
4. Device Compromise: Ultimately, their goal is to gain control of your device, leading to unauthorized transactions or identity theft.

To counteract this, it’s safer to manually enter the URL of important websites or save the correct addresses in your bookmarks, rather than relying on search engine results.

Final Thoughts

While the list of precautions might seem overwhelming, each step you take is an important layer of protection. Tax season is a busy time, and it’s exactly when cybercriminals are most active. By staying informed and cautious, you’re better equipped to safeguard your personal and financial data. Remember, if something feels off about an email or call, it’s always a good idea to double-check its legitimacy. Better safe than sorry—especially when it comes to protecting your hard-earned financial security.

References for Further Information

• Cybercrime Statistics: Morgan, Steve. Cybercrime Magazine. 2022 Cybersecurity Almanac: 100 Facts, Figures, Predictions And Statistics (January 19, 2022). Retrieved on March 8, 2022, from Cybersecurity Ventures.
• Remote Work and Cybercrime: Cybersecurity and Infrastructure Security Agency (CISA) and the Federal Bureau of Investigation. Transition to Distance Learning Creates Opportunities for Cyber Actors to Disrupt Instruction and Steal Data (December 15, 2020). Retrieved on March 16, 2021, from IC3.

These resources provide valuable insight into the evolving cyber threats in our digital world and offer a solid foundation for understanding the importance of cybersecurity, especially during critical periods like tax season.

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This material is distributed for informational purposes only. Investment Advisory services offered through Journey Strategic Wealth, a registered investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). The views expressed are for informational purposes only and do not take into account any individual’s personal, financial, or tax considerations. Opinions expressed are subject to change without notice and are not intended as investment advice. Past performance is no guarantee of future results. Please see Journey Strategic Wealth’s Form ADV Part 2A and Form CRS for additional information.