IRS: Watch Out for 'Tax-Savvy' Phishing Scams Ahead of Oct. 15

Software providers do not embed links in emails that ask for password validation, the government body says, adding that both tax professionals and taxpayers "should never open a link or an attachment from a suspicious email."

What to Do

In order to boost awareness about such takeovers, the IRS launched "Don't Take the Bait," a 10-part campaign aimed at tax professionals, in July.

"Multiple incidents have been reported to the IRS in the past year as tax professionals' systems have been secretly infiltrated. The criminals accessed client tax returns, completed those returns, e-filed them and secretly directed refunds to their own accounts," the organization said in a statement.

Cyberattacks work via weaknesses in security settings. Another line of attack involves the use of malware to download malicious code, which gives criminals access to the network.

"Especially vulnerable are wireless networks, including mobile phones, modems and router devices, printers, fax machines and televisions that retain their factory-issued password settings. Sometimes, these devices have no protection at all," according to the IRS.

The IRS is urging tax professionals to take the following steps to help protect themselves and clients from remote takeovers:

• Educate staff members about the dangers of phishing scams, which can be in the form of emails, texts and calls, as well as the threat posed by remote access attacks;
• Use strong security software, set it to update automatically and run a periodic security "deep scan" to search for viruses and malware;
• Identify and assess wireless devices connected to the network, including mobile phones, computers, printers, fax machines, routers, modems and televisions. Replace factory password settings with strong passwords.
• Strengthen passwords for devices and for software access. Make sure passwords are a minimum of eight digits (more is better) with a mix of numbers, letters and special characters;
• Be alert for phishing scams: do not click on links or open attachments from unknown, unsolicited or suspicious senders;
• Review any software that employees use to remotely access the network as well as those used by IT support vendors to remotely troubleshoot technical problems. Remote access software is a potential target for bad actors to gain entry and take control of a machine. Disable remote access software until it is needed.

— Check out Summer Tax Scams in Full Swing, IRS Warns on ThinkAdvisor.