As National Tax Security Awareness Week has concluded, let’s take a moment to recap the crucial insights we’ve gained. The collaboration between the IRS, state tax agencies, and the tax industry was aimed at bolstering our digital defenses in preparation for the holiday and tax season.

The Security Summit served as a poignant reminder that the responsibility of safeguarding our personal and financial information is a collective endeavor. It’s not just a collection of tips; it’s a collaborative effort to combat identity theft and scams.

In this blog, we discuss the key takeaways from National Tax Security Awareness Week in order to stay informed, vigilant, and contribute to a secure digital environment for all. Together, let’s navigate the intricacies of online safety and safeguard our financial future!

The Rising Threat of Identity Theft and Scams

The Tax and holiday season comes with an unwelcome guest – the heightened risk of identity theft and scams.

Insights from IRS Commissioner Danny Werfel

In a statement, IRS Commissioner Danny Werfel emphasizes the critical importance of protecting sensitive information during this period. As the holidays and tax season converge, taxpayers and tax professionals are urged to exercise extra caution. Identity thieves, Commissioner Werfel warns, are poised to play the Grinch by stealing information that enables them to carry out identity theft and file fraudulent tax returns.

While the IRS and the Security Summit are working tirelessly to fortify internal systems, Commissioner Werfel underscores the indispensable role of individuals as the first line of defense against identity theft. As we embrace the festivities, it’s crucial to be proactive in securing our tax and financial information.

Prevalence of Scams:

The threat is not just theoretical; it’s a tangible reality.

  • Taxpayers need to be on high alert for a surge in tax scams, where identity thieves employ various tactics such as phishing emails and text messages promising tax refunds or claiming to fix tax-related issues.
  • One common theme involves scams related to Economic Impact Payments, with embedded URL links leading unsuspecting individuals to phishing websites designed to steal sensitive taxpayer information.
  • Emails urging individuals to “Claim your tax refund online” and text messages suggesting problems with the recipient’s tax return are among the tactics employed.

Despite potential red flags like spelling errors and awkward phrasing, these scams continue to lure individuals into clicking on malicious links. Let’s discuss these in details.

I. Tips for Safe Online Shopping  

In the digital age, online shopping has become an integral part of the holiday experience, offering convenience and a vast array of options. However, as we revel in the ease of virtual storefronts, it’s crucial to prioritize our cybersecurity. Here are essential tips to ensure your online shopping experience is not only enjoyable but also secure.

1. Choose Secure Websites

When embarking on your online shopping spree, be discerning about the websites you visit. Opt for those whose web addresses begin with “https,” where the ‘s’ signifies secure communications. Additionally, keep an eye out for the padlock icon in the browser window – a visual assurance that the website employs encryption to protect your sensitive information.

2. Avoid Public Wi-Fi for Transactions

Public Wi-Fi, often available in malls or restaurants, might seem convenient, but it’s a potential breeding ground for cyber threats. Refrain from making online purchases or accessing sensitive information while connected to unsecured networks.

Instead, wait until you’re on a private and secure connection to ensure the safety of your financial transactions.

3. Keep Security Software Updated

Regularly updating security software on your devices is akin to fortifying the digital walls of your personal fortress. Whether on computers, tablets, or mobile phones, the latest security updates act as a shield against evolving cyber threats.

Don’t overlook the importance of maintaining up-to-date defenses for a seamless and secure online shopping experience.

4. Device Protection for the Whole Family

The security of your online transactions isn’t limited to your actions alone. Extend protection to all family members by securing their devices. Whether it’s the tablet your child uses for educational games or the smartphone your grandparents navigate for holiday deals, ensuring all devices are equipped with updated security measures is a collective responsibility.

5. Strengthen Authentication

The frontline of defense against potential hacks lies in the strength of your passwords. Craft robust, unique passwords for each online account, minimizing the risk of unauthorized access. Elevate your security game by embracing multi-factor authentication whenever possible. This additional layer of protection makes it significantly more challenging for cybercriminals to compromise your accounts.

By incorporating these guidelines into your online shopping routine, you not only enhance your personal cybersecurity but also contribute to creating a safer digital space for you and your family during the holiday season.

II. Specific Advice for Tax Professionals and Businesses

For tax professionals and businesses, the digital landscape presents unique challenges and opportunities. As they navigate the complexities of financial transactions and client data, it’s imperative to be proactive in addressing potential risks and fortifying digital defenses. Here’s targeted advice to ensure the security of client information and the integrity of business operations.

1. Understanding the Risks of Cloud-Based Services

While cloud-based services offer convenience and flexibility, tax professionals need to be acutely aware of the associated risks. Scammers and cybercriminals may exploit vulnerabilities in these services to gain unauthorized access to sensitive client data.

To mitigate this risk, practitioners should prioritize a thorough understanding of the security measures employed by their chosen cloud service provider. Additionally, adopting strong authentication practices and regularly updating access credentials can add an extra layer of protection.

2. Safeguarding Client Data – Best Practices

The cornerstone of any tax professional’s practice is the protection of client data. Emphasizing fundamental security practices is paramount. Tax professionals should stay vigilant against emerging vulnerabilities, particularly those targeting practitioners using cloud-based services.

Beyond technological safeguards, education and training for staff on recognizing and responding to potential threats contribute significantly to a robust security posture. Regularly reviewing and updating security protocols ensures alignment with industry best practices.

3. Segregation of Personal and Business Devices and Accounts

A critical aspect of safeguarding sensitive financial information is the clear separation of personal and business digital environments. Tax professionals should utilize separate computers, mobile devices, and email accounts for personal and business purposes.

This not only reduces the risk of accidental data exposure but also establishes a clear delineation between personal online activities and professional responsibilities. Adhering to this best practice is particularly vital when handling client information and engaging in online business banking activities.

As tax professionals and businesses embrace the digital realm, integrating these practices into their operations becomes indispensable. By understanding the unique risks associated with their industry and implementing robust security measures, they can foster trust with clients and uphold the integrity of financial transactions in an increasingly interconnected world.

III. Common Identity Theft Schemes

In the ever-evolving landscape of cyber threats, common identity theft schemes continue to plague individuals and tax professionals alike. Understanding these tactics is paramount to staying one step ahead of cybercriminals.

Here, we delve into the prevalent scams reported to the IRS, emphasizing the dangers of phishing emails and text messages, while shedding light on recent examples tied to tax refunds and Economic Impact Payments.

1. Overview of Common Scams Reported to the IRS

The Internal Revenue Service consistently contends with a surge of tax scams, with identity thieves employing various means to exploit unsuspecting individuals. These scams range from enticing promises of tax refunds to deceptive messages claiming to resolve purported tax issues. The IRS serves as a crucial watchdog, urging taxpayers to be vigilant and report any suspicious activity.

2. Dangers of Phishing Emails and Text Messages

Phishing remains a potent weapon in the arsenal of cybercriminals. Emails and text messages, seemingly legitimate, are crafted with the sole purpose of tricking recipients into divulging sensitive information. Such messages often mimic official communications, creating a false sense of urgency or importance to prompt individuals to click on malicious links or provide personal details. The consequences of falling victim to phishing can be severe, leading to identity theft and financial loss.

3. Examples of Recent Email and Text Scams

One persistent scam reported to the IRS revolves around the promise of a third round of Economic Impact Payments. Cybercriminals embed URL links in emails, leading recipients to phishing websites designed to harvest sensitive taxpayer information. Despite the fraudulent nature of these messages, individuals are lured by the prospect of financial assistance, falling prey to identity thieves.

Another common tactic involves emails urging individuals to “Claim your tax refund online.” These deceptive messages, often riddled with spelling errors and awkward phrasing, attempt to create a sense of urgency, enticing recipients to click on links that could compromise their personal and financial information.

As technology advances, so do the tactics of cybercriminals. Staying informed about these common identity theft schemes is essential for individuals and businesses alike. The IRS advises taxpayers to remain vigilant, exercise caution with unsolicited messages, and report any suspected scams promptly to By staying one step ahead, we can collectively thwart the efforts of those seeking to exploit our financial well-being.

IV. Preventing Gift Card and Texting Scams

As technology advances, so do the tactics of scammers, and in recent times, gift card and texting scams related to taxes have witnessed a concerning surge. It’s crucial to be aware of these schemes, understand preventive measures, and stay one step ahead to protect your financial assets.

1. The Rise of Gift Card and Texting Scams

A disconcerting trend in recent years involves scammers targeting unsuspecting individuals with gift card and texting scams, often masquerading as tax-related matters. These scams typically exploit the anonymity and irreversibility of transactions involving gift cards, making them an attractive choice for fraudsters. Texting scams, on the other hand, leverage the prevalence of mobile communication, capitalizing on individuals’ trust in text messages.

2. Advice from the IRS and the Federal Trade Commission (FTC)

Both the IRS and the Federal Trade Commission play pivotal roles in educating the public about potential scams and providing advice on safeguarding against fraud. In the context of gift card scams, the IRS warns against buying anything from online sellers that exclusively accept payment through gift cards, money transfers, or cryptocurrencies. These payment methods are notoriously difficult to trace and reverse, making them a favorite tool for scammers.

The FTC further emphasizes the importance of never paying bills or taxes using gift cards or money transfer services. Legitimate organizations and government agencies do not operate this way, and any demand for payment through these channels is a red flag for potential fraud.

3. Examples of How These Scams Operate

Scammers often employ tactics that prey on individuals’ fears and concerns. For instance, individuals may receive threatening text messages claiming that there are issues with their tax returns, demanding immediate payment via gift cards to rectify the alleged problems. These messages may contain urgent language or even threats of legal action, creating a sense of panic and coercing victims into complying.

In another scenario, scammers may pose as tax authorities, claiming that overdue taxes can be settled swiftly by purchasing specific gift cards and providing the card information over the phone. Unfortunately, unsuspecting victims may fall prey to these convincing schemes, resulting in financial loss.

By staying informed about the rise of gift card and texting scams, individuals can arm themselves with knowledge to identify and avoid falling victim to these increasingly sophisticated ploys. Vigilance, skepticism, and adherence to the advice from authoritative sources are essential tools in the ongoing battle against financial fraud.

V. Protecting Mobile Devices

In an era dominated by digital transactions and mobile connectivity, the security of our mobile devices has become paramount. As our reliance on smartphones and tablets for both tax preparation and online shopping grows, it’s crucial to understand the importance of securing these devices and implementing measures to protect sensitive information.

1. Importance of Securing Mobile Phones and Tablets

Mobile devices have become integral to our daily lives, serving as not just communication tools but also as platforms for financial transactions, tax preparation, and online shopping. As these devices store a treasure trove of personal and financial information, ensuring their security is imperative to guard against identity theft and unauthorized access. The compromise of a mobile device can have far-reaching consequences, making it essential to adopt robust security practices.

2. Tips from the Federal Communications Commission (FCC)

The Federal Communications Commission provides valuable guidance on securing mobile devices, recognizing their central role in our digital interactions. Key tips include:

  • Regular Updates: Keep operating systems and apps up to date to benefit from the latest security patches and features.
  • Secure Networks: Use secure and trusted Wi-Fi networks, avoiding public or unsecured connections for sensitive transactions.
  • Screen Locks and Biometrics: Implement strong screen lock passwords or biometric features like fingerprints or facial recognition to prevent unauthorized access.
  • App Permissions: Be mindful of app permissions, granting access only to essential functions and avoiding unnecessary data sharing.
  • Remote Wiping: Enable remote wiping features in case your device is lost or stolen, ensuring that sensitive information remains protected.

3. Role of Mobile Devices in Tax Preparation and Shopping

Mobile devices have revolutionized how we approach tax preparation and shopping. With dedicated apps and secure platforms, individuals can file taxes, monitor financial accounts, and make purchases with just a few taps. The convenience of on-the-go tax management and seamless online shopping experiences underscores the necessity of safeguarding these devices against potential threats.

As mobile devices become integral tools in managing our financial affairs, users must prioritize their security. By following the recommendations of authoritative bodies like the FCC and staying vigilant against potential threats, individuals can enjoy the benefits of mobile convenience without compromising the safety of their sensitive information. In an interconnected world, protecting our digital assets begins with securing the devices that are an extension of our daily lives.

Conclusion from National Tax Security Awareness Week 2023

The National Tax Security Awareness Week has equipped us with vital insights into safeguarding our financial well-being during the holiday and tax season. The collaborative efforts of the IRS, state tax agencies, and the Security Summit underscore the importance of staying vigilant against identity theft and scams.

Key Takeaways:

  1. Digital Armor: Secure online shopping by choosing reputable websites and avoiding public Wi-Fi. Regularly update security software on all devices.
  2. Defending Practices: Implement strong passwords, embrace multi-factor authentication, and keep personal and business devices separate.
  3. Tax Professional Vigilance: Understand the risks of cloud-based services, safeguard client data, and maintain a clear division between personal and business digital environments.
  4. Identifying Scams: Recognize common identity theft schemes, especially those involving phishing emails and text messages, and report suspicious activity promptly.
  5. Preventing Gift Card and Texting Scams: Be cautious of demands for payment through gift cards or money transfers. Recognize the rise of texting scams and stay informed on IRS and FTC advice.

As we navigate this digital frontier, let’s stay informed and vigilant. Follow @IRSnews on social media for updates and explore official IRS publications for detailed information. By adopting these practices and staying connected, we actively contribute to a safer online environment. Let’s make cybersecurity a year-round commitment and empower ourselves against digital threats. Together, we can ensure a secure and joyful experience during this season and beyond.

If you found this blog insightful, be sure to explore our other blog posts covering important topics in accounting, auditing, and outsourcing.