With the holiday season approaching, the Internal Revenue Service has issued a major warning to American taxpayers about a rise in identity theft and scams. With millions of consumers shopping online, the IRS says vigilance is the key to keeping personal and financial information out of the reach of cybercriminals.
The context of the warning
The warning comes with the onset of National Tax Security Awareness Week, a program that was created to raise awareness about security for sensitive data in the hands of taxpayers. According to IRS Commissioner Danny Werfel, identity thieves and scammers find excellent opportunities in holiday shopping and approaching the tax season. It is the time of the year that is very vulnerable because most people are busy preparing for holidays and can easily be victimized by fraudulent schemes.
Common scams to watch for
The IRS has identified several common scams that consumers should be on the lookout for during this holiday season:
- Phishing emails: These bogus emails often appear to be delivery notices or tax-related correspondence. Scammers use this ruse to trick victims into divulging sensitive information such as bank account numbers and passwords.
- Fake delivery notifications: Messages of fraud may claim that a package was delayed in delivery, soliciting recipients to click onto links leading to malicious sites designed to harvest personal information or install malware.
- IRS impersonation scams: fraudsters may call or even appear on the victim’s computer using malware pretending that they are IRS officials in an attempt to convince targets that they have a due amount of tax refund that one must claim via a linked page. This is to steal sensitive information from one’s self.
These become particularly worrying during the holidays, as most people find themselves busier and less cautious about what they access online.
Tips on safety during online shopping
To assist consumers with the perils of online holiday shopping, the IRS has offered the following suggestions:
- Shop securely: A web address starting with “https:” includes the “s” for secure. See a padlock icon in the browser window.
- Avoid public Wi-Fi: Don’t use public Wi-Fi at malls or restaurants because these may be unsecured and can be accessed by hackers.
- Update security software: Security software should be updated on computers, tablets, and smartphones, among other devices, to keep safe against potential threats.
- Assist vulnerable individuals: Share with family members who might not be tech-savvy, such as young children and seniors, how to help protect their devices and information.
- Use strong passwords: Make strong, unique passwords for all online accounts and turn on multi-factor authentication whenever possible for added security.
- Watch out for phishing scams: Scammers may use email phishing scams, so be very careful regarding emails. Always confirm the source before clicking on any links or providing personal information.
These tips are part of the larger effort from the IRS and its Security Summit partners to raise awareness to help protect taxpayers and the tax industry from identity theft. The Security Summit is a coalition formed in 2015 that includes the IRS, state tax agencies, and the private-sector tax industry.
Be ever alert
With the onset of holiday events and the ensuing shopping rush, caution regarding personal information security must become utmost in America. This warning from the IRS couldn’t have been better timing. It basically points out that while most everybody else is having fun, the hackers take advantage of that laxity.
Consumers can minimize the chances of falling victim to identity theft by adopting safe practices while doing online shopping and by being well-informed on various types of frauds. In the words of Commissioner Werfel, “A little extra vigilance can help protect confidential information and reduce the risk of identity theft as the tax filing season approaches.”
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