By Ann Mele, Senior Vice President of Security Operations, PNC Bank
Tax season is upon us once again. As the IRS cracks down, bad actors are finding new ways to try to steal your data and claim your refund, and they’re increasingly targeting tax preparers too. Here’s what you need to know.
How frequently do tax preparers get hacked?
Hacking tax preparers has increased over the past year or so. This could be a result of the IRS strengthening their process to detect bogus tax returns. By targeting tax preparers, criminals can attempt to get all of the information they need to file a fraudulent return that will pass the higher scrutiny now being applied to tax submissions.
Are there precautions I can take to prevent this from happening?
The simple answer is no, but things like filing your taxes early and being selective about the preparer you choose can help minimize your risk. Ask your tax preparer what security measures they have in place. Things like virus and malware scanning software and VPN use can go a long way toward protecting client information. Employees should be thoroughly trained on security protocol and should know, for example, not to click on links or open attachments from unknown emailers who may be posing as prospective clients or the IRS.
What should I do if my tax preparer has been hacked?
If you’re a taxpayer and you notice a refund you weren’t expecting in your bank account, this is a clue you might be victim of tax fraud. This will typically be followed by a call to let you know that it was deposited accidentally and to transfer to an account posing as the IRS. The fi rst step is to notify your bank. You will probably need to close the account since the bad guys now have your bank account information. Next, you should contact the IRS to let them know you suspect you’re a victim of fraud.
How can I minimize the damage if my tax preparer has been hacked?
If you have been a victim of tax fraud specifi cally, the IRS will mail you an Identity Protection PIN that is refreshed every year. The IRS will only accept returns for those people with that PIN on it, so if you have been victimized, you need to protect that number. This system, however, is not foolproof. If fraudsters have your personal information, they can contact the IRS to get the PIN refreshed. If you are expecting to receive a PIN and haven’t, contact the IRS to check on the status and notify them you haven’t received your PIN yet.
To learn more visit PNC.com/security.