Tax payers and preparers are now the new target of cyber thieves. The Internal Revenue Service warned the public to be aware of the new scam of hijacking computer systems, filing fraudulent tax returns and redirecting the funds straight to the scammers account.
The IRS is aware of the handful of cases that were reported to their office. This is seen as a new effort to steal tax refunds using the very information of legitimate tax payers as per The Wall Street Journal.
According to the Detroit Free Press, the IRS is now seeing signs of an ongoing scam using a remote control of computer systems which are being used by the tax preparers. Using this scheme, the thieves can complete the file tax return and send the refunds straight to the fraudsters' account.
The spokeswoman for the Federation of Tax Administrators, Verenda Smith, said tthe scam has been spotted on state tax returns as well. The Indiana CPA society has been warned by the Department Revenue regarding the ongoing scam.
Andy Bucholz, the executive of LexisNexis Special Services, who also helped 16 states battle cyber fraud, said they are seeing a lot of states falling to these types of scam. He added that these incidents are not exclusive in one state or firm only.
Cyber thieves have been bugging state tax agencies and tax prep firms for a number of years. These thieves steal information, file false return and collect refunds under the name of genuine taxpayers. Records show that in 2014 and 2015, the IRS Get Transcript was infiltrated by cyber thieves who stole a total of 700,000 tax information.
As reported by KRCRTV, the Shasta County District Attorney's Office Consumer Protection Unit has been constantly receiving inquiries regarding phone calls of individuals posing as an Internal Revenue agent and claiming as well as collecting back taxes from taxpayers.
John Koskinen, IRS Commissioner, said they are now working to address the issue. The agency also reminded the tax preparers to scan their computer system of viruses and malware. He urged them to strengthen their password and be on the watch for phishing scams.
