The Surge of IRS Scams Targeting Mobile Devices: A Growing Threat

The Surge of IRS Scams Targeting Mobile Devices: A Growing Threat

In the bustling period as Tax Day approaches, a significant number of taxpayers who have been procrastinating are now under intense pressure to complete their tax filings. Concurrently, McAfee Labs’ research has uncovered a concerning trend: there is a sharp increase in sophisticated IRS scams, with mobile devices emerging as the primary target.

As the peak of the tax filing season sets in, scammers are capitalizing on the anxiety of taxpayers. Approximately half of all taxpayers finalize their tax returns between mid-March and April 15. This time frame provides scammers with a golden opportunity to exploit the rush and confusion of last-minute filers.

Our analysis of data from 2024 reveals some alarming insights into the nature of these scams. Firstly, the number of malicious tax scam URLs witnessed a substantial increase. From February 1, where they accounted for 2.9% of all related activity, to February 28, this figure nearly quadrupled to 10.5%, with the most significant spike occurring towards the end of the month. This surge highlights the growing sophistication and scale of these fraudulent operations.

Secondly, mobile devices are bearing the brunt of these attacks. A staggering 76% of all tax scam activities in 2024 were directed at mobile users, primarily through text messages. Scammers often employ URL shorteners to mask the true nature of their fraudulent links. These shorteners, such as bit.ly and goo.gl, which are commonly used for the convenience of sharing long web addresses, also serve as a tool for scammers to deceive unsuspecting victims.

Furthermore, highly coordinated scam campaigns are on the rise. In 2024, a single campaign was responsible for 17.3% of all tax-related blocked URLs. These campaigns use fake IRS-style links, like “irs.gov.tax-helping[.]com”, to trick taxpayers into revealing their personal and financial information.

Scammers are not limited to posing as the IRS. They also masquerade as tax preparation services and tax software companies. Their modus operandi often involves offering enticing promises of quick refunds or easy filing solutions, which are, in reality, fronts for more elaborate scams. The ultimate goal of these scammers is to obtain sensitive information from taxpayers, such as their Social Security Numbers (SSNs), credit card details, and bank account information.

Once scammers obtain this information, they can carry out a variety of malicious activities. These include stealing funds from bank accounts, filing false tax returns to claim refunds in the victim’s name, committing identity theft by opening new credit lines and accounts, and even selling the stolen information on the dark web for financial gain. A stolen SSN, in particular, can lead to severe consequences for the victim, including imposter fraud, insurance fraud, and employment fraud, which can take a significant amount of time and effort to rectify.

The process of these tax scams typically begins with a deceptive message. Scammers use various channels, including email, social media direct messages, and even paid search results, to send phony messages that appear to be from legitimate sources such as the IRS, tax prep services, or tax software companies. However, the most prevalent method is through text messages, as mobile devices are more accessible and widely used.

The messages often contain urgent or threatening language to create a sense of panic. For example, some scammers may send messages like “Your refund is on hold, contact the IRS immediately” or threaten jail time for non-payment. Others may threaten to revoke important documents such as driver’s licenses, business licenses, or even immigration status. It is important to note that the IRS never uses such tactics to resolve tax issues, and these are clear signs of a scam.

When a taxpayer clicks on the link provided in these messages, they are directed to a fake IRS website. These sites are designed to look remarkably similar to the official IRS website, using URLs that are deceptively close to the real ones. Some scammers even incorporate “irs.gov” into the web address to make it seem more legitimate. Once on these sites, taxpayers are often tricked into entering their personal and financial information under the false pretense of receiving a refund or making a payment.

So, how can taxpayers protect themselves from these sophisticated tax scams? The first and most crucial step is to be aware of the existence and nature of these scams. By educating themselves and sharing this information with others, taxpayers can raise awareness and reduce the likelihood of falling victim.

In addition, taxpayers should be extremely cautious of any unsolicited emails or phone calls claiming to be from the IRS. The IRS typically contacts taxpayers by physical mail, not through email or text. It is also important to never give out personal information over the phone, as the IRS will never ask for such information in this manner. Requests for payment in the form of money orders, gift cards, or through online payment platforms other than IRS.gov should be treated as red flags.

When in doubt, taxpayers should always verify the authenticity of websites and emails by going directly to the official source. Instead of clicking on links in emails or text messages, they should type the URL of the official website into their browser.

Utilizing online protection tools can also significantly enhance security. McAfee+ plans, for instance, offer features that can help users identify scam sites and texts. Web Protection and Online Account Cleanup features can alert users if a link is potentially dangerous and help secure their online accounts. These tools can also block access to malicious sites if a user accidentally clicks on a bad link.

Taking preventative measures is also essential. Regularly checking credit reports for any unusual activity, keeping social media privacy settings strict, and setting strong, unique passwords for all accounts are simple yet effective steps. McAfee+ plans provide comprehensive features that can assist users in implementing these measures.

Another important step is to remove personal information from data broker sites. These sites collect, buy, and sell detailed personal information from various public and private sources, which scammers often use to target their victims. McAfee’s Personal Data Cleanup feature can scan these high-risk data broker sites and inform users which ones are selling their personal information.

Finally, taxpayers should file their taxes as early as possible. By doing so, they can prevent scammers from filing false returns in their name and claiming their refunds. In some cases, taxpayers only discover they have been scammed when they attempt to file their own returns, only to find that it has already been done.

In conclusion, the threat of IRS scams targeting mobile devices is a growing concern. However, by being vigilant, taking proactive measures, and utilizing reliable online protection tools, taxpayers can significantly reduce their risk of falling victim to these scams and safeguard their personal and financial information. Stay informed, stay cautious, and protect yourself from the ever-evolving world of cyber threats.