IRS warns of new surge in phishing scams

'The holidays and tax season present great opportunities for scam artists to try stealing valuable information through fake emails,' said IRS' Rettig.

The Internal Revenue Service and state tax agencies are warning of a surge of new, sophisticated email phishing scams.

Scam surge in 2018

Tax-related phishing scams reported to the IRS declined for the prior three years until a surge in 2018.

“More than 2,000 tax-related scam incidents were reported to the IRS from January through October, compared to approximately 1,200 incidents in all of 2017,” the IRS states.

Related: 5 biggest cyber threats that could impact businesses

One recent malware campaign used a variety of subjects like “IRS Important Notice,” “IRS Taxpayer Notice” and other variations. “The phishing emails, which use varying language, demands a payment or threatens to seize the recipient’s tax refund,” according to the IRS.

These schemes are notables because they often have misspelling and bad grammar.

Taxpayers can forward these email schemes to phishing@irs.gov.

“The holidays and tax season present great opportunities for scam artists to try stealing valuable information through fake emails,” said IRS Commissioner Chuck Rettig, in a statement. “Watch your inbox for these sophisticated schemes that try to fool you into thinking they’re from the IRS or our partners in the tax community. Taking a few simple steps can protect yourself during the holiday season and at tax time.”

Phone scams

Not all phishing attempts are emails — some are phone scams. “One of the most common phone scams is the caller pretending to be from the IRS and threatening the taxpayer with a lawsuit or with arrest if payment is not made immediately, usually through a debit card,” the IRS warns.

Phishing attacks, especially online phishing scams, “are popular with criminals because there is no foolproof technology to defend against them,” the IRS said. “Users are the main defense. When users see a phishing scam, they should ensure they don’t take the bait.”

IRS doesn’t contact by email to request info

The IRS reminds taxpayers that it doesn’t initiate spontaneous contact by email to request personal or financial information. It listed the following steps taxpayers can take to protect against phishing and other tax-related schemes:

Related: How to fend off identity theft during tax season