Tag Archives: tax refund fraud

Fraudsters Exploited Lax Security at Equifax’s TALX Payroll Division

May 18, 2017
31 Comments

Identity thieves who specialize in tax refund fraud had big help this past tax year from Equifax, one of the nation’s largest consumer data brokers and credit bureaus. The trouble stems from TALX, an Equifax subsidiary that provides online payroll, HR and tax services. Equifax says crooks were able to reset the 4-digit PIN given to customer employees as a password and then steal W-2 tax data after successfully answering personal questions about those employees.

In a boilerplate text sent to several affected customers, Equifax said the unauthorized access to customers’ employee tax records happened between April 17, 2016 and March 29, 2017.

Beyond that, the extent of the fraud perpetrated with the help of hacked TALX accounts is unclear, and Equifax refused requests to say how many consumers or payroll service customers may have been impacted by the authentication weaknesses.

Phishing 101 at the School of Hard Knocks

March 24, 2017
48 Comments

A recent, massive spike in sophisticated and successful phishing attacks is prompting many universities to speed up timetables for deploying mandatory two-factor authentication (2FA) — requiring a one-time code in addition to a password — for access to student and faculty services online. This is the story of one university that accelerated plans to require 2FA after witnessing nearly twice as many phishing victims in the first two-and-half months of this year than it saw in all of 2015.

Govt. Cybersecurity Contractor Hit in W-2 Phishing Scam

March 17, 2017
92 Comments

Just a friendly reminder that phishing scams which spoof the boss and request W-2 tax data on employees are intensifying as tax time nears. The latest victim shows that even cybersecurity experts can fall prey to these increasingly sophisticated attacks.

On Thursday, March 16, the CEO of Defense Point Security, LLP — a Virginia company that bills itself as “the choice provider of cyber security services to the federal government” — told all employees that their W-2 tax data was handed directly to fraudsters after someone inside the company got caught in a phisher’s net.

IRS: Scam Blends CEO Fraud, W-2 Phishing

February 2, 2017
25 Comments

Most regular readers here are familiar with CEO fraud — e-mail scams in which the attacker spoofs the boss and tricks an employee at the organization into wiring funds to the fraudster. Loyal readers also have heard an earful about W-2 phishing, in which crooks impersonate the boss and request a copy of all employee tax forms. According to a new “urgent alert” issued by the U.S. Internal Revenue Service, scammers are now combining both schemes and targeting a far broader range of organizations than ever before.

Shopping for W2s, Tax Data on the Dark Web

January 31, 2017
50 Comments

The 2016 tax season is now in full swing in the United States, which means scammers are once again assembling vast dossiers of personal data and preparing to file fraudulent tax refund requests on behalf of millions of Americans. But for those lazy identity thieves who can’t be bothered to phish or steal the needed data, there is now another option: Buying stolen W-2 tax forms from other crooks who have phished the documents wholesale from corporations.

IRS Re-Enables ‘Get Transcript’ Feature

June 10, 2016
35 Comments

The Internal Revenue Service has re-enabled a service on its Web site that allows taxpayers to get a copy of their previous year’s tax transcript. The renewed effort to beef up taxpayer authentication methods at irs.gov comes more than a year after the agency disabled the transcript service because tax refund fraudsters were using it to steal sensitive data on consumers.

Fraudsters Steal Tax, Salary Data From ADP

May 3, 2016
52 Comments

Identity thieves stole tax and salary data from payroll giant ADP by registering accounts in the names of employees at more than a dozen customer firms, KrebsOnSecurity has learned. ADP says the incidents occurred because the victim companies all mistakenly published sensitive ADP account information online that made those firms easy targets for tax fraudsters.

IRS Suspends Insecure ‘Get IP PIN’ Feature

March 7, 2016
70 Comments

Citing ongoing security concerns, the Internal Revenue Service (IRS) has suspended a service offered via its Web site that allowed taxpayers to retrieve so-called IP Protection PINs (IP PINs), codes that the IRS has assigned to some 2.7 million taxpayers to help prevent those individuals from becoming victims of tax refund fraud two years in a row. The move comes just days after KrebsOnSecurity first exposed how ID thieves were abusing the service to revisit tax refund on innocent taxpayers two years running.

Seagate Phish Exposes All Employee W-2’s

March 6, 2016
71 Comments

Email scam artists last week tricked an employee at data storage giant Seagate Technology into giving away 2015 W-2 tax documents on all current and past employees, KrebsOnSecurity has learned. W-2 forms contain employee Social Security numbers, salaries and other personal data, and are highly prized by thieves involved in filing phony tax refund requests with the Internal Revenue Service (IRS) and the states.