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TAX HACKERS BLITZ SMALL BUSINESS WITH PHISHING EMAILS

Armed with little more than an email address, scammers are trying to trick small
businesses and the self employed into giving up Social Security numbers.

Becky Bracken, Editor, Dark Reading

March 20, 2024

2 Min Read
Source: Michael Burrell via Alamy Stock Photo


Threat actors are attempting to compromise Social Security numbers with a tax
phishing attack targeting small business owners and self-employed filers.

Worryingly, the social engineering scammers are likely operating with little
more than a cheap email list of self-employed US residents, according to the
latest advisory from Malwarebytes Labs. The report pointed out these emails
could be acquired for as little as a couple of cents a piece, either on the Dark
Web or from legitimate lead brokers.

The initial phishing email offers an easy link to apply for the necessary
federal employee identification number (EIN) or tax identification number
required for small businesses or the self-employed to file US federal income
taxes by April 15.



Once the victim clicks on the link in the email, they are asked to input
extensive personal information, including a Social Security number, the
researchers explained.

"A compromised Social Security number poses a major problem," the report added.
"Adding a person's SSN to the scammers' data could create far more opportunities
for identity theft and fraud," Malware Labs said in its report.



The IRS issues both EINs and tax ID numbers for free, however, the
cyberattackers saw an additional opportunity to squeeze a few extra bucks out of
their targets.

"The scammers here have the audacity to charge you for the tax ID number, even
though applying for an Employer Identification Number (EIN) is a free service
offered by the Internal Revenue Service," the team said.




AVOIDING TAX CYBER SCAMS

Tax scams like these are common in the lead up to filing deadlines and raising
the alarm is key to stopping their spread, according to the report's author
Pieter Arnzt, an intelligence researcher at Malwarebytes.

"Awareness is key in this instance. When people are aware that these scams
exist, they're more likely to pay attention," Arnzt said in an emailed
statement. He recommended users keep the following in mind as the tax deadline
approaches:

 * Double-check the origin of the email

 * Know the rules. EIN is a free service offered by the IRS and doesn't ask for
   personal information over email, text, or social media channels

 * Don't reach out to the IRS by clicking on advertisements or search results.
   Instead reach out directly by typing the known legitimate address in the
   browser

 * Check the URL in the browser address bar against the legitimate one

"Most importantly, don't get rushed into rash decisions," Arnzt said. "Scammers'
favorite technique is to impose a sense of urgency and to stop the target from
thinking things through."




ABOUT THE AUTHOR(S)

Becky Bracken, Editor, Dark Reading




See more from Becky Bracken, Editor, Dark Reading
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