In a recent awareness campaign for Summer 2023, the Internal Revenue Service (IRS) is focusing on signs of data theft, highlighting the importance for both taxpayers and tax professionals to stay vigilant against new and escalating tax-related identity threats.
In an increasingly connected digital world, identity thieves are constantly hunting for client tax information, a crucial component to effectively conduct data theft crimes. Read more from Foodman CPAs & Advisors on JD Supra.
This warning comes in the wake of a noticeable upward trend of data theft reports that are affecting both individuals and businesses. Recognizing the signs of such threats can significantly assist in proactive preventive measures and alleviate damaging consequences.
While some warnings signs may be apparent, many can often go undetected without expert vigilance. Unusual network activity, frequent system lockouts, and suspicious levels of foreign traffic can all indicate potential tax-related identity theft. Additionally, the emergence of fraudulent tax returns filed with stolen identities further emphasizes the escalating problem and reinforces the urgency for increased awareness and security measures.
The summer campaign by the IRS is therefore a timely warning for corporate legal departments, law firms, and businesses generally. It is a direct reminder for the need to reinforce their data protection strategies, not only from a legal standpoint, but also from a business continuity and reputation management perspective.
The explicit message from the IRS is clear: data protection needs to be at the forefront of internal controls for those dealing with sensitive client tax information. Following this advice and taking prompt action may indeed be the antidote to the evolving and constant threat of data theft in today’s digital landscape.