IRS alerts tax pros to insurance form scam

Government says cybercriminals have found ways to access life insurance and annuity accounts

Oct 13, 2017 @ 4:49 pm

By InvestmentNews

The Internal Revenue Service has alerted tax professionals and their clients to a scam where cybercriminals gain access to annuity and life insurance accounts.

In one variation of the scheme, the IRS warned in a release, a cybercriminal impersonates a legitimate cloud-based storage provider and sends a phishing email to a tax professional, enticing him or her to provide their email credentials, including username and password.

With that access, the cybercriminal then steals client email addresses and impersonates the tax professional, sending emails to their clients with a fake IRS insurance form attached. The email requests that recipients complete and return the form.

Using data from the completed form, the cybercriminal impersonates the client and contacts the individual's insurance company and attempts to obtain a loan or make a withdrawal from those accounts.

In its release, the IRS reminds tax professionals to be on guard for phishing emails, free offers and other common tricks that scammers use. The agency said that tax professionals who have data breaches should contact the IRS immediately.

On Friday, the IRS issued another alert, warning taxpayers that various types of scams continue to run rampant across the country. In addition to online schemes, the list includes fraudulent phone calls and tax-refund identity theft.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

When can advisers expect an SEC fiduciary rule proposal and other regs this year?

Managing editor Christina Nelson and senior reporter Mark Schoeff Jr. discuss regulations of consequence to financial advisers in 2018, and their likely timing.

Recommended Video

Path to growth

Latest news & opinion

Fidelity charging new fee on Vanguard assets held in 401(k) plans

The 0.05% fee is ostensibly a response to Vanguard's distribution model, but may also make the company's funds less attractive due to higher cost.

UBS adviser count continues to decline

Firm to merge U.S., global wealth management units on Feb. 1

TD Ameritrade launches all-night trading for ETFs

Twelve funds now can be traded after-hours, but the list will grow, company says.

Cutting through the red tape of adviser regulation is tricky

Don't expect a simple rollback of rules under the Trump administration in 2018 — instead, regulators are on pace to bolster financial adviser oversight.

Bond investors have more to worry about than a government shutdown

Inflation worries, international rates pushing Treasuries yields higher.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print