A new year marks the start of another tax season, bringing with it the usual challenges of navigating the complex US tax code and avoiding scams. One particularly concerning scam involves fraudsters filing a tax return in your name to claim a refund. Many victims only realize they've been targeted when they attempt to file their own return, uncovering a complicated issue that can take weeks or even months to resolve.
The risk of tax-related identity theft is elevated this year due to a series of high-profile data breaches in 2024. Personal information, including Social Security numbers, has become more accessible on the dark web, providing fraudsters with the tools they need to exploit unsuspecting taxpayers. As tax season progresses, this vulnerability becomes a significant concern for individuals and businesses alike.
To combat this type of fraud, the IRS offers a proactive solution: the Identity Protection PIN (IP PIN). This six-digit PIN acts as a layer of authentication to ensure that only your legitimate tax return is accepted. If a return is filed without the correct IP PIN, it will be rejected, preventing unauthorized filings in your name.
Initially, the IP PIN program was limited to victims of identity theft or those flagged by the IRS as high-risk individuals. However, the program has now been expanded to all taxpayers who wish to voluntarily enroll. The process is straightforward and can be completed in three ways:
Once enrolled, your IP PIN is valid for one year and cannot be reused. Each year, you can opt to receive a new PIN, providing an added layer of security. This feature prevents fraudsters from exploiting a stolen PIN even after its use in a prior tax season.
For most taxpayers, opting for an annually renewed IP PIN is the ideal choice. This ensures you have updated protection each year without the need to manage multiple PINs simultaneously. If you ever misplace your PIN, you can retrieve it by logging into your IRS account using your ID.me credentials. To streamline this process, consider using a password manager to securely store your account credentials, including a strong, unique password for your government account.
By adopting these best practices, you can reduce the stress of tax season and protect yourself against fraud. For more information, visit the IRS’s FAQ page on the Identity Protection PIN program. This simple yet effective system offers much-needed peace of mind during the often overwhelming task of filing your US tax return.
In September 2024, American Addiction Centers (AAC) experienced a significant cyberattack that exposed the personal and health-related information of 422,424 individuals. The breach involved sensitive data such as Social Security numbers and health insurance details, prompting AAC to take immediate action to address the situation and support those impacted.
The cyberattack occurred over three days, from September 23 to September 26, 2024. AAC identified the breach on September 26 and quickly launched an investigation. The organization engaged third-party cybersecurity experts and notified law enforcement to assess the extent of the attack. By October 3, investigators confirmed that unauthorized individuals had accessed and stolen data during the breach.
Data Compromised
The stolen information included:
AAC assured clients that no treatment information or payment card data was compromised during the incident. While the exposed data could be exploited for identity theft, the company emphasized that there is no evidence linking the breach to fraudulent activity at this time.
Response and Notifications
In December 2024, AAC began notifying affected individuals, with official letters sent out just before the holiday season. These notifications outlined the breach details, the steps AAC had taken to address the incident, and the measures implemented to prevent future occurrences.
To mitigate risks, AAC offered affected individuals complimentary credit monitoring services for 12 months. The organization partnered with Cyberscout, a TransUnion company, to provide identity protection services, including:
Affected individuals are encouraged to enroll in these services by March 31, 2025, to ensure their data remains protected.
Beyond immediate support, AAC implemented enhanced security protocols to strengthen its cybersecurity defenses. The organization collaborated with leading cybersecurity experts to fortify its systems and continues to review and update its measures regularly. Additionally, AAC established a dedicated hotline to assist individuals with inquiries and provide guidance on protective measures.
Proactive Recommendations
Although AAC has found no evidence of identity theft linked to the breach, it urged affected individuals to take the following proactive measures:
AAC’s notification letters include detailed instructions on these steps to help individuals safeguard their personal information against potential threats.
AAC emphasized its dedication to protecting personal information and maintaining transparency with its clients. “We regret that this incident occurred and the concern it may have caused,” the company stated. “We take the confidentiality and security of personal information very seriously and will continue to take steps to prevent a similar incident from occurring in the future.
As investigations into the incident continue, AAC remains focused on strengthening its cybersecurity measures and rebuilding client trust. For further information, individuals can contact AAC’s dedicated hotline at 1-833-833-2770, available Monday through Friday from 8:00 a.m. to 8:00 p.m. Eastern Time.
This incident highlights the importance of robust cybersecurity measures and proactive data protection strategies to safeguard sensitive information in the digital age.
Within the last few months, we have witnessed the scale of data breaches soar to millions of victims. The most vulnerable victims are usually major companies that process individual data; National Public Data, Medicare, and MC2 Data are all illustrative examples where hundreds of billions of records were leaked and several people become a victim of identity theft, fraud, and other destructive scandals.
Although data leaks are getting alarming day by day, there is also something you can do to protect your personal information. The four key actions that you can undertake to strengthen your online defences and not be a target will be discussed in the following:
Strengthen Your Login Security
As more and more passwords leak out on the web, hackers can use weak or reused passwords much more easily. Since a leaked password leaves cybercriminals with the same password, it can be used to perform credential stuffing attacks, trying the same password combination against different accounts. Risk can be minimised by using different strong passwords for all accounts. This can be achieved using a password manager that keeps them safe.
However, the best password ever designed can still be cracked or guessed, so there is a need for extra layers of security. Two-factor authentication, or 2FA, places a huge barrier to entry, requiring a second form of verification before an account access is given. Two most popular means of 2FA are by email or SMS, but those forms of verification can be intercepted. However, more secure methods include authentication apps or hardware security keys such as YubiKey, whereby gaining possession of the device requires one to log in to any of their accounts.
Other ways to log in include passkeys, which will eventually outpace the usage of passwords. The passkeys are encrypted, specific to your device, and not vulnerable to phishing attacks, thus adding more protection for your accounts. You will also have the opportunity to backup your passkeys or create a back login like the 2FA in case your account loses your device
Secure Your Financial Information
Examples of typical personal information that would be exposed and increase the risk of identity theft in a data breach include a Social Security number. Protecting your financial life comes down to freezing your credit and banking reports. This will prevent someone else from opening accounts in your name. You should check regularly for any suspicious activity on your credit report.
Locking an Identity Protection PIN on the IRS will put further layers of security on your tax filings, so that no one except you can file under your name. It's something that you can get done in days, and a few hours of your time to pay to save yourself from costly and time-consuming fraud.
Be on Your Guard About Communications
The dark web contains so much stolen personal information, making it pretty easy for scammers to write very convincing messages and dial numbers in your name. They could also call pretending to be your bank or a credit card company, as well as someone you know to try and get some more sensitive details. It's really important that you don't have any trust towards unsolicited communications, no matter how truthful they may sound.
If you do receive a message that says an account has been breached, do not click any links and do not provide sensitive personal data over the phone. Reach out to the organisation using official contact channels.
If you are receiving messages supposedly from family or friends, use other communication channels to confirm the request as their accounts may have been hacked.
Don't Rely on Trust Alone
As advanced scams with the aid of artificial intelligence rise, be doubly careful with all your dealings in the digital world. Because scammers are evolving their patterns all the time, it would be even more challenging to distinguish the real one from the fake. Such proactive steps, like securing all accounts, protecting financial information, and confirming any communication, can reduce the danger a person has to face when becoming victimised by cybercrime.
Nothing is foolproof in this changing digital world, but by doing all these, you are making it very difficult for hackers to access your information. Self-protection today may save you from the costly and stressful aftermaths in the future.
LOCKBIT is not a new player in the cybercrime world. Known for its sophisticated tactics, this group specializes in ransomware attacks. Their modus operandi involves infiltrating systems, encrypting data, and demanding hefty ransoms in exchange for decryption keys. In the case of Jacksonville Beach, LOCKBIT targeted the city’s information system, potentially compromising sensitive data.
On February 12, LOCKBIT escalated the situation by listing local residents’ personal information on their website. Social security numbers, addresses, and other private details were suddenly exposed. Panic ensued as citizens grappled with the realization that their identities were at risk. The city’s response was swift: they refused to pay the ransom demanded by LOCKBIT, adhering to Florida’s laws prohibiting such payments.
Fortunately, an international police operation intervened, dismantling the criminal empire. LOCKBIT’s reign of terror was cut short, but the damage had already been done. The question remained: where did the stolen data end up? Forensic experts began their painstaking work, attempting to trace the digital breadcrumbs left by the cybergang. Months of investigation lay ahead, and even then, a complete picture might never emerge.
The fallout from the Jacksonville Beach incident is multifaceted. First and foremost, citizens face the uncertainty of whether their personal information is circulating on the dark web. LOCKBIT’s exposure of social security numbers and addresses could have severe consequences, from identity theft to financial fraud. The hotline set up by the city (844-709-0703) aims to address citizens’ concerns, but the road ahead remains murky.
As we reflect on this cybertheft, several crucial lessons emerge:
Vigilance is Key: Cyber threats are real and ever-evolving. Citizens must remain vigilant, practicing good cybersecurity hygiene. Regularly update passwords, avoid suspicious emails, and be cautious when sharing personal information online.
Backup Your Data: Ransomware attacks can cripple organizations and individuals. Regularly back up your data to secure locations. If your files are encrypted, having backups ensures you don’t have to pay a ransom to regain access.
No Ransom Payments: Jacksonville Beach’s refusal to pay the ransom was commendable. By adhering to this stance, they not only followed the law but also sent a message to cybercriminals that their tactics won’t work.
Collaboration Matters: International cooperation played a crucial role in dismantling LOCKBIT. Cybercrime knows no borders, and joint efforts are essential to combating it effectively.