Microsoft has noticed an increase in sophisticated phishing campaigns occurring during tax season, exploiting heightened anxiety among individuals and businesses. Cybercriminals have intensified their efforts by sending fraudulent emails that mimic legitimate tax refunds, payroll documents, filing reminders, and communications from tax professionals.

The scale of these attacks is considerable. In a major campaign detected last month, over 29,000 users across various industries, including financial services, technology, and retail, were targeted.

Phishing Campaigns Increasing in Sophistication

Phishing tactics have become more advanced, with attackers using sophisticated tools to produce more convincing messages each year. “A significant aspect of this is generative AI,” said Suzanne Sando, Senior Fraud and Security Analyst at Javelin Strategy & Research. “These emails are becoming increasingly realistic, making it harder for the average consumer to discern them from genuine communications.”

The Internal Revenue Service (IRS) emphasizes that it does not initiate contact with taxpayers via email, text, or social media. It advises against providing any information in response to such communications and cautions that any deviation from their typical communication methods should be treated as a potential scam.

Common Tactics Used in Phishing Campaigns

Microsoft has identified several prevalent tactics employed in recent phishing campaigns. These include:

• Tax-themed websites designed to deceive users into clicking on links under the pretense of accessing updated forms.
• Fake IRS messages promoting a “Cryptocurrency Tax Form 1099,” particularly targeting educational institutions.
• Emails impersonating clients seeking assistance with filing, leading recipients to click on malicious links.
• Targeted lures aimed at CPAs designed to steal victims’ email credentials and passwords.