IRS Warns Car Dealers of Rising Phishing and Smishing Scams

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WASHINGTON, D.C. — The Internal Revenue Service (IRS) is urging car dealers and sellers to stay vigilant against a surge in phishing and smishing scams that could disrupt their business operations. This warning follows a recent ransomware attack targeting car dealerships.

The Threat Landscape

Phishing scams involve emails that appear to come from legitimate sources but aim to trick recipients into revealing personal and financial information or downloading malware. Smishing scams use similar tactics via text messages, often alarming recipients with messages like “Your account has been put on hold” or “Unusual Activity Report.” Both types of scams can lead to identity theft or the installation of malicious software on computer systems.

Safeguard Your Business

The potential impact on businesses, particularly car dealerships, is significant. Fraudsters are relentless in their attempts to steal sensitive information, and impersonating the IRS remains a favored tactic. These scams can lead to severe disruptions, including ransomware attacks that lock users out of their systems, demanding payment for access.

Protective Measures

The IRS advises car dealerships to be extremely cautious with unsolicited messages. Businesses should never click on links or open attachments in unexpected emails or texts. Doing so may inadvertently download malware or facilitate a ransomware attack.

To combat these threats, the IRS recommends setting up two-factor or multi-factor authentication with email providers. This extra layer of security can significantly reduce the risk of email account compromises. Additionally, verifying the identity of the sender through an independent communication method, such as calling a known number, can help confirm the legitimacy of the message.

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What To Do If Targeted

If a business receives a suspicious message:

  • Do not respond to the phishing or smishing attempt.
  • Avoid clicking on any links or opening attachments.
  • Forward the email to phishing@irs.gov, including the full email headers.
  • Delete the original email immediately.

In cases where confidential information has already been entered into a suspicious site, the IRS advises visiting their identity protection page for further guidance.

Beware the Scam Storm

This warning extends beyond car dealerships. The IRS and its Security Summit partners continue to highlight the importance of vigilance against a wide variety of scams targeting both businesses and individual taxpayers. As cyber threats evolve, the need for robust security measures and awareness becomes increasingly critical.

By staying alert and following these protective steps, businesses and individuals can safeguard their sensitive information from persistent cyber threats. The IRS’s ongoing efforts underscore the importance of securing digital environments against the rising tide of phishing and smishing scams.

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