Social Security 2025 COLA Forecast: Here’s the Good and Bad News
Here's how big a raise Social Security recipients might receive next year.
Image source: Getty Images
“The Dark Web” sounds like the name of a spy novel, but it’s a real thing: a vast underground layer of the internet that is not reachable by conventional web browsers and search engines. Most everyday internet users might never access (or need to access) the dark web. Most of us keep our internet activity confined to the “surface web” — but the surface web is only about 4% to 5% of the entire internet; the rest is deep web and dark web.
The dark web allows a higher level of privacy, anonymity, and encryption. There are good, lawful, legitimate purposes for the dark web, but its anonymity can also be used by cybercriminals and hackers — and some of these dark web hackers want to steal your tax refund.
Check Point Research, a cybersecurity firm, recently shared its list of top tax scams that are happening on the dark web. Let’s see how these dark web tax scams might affect your taxes — and how you can stay safe.
Top dark web tax scams of 2024
Check Point Research monitors activity on the dark web and keeps an eye on the chatter of cybercriminals. If you’ve ever had data released in a data breach, some of your personal information might already be on the dark web. Hackers can use your personal information to try to steal your tax refund with fake bank accounts and other scams.
According to Check Point Research, here are the most popular tax scams among dark web hackers getting ready for tax season.
1. Bank accounts being offered to be used for illicit tax returns
A popular form of dark web tax fraud is tax return fraud, where cybercriminals steal tax refunds by setting up a bank account, filing a fake tax return under someone else’s name and Social Security number, and then collecting the tax refund for themselves. The dark web makes it easier for thieves to find their next victims.
2. Criminals looking to buy access to U.S. tax software
Another way to steal tax refunds is to hack into tax software accounts. If dark web hackers can access your tax software, they could redirect your tax refunds to their own bank accounts and steal sensitive information from you — like your Social Security number, bank details, and more.
3. Threat actors selling access to U.S. tax companies
No company wants to become a victim of a data breach, but massive data breaches have become all too common in recent years. Dark web hackers are always testing for weaknesses and trying to make their next big score so they can steal customers’ private financial information and use it to commit fraud.
4. Stealing tax forms (like W2 and 1040 forms)
Another type of tax refund fraud involves stealing tax forms. If fraudsters can obtain your Social Security number, hack into your company or your employer’s HR system to steal your W2 information, or re-create these forms based on a few “real” numbers, they can potentially steal your identity and steal your tax refund.
How to protect yourself from dark web tax scams
Fortunately, even though dark web hackers have sinister schemes, the rest of us still have power to protect ourselves. Use these easy strategies to keep your personal information safe and reduce your risk of identity theft.
1. Sign up for two-factor authentication
Most banks and the best tax software companies should give you the ability to use two-factor authentication (also known as 2FA or multi-factor authentication) to protect your account. This is a cyber security protocol that makes it harder for hackers to break into your account or steal your identity, even if they have your password. Use two-factor authentication wherever you can — on email and social media accounts too, not just financial accounts.
2. Get a credit monitoring service
Many free credit monitoring services also offer free identity theft monitoring. In case there’s a suspicious credit application on your credit report, or if your sensitive personal information (like old passwords or other identifying details) shows up on the dark web, these monitoring services will let you know.
3. Beware of suspicious emails or texts from “the IRS”
Along with trying to steal your tax refund from the IRS, some dark web cybercriminals might try to steal money directly from you — by pretending to be the IRS. If you receive any suspicious calls, texts, or emails from someone claiming to be from the IRS, or offering you a larger refund, or asking you to share bank information, don’t do it! The IRS doesn’t contact people in this way; if the IRS has an actual question or issue to discuss with you, they’ll send you an official letter in the mail.
Bottom line
Identity theft schemes and cybercriminals are becoming more aggressive and sophisticated. But that doesn’t mean they’re impossible to stop. Knowing about the latest dark web tax scams is a good reminder to use smart information security strategies to protect your identity and secure your accounts — when filing taxes, and all year long.
Alert: our top-rated cash back card now has 0% intro APR until 2025
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
