Fake IRS malware targets stressed-out taxpayers

For many citizens, being audited by the IRS ranks among their greatest fears. And unwittingly clicking on malware tucked inside a seemingly legit email from the federal tax agency? Also very scary.

A cyber scheme that aims to trick anxious citizens into divulging financial information and downloading malicious software is making the rounds, preying on another great fear: not getting a tax refund.

Image: Sophos Naked Security

Online security company Sophos detailed the ploy at its Naked Security blog, calling it "nothing new" for cyber criminals during tax season.

Masquerading as a rejected tax refund notice, the email includes the official IRS seal and an attachment which purports to provide directions on how to re-file. Instead, the link contains the Iframe-AE trojan, which Microsoft has categorized as a "severe" threat.

"Hereby you are notified that your Income Tax Refund Appeal id#5632306 has been REJECTED," reads the message. "If you believe the IRS did not properly estimate your case due to a misunderstanding of the facts, be prepared to provide additional information. You can obtain the rejection details and re-submit your appeal by using the instructions in the attachment."

Unfortunately, the simple trick works often enough for criminals to keep trying, notes Graham Cluley, Sophos senior technology consultant.

The IRS has warned citizens to be on the lookout for similarly dangerous phishing scams, which attempt to fool people into sharing sensitive information.

"The IRS does not initiate contact with taxpayers by email or any social media tools to request personal or financial information," the agency explains at its official website. "If you receive an email claiming to be from the IRS that contains a request for personal information, do not reply [or] open any attachments."

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