The IRS Paid Refunds to Scammers. Are We Safe? Here’s What You Should Know
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While the US tax authority (IRS) is trying to clean up a mess after fraudsters stole millions through fake tax returns, SARS is making sure South Africans don’t fall into the same trap.
What Happened in the US?
A new report has revealed how the US Internal Revenue Service (IRS) let their guards down, failing to properly confirm the identities of callers on their phone lines. Scammers called in pretending to be tax professionals, asked for private business info, and used it to file fake tax returns (Form 941). The result? $93 million in fake refunds were processed. Although most of it was stopped in time, some could not be reversed.
Why? The IRS didn’t double-check who they were talking to over the phone.
What’s SARS Doing Differently?
SARS has been tightening security to stop this kind of fraud. Here’s what they’ve done:
Two-Factor Authentication (2FA): When you log into eFiling, you now need both your password and a one-time PIN sent to your phone or email.
Stronger Password Rules: Passwords must be tougher—at least 8 characters, including numbers, symbols, and capital letters.
Facial Recognition for New Users: If you’re registering for eFiling, SARS uses facial matching to confirm your identity.
Mobile App Protection: The SARS MobiApp now includes secure logins with OTPs and push notifications.
Why This Matters to You
Scammers are still trying to beat the system in South Africa, especially during tax season. Common tricks include:
🚩Hacking into eFiling to change banking details
🚩Sending fake SARS emails or texts asking for your login details
🚩Pretending to be tax advisors to submit fake returns on your behalf
🚩Using fake “support calls” to get access to your computer.
What Should Tax Practitioners Do
As an accountant, you’re the first line of defence for your clients. Here’s how to stay ahead:
Check your eFiling profiles often — especially banking information
Educate clients about scams and 2FA
Report any suspicious activity using SARS’s Online Query System (SOQS)
Offer fraud protection as a billable service. Clients will pay for peace of mind.
Quick Recap
The IRS got scammed because they didn’t verify who they were talking to.
SARS has locked down eFiling with 2FA, facial ID, and better password protection.
You can turn this into a win by helping clients stay safe, and charging for that service.
Source: Accounting Today article
