As part of its ongoing awareness campaign, the Internal Revenue Service (IRS) Security Summit warns taxpayers and professional advisors to be aware of the latest email phishing scams. Because both tax advisors and individuals are active users of email, there is frequent opportunity for identity thieves to trick individuals into releasing confidential data.

The IRS previously noted that identity thieves have been relentless in exploiting and tricking taxpayers and tax professionals to disclose sensitive information. The IRS further noted that fighting back against phishing scams requires constant vigilance and urges tax professionals and taxpayers to take basic steps to protect their sensitive information.

There are several strategies that “bad actors”, or identity thieves, use to collect passwords, bank account numbers, credit card numbers or Social Security numbers.

1. Trusted Source— A bad actor will pose as a familiar person or an individual from a reputable organization. They will then claim that he or she is a long-lost friend, a colleague at a former employer, a bank, a credit card company or even the IRS.
2. Urgent Story— Another strategy is to write a story that pulls on your heartstrings and creates urgency. Some bad actors have written stories about friends or family members who have recently suffered from a disaster or are hospitalized and require immediate assistance. The story will also include a link to a document needed to provide help to that friend or family member.
3. Spear Phishing— A particularly successful strategy by the bad actor is to pose as a potential new client to a tax professional. To create a false sense of security, the individual exchanges four or five emails with the tax professional. After four or five emails, the guard of the tax professional is down, and the bad actor sends an email attachment that triggers the download of malware.

In these cases, the bad actor will attempt to have malware downloaded on to your computer through the click of links or opening of attachments. Then, the malware downloaded onto the computer of the individual or tax professional is designed to give the bad actor access to passwords. If the tax professional has client accounts with pending tax returns, the bad actor completes those returns and files them. However, the bank account information for the refund is changed to an account controlled by the bad actor.

Tax professionals have also been subject to ransomware attacks. With malware on the computer or network of the tax professional, the bad actor is able to encrypt all the business files. This is particularly effective because the tax returns will have due dates that need to be met. The bad actor then demands a cryptocurrency payment from the professional. If the ransom is paid, the bad actor may send a key to decrypt the files and allow the tax professional to meet the required tax deadlines.

The IRS urges all individuals with financial accounts to use two-factor authentication. Both individuals and tax professionals must have anti-virus software that is updated on a daily basis. Tax professionals should also encrypt the data and create daily backup files in order to easily recover files if their hard drives are encrypted.

All adults should have certain legal documents prepared to protect themselves and their family. These documents will make sure your wishes regarding your estate are legally recognized and clearly understood. They will also minimize any conflicts and confusion among family members and health care providers in the event of serious illness or death. Here are the key documents you need along with some tips to help you create them.

Will or Trust: A will lets you lay out your wishes of how you would like your property and assets distributed after you pass away, whether it is to family, friends or a charity. A will also allows you to designate an executor to ensure your wishes are carried out and allows you to name guardians if you have dependent children.

In addition to a will, if you own real estate or have considerable assets, another option you may want to consider is a revocable living trust. This functions like a will but allows your estate to avoid the time and expense of probate (the public legal process that examines your estate after you die) and helps protect your estate’s privacy.

Do-It-Yourself Will: If you have a simple estate and an uncomplicated family situation, there are do-it-yourself resources that can help you create a will. To make your will legally valid, you will need to follow proper signing procedures, including having the required witnesses sign it with you. Many young families will start with a do-it-yourself will as a placeholder document until family circumstances change and they acquire significant assets. After several years, they may contact an attorney for a complete estate plan.

Advance Directive: An Advance Directive includes two documents that explain your wishes regarding your end-of-life medical treatment. One document is a living will which tells your doctor what kind of care you want to receive if you become incapacitated. The other document is a health care power of attorney (or health care proxy), which names a person you authorize to make medical decisions on your behalf if you are unable. Advance Directive forms can be found online and vary by state, so it is important to use the version specific to where you live.

If you have a serious medical condition, you may consider filling out Physician Orders for Life-Sustaining Treatment (POLST). This is a state-specific form that your doctor would fill out that translates your end-of-life wishes into medical orders to ensure your wishes are carried out.

HIPAA Release: A signed HIPPA form gives your healthcare provider permission to discuss your medical care and medical bills with those you designate. You may need specific HIPAA release forms for each of your medical providers. In some states, your Advance Directive will also contain a HIPAA release.

Durable Power of Attorney for Finances: A durable power of attorney allows you to designate someone you trust to handle your financial affairs if you become incapacitated. Another option is to make your durable power of attorney for finances effective when signed. Many individuals will create a durable power of attorney for finances that give immediate powers to a responsible person to help manage their funds and investments.

Get Help: If you want assistance or if you have a complicated situation, such as a blended family or considerable assets, you should hire an attorney. An experienced lawyer can make sure you cover all your bases – especially when writing a will or living trust – which can help avoid family confusion and squabbles after you are gone.

Costs will vary depending on where you reside, but you can expect to pay somewhere between $500 and $2,000 for a basic estate plan that includes a will, power of attorney and advance directive. If you want your estate plan to include a living trust, costs can run anywhere between $1,500 to $5,000 or more for complex estates.

The National Association of Estate Planners and Councils (NAEPC.org) and the National Academy of Elder Law Attorneys (NAELA.org) are two good resources that have directories on their websites to help you find an attorney in your area. If you are looking for affordable legal assistance, check with your state’s bar association for low-cost legal help in your area.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of “The Savvy Senior” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.