Technologies

Tax Scams Are Preying on Last-Minute Filers

If you still haven’t filed your taxes, think before you click.

There’s less than a month to go before this year’s income tax filing deadline, and security experts are warning consumers to be on the lookout for tax-related scams and other attempts to steal their refunds and personal information.

Just a heads up that like last year, this year’s federal income tax deadline is April 18 — three days later than usual — thanks to a weekend and Emancipation Day, which is observed in Washington, DC. But the more you procrastinate, the more likely you are to fall victim to some kind of tax-related cybercrime.

Scammers can capitalize on your last-minute efforts to play catch-up if you don’t take a beat before clicking on a dubious link or handing over personal information. Either action could put you at risk for financial fraud or identity theft.

Tax-season scammers often impersonate the IRS, tax professionals or online filing websites, said David Putnam, head of identity and protection for LifeLock, a provider of consumer identity theft protections.

Phishing emails, texts and even phone calls designed to look like they’re from the IRS, or an IRS agent, are a common sight this time of year. They might threaten jail time or big fines if the targeted person doesn’t pay what the cybercriminals might claim are back or overdue taxes.

Those are all sure signs of a scam, Putnam said.

«The IRS only communicates through snail mail, so if you get a text message claiming to be from the IRS, you’ll know you’re actually being contacted by a scammer,» he said.

The IRS also doesn’t take payments in the forms of cryptocurrency or gift cards, making requests for back taxes in those forms obvious signs of a scam too.

Phishing emails could also carry fake tax forms that look like they’re coming from an employer or a bank, said Ravi Srinivasan, CEO of Votiro, a cybersecurity company that specializes in the secure transfer of data.

Srinivasan said consumers are used to getting lots of these files from lots of different places. They’re not necessarily going to think twice before opening up an attachment that could contain malware instead of a tax form.

«Do they know that it’s clean? Do they know that it’s safe?» he asked. «They don’t. They just hope that it is and the bad actors know that.»

When consumers do file, it’s critical that they make sure they’re using a legitimate tax preparation service, since tax returns are chock full of people’s most sensitive personal information, including their Social Security numbers.

Unsolicited offers to file your taxes for you should be regarded with skepticism, Putnam said. They could be part of a «ghost preparation scam,» where a cybercriminal impersonates a tax professional and promises a large refund that never appears or steals your refund by routing it to another account.

They also could collect your personal information through a website spoofing of a legitimate tax preparation service, then use it to file a false tax return and claim your refund, he said.

«Remember, if you enter any personal information on a spoofed website, scammers will have access to it,» he said.

Here are a few tips from the IRS and others for staying alert.

File early. OK. The ship may have already sort of sailed on this one, but the earlier you file, the less time cybercriminals have to use your identity to commit fraud.

Watch out for phishing and smishing. The IRS won’t send unsolicited emails or texts. Skip the links and attachments and go straight to the IRS or the applicable state and city websites.

Get a PIN. File this tip under things to remember for next year. Taxpayers who can validate their identities with the IRS can obtain an identity protection PIN, a six-digit code that prevents a cybercriminal from filing a fraudulent tax return with your Social Security number.

Fight back against fraud. If you discover someone has filed a tax return in your name, complete a paper return and include form 14039 (Identity Theft Affidavit), Putnam said. Report the fraud to local law enforcement and the Federal Trade Commission. Monitor your credit reports and account statements and contact the three major credit bureaus to ask for a freeze so that no one can request new credit in your name.

Always use good passwords and 2FA. These are both a must for any account related to your tax returns and documents. Make sure you’re using good antivirus software and that it, along with your operating system, is up to date. While you’re at it, back up your tax information to a removable drive or encrypted cloud storage. Paper copies and drives should be securely stored.

Know who you’re dealing with. If you’re self-filing online, make sure you’re using a reputable service. If you hire someone to do it for you, make sure they’re who they say they are. Be especially careful when submitting documents both online and on paper. Any decent tax professional or service will use a secure portal, not ask you to email them unprotected. Paper documents shouldn’t be left on a desk for anyone to find.

Shred everything. Tax documents that are no longer needed must be properly destroyed. Dumpster diving still happens. Don’t be tempted to toss them in the trash and definitely don’t put them in the recycling.

Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know