EFIN Scam How Tax Pros Can Protect Client Data from Fraudsters
Tax Tip 2025-57, Aug. 14, 2025 – Tax professionals are increasingly becoming the target of sophisticated cyberattacks, with the EFIN scam being one of the most dangerous threats. The Electronic Filing Identification Number (EFIN) is a unique identifier that tax professionals use to file returns electronically, and scammers are using deceptive methods to steal it. Understanding how the EFIN scam works and learning the right way to respond can protect both tax professionals and their clients from devastating financial loss.
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An EFIN scam is a fraudulent scheme in which criminals impersonate trusted tax software providers to trick professionals into sharing their EFIN details. In most cases, the scam begins with a convincing phishing email that appears to be from a legitimate company. The email claims that the tax professional must verify their EFIN information for compliance purposes and requests that the details be faxed or sent urgently. If the tax pro complies, the scammers gain access to their EFIN, which can then be used to file fake returns, steal refunds, and access confidential client data. The EFIN scam is particularly dangerous because it can bypass normal security measures if the tax professional is not vigilant.
When a tax preparer receives an email that looks suspicious, the first rule is to avoid responding or following any instructions given in the message. The EFIN scam thrives on urgency and fear, so scammers often pressure victims to act quickly. Instead, the professional should immediately report the incident to the Treasury Inspector General for Tax Administration, which handles IRS impersonation cases. The suspicious email should be saved and forwarded as an attachment to phishing@irs.gov so that the IRS can investigate. It is also important to inform the tax software provider that scammers are using their name in the EFIN scam. If there is even a small chance that client data has been stolen, contacting the local IRS Stakeholder Liaison is critical. This team can alert relevant IRS offices to block fraudulent returns and help guide the tax pro through the recovery process.
Legitimate requests for EFIN details are never made through random email messages. The correct process is to handle such requests only through a secure portal provided by the tax software company, and only after verifying that the request is genuine. Tax professionals should take time to contact their provider directly through official channels before sharing any EFIN information. Sharing details via unsecured email or fax is an open invitation to fall victim to the EFIN scam, and every professional should make it a rule to avoid such practices entirely.
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Protecting client data from the EFIN scam requires strong cybersecurity habits. Every tax preparer should use multi-factor authentication on their accounts, create unique and complex passwords, and keep security software up to date. Staff members should be trained to recognize the signs of phishing attempts and understand the specific risks posed by the EFIN scam. EFIN information should be stored securely, never printed or left in easily accessible locations. These practices create multiple layers of defense that can stop the scam before it succeeds.
The EFIN scam is not just an inconvenience; it is a direct attack on the integrity of the tax system. Once a scammer has a stolen EFIN, they can impersonate a legitimate tax professional and cause damage that takes months or even years to undo. Fraudulent tax returns filed with a stolen EFIN can trigger IRS audits, refund delays, and identity theft cases that erode client trust. For tax professionals, losing control of their EFIN is the equivalent of leaving their office unlocked for thieves.
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In 2025, cybercriminals are more determined than ever to exploit vulnerabilities in the tax industry. That means tax pros must be equally committed to securing their data. The EFIN scam will continue to evolve, and scammers will keep looking for ways to appear more convincing. Staying informed, practicing strict verification procedures, and reporting suspicious activity without delay are the best defenses against this growing threat. Every tax professional must treat their EFIN like a personal key to their business, guarding it as carefully as possible to protect themselves and their clients from financial harm.