Optima Tax Relief (OTR), a prominent U.S. tax resolution firm, fell victim to a ransomware attack orchestrated by the Chaos ransomware gang recent reports reveal. The attackers claimed to have stolen approximately 69 GB of sensitive data, including corporate information and customer case files containing personal details such as Social Security numbers, phone numbers, and home addresses.
Public sources claim OTR had over 400 employees, has worked more than 70,000 cases, and resolved over $3 billion in tax liabilities. Data breaches are not unknown to OTR as there wsa a report filed in 2023 in Maine. OTR works with both individuals and other tax professionals/accountants.
The attack employed a double-extortion tactic, wherein the cybercriminals not only encrypted the company's servers but also threatened to leak the stolen data unless a ransom was paid . The Chaos ransomware group, which emerged in earlier this year, has rapidly targeted multiple organizations, including non-profits like The Salvation Army .
The incident underscores the growing threat of ransomware attacks, particularly those employing double-extortion strategies, and highlights the critical need for robust cybersecurity measures in organizations handling sensitive financial data. The personally identifiable data collected is used to commit identity fraud, to steal and lock out funds, commit social engineering (targeted) attacks, and more.
No public comments from Optima Tax Relief have been released.
Back in September 2023, TrustNet posted a case study that they had partnered with Optima Tax Relief to safeguard data. TrustNet is a managed service provider offering SOC 2 Compliance-related services and products.
It is more important than ever to monitor and leverage your partners. Even compliance and certifications do not protect you from a breach. Financial Guardians is launching GuardiantTrust this month to help the industry manage and monitor their vendors, per FTC Safeguards Rule regulations.
Thank you to Roger from Tax Help Software. Tax Help Software (THS) provides software to assist tax professionals with resolution-related needs. Per Roger, OTR was not using THS.
Financial Guardians is continuing to monitor the situation and will provide more information as it become available. If you have questions or concerns, especially about how this may impact you, please reach out to us at protect@yourfinancialguardians.com.
Financial Guardians is a proud member of InCite, the recently launched online community exclusively for tax professionals, bookkeepers, and accountants. InCite members receive a 30% discount.
Financial Guardians has partnered with the California Society of Tax Consultants to provide a 30% access discount as well as many other offers. More info can be found at www.cstcsociety.org
