Anthropic just released Claude Fable 5, calling it the most powerful AI model it has ever made widely available and praising its skills in biology, among others. But the model won’t answer basic biology questions — the kind you’d expect a high schooler to handle. Instead, it hands off the query to the former flagship model, Claude Opus 4.8.
Technology
How scammers use AI tools to file perfect-looking tax returns in your name
When you think of “tax fraud,” you probably think of people who find ways not to file their taxes honestly. But with the advancement of artificial intelligence, there’s a new type of tax fraud out there.
This one involves hackers using a form of identity hijacking to file a tax return in someone else’s name and get the refund sent to them.
The dark web is revealing that tax fraud is on the rise. Here’s what you need to look out for to avoid becoming a victim.
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Post-it note on a tax form (Kurt “CyberGuy” Knutsson)
What is AI-powered fraud and identity hijacking?
AI-powered fraud is when hackers utilize AI’s abilities to commit sophisticated acts of fraud. One type of AI-powered fraud is known as identity hijacking, which is when hackers not only steal someone’s identity but impersonate them in all sorts of ways. One example is through deepfakes, which can have scary consequences for more than just the person being impersonated.
WHAT IS ARTIFICIAL INTELLIGENCE (AI)?
Another is through AI tax fraud, which is when the hacker uses AI to take your sensitive information and use it to ultimately get your tax return sent to them.
But how exactly do they do this?
Laser scanner over a person’s face (Kurt “CyberGuy” Knutsson)
MORE: DON’T FALL FOR THESE SNEAKY TAX SCAMS THAT ARE OUT TO STEAL YOUR IDENTITY AND MONEY
How fraudsters are using AI to commit tax fraud
This new type of tax fraud was reported by the CEO of LexisNexis Risk Solutions’ Government group, Haywood Talcove, a cybersecurity and data analysis company.
The acceleration of fraud through AI
Historically, tax fraud has involved the use of stolen Personally Identifiable Information (PII), which refers to data that can be used to identify you. It includes both sensitive and non-sensitive information.
Sensitive PII: Full name, Social Security number, driver’s license, mailing address, credit card details, passport information, financial records and medical history. Companies often use anonymization techniques to protect sensitive PII when sharing data.
Non-sensitive PII: Zip code, race, gender, date of birth and even information available on social media sites. While non-sensitive PII is less critical, it can still contribute to identifying you.
Thanks to AI, criminals can now more efficiently exploit stolen (PII) Personally Identifiable Information for fraudulent activities.
The process: From PII theft to fake IDs
Hackers may acquire PII through various means, such as phishing scams or malware. This information is then used to create fraudulent IDs, complete with the victim’s details but the fraudster’s photograph.
Exploiting facial recognition for IRS access
With a fake ID in hand, fraudsters can bypass the IRS’s facial recognition security measures, allowing them to file tax returns in the victim’s name and redirect refunds to their accounts.
IRS documents (Luke Sharrett/Bloomberg via Getty Images)
The call for enhanced verification measures
Experts are urging government agencies to implement more robust verification processes, such as cross-referencing IDs with DMV records, to combat this sophisticated form of tax fraud.
MORE: WHY YOU SHOULD NEVER CARRY THESE THINGS IN YOUR WALLET
How to determine if someone filed a tax return in your name
When the IRS identifies issues with your tax return, it will send you a letter before issuing any refunds. This notification provides an opportunity for you to flag the initial return as fraudulent and proceed with filing normally.
The IRS employs systems to detect suspicious returns. However, if its algorithms fail to identify anomalies and process a fraudulent return, you won’t discover it until you attempt to file your own return and encounter rejection.
In most cases, the second option is more common. Taxpayers typically receive an e-file rejection notice, which indicates a problem. Unfortunately, these notifications lack specific details. Instead, they merely highlight an issue related to the Social Security number. If you haven’t accidentally transposed any digits, it’s likely that tax identity theft caused the rejection.
What happens after the scammer files a fake tax return in your name?
The primary consequence of a fake tax return is the theft of your tax refund. The scammer essentially impersonates you and diverts your rightful return into his bank account. But the trouble doesn’t stop there. When you try to file your legitimate return, the IRS system will likely reject it due to a duplicate filing. This throws you into a bureaucratic maze to resolve the issue and prove your identity.
Adding to the frustration, tax identity theft is a growing crime, and the IRS processes for resolving these situations are still evolving. This can mean extended delays and uncertainty while you straighten things out.
Scam written on tax documents (Kurt “CyberGuy” Knutsson)
MORE: HOW IMPOSTERS ARE TRYING TO EXPLOIT YOUR GRIEF AND WALLET IN A NEW FUNERAL SCAM
6 ways to protect yourself from AI tax fraud
Again, since this is a relatively new scam, cybersecurity experts are still learning a lot about what it looks like and, therefore, how to mitigate it. However, now that you are aware it’s out there, here are six things you can do to keep yourself safe.
1. File your taxes as early as possible. If you beat them to it, they can’t commit the fraud.
2. Never share your personal information, especially your Social Security number or other PII information, on messaging apps or during a phone call with someone you don’t know. Many phishing attempts lead people to give this information away before they’ve even realized what has happened.
3. Use strong passwords and reset them often. Create strong passwords for your accounts and devices, and avoid using the same password for multiple online accounts. Consider using a password manager to securely store and generate complex passwords. It will help you to create unique and difficult-to-crack passwords that a hacker could never guess.
4. Use an identity theft protection service: Using an identity theft protection service can be a crucial step in safeguarding yourself against tax fraud. Identity theft companies can monitor personal information like your Social Security number, phone number and email address and alert you if it is being sold on the dark web or being used to open an account. They can also assist you in freezing your bank and credit card accounts to prevent further unauthorized use by criminals. See my tips and best picks on how to protect yourself from identity theft.
5. Don’t click on links or files when you don’t know what they are, even if they are from a trusted friend. That friend could have been hacked, and now someone is after you. The best way to protect yourself from clicking malicious links that install malware that may get access to your private information is to have antivirus protection installed on all your devices. This can also alert you of any phishing emails or ransomware scams. Get my picks for the best 2024 antivirus protection winners for your Windows, Mac, Android & iOS devices.
6. Do your best to make sure your sensitive data is not easy to find online. While no service promises to remove all your data from the internet, having a removal service is great if you want to constantly monitor and automate the process of removing your information from hundreds of sites continuously over a longer period of time. Check out my top picks for removal services here.
If you suspect you’ve been a victim of tax fraud, the official IRS website provides step-by-step guidance on how to handle the situation.
Kurt’s key takeaways
It’s no doubt scary to think about all the different ways hackers and scammers can take advantage of you. And because AI is making their work easier, it’s hard to keep up. What will they think of next? That’s why, here at CyberGuy, we do our best to keep you up to date on the latest hacking news, so you can stay one step ahead of the crooks.
In light of the growing threat of AI-powered fraud, what additional security measures do you think the government should implement to safeguard your personal information? Let us know by writing us at Cyberguy.com/Contact
For more of my tech tips and security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Cyberguy.com/Newsletter
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Copyright 2024 CyberGuy.com. All rights reserved.
It isn’t because Fable doesn’t know the answers. It’s because Anthropic won’t let it, by design.
Fable is a public-facing, Mythos-class model, a family so capable at cybersecurity tasks Anthropic said it was too dangerous to release publicly. But while Anthropic has spent much of the extended Mythos rollout warning about cybersecurity, it is biology where Fable’s guardrails are the most obvious — and most limiting.
When I tried the model, it refused to answer a range of basic biology questions, many that felt about as far away from any plausible safety risk as any question could be. It would not respond to “tell me about cell membranes” or answer “what are mitochondria,” that famous powerhouse of the cell. It refused to explain “what is a prion,” the proteinaceous particles behind mad cow disease, or “how mRNA vaccines work.”
“We made this tradeoff so customers could benefit from the model’s capabilities sooner without the risks.”
The restrictions applied to ordinary and objectively rather harmless medical queries too. Fable would not answer “what causes hay fever,” explain how asthma medicine works, explain how antibiotic resistance arises, or tell me what Ebola is and how it spreads. Some of my basic queries occasionally got through, with Fable answering questions like “what is cancer” and “what is DNA.” When Fable refused, Opus 4.8 generally answered perfectly well.
Anthropic says the broad biology filters are an intentional choice and are deliberately conservative, with bioweapons the primary concern. “With the launch of Claude Fable 5, our first Mythos-class model, we believe models now have a greater ability to accomplish real-world scientific tasks and for malicious actors to potentially use our models for highly risky biological research,” spokesperson Paruul Maheshwary told The Verge. “We have always used classifiers to block our models from helping with bioweapons-related requests. To deploy Fable 5 safely, we believe it was necessary to be overly conservative with our safeguards so they block most queries tied to biology work.”
Anthropic has previously highlighted four key areas where it would throttle Fable’s responses for safety: chemistry, biology, cybersecurity, and distillation, a technique for training smaller AIs using the outputs of larger ones. The company has accused Chinese rivals like DeepSeek of using distillation on its models on an “industrial” scale.
While I could not meaningfully test distillation, Fable seemed more willing to answer questions about chemistry and cybersecurity. For example, it gave a basic overview of the explosive TNT, though withheld synthesis instructions “for obvious reasons.” It readily answered questions on the use of chlorine gas as a chemical weapon, common password threats, and nuclear fusion and fission, as well as explaining how to secure an iPhone from hackers. It still limits: Fable deferred to Opus when I asked it about sarin gas, a highly toxic nerve agent. Fable and Opus both refused the prompt “how to make anthrax,” and Claude paused the chat entirely. That made sense. The mitochondria prompt refusal seems like a false positive.
“We made this tradeoff so customers could benefit from the model’s capabilities sooner without the risks,” Maheshwary explained, adding that Anthropic is working hard to improve its detection and reduce the false positives. “We intend to make Mythos-class models available without these safeguards to the broader biology and life sciences community so these capabilities can be used to accelerate biomedical research and drug discovery.”
Anthropic did not answer questions about whether this kind of restricted release will become the new norm for future models.
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Texas mom jailed over dirty water Facebook post
Jennifer Combs says she was arrested on a felony charge after using Facebook to collect reports about water concerns in Trinidad, Texas. A grand jury later declined to indict her. (Kurt “CyberGuy” Knutsson)
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Jennifer Combs says she never set out to become the face of a fight over free speech, dirty water and small-town power. She says she was simply trying to help people in Trinidad, Texas, report problems with their water. Some residents had complained about discoloration, sediment, odors and health concerns. So Combs used her Southern Belle Watch Facebook page to collect reports and send them to the state.
Then, according to Combs, the situation took a turn that still sounds hard to believe. She says police came to her home and arrested her on a felony warrant over a Facebook post.
“I’ve never even had a speeding ticket,” Combs said. “I’m a mom of four kids. I have one grandbaby right now. I have two more grandbabies on the way.”
Now, Combs says her arrest has become about something much bigger than one Facebook post.
HOW I WAS TRICKED AND LOCKED OUT OF FACEBOOK AFTER BEING HACKED
Jennifer Combs says she was arrested on a felony charge after using Facebook to collect reports about water concerns in Trinidad, Texas. A grand jury later declined to indict her. (Kurt “CyberGuy” Knutsson)
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Why Jennifer Combs started asking about Trinidad water
Jennifer sat down with me for my CyberGuy Report podcast at CyberguyPodcast.com to explain what happened, why she started asking questions and what she wants other communities to learn from her ordeal.
Combs says she got involved after seeing a post from an older woman who needed help buying bottled water. According to Combs, the woman was on a fixed income and had already spent part of her monthly money on bottled water. Combs said the woman claimed her doctor had told her not to cook with or drink the tap water. That moment stuck with her.
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“I’m a firm, firm person on transparency,” Combs said. “I stand on it. I think if you’re going to be in government, there should be zero reasons for you not to be transparent with your people that elected you to be there.”
So she started collecting complaints. Her plan was simple. If residents shared their water issues, she could pass those reports to the state. That way, inspectors would know where to look.
Trinidad water complaints had been building
Combs says the water issue had been going on for years in parts of Trinidad. “That’s real. That’s not AI. That is absolutely very real,” Combs said when asked about images of the water.
She said some residents did not want to speak publicly because they feared backlash. “A lot of them wanted to be able to message me anonymously, because the retaliation in Trinidad is very, very real,” Combs said.
That is why she created a place where people could quietly share reports. She says she wanted to collect the information, map the affected areas and send everything to the state.
The Facebook post behind the arrest
Combs read the Facebook post during our conversation. In it, she said her page had received reports that some citizens had been hospitalized due to bacteria in the water. She called it “a serious public health concern that deserves immediate attention.”
The post asked residents to message the page if their water looked discolored, contained sediment, had a strong odor or if they had related health concerns. It also asked for general neighborhood areas, photos, videos, dates and times.
Combs says the post was later removed by Facebook after it was reported by a select group of people from the community and flagged, though she says Facebook did not tell her why. But before it came down, she says, then-Trinidad Police Chief Charles Gregory had taken a screenshot of it and posted it on the Trinidad Police Department Facebook page, accusing her of making a false report.
“I never filed a report with the police department,” Combs said. “I only filed a report with the state of Texas with the water.” She says she was gathering community reports about the water and sending them to the state. That distinction is important because it raises questions about why a public health complaint on Facebook became a police matter. We reached out to Meta, Facebook’s parent company, for comment, but did not hear back before our deadline.
Trinidad hired a contractor to handle water issues
Combs says the city had hired a contractor to help manage the water problem. She said boil notices listed his number, so residents were often directed to call him instead of City Hall when they had water concerns. According to Combs, that created even more frustration. She said residents still felt they were not getting clear answers, and some began sending complaints to her instead.
Later in our conversation, Combs said the person who made the complaint that led to her arrest was the same contractor paid by the city to address the water problem. “Do you want to know who that someone is?” Combs said. “That someone that made the call report is the contractor that’s paid by the city to fix the water.”
That detail adds another layer to the story. The person hired to help solve the water issue, according to Combs, was also the person who reported her for collecting complaints about it.
FACIAL RECOGNITION JAILS INNOCENT GRANDMOTHER, ATTORNEY SAYS
Police arrested Jennifer Combs at her home
Combs says this all came to a head on April 6. Two officers came to her home in Kearns, Texas, about eight miles from Trinidad. She says they told her she had a felony arrest warrant from Henderson County.
“I said, ‘Oh, what? What do you mean?’” Combs said. “And they said, ‘Yeah, you have a felony arrest warrant. We have to take you to Navarro County Jail.’”
Then she was handcuffed in her front yard. “To be handcuffed in my front yard and taken to jail and spend 23 hours in jail before I could get out was very traumatic,” Combs said. “It was insane.”
Combs says she was charged with a felony false report tied to public panic over the water system. “I was just in disbelief, in absolute disbelief,” she said.
Residents said the water reports were real
Combs says Gregory later doubled down on Facebook and defended the decision to arrest her. But Combs says the part that still bothers her is what happened after Gregory posted about her online. According to Combs, some of the same residents who had contacted her then commented on the police department’s post to say the reports were real.
“The people that had made the reports to me commented on there, and they never even interviewed them,” Combs said. “They never even talked to them. But they literally commented on his own post saying, ‘Hey, this really happened.’”
That raises a basic question. If residents were saying the reports were real, why treat the person collecting those reports like a criminal?
Grand jury declines to indict Jennifer Combs
After Combs arrest, the costs started adding up. She says her husband had to bail her out, and the legal bills started soon after. “It’s $2,500,” Combs said about the bail amount. “So he had to pay 300 and something to get me out of jail. And then we’ve had to pay attorney fees.”
Combs says the felony charge eventually went before a grand jury. The grand jury no-billed the case, meaning it did not indict her. “The grand jury said no bill. Absolutely no part of this,” Combs said. “No bill, not enough evidence.”
That meant the charge was no longer hanging over her head. Still, Combs said her attorney had to keep working through the process of getting it removed. By then, the damage had already been done. Combs had spent nearly a day in jail. Her husband had to bail her out. She had to hire a lawyer. And her name had been tied to a felony allegation over a Facebook post about water.
Trinidad water fight took another turn
Combs says the fallout did not stop with her arrest. After she was arrested, a man she identified as Otto the Watchdog protested outside Trinidad City Hall. Combs says he was handcuffed and put in a police car for disorderly conduct because officials claimed he offended a water clerk.
Then, according to Combs, the water clerk said she was not offended. “The water clerk is fired because she would not sign a statement that said she was offended,” Combs said.
Combs says a judge later dropped the disorderly conduct issue involving the protester. Then, she says, the city fired that judge. “The judge dropped it. They fired the judge,” Combs said.
She also said the city attorney was fired the same night. Yet Combs says it happened during a recorded city council meeting with cameras in the room.
MICROSOFT CROSSES PRIVACY LINE FEW EXPECTED
A Texas mother says her effort to document residents’ complaints about discolored and contaminated water led to a felony arrest and nearly a day in jail. (Kurt “CyberGuy” Knutsson)
City of Trinidad responds to request for comment
CyberGuy requested comment from the City of Trinidad. Zachary Smith, an associate attorney with Iglesias Law Firm, responded on behalf of the city and said the firm represents Trinidad. “We recognize that the public wants answers, and that is not lost on us or our clients,” Smith wrote.
Smith said the city is leaving the details to the legal process. “Because lawsuits have been filed, our clients are not able to comment on the specifics at this time. As you know, this is standard practice in active litigation,” Smith wrote.
He also defended the city’s position. “The claims against the City of Trinidad will be answered where they belong, in a court of law,” Smith wrote. “The officials who serve this community have acted, and continue to act, in the best interests of the people of Trinidad. We look forward to addressing these claims fully during the litigation process.”
Why the Trinidad water story raises free speech concerns
People complain online about local problems every day. They post about roads, trash pickup, schools, taxes, crime and public utilities. Some posts are emotional. Some include claims that still need to be checked. But that does not mean a citizen should be treated like a criminal for asking questions.
Combs said it best. “You have the right to question what anybody is doing,” she said. “You have the right to figure out what is in your water, what you’re drinking.”
Then she added one line that says a lot about her. “I’m never going to tell people, ‘Oh, just keep your mouth shut. Don’t say anything and just be quiet.’ That’s not me. I don’t hush very well.
Jennifer Combs wants answers for Trinidad
Combs says the water problem still needs outside attention. She said the mayor went on national TV and asked for the Texas Rangers to step in. Combs also said she had reached out for support.
“I need someone to help,” Combs said. “It’s insane. It’s not going to get fixed the way it is.” She said people in Trinidad have waited long enough.
“They’ve had all of these years to do it,” Combs said. “And now you’re putting people in jail for talking about it.” That is the part that should make all of us pay attention. If people are afraid to speak up about water, what else will they stay quiet about?
What Jennifer Combs wants people to know
At the end of our conversation, I asked Combs what message she has for people who speak out online about local issues. Her answer was direct.
“I think people that speak out for their communities are extremely brave,” Combs said. “So I’m never going to not tell people to speak out.”
She also said people should not let her experience scare them into silence. “You can’t let what happened to me prevent you from standing up and doing what’s right to people,” Combs said. “You can’t because then there’s no good people left.”
How to protect yourself when posting on Facebook
Facebook can be a powerful way to raise local concerns, but you should think carefully before posting. If your goal is to alert the public, a public post can help more people see it. If you are still gathering information, a private group or direct messages may be safer while you verify what residents are reporting.
Before you post, save screenshots of your draft, your final post and any comments that support what you wrote. If Facebook removes the post or someone reports it, you still have a record of the exact wording.
Also, protect people who contact you. Ask for photos, dates, times and general locations, but avoid sharing exact addresses, phone numbers or medical details without permission. You can show a pattern without exposing someone’s private information.
Finally, be clear about what you know and what you are still trying to confirm. Use phrases like “residents reported,” “according to messages sent to me,” or “we are asking the state to review this.” That can help show you are collecting community concerns, not claiming every detail has already been proven.
HOW SURVEILLANCE TECH LED POLICE TO ACCUSE THE WRONG PERSON
Jennifer Combs argues her arrest over a Facebook post raises broader concerns about free speech, government transparency and public accountability. (Kurt “CyberGuy” Knutsson)
Kurt’s key takeaways
Jennifer Combs says she wanted clean water, transparency and answers. Instead, she says she was handcuffed in her front yard and spent the night in jail. That should concern anyone who has ever posted a complaint about a local issue online. When people question public officials, those officials should respond with records, facts and accountability. They should not turn criticism into a police matter. This story also shows why local journalism and citizen watchdogs still have power. Small towns can have big problems. Sometimes the person asking the uncomfortable question is the one doing the public a favor. The bigger question is simple: If a Facebook post about dirty water can lead to a felony arrest, what would stop another local government from trying the same thing? To hear Jennifer tell her story in her own words, check out The CyberGuy Report podcast at CyberguyPodcast.com.
Have you ever spoken up about a local problem and felt ignored, intimidated or brushed aside? Let us know by writing to us at CyberGuy.com.
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Microsoft’s Office 2019 apps for Mac will stop working next month, because the company isn’t renewing a certificate that validates Office licenses. Owners of Office 2019 for Mac are being warned they’ll have to purchase Office 2024 or a Microsoft 365 subscription if they want to continue editing documents.
Microsoft previously promised that “all your Office 2019 apps will continue to function,” when it announced end of support in 2023. The company then quietly updated that support note last month to remove the mention of apps continuing to function, replacing it with “Rest assured that all your Office 2019 apps won’t lose any data.”
Starting on July 13th, Office 2019 for Mac and Office 2021 for Mac will both run in “reduced functionality mode,” allowing people to open files but not edit, save, or create new documents. The reduced functionality will impact Word, Excel, PowerPoint, Outlook, and OneNote.
While Microsoft is providing a certificate update for Office 2021 as it’s still supported until October 13th, 2026, the company is leaving Office 2019 for Mac users out in the cold as support for these apps ended a few years ago. “Office 2019 for Mac reached end of support on October 10, 2023, and no longer receives updates,” says Microsoft. “Because Office 2019 cannot be updated to the required version, this issue cannot be resolved by updating or reinstalling Office 2019 for Mac.”
JimmyTech points out that old versions of Microsoft 365 apps on Mac and iOS will also be affected by this certificate issue, but a simple update will fix it for those users.
Microsoft regularly ends support of software and there’s always the risk you could run into issues running older apps or versions of Windows. It’s still surprising to not see Microsoft make an exception here though, particularly because this certificate issue breaks the main functionality of an app you’ve paid a one-time license fee for.
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