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The taxing truth: A state-by-state analysis of tax-time trickery

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The taxing truth: A state-by-state analysis of tax-time trickery

We are less than a week away from the tax deadline, and McAfee is out with new data on tax season that can help ensure you stay safe this tax season. 

With tax return scams on the rise, rushing to get your taxes done before the deadline can be one of the ways you are more vulnerable to becoming a victim of one of these scams.

So, how can you strike the balance of utilizing tax filing software to support you in getting those taxes on time while ensuring you’re protecting yourself from the various tax scams that are out there?

Steve Grobman, senior vice president and chief technology officer at McAfee, a cybersecurity company, advises that filing your taxes on time is a key step in avoiding tax scams.

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Woman stressed out while doing her taxes (Kurt “CyberGuy” Knutsson)

What are the most common tax scams?

Tax scams have become more sophisticated over the last few years, but they are in no way new. However, with AI becoming more commonplace, scammers can utilize this technology to expedite their malicious scams. These scams can come in many different forms, but some of the most common ones are:

Phone scams: Scammers impersonate IRS officials to solicit back payments or personal information over the phone, using threats of arrest or fines to pressure immediate compliance. They may use fake badge numbers, caller IDs or robocalls enhanced with AI voice-overs.

Phishing email scams: Scammers commit fraud by sending emails or messages pretending to be from tax authorities or reputable tax software companies. They entice recipients to click on links that lead to fake websites designed to steal personal and financial information or directly request sensitive data under the guise of tax filing or refunds.

Tax-related identity theft: This occurs when identity thieves use stolen personal information to file fraudulent tax returns. Signs of such theft include receiving a letter from the IRS about a tax return already filed in your name, an electronic filing rejection because a return has already been filed using your Social Security Number, or a notification about the creation of a new online IRS account you did not initiate.

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The word SCAM over data (Kurt “CyberGuy” Knutsson)

MORE: DON’T FALL FOR THESE SNEAKY TAX SCAMS THAT ARE OUT TO STEAL YOUR IDENTITY AND MONEY

What you need to know about tax filing software

Today’s tax landscape is dominated by online engagement, with nearly nine out of 10 (89%) individuals turning to online platforms for at least one part of the tax filing process. More than half of consumers (54%) struggle to differentiate between scams and legitimate messages. In February alone, cybersecurity firm McAfee blocked more than one million attempts to engage with malicious, tax-related URLS.

Steve says, “With less than a week left until Tax Day, early filers are awaiting refunds and tax procrastinators are likely feeling the pressure and stress of the deadline. Scammers exploit these heightened emotions by offering easy filing, faster refunds or urgent information requests, so it’s not surprising that Americans report an average of $8,199 per person lost to tax-related email and text message scams.”

“We encourage people to maintain healthy skepticism, pause before sharing sensitive information online, and to use the right tools to protect their privacy, identity and personal information during tax season and beyond.”

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Fraud written on a tablet (Kurt “CyberGuy” Knutsson)

How scam attempts and detection look in different states

According to Steve, “Our recent tax scam survey uncovered notable disparities in scam susceptibility. Residents of some states – particularly Texas, New York, California, Alaska and Arkansas – have a much higher rate of receiving fraudulent tax refund messages than others.”

“These messages often contain malicious links or malware, increasing vulnerability to scams, so we encourage people to be extra alert and use AI-powered online identity and information protection measures to safeguard themselves against potential scams.”

Here’s some more information by state:

Texas: Despite being highly confident in spotting tax-related scams, Texas has a significant percentage (66%) of people who have lost money to online tax scams, indicating a gap between confidence and reality.

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New York: While New Yorkers are confident in identifying tax-related scams, 70% have received messages purporting to be from tax authorities, and 80% have received requests for personal information, suggesting a significant issue with scam attempts.

MUST-KNOW TAX SEASON TIPS FOR FAMILIES WITH COLLEGE STUDENTS

West Virginia: Although West Virginia has a high confidence level in spotting fake tax preparation services, 88% of its residents are likely to click on links from supposed tax software companies, indicating vulnerability to scams.

Kansas: Despite being less likely to click on links from purported tax preparation software companies, Kansas has a relatively high percentage (88%) of people who wouldn’t recognize a scam message from the IRS or state tax authority, suggesting a need for awareness and education on tax scams.

Tennessee: 100% of Tennessean respondents who clicked on links from supposed tax software companies lost money, and all respondents who received messages about tax refunds clicked on those links, highlighting a vulnerability to scam messages in the state.

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Woman preparing taxes (Kurt “CyberGuy” Knutsson)

MORE: HOW SCAMMERS ARE USING AI TOOLS TO FILE PERFECT-LOOKING TAX RETURNS IN YOUR NAME

How to protect yourself from tax-related identity theft

There are several ways you can protect yourself from tax-related identity theft:

Smart Selection: Utilize tax software to get your taxes done faster and on time, but be sure to research and check the reviews.

IRS Impersonation Alert: The IRS will NEVER call you and ask you to make any sort of payment over the phone.

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Secure Your Identity: Request an Identity Protection PIN from the IRS. This will help to ensure your account is protected going forward and make it less likely that someone can file a fake tax return in your name.

Early Bird Advantage: In the future, try to file your taxes as early as you can. By doing this, you’re essentially beating the scammer to it. Once you file the return, they will be unable to commit fraud by filing a return in your name.

Beware of Phishing: Don’t click on suspicious links, even if you recognize the name of the tax software company. 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.

Steve adds, “The rise of AI-generated tax scams has made it incredibly challenging for Americans to tell the difference between real and fake communications. Cybercrooks can now easily create malicious robocalls that sound like they could come from a neighbor and send error-free text and email messages.”

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With 1 in 4 Americans losing money to online tax scams, it’s crucial for consumers to stay informed about the latest scams, exercise skepticism when something seems too good to be true, and utilize AI-powered tools to protect their privacy, identity and personal information.”

MORE: TOP WAYS TO SAFEGUARD YOUR SOCIAL SECURITY NUMBER

What to do if you’re a victim of a tax scam?

The hope is that by being aware of the different tax scams that are out there – especially when the deadline for filing your taxes is right around the corner – you’ll be less likely to become a victim of one. That being said, we know that these scammers are pretty clever. So, if you do find that you’ve been a victim of a scam, follow these steps:

1. Complete IRS Form 14039, the Identity Theft Affidavit. This is the form that all victims of fraud must fill out for the IRS. It will let them know that the person claiming to be you is a fraud. You can find the form on the IRS website.

2. Request a copy of the fraudulent tax return from the IRS: You can do this by going to this page on the IRS website on dealing with fraudulent returns and following the instructions to order a copy.

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3. Alert national credit bureaus: Let the national bureaus, such as Experian, Equifax and TransUnion, know that there has been fraud and freeze your account so that the scammers cannot access it.

4. Report the crime to the Federal Trade Commission: The FTC is there to help track down scammers, and your report can also help them record how many scams are happening in a single year to improve better how to warn others. You should also report the crime to identitytheft.gov/.

5. Check your online bank accounts: Make sure there aren’t any suspicious transactions on any of your accounts.

6. Use an identity theft protection service: As tax season approaches, the risk of tax fraud significantly increases. It’s crucial to be vigilant and proactive in protecting your personal information. One effective measure is to enlist the help of an identity theft protection service. 

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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.

One of the best parts of using an identity theft protection service is that it might include identity theft insurance of up to $1 million to cover losses and legal fees and a white-glove fraud resolution team where a U.S.-based case manager helps you recover any losses. See my tips and best picks on how to protect yourself from identity theft.

A Post-it on tax documents (Kurt “CyberGuy” Knutsson)

MORE: DON’T CLICK THAT LINK! HOW TO SPOT AND PREVENT PHISHING ATTACKS IN YOUR INBOX

Kurt’s key takeaways

Taxes are a necessary evil that we have to do every year. Because it can be complicated, many people resort to software to help get the job done. Whatever route you take, be on the lookout for suspicious links from these software companies and any strange messages or phone calls claiming to be from the IRS – and claim your IRS Identity Protection PIN ASAP.

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Considering the advancements in cybersecurity, what steps should companies take to protect their customers’ sensitive financial data? Let us know by writing us at Cyberguy.com/Contact.

For more of my tech tips & security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Cyberguy.com/Newsletter.

Ask Kurt a question or let us know what stories you’d like us to cover.

Answers to the most asked CyberGuy questions:

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Copyright 2024 CyberGuy.com. All rights reserved.

Technology

Claude Fable is too scared to teach you about the powerhouse of the cell

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Claude Fable is too scared to teach you about the powerhouse of the cell

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.

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.”

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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.”

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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

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Texas mom jailed over dirty water Facebook post

NEWYou can now listen to Fox News articles!

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.

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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.

11 EASY WAYS TO PROTECT YOUR ONLINE PRIVACY IN 2025

“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.”

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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.”

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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.”

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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.”

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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.”

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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.

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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.

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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.

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“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.”

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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

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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 is disabling Office 2019 for Mac next month

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Microsoft is disabling Office 2019 for Mac next month

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.

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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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