Posts Tagged ‘cyber crimes’

Payroll, HR Departments Targeted By Cyber Criminals

Friday, March 4th, 2016
Identity Theft | Refund Fraud | Ohio CPA Firm

The best thing to remember when it comes to protecting your business, and yourself, from becoming a victim of fraud is that if something seems a little out of the ordinary, it’s worth checking out before you act. Read on to learn about the newest threat to your identity.

Over the last few years, the threat of refund fraud and identity theft has become a very real concern, and criminals have proven that they will go to great lengths to get the information they need to complete their scams. This recent phishing scam is no exception.

Read Also: Join The Fight Against Identity Theft & Income Tax Fraud

Criminals Phish HR, Payroll Departments

The IRS recently alerted payroll and human resources professionals of an “emerging phishing email scheme that purports to be from company executives and requests personal information on employees.” The scam has already claimed several victims.

IRS Commissioner John Koskinen said that this particular tactic appears to be “a new twist on an old scheme.” These cyber criminals are using the cover of tax season to trick people into sharing confidential data.

“If your CEO appears to be emailing you for a list of company employees, check it out before you respond,” said Koskinen. “Everyone has a responsibility to remain diligent about confirming the identity of people requesting personal information about employees.”

According to the IRS, a criminal investigation is already in place and several cases in which people have been tricked into sharing social security numbers and other sensitive information with criminals are being reviewed. Officials report that criminals regularly use the stolen personal information to file fraudulent tax returns for refunds.

Remind Employees To Remain Alert

To avoid becoming a victim of this particular scam, encourage your employees to pay close attention to emails that contain the following information:

  • The actual name, title and contact information of somebody in the company

o   Oftentimes, criminals will use the name of the company’s CEO to enhance the message’s legitimacy.

  • A request to provide sensitive information, including:

o   The names of employees along with their Social Security Numbers, date of birth, address, and/or salary

o   A PDF of an individual’s 2015 W-2 or an earnings summary of all the company’s W-2s.

Other Scams Abound For Businesses, Individuals

Unfortunately, businesses appear to have seen an increase of cyber attacks – especially over the last year. Last June, the Financial Services Information Sharing and Analysis Center, the FBI and the United States Secret Service issued a fraud alert in response to a scam dubbed the “Business Email Compromise,” in which fraudsters compromise “legitimate business email accounts for the purpose of conducting an unauthorized wire transfer.”

Also, in response to a nearly 400 percent increase in phishing and malware incidents so far during this tax season, the IRS also renewed its wider consumer alert for email schemes. These emails are designed by scammers to trick taxpayers into believing they are being sent directly from the IRS, other tax industry professionals and/or software companies.

The best thing to remember when it comes to protecting your business, and yourself, from becoming a victim of fraud is that if something seems a little out of the ordinary, it’s worth checking it out before you act.

By Joseph Popp, JD, LLM (Dublin office)

Want to take steps to ensure that you won’t be a fraud victim this year? These articles feature information that can help.

How can you protect yourself from tax fraud

Identity Theft Prevention: Tips To Reduce Your Risk of Becoming a Victim

How To Recover From Identity Theft & Refund Fraud

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Egg Nog & Tax Tips: Top 5 Posts In December

Wednesday, January 6th, 2016

December is such an exciting time. Shopping, baking, decorating and spending time with family and friends celebrating keeps a frog busy. But, in-between the office parties and family gatherings, the team and I were still able to address some of your end-of-the-year questions and concerns.

From the updates we received from our pals over on Capital Hill to year-end tax tips, there was certainly a lot to write about this month. These were the top-read posts in December

  1. Easy Year-End Tax Tips For Business Owners: There’s no doubt about it, this time of year is busy! I’m willing to be that sitting down at the computer to research tax deductions is the last thing on your mind. You’re in luck! We’ve done the work for you. Click here for some great tips, deductions and insight that will help you keep more of your hard-earned money in your bank account.
  2. Employers: Are You Ready To Change The Way You Withhold Municipal Tax Payments?:  Ready or not, all Ohio municipalities will be welcoming a slew of new provisions designed to bring about a unified system of income tax reporting. House Bill 5 was signed into law by Gov. Kasich on Dec. 19, 2014. The bill, which was championed by the Ohio Society of CPAs and supporters, helped streamline several key measures that help establish meaningful municipal tax reform. Per the legislation, many key provisions are scheduled went into effect Jan. 1 of this year. Read on for Four facts about the changes you need to know.
  3. Congress Gives Taxpayers An Early Christmas Present: Year after year, Congress promises to address the future of many expired tax provisions, and year after year they fail to make a definitive decision – opting only to pass legislation that extends the provisions for another year. In the meantime, taxpayers are expected to take on the impossible task of navigating the terrain amidst legislative uncertainty. Happily, things are about to change. Read on to learn why.
  4. How Far Back Can The IRS Go For Tax Auditing? – As a CPA I’m frequently asked, “How far back can the IRS look to audit my tax return?” That’s a great question. Can the IRS go back and audit your tax return from five years ago? 10 years ago? 25 years ago? Before you start to panic, rest assured that the IRS has a statute of limitations in place that generally puts a limit on the time allowed to audit you and assess additional tax. Keep reading to find out how far back they can go.
  5. Cyber Crime: It Can Happen To You: Fraudsters don’t take holidays. In fact, they tend to be more active this time of year because they believe we are more likely to let our guards down. I don’t intend on falling for any of their traps, and I encourage you to do the same. Check out what you can do to protect yourself.

Now that December is history, let’s look forward to a great 2016. Stay tuned as we provide you with the latest and greatest news in the business and financial world. While you’re at it, don’t forget subscribe to our blog to receive email reminders when new stories are posted.

You can also ask your own question by filling out the simple form at the top, right side of this page.

Finally, remember that the team at Rea is always available to discuss your specific business issues in more depth. All you have to do is email Rea & Associates and we would be happy to set up a time to talk more.

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