Posts Tagged ‘W-2’

Phishing Scam Is A Threat To Ohio Businesses

Monday, March 28th, 2016
IRS Phishing Scam - Ohio CPA Firm

You can take a proactive stance when it comes to protecting your company from these scams by encouraging your employees to pay close attention to emails that request sensitive information, such as the names of employees, Social Security numbers, dates of birth, addresses and/or salary information or copies of employee’s W-2 information.

The Ohio Department of Taxation (ODT) is echoing phishing scam alerts made by the IRS earlier this month in an effort to protect businesses and employees state-wide from identity theft and tax fraud.

Read Also: Payroll, HR Departments Targeted By Cyber Criminals

According to ODT, payroll and human resources offices at companies nationwide – including some in Ohio – reportedly received emailed requests that appear to be sent from a high ranking member of the company’s management team requesting confidential payroll data. While the emails appear to be legitimate, they are actually being sent by cybercriminals who are looking to fool employees into sending them detailed payroll and W-2 information. The imposters then use the information to file fraudulent tax returns.

“The scam has worked on more than 30 companies resulting in the theft of W-2 tax information for thousands of current and former employees,” ODT’s news release states. “The W-2 form contains an employee’s Social Security number, salary and other confidential data. This information enables thieves to create a realistic looking, but fraudulent tax return requesting a tax refund that is then filed with Ohio or other states, and the IRS.”

The frequency of tax fraud and identity theft continues to increase at an alarming rate. This tax season alone, the IRS reported an approximate 400 percent increase in phishing and malware incidents – a surge that was addressed back in February.

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

You can take a proactive stance when it comes to protecting your company from these scams by encouraging your employees to pay close attention to emails that request sensitive information, such as the names of employees, Social Security numbers, dates of birth, addresses and/or salary information or copies of employee’s W-2 information. You can also let them know that they should never send sensitive information until a conversation takes place, either in-person or over the phone, with the member of management seeking the information. You can also check out the information provided here for general insight from ODT that could be used to help your employees identify phishing attempts and email scams.

If your Ohio business has been the victim of or experienced this or any other type of email phishing scheme, contact ODT immediately at 800.282.1780 to protect against potential tax fraud and safeguard Ohio taxpayer dollars.

Those who are interested in learning more about the increasing threat of cybercrime should check out The Columbus Cybersecurity Series. Presentations are scheduled to take place throughout the year and will focus on ways to help business owners learn more about cyber threats. The first installment is scheduled for Wednesday, April 6. The event is free but registration is required to attend. Attendees will walk away with new insight into these attacks as well as tips and advice that will help you protect your business.

By Lisa Beamer, CPA (New Philadelphia office)

Want to protect your employees from identity theft and tax fraud or need help recovering? Check out these articles:

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

Share Button

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 Ashley Matthews, CPA (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

Share Button

How Do You Keep Your Tax Documents Organized?

Friday, January 25th, 2013

It’s mid-January. Statistically, most Americans have already abandoned their New Year’s resolutions – those promises you make to yourself to hit the gym, get more sleep and read your favorite accounting blog every day (hey, it was worth a shot). But if you resolved to be more organized in 2013, don’t give up on it just yet – at least not until April 15.

This tax filing season carries extra challenges, thanks to the late passage of the “Fiscal Cliff” tax laws. The IRS isn’t going to be able to process tax returns until around February 1, which gives us a much smaller window of opportunity.

Follow these tips to stay organized this tax season and hopefully experience a few fewer headaches with Uncle Sam’s name on them. (more…)

Share Button

Need Help Understanding Employee Healthcare Benefit Reporting on W-2s?

Tuesday, November 22nd, 2011

The IRS recently held a webinar to explain its reporting requirements for healthcare coverage on employees’ W2’s for the 2011 tax year. We’ve provided a summary of the webinar below for those of you who missed it. (more…)

Share Button