The Internal Revenue Service (IRS) is reminding employees to beware of phishing scams that target people on payroll this tax season.
The IRS says the Form W-2 scam is one of the most dangerous phishing emails in the tax community. Here's how it works:
- Thieves identify the person(s) who have access to W-2 forms in a business
- The criminals pose as executives via email, sending payroll personnel requests for copies of employees' W-2 forms
- Once criminals have access to the W-2 forms, they can use that information for fraudulent tax returns or post it for sale on the Dark web
"We really want to be careful," says South Miami-based CPA and fraud examiner Lydia Desnoyers. "Especially those in the payroll department who have access to an abundance of people's W-2s and personal information."
You can hear her entire interview with WIOD, including IRS and tax season safety tips, here:
Last year, 200+ employees/employers fell victim to the phishing scam, translating into hundreds of thousands of people who had their information compromised.
Because of the uptick in complaints, the IRS implemented a new process by which employers should report scams. The IRS established a special email notification address specifically for employers to report Form W-2 data thefts.