From Tax Refund: Consumers bank on it, clarionledger.com
Like clockwork, scammers are attempting to get at Mississippians’ tax refunds again. Each year, more and more people find themselves victimized by a variety of scams designed to steal their identities for the purpose of filing fraudulent tax returns.
Many taxpayers have tried to file their taxes online, only to find out someone had already filed in their name, grabbing their refunds. While not a new phenomenon, the amount of tax-related cybercrime has increased this year in both numbers and sophistication.
Recently, Attorney General Jim Hood warned that Mississippi residents could be targeted by scammers trying to collect data from W-2 forms, in a new twist on a couple of old scams. Hood cited reports from the Internal Revenue Service warning business owners to be careful in providing information about employees.
The scheme works like this: A scammer sends an email to an employee in Human Resources at the business, carefully crafted to look as if it comes from the CEO or another known corporate executive. The message asks for copies of W-2 forms of all employees, and sometimes is followed by a second email requesting money be wired to a specific bank account.
Hood urged Mississippi residents to be suspicious of any such unsolicited emails and to always verify by phone that the request is legitimate.
“We have received calls and reports to our office this week from entities whose employees have fallen for this type of scam,” Hood said. “Employees who would have W-2 information, such as accounting or human resources personnel, are particularly susceptible to this scam. All types of organizations are possible targets, including schools, health care organizations, nonprofits and private businesses.”
Hood noted the scam, which first appeared a year ago, is circulating earlier in the tax season. Some businesses which got the emails last year are being targeted again.
“This is one of the most dangerous email phishing scams we’ve seen in a long time,” IRS Commissioner John Koskinen noted in a news release. “It can result in the large-scale theft of sensitive data that criminals can use to commit various crimes, including filing fraudulent tax returns. We need everyone’s help to turn the tide against this scheme.”
If businesses get such an email, forward it to firstname.lastname@example.org and place “W2 Scam” in the subject line, and file a complaint with the Internet Crime Complaint Center (IC3), operated by the FBI. In addition, contact the Consumer Protection Division of the Mississippi attorney general’s office at 1-800-281-4418.
Employees whose W-2s have been stolen should visit the Federal Trade Commission’s identity theft resources at http://www.identitytheft.gov,or the IRS’ site at http://www.irs.gov/identitytheft, to learn how to report the theft and get advice on what to do next. They should also file IRS Form 14039, Identity Theft Affidavit, if the employee’s own tax return rejects because of a duplicate Social Security number or if instructed to do so by the IRS.
And, the IRS notes, just because someone isn’t required to file a return or isn’t expecting a refund doesn’t mean they can’t be a victim. In all cases, the best way to avoid becoming a victim of tax refund fraud is to file taxes as soon as possible, before scammers can file and steal your identity and refund.