Fake Tax Form Scam
Tax season is a confusing time. Amid a paperwork blizzard, it seems that everyone needs triplicate copies of every document. It’s not unusual for someone to lose a copy of an important document and need it to be re-issued. Of course, everyone’s busy enough that no one wants to double-check. Make sure you do not get conned with the fake tax form scam.
Playing on your possible loss
That’s exactly what scammers are counting on with a recent ploy targeting business owners and people who prepare tax forms. In this scheme, the scammer sends an email claiming to be a hired company or someone from the IRS. They claim to need duplicate copies of W-2 forms. An overworked clerk doesn’t want an earful from the boss or may fear they are out of compliance with the tax authority, so they send the forms along with little questioning.
Unfortunately, those forms contain a lot of personally identifiable information. The W-2 includes a name, an address, and a Social Security number. With that information, fraudsters can open fake credit cards and apply for other loans. They can also file a fraudulent tax return to grab a refund check. In short, your W-2 in the wrong hands can mean serious trouble.
What to do if you are targeted
While the scam was initially directed at HR professionals and others at large corporations, scammers have broadened their net to include school districts, tribal councils, not-for-profits, and small businesses. If you prepare W-2s for employees as part of your job or as a small business owner, be on the lookout for these fake emails. Here’s the sample text from one such message:
“ATTN: Due to some complains (sic) we had concerning the W-2 mismatch, We advice (sic) you to send your 2015 filled W-2 form in (PDF) format for confirmation.”
Notice the strange abbreviations, spelling and grammar errors, and poor punctuation. All of these are signs that this is not the professional work of the IRS.
You may also get a message that looks like it’s from a boss or CEO asking for similar information. Watch for the same errors in spelling and grammar. It’s always worth confirming these requests in another message. Also, look out for emails from former employees. Scammers may be relying on outdated information.
W-2 security is a pretty big deal. If someone needs another copy, the safest option is to mail it to the address listed on the form. While email is generally a secure way to communicate, it’s not entirely secure, and you may not have an assurance that the email is correct or uncompromised. There’s no sense in taking chances with sensitive information. It’s also improbable that someone would need duplicate copies of ALL W-2s. Be suspicious of any such request.
If your information is compromised
If you fear your employer has unwittingly released your information, don’t panic. There are three steps to minimize the impact this data breach can have on your life. Your first step should be a call to one of the major credit bureaus: Experian, Equifax, or TransUnion. Ask them to put a fraud alert on your account. This alert will force anyone who wants to issue a credit in your name to verify that you’re asking for it first.
Next, order a copy of your credit report. And it will show all the accounts that are open in your name. Call the company and immediately close the account if you see anything you don’t recognize. Also, review statements for the accounts you do have. Check for charges you don’t remember. Call the issuing institution and shut down the account if you see any. Let them know there’s a fraud as soon as possible limits your liability.
Third, file a complaint with the Federal Trade Commission (FTC) at www.identitytheft.gov. This complaint will create a fraud affidavit, a document certifying that fraud occurred. And it will help you when it comes time to file a police report and take additional steps.
It’s also worth filing your taxes as soon as possible. If a thief tries to file a tax return using your information after you have already done so, the IRS will be alerted to the fraud and thus prevent further damage from occurring. Filing earlier will ensure that a complete and accurate return is available to investigators looking into possible fraud.
