For the past several years, thousands of businesses have been hit with phishing scams during tax season. Through these social engineering scams, hackers obtain employee Forms W-2 for filing fraudulent tax returns seeking large refunds. These phishing emails are typically sent as clients begin the process of issuing W-2s to employees. Often employers do not
Court Denies Motion for Class Certification in Employee W-2 Data Breach Litigation
In recent years, there has been an uptick of W-2 phishing scams, and their consequences for an employer extend well beyond leaked data, including potential employee class action litigation. Just last week, a federal court in Illinois rejected a motion for class certification in a data breach case alleging disclosure of employees’ sensitive tax information
What Does Phishing Have to do with Coronavirus?
As announcements relaying the spread of Coronavirus (COVID-19) continue daily, governmental agencies at all levels are offering information and guidance, and businesses are scrambling to prepare and protect their employees and customers. As part of a larger group in my firm helping to synthesize all this information, there is an aspect of responding to
Professional Tax Preparers – You Need A Written Information Security Plan, Says the IRS and FTC
Tax season soon will soon be upon us and many not-so-eager taxpayers will share sensitive personal information about themselves, their dependents, their employees, and others with their trusted professional tax preparers for processing. What many of these preparers might not realize is that federal law and a growing number of state laws obligate them to
Virginia Updates its Data Breach Notification Law to Include Tax Preparers
For the second consecutive year Virginia has amended its data breach notification law. In March 2017, in light of a warning issued by the IRS to all employers regarding the resurgence of a W-2 based cyber scam, Virginia Governor Terry McAuliffe approved, a first of its kind, amendment to Virginia’s data breach notification statute.
It’s Tax Time – Alert Your HR and Payroll Teams About W2 Phishing Scams
Last February, the IRS issued a warning to all employers regarding the resurgence of a W-2 based cyber scam. The scam, which targets businesses during tax season, was also “spreading to other sectors, including school districts, tribal organizations and nonprofits.” In August 2017, the IRS renewed its warning to tax professionals and businesses as part
IRS Issues Warning About W-2 Cyber-Scams, Especially for Schools, Nonprofits and Tribal Organizations
On February 2, 2017, the IRS issued a warning to all employers regarding the resurgence of a W-2 based cyber scam. The scam, which targets the corporate world during tax season, is currently “spreading to other sectors, including school districts, tribal organizations and nonprofits.” (irs.gov/news-events).
This cyber-scam is simple, but highly successful. It consists of
Top 10 for 2017 – Happy Data Privacy Day
In honor of Data Privacy Day, we provide the following “Top 10 for 2017.” While the list is by no means exhaustive, it does provide some hot topics for organizations to consider in 2017.
1. Phishing Attacks and Ransomware – Phishing, as the name implies, is the attempt, usually via email, to obtain sensitive or
Identity Theft is the First of the IRS’ “Dirty Dozen” Tax Scams of 2016
Each year at the beginning of tax season, the IRS releases the “Dirty Dozen,” a list of twelve tax scams to be mindful of when individuals are filing their taxes. This list is something to consider sharing with colleagues or friends within your organization.
The first member of the 2016 Dirty Dozen is
Employers Can Provide Credit Monitoring and Other Identity Protection Services to Employees Tax-Free BEFORE a Breach Happens, IRS Says
Earlier this year, we reported that the Internal Revenue Service clarified that it would not consider the value of credit monitoring and other identity protection services provided by employers to employees in connection with a data breach to be taxable income to the employees. IRS Announcement 2015-22. In response to comments, the IRS expanded this