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
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