Protecting Yourself from W-2 Scams: A Comprehensive Guide
Keeping your personal information safe is crucial in preventing identity theft. However, sometimes the control is out of your hands. A data breach could expose your sensitive information, or worse, your employer might fall for a W-2 scam, giving cybercriminals access to your name, address, Social Security number, and financial details. At O1ne Mortgage, we prioritize your security and want to ensure you are well-informed about these threats. If you need any mortgage services, feel free to call us at 213-732-3074.
Understanding W-2 Scams
W-2 scams are a type of fraud that targets employers rather than individuals. The scammer aims to trick someone with access to employees’ W-2 forms, often someone in the finance or human resources department, into sending them copies of every employee’s W-2. This type of phishing scam can provide cybercriminals with sensitive information, which they can use to file fraudulent tax returns or commit other types of identity fraud. They may also sell the W-2s or the information on the dark web.
The attack usually begins with cybercriminals “spoofing” an email to make it appear as though it is coming from an executive within the company. This phishing technique relies on deception and social engineering to trick the victim. The email might request a list of employees and their W-2s, often with a sense of urgency. Employees, eager to please higher-ups, might quickly respond and send the requested information.
Fraudulent W-2 Scams
In March 2023, the IRS warned of a new type of W-2 scam promoted on social media. This scheme encourages people to create fraudulent W-2 forms and use them to file false tax returns to receive a large refund. Do not fall for this scam. Filing a fraudulent tax return can result in severe penalties or criminal charges.
How to Avoid W-2 Scams
While you may not be able to prevent someone from sharing your W-2 without your permission, you can take steps to help your company stay safe and protect yourself from tax identity theft.
Ask About Anti-Phishing Training
If your employer does not require cybersecurity training, talk to HR or IT about setting up training programs for everyone. Phishing emails can cost companies a lot of money as they can lead to ransomware and other types of attacks. Security awareness training programs can help employees detect and avoid phishing scams.
Report Suspicious Emails
Even if you do not have access to employee records, you might still be targeted by a phishing scam. If you receive a suspicious email, do not click on any links. Instead, forward it to your IT department for guidance.
Confirm Requests for W-2s
Consider making a quick call or sending a new email to confirm requests for W-2s. Although asking a superior for confirmation can be intimidating, they will likely appreciate your efforts to protect the company.
Share Information with Coworkers
Share warnings and informational articles, such as this one, with colleagues to help them learn about scams. The more informed everyone is, the safer the company will be.
File Your Tax Return Early
If you are worried that your information may be compromised, file your tax return as soon as you have all the necessary forms. Additional attempts to file a return with your tax identification number will be rejected as duplicates. You can also sign up for a free tax Identity Protection PIN, which you will need to include on your tax return for the IRS to accept it.
How to Report W-2 Scams
If you think you have received a W-2 scam email and did not reply, you can forward the email to the IRS by following their instructions for saving and sending the email. If you believe you have fallen for a W-2 scam, report the issue to your company immediately. You may also need to report the loss to law enforcement, state agencies, and the IRS.
The IRS provides specific instructions for reporting W-2 scams. Acting quickly can help protect employees from identity theft connected to their stolen W-2s. The IRS suggests emailing StateAlert@taxadmin.org for state-specific reporting information. Additionally, you may want to file a report with local law enforcement and a complaint with the FBI’s Internet Crime Complaint Center (IC3).
There could be state and federal laws dictating how you need to respond to a data breach involving personal information. Alert your company’s legal department to ensure all requirements are followed.
Monitor Your Credit and Identity
A W-2 scam is not the only way for your personal information to fall into the hands of criminals. Given the frequency of data breaches, your personal information might already be for sale online. You can use a free dark web scan to see if your SSN, email, or phone number is exposed. Free credit monitoring can also alert you to suspicious changes in your credit report, which could indicate someone is applying for credit in your name. Subscription identity theft protection services like Experian IdentityWorks℠ offer additional monitoring and identity recovery services.
At O1ne Mortgage, we care about your financial security. If you have any mortgage service needs, do not hesitate to call us at 213-732-3074. We are here to help you navigate these challenges and protect your financial future.
