As published in Toledo Business Journal - February 1, 2020

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Protect Your Employees Against W-2 Phishing During Tax Season

 

by Lacy Rex

In the midst of tax season, organizations are moving at a rapid pace to meet deadlines and internal demands. Criminals know this hectic time is opportune for scams and fraud. Between January and April 15th, the IRS reports the number of scams has jumped significantly in recent years. Cyber criminals research empowered individuals, looking for those such as the Chief Financial Officer, Chief Operating Officer or school executives within the targeted organization. Next, they spoof/impersonate the email address of an executive or use compromised business email credentials to induce an employee to transfer sensitive data. Cyber criminals impersonate an executive with the goal of duping an HR director or payroll processor within the organization to obtain the W-2 information of employees.

The email usually looks something like this: “Hi- Are you in the office today? I'm working from home and need the W-2 reports for all employees. Can you send as soon as possible?”

Cyber criminals are anticipating an employee's willingness to help, banking on the belief their request won't be questioned since it's coming from a purported executive. As the cyber criminals know timing is crucial, they file fraudulent W-2s within days or even hours.

Take these steps to better educate your team:

• Establish Clear Guidelines – Training is critical for employees handling payroll or sensitive information. There should be established policies in place for W-2 and payroll data.
• Foster Awareness – Enterprise-wide employees should be wary of fishing attempts. Our team can help you coordinate phishing modules.
• Configure Your System Defensively – Put email alerts in place to identify electronic communications coming from outside the network. Sometimes emails appear to have originated in areas such as Europe or China.
• Require Two-Step Factor Verification / Dual Factor Authentication – Add a second layer of security by utilizing a code sent to an application or mobile device. This protects outsiders from gaining easier access to unauthorized information.

The Oswald Solution

Cyber Liability Insurance allows business owners to transfer their risk in a cost-effective manner. Many people are unaware of the resources that come with a Cyber Liability Policy. Discounts on system protection, breach coaching from specialists, and password protection are just a few of the benefits policy holders may enjoy. To learn more about protecting your company from this growing threat, contact Oswald to access our team of professionals devoted to cybersecurity preservation.

To report phishing to the IRS, email: phishing@irs.gov

To file a complaint with the FBI Internet Complaint Center (IC3), visit https://www.ic3.gov/default.aspx

Sources: Wall Street Journal, Forbes,Fortune, Benefit News, CNBC, Kaiser Permanente

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Note: This communication is for informational purposes only. Although every reasonable effort is made to present current and accurate information, Oswald makes no guarantees of any kind and cannot be held liable for any outdated or incorrect information.

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