The IRS today issued a release warning employers that a “Form W-2 email phishing scam” has evolved beyond the corporate world and is spreading to other sectors, including school districts, tribal organizations, and nonprofit organizations.
According to today’s IRS transmittal message [PDF 100 KB], cybercriminals are using various spoofing techniques to disguise an email to make it appear as if it is from an organization executive. The email is sent to an employee in the payroll or human resources department, requesting a list of all employees and their Forms W-2. As a new twist on the scam, the cybercriminal follows up with an “executive” email to the payroll or comptroller and asks that a wire transfer also be made to a certain account. Although not tax related, the IRS reports that the wire transfer scam is being coupled with the W-2 scam email, and some employers have lost both employees’ W-2s and thousands of dollars due to wire transfers.
The IRS is urging employers to inform their payroll, finance, and human resources employees about this W-2 and wire transfer scam. Employers need to consider creating an internal policy, if there is not one already, on the distribution of employee W-2 information and conducting wire transfers.
For more information, contact a tax professional with KPMG’s Washington National Tax practice:
Greg Goller | +1 703 286 8391 | firstname.lastname@example.org
Alexandra Mitchell | +1 202 533 6078 | email@example.com
Randall Thomas | +1 202 533 3786 | firstname.lastname@example.org
© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.