Categories: FinanceNews

Criminals Now Target School Districts and SMBs to Commit W-2 Tax Fraud

With the tax season in full effect, cybercirminals are once again trying to take advantage of unsuspecting consumers and enterprises. A new type of W-2 fraud has been discovered, which is now going well beyond the traditional business sector. Colleges and SMBs are prime targets for this type of W-2 fraud as well, by the look of things.

W-2 Tax Fraud is Picking Up In Intensity

Over the past few years, there have been multiple incidents involving W-2 tax fraud. For the longest time, cybercriminals only targeted major enterprises with these schemes, and they have been quite successful in doing so. However, it appears this tax season will see an increase in industry related fraud moving forward, as criminals are targeting SMBs and public institutions as well.

It has to be said, the list of recent companies affected by tax fraud is growing at an alarming rate. Cybercirminals are targeting school districts, nonprofits, and small businesses alike. Do not be mistaken in thinking they are no longer going after large corporations anymore, though, as they still remain very profitable targets. After all, there is no reason to fix what isn’t broken, even in the world of online crime.

One thing working in favor of cybercriminals is how W-2 fraud can become a very lucrative phishing scheme without too much effort. Moreover, the residual fallout of such attacks can take weeks, if not months, before they materialize. Assailants will impersonate company officials to obtain specific tax information or even copies of employee W-2 forms. Once this information is obtained, criminals can commit crimes, including filing fraudulent tax returns.

Related Post

It is evident none of these efforts would be successful without targets willingly giving up this sensitive information in the first place. No one with legitimate intentions should ever ask for W-2 information or forms, not even from their employees. To be more precise, this information should never be asked for via email. While we live in an era where digitization has become the new norm, sensitive information needs to be treated with the utmost care and respect. Otherwise, phishing schemes like these will continue to wreak havoc.

The IRS has issued several warnings regarding malicious actors asking for W-2 information. Unfortunately, it appears these warnings have fallen on deaf ears so far. Now that school districts and SMBs are being targeted by W-2 fraud schemes as well, things will get out of hand rather quickly. It also appears this phishing scheme has gained even more success in the corporate sector this year, which is not positive by any means.

Addressing W-2 fraud is of the utmost importance, yet it appears most institutions struggle with doing so. Taking the necessary precautions is the first step, starting with the IT team coming up with ways to prevent these types of phishing attacks in the first place. Notifying HR and accounting departments can go a long way in thwarting these attacks as well. If email servers are properly configured to block spoofed emails, the number of W-2 fraud phishing attacks could decrease by as much as 80%.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

Bitwise Launches Its First Tokenized Fund With $259M in Assets and 4% Annual Yield

Bitwise Asset Management has just made its first move into tokenized funds, and it comes…

21 hours ago

Binance Launches US Stocks and ETFs Trading for Non-US Users With Zero Commission

Binance just made a move that blurs the line between crypto exchange and traditional brokerage…

22 hours ago

NEAR Protocol Ships Confidential Payments, Crosses $19B in Intents Volume, and Partners With Bermuda Government

NEAR Protocol has had a month that most blockchain projects would stretch across an entire…

2 days ago

Chainlink Records 7 New Integrations Across 6 Services and 4 Chains

Something is becoming increasingly clear about Chainlink, the integrations are not slowing down. The protocol…

2 days ago

Circle Freezes $12.6 Million in Zama’s Confidential USDC Contract on Ethereum

Blockchain investigator ZachXBT has flagged a major stablecoin freeze that is sending shockwaves through the…

3 days ago

Exponent Finance Launches V2 To Expand Institutional Yield Markets On Solana

From a primarily interest rate swap niche product, Exponent has developed into an onchain capital…

4 days ago