February 13, 2017

CT BBB: Nonprofits beware 'W-2' scam

The Connecticut Better Business Bureau (CT BBB) and the IRS are warning nonprofits to avoid a tax-form scam that previously targeted only businesses.

The CT BBB said Monday the Internal Revenue Service says the "W-2" scam is carried out by criminals who disguise an email to make it look like it came from a business executive.

The IRS, according to CT BBB, says the phony email is sent to the company's accounting or human resources department, typically asking for a list of all of the company's W-2 tax forms, employees' dates of birth and Social Security numbers.

This W-2 scheme came to light in 2016, and has since developed a new twist in which the cybercriminal subsequently sends an additional email, asking that a wire transfer be made to a specific account outside of the company, CT BBB said.

New targets of the scam include, school districts, healthcare providers, chain restaurants, temporary staffing agencies, tribal casinos and delivery companies, the organization said.

"Criminals are focusing on consumers' personal information because it has a potentially much larger payout than credit card fraud," Connecticut BBB spokesman Howard Schwartz.

For more about these and other scams, visit the IRS website.

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