There has been a recent increase in scams targeting finance, payroll and human resources departments of local governments. The scam involves emails that look like they are coming from the City Manager or equivalent to staff requesting either a wire transfer or employee W-2 information.
At Maze Live, our recent client day of training, I asked our clients if they had seen such emails and almost everyone raised their hand. In addition, I received an email the following day from a client stating they had received one of those emails while they were at the training.
Unfortunately, a number of clients have fallen for the scam by disclosing employee information or attempting a wire transfer. Given the number of organizations that have been victims, I felt it necessary to send out this alert.
What can you do?
- Train employees regularly on scams and how to spot suspicious requests
- Ensure dual authorization for all wire transfers
- Setup email rules that flag all emails coming from outside your organization
- Setup email rules to prevent social security numbers from being emailed outside your organization
More information can be found on my blog, including:
You can also check out my recorded session at Maze Live:
Finally, here is an FBI Alert on these types of scams:
If you have any questions feel free to contact us.
In October 2015 the IRS released IRS Special Edition Tax Tip 2015-18, warning taxpayers of a growing trend in scammers pretending to be tax collectors from the IRS. Criminals will call taxpayers claiming the taxpayer owes a tax bill. They demand immediate payment and often threaten arrest if you do not make payment plans immediately.
It is important to note that they will change their tactics and the way they present their demand to try and throw people off. However, there are some common traits to their scams to look out for.
- They will demand immediate payment. They don’t want to give you time to think. If you do they are concerned that you will have second thoughts and realize it is a scam.
- They will typically try to use the appearance of authority to intimidate you. Often, they will call claiming to be an IRS agent, even offering a badge number.
- They will typically use fear to their advantage. The fear of owing the IRS money is enough to get people motivated to avoid being on the wrong side of the IRS. However, scammers have stepped up their game recently claiming that a warrant will be issued to local authorities to arrest you.
One way to avoid being a victim is to know how the IRS operates
- The IRS will not call and demand an immediate payment. The IRS will send you a bill in the mail.
- The IRS will not force you to pay without allowing you the right to appeal the amount you owe.
- The IRS will not require a specific form of payment for taxes. Scams often require payment by Western Union, gift card, or credit card.
- The IRS will not ask you for your credit card number over the phone.
- The IRS will not threaten to have the police come and arrest you.
What you can do
- Don’t give out any information, hang up immediately.
- You can report the incident to the IRS at their “IRS Impersonation Scam Reporting” webpage. Or you can call 800-366-4484.
- You can report it to the Federal Trade Commission. Use the “FTC Complaint Assistant” on FTC.gov. Please add “IRS Telephone Scam” in the notes.
- If you think you do owe taxes you can contact the IRS at 800-829-1040. IRS workers can assist you concerning any taxes you may owe.
- Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.
- For more, visit “Tax Scams and Consumer Alerts” on IRS.gov.