Narrator: Businesses need to be on guard
against identity thieves who target company
and employee records so they can file fraudulent tax returns
or apply for credit.
Experts are warning employers
to carefully guard EINs, Employment Identification Numbers,
and employee W-2 information.
Sophisticated criminals are using email
to pass themselves off as company executives
and are requesting employee W-2s,
which are then used to file bogus tax returns
or sold on the dark web.
They are also using business EINs to file business returns
or to seek new credit.
The crooks file tax returns early in order to get refunds,
which then cause massive headaches
when workers or businesses file their own returns
and get rejected.
Here are some things you can do
to help protect your business and employees.
Educate payroll or finance personnel to be cautious
of W-2 requests via email.
Businesses are encouraged to limit access
to this information
and to require additional verification,
such as a phone call or face-to-face request.
File personal and business taxes as early as possible
to help reduce chances of a crook filing a fraudulent return
in someone else's name.
Important business or personal documents
should always be kept safe.
Ensure business computers are password protected
and software is kept current.
Review your business credit report regularly.
Work with reputable accountants and lawyers
who can give you sound advice.
Here are red flags to watch for.
The IRS rejects an e-filed return
or refuses an extension request
because there is already a duplicate EIN
or a Social Security Number on file.
You receive a notification
that you could be an identity theft victim.
You're not receiving expected mailings from the IRS.
Taking the right precautions can protect both you
and your employees.
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