Tax season can be a stressful time for businesses, especially with the added threat of scammers looking to take advantage of unsuspecting organizations. To ensure your business doesn’t fall victim to a tax season scam, it’s important to be aware of the most common types of scams and take steps to protect your organization.
Keep an Eye Out for Phishing Scams
Phishing scams are one of the most common types of tax season scams that businesses face. These scams involve attackers sending emails or messages that appear to be from legitimate sources, such as the IRS, requesting sensitive business information, such as employee W-2 forms. This information can then be used to commit identity theft or other types of fraud.
To protect your business from phishing scams, always verify the identity of the sender before providing any sensitive information. The IRS will never contact your business by email, text message, or social media.
Identity Theft
Tax season is also a prime time for identity theft, as scammers may use stolen employee Social Security numbers to file fraudulent tax returns and collect refunds.
To protect your business from identity theft, be sure to secure sensitive information, such as employee Social Security numbers, credit card numbers, and bank account information. Use strong, unique passwords for all accounts, and enable two-factor authentication whenever possible.
Be Aware of Fake Charities
Scammers may also use tax season as an opportunity to solicit donations from businesses to fake charities. These scams may involve fake websites, phone calls, or emails asking for donations to a charity that doesn’t actually exist. To protect your business from fake charities, research any organization before donating money. Check if the organization is registered with the IRS or other charity watchdog organizations, and be wary of any requests for donations that seem too good to be true.
Final Thoughts
Tax season scams can be a real threat to businesses, and it’s crucial to take steps to protect your organization. By being aware of the most common types of scams and taking necessary precautions, you can avoid falling victim to tax season fraud.