Each year, the IRS releases its “Dirty Dozen” of common tax-related scams. The category related to payroll and HR scams may be of particular relevance to local governments and their employees. The IRS describes two of the most common scams in this category—the gift card scam and the direct deposit scam—as follows:

In the gift card scam, a compromised email account is often used to send a request to purchase gift cards in various denominations. In the direct deposit scheme, the fraudster may have access to the victim's email account (also known as an email account compromise or "EAC"). They may also impersonate the potential victim to have the organization change the employee's direct deposit information to reroute their deposit to an account the fraudster controls.

The entire “Dirty Dozen” list, as well as guidance on where to report attempted scams can be viewed at:

https://www.irs.gov/newsroom/irs-unveils-dirty-dozen-list-of-tax-scams-for-2020-americans-urged-to-be-vigilant-to-these-threats-during-the-pandemic-and-its-aftermath.

Date this Avoiding Pitfall was most recently published: 11/20/2020