Each year thieves try to steal billions in federal withholdings by stealing your identity. As the IRS focuses more attention on this quickly growing problem, now is the time of year to be extra vigilant. Early tax filing season is the worst time Your federal tax account at the IRS currently has plenty of money withheld from your paycheck during the course of the year. Until you file your tax return, the IRS is not sure if it needs to pay some of it back to you in the form of a refund. Thieves know this too, and will try to file a fraudulent tax return before you have time to submit your own. W ..read more

With fraud on the rise, it’s important to understand how to best protect yourself and your financial accounts. Here are five ways you can stay proactive to avoid fraudulent credit card and bank charges. Don’t click on links or respond to messages from anyone you do not know. They can load spyware and malware on your device without you knowing it. Never transfer money based on an email that was received. You should always get verbal confirmation before transferring money. Do not send your username and password through email. Email is not a secure way to send any financial information or cred ..read more

Pop quiz: Is fraud and embezzlement more common in small or large businesses? Unfor­tunately for small businesses, since they often lack the internal controls that are typically in place at larger organizations, they are more likely to be victims of employee-related fraud. The best defense for a small business is to implement a segregation of duties framework. By segregating duties, you have one person responsible for each of three different key areas: Authorization of cash expenditures, physical custody of cash, and reconciliation of cash expenditures. Segregate cash disbursements. Only a des ..read more

Tax season used to be the most common time to receive emails and phone calls from fraudsters posing as the IRS, but in reality, the threat is now year-round. The most common technique for identity thieves to trick vulnerable taxpayers is by way of phishing. Be on guard at all times. Here is what you need to know about being diligent to protect yourself and your finances. Phishing requires bait Phishing is the act of creating a fake e-mail or website that looks like the real thing. This bait is then used to bring you into the scam by asking for private information. This includes your name, addr ..read more

The IRS has issued a renewed warning on Employee Retention Credit (ERC) claims. In recent months, promoters and other third parties have continuously pushed ineligible taxpayers to file for the Employee Retention Credit even when they are not properly qualified. This is not only an inconvenience for the IRS, but it qualifies as tax fraud for those who are ineligible yet still claim the credit. To be sure that you do not improperly claim the ERC, here is what you need to know about the Employee Retention credit. What is it? The Employee Retention Credit (ERC) is a refundable tax credit for busi ..read more

The devastating news coming out of Ukraine has led many Americans to contribute to humanitarian relief charities and collection drives in recent weeks. But with such a rise in high-profile donations also comes an increase in charity fraud attempts. Alloy Silverstein and the New Jersey Society of CPAs (NJCPA) warn well-meaning taxpayers to protect themselves by being wary of who exactly they are contributing to. Is the organization legitimate? Taking the time to research charities can help donors make certain that their donations are being used for the intended purpose. The first step is determ ..read more

Pretending to be an IRS agent is one of the favorite tactics of scam artists, according to the Better Business Bureau. The con artists impersonate the IRS to either intimidate people into making payments over the phone, or to send misleading emails tricking people into sharing personal information digitally. You can defend yourself against these scammers by knowing these simple rules: Tip 1: Expect a letter first In almost every case, the IRS will send you a letter via standard mail if they need to get in touch with you. This will alert you to expect future communication from the agency and in ..read more

There is financial fraud here, cybercrime there and threats just about everywhere. What can individuals and businesses do to outsmart the imposters? It starts with knowing current frauds.   Pandemic related scams – Making the rounds now is a fake IRS notice about a third Economic Impact Payment. Remember that the IRS doesn’t initiate contact by phone, email, text or social media or ask for personal or financial information. Another recent scam involves unemployment benefits. If you get a Form 1099-G showing compensation you didn’t receive, contact your state agency. If the matter isn’t re ..read more

More packages are being dropped at homes and apartments than ever before and scammers have figured out a way to take advantage of the situation. They use “smishing,” or sending SMS phishing texts—in this case about your delivery.   This thriving scam masquerades as a message from legitimate providers like Amazon, USPS or FedEx. The text usually includes a realistic looking tracking code and a link. Click on it and risk having your personal information stolen.   How can you separate the scams from real notifications? Here is key information from the major delivery services.   US ..read more

Fraud and embezzlement don’t just happen at large companies. According to a 2018 study by the Association of Certified Fraud Examiners, companies with under 100 employees are the biggest victims of internal fraud with the median loss at $200,000—nearly twice the damage to larger companies. More than 40 percent of fraud is traced to a lack of internal controls. The good news: they don’t have to be complicated or expensive. The best way for small businesses to battle fraud is a simple segregation of duties. Here, different people are responsible for authorizing expenditures, custody of cash, and ..read more