Fake Direct Deposit and Wire Transfers

The IRS issued a fraud alert about a scam involving company expenses. An email requesting changes to payment instruction is sent from a company or name you will recognize. These changes often contain new bank account information for direct deposit, wire and ACH transfers, invoice payments, expense reports, etc. compared to what is already on file. The scam is usually uncovered quickly as the intended recipient will never receive what is owed. But your company could still be out one or two payments if not caught in time.

Stopping a Thief

A common theme within the emails is grammar and spelling mistakes, but also the sender will impersonate a real person. For example, tomjones@acmeinc.com may be the correct person on file, but the email comes from tomjones@acme.com or tomjones@acmeinc.net. Notice the “inc” is missing in one example and they use “.net” in the other. Double check the email address before clicking on attachments or making the changes requested. Anyone requesting files with W-2s, social security numbers, or addresses should be scrutinized. Confirm with the individual in person or over the phone using the information you have on file and not a phone number in the request.

Raise Awareness with Bronswick Benjamin

Recognizing scams is the first step and Bronswick Benjamin can provide training to your employees. Consider having our firm educate employees on fraud and internal control issues. Unfortunately, fraud is a very common occurrence and often it is the result of nonexistent or weak internal controls that are rarely even tested.

Bronswick Benjamin is a mid-size, solutions focused CPA firm located in the Chicagoland area. We support privately held businesses using a unique Business Evolution approach that helps clients navigate through their life cycle. The firm provides customized accounting services, tax planning and compliance, audit/assurance services, tax strategies for domestic and international clients, and leverages information to provide best in class business advisory services. For additional information, please visit www.bronswick.com or call 847.808.9800.

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