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The Southbourne Tax Group: Beware the Latest Tax-Season Spear-Phishing Scam

 

You may have heard of the CEO scam: that’s where spear-phishers impersonate a CEO to hit up a company for sensitive information.

 

That’s what happened to Snapchat, when an email came in to its payroll department, masked as an email from CEO Evan Spiegel and asking for employee payroll information.

 

Snapchat’s payroll department fell for it. Ouch.

 

Here’s a turn of that same type of screw: the Internal Revenue Service (IRS) last week sent out an urgent warning about a new tax season scam that wraps the CEO fraud in with a W-2 scam, then adds a dollop of wire fraud on top.

 

A W-2 is a US federal tax form, issued by employers, that has a wealth of personal financial information, including taxpayer ID and how much an employee was paid in a year.

 

This new and nasty dual-phishing scam has moved beyond the corporate world to target nonprofits such as school districts, healthcare organizations, chain restaurants, temporary staffing agencies and tribal organizations.

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The Southbourne Tax Group: Accounting For Half-Truths

 

A report by a brokerage on Satyam Computers gives an 'accumulate' rating, which means it expects the stock to go up. The rating is based on the company's high cash/market cap ratio. The information technology company had reported a cash balance of Rs 4,500 crore at the end of the 2007-08 financial year. The report gives a one-year price target of Rs 373 for the stock. The stock closes at Rs 273 the day the report is written.

 

January 2009: The same brokerage releases a hurriedly-compiled report suspending the previous rating. "Low market cap, high cash status no longer holds," it says. On 7 January 2009, the founder of Satyam Computers admits to inflating cash and bank balances by Rs 5,040 crore, overstating debtors' position (money lent) of Rs 2,650 crore as against the actual figure of Rs 490 crore and non-disclosure or understatement of liabilities worth Rs 1,230 crore.

 

The Satyam accounting scam, one of the biggest in India, left millions of investors in the lurch, as t

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The Southbourne Tax Group: Six Strategies for Fraud Prevention in your Business

Employee fraud is a significant problem faced by organizations of all types, sizes, locations and industries. While we would all like to believe our employees are loyal and working for the benefit of the organization (and most of them probably are), there are still many reasons why your employees may commit fraud and several ways in which they might do it. According to the 2014 Report to the Nation on Occupational Fraud and Abuse (copyright 2014 by the Association of Certified Fraud Examiners, Inc.), research shows that the typical organization loses 5% of its annual revenue each year due to employee fraud. Prevention and detection are crucial to reducing this loss. Every organization should have a plan in place as preventing fraud is much easier than recovering your losses after a fraud has been committed.

 

Types of Fraud

 

Fraud comes in many forms but can be broken down into three categories: asset misappropriation, corruption and financial statement fraud. Asset misappropriati

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