Navigating the US expat taxes can be complex for US expats and scammers target this vulnerability. The W-2 Form that reports wage and salary information to the IRS is a common target for the fraudsters. It is important for US expats to understand the Secrets of W-2 Form and the most common W-2 Form scams and ways of protection.

What are the common W-2 Form Scams?

1.     Phishing scams: It is one of the most prevalent W-2 scams. Fraudsters send emails posing as legitimate organizations such as IRS, your tax service provider or employer. The emails include urgent messages claiming there is an issue with the W-2 Form or tax filing, promoting to click the expat on the malicious link or provide personal information. US expats already expect communication regarding their taxes or employment. The scam emails look official with logos and formatting that resemble legitimate correspondence. 

2.     Fake IRS Notices: Scammers may send fake IRS notices, claiming that there is an issue with the expat’s W-2 Form or taxes. These notices request the expat to provide sensitive information like the bank account details or the social security number to resolve the issue. As the expats feel more disconnected from US tax processes while living abroad, these fake notices can easily trick them into responding.

3.      Payroll Re-direction scams: In the payroll re-direction scams, cyber criminals attempt to steal your W-2 information by gaining access to payroll systems. They pose as employer or payroll service and request access to W-2 form to correct an issue or update the payroll details. They in fact are trying to redirect your salary or steal sensitive information to commit identity theft.

4.      Tax preparer fraud: US expats hire tax preparers to help them navigate the US tax system while living abroad. Not all the tax preparers are worth trusting. Some scammers may file the false tax returns using W-2 forms or steal your information to commit fraud. This results in incorrect tax filing of the expats, or worse the personal information being sold to the criminals.

How the US expats can protect themselves from the W-2 Scams?

1.      Verify Email and the Authenticity of the Website: Check the authenticity of the main and the website. Verify the link of the sender’s email address and check the domain to ensure it is legal. Beware of emails that contain urgent messages demanding immediate action or requesting sensitive information. IRS will never ask for personal or financial information via email.

2.       Secure Tax Preparation Service: When selecting a tax preparer, expat must choose an experienced and reputable expat tax service provider. Beware of tax preparers who promise unrealistic refunds or fees that seems too good to be true.

3.      Enable two-factor authentication: Enabling the two factor authentication adds an extra layer of security. This ensures that even if the scammers obtain the login credentials, they will still need the second authentication factor to gain access.

4.     Monitor credit and financial accounts: US expats have to regularly monitor their credit reports, bank accounts, and financial activity to spot suspicious transactions early. Consider enrolling in identity theft protection services, that can alert the expats to any fraudulent activity linked to their personal information.

US expats have to understand the secrets of W-2 Form and must always double-check any requests for

sensitive information and use trusted services to ensure the tax filing process is secure and fraud-free.