CPA Fraud Alert: Scammers are Now Using ADP Logos to Commit Fraud

Rick_E_Norris_An_Accountancy_Corporation_CPA_Fraud_Alert_Scammers_Are_Now_Using_ADP_Logos_To_Commit_FraudI have seen spam emails from “banks” trying to get into your bank account, but this is the first email from a scammer claiming to be from a payroll company.  It does seem like a logical rouse because payroll companies need social security numbers.  By clicking into their fraudulent plan, they are trying to get an administrator’s password which would allow access to hundreds of employees’ information.  Wow.

Here is how it looks:

On the top of the page is an ADP logo with a hyperlink to the scammer’s site.  The text states:

“A copy of your ADP TotalSource Payroll Invoice for the following payroll is is [sic] attached in [sic] PDF file and available for viewing.”

Year: 13

Week No: 08

Payroll: 1

There is a link to open a file and a warning that reads “This email was generated by an automated notification system.  If you have any questions regarding the invoice or you have misplaced your MyTotalSource login information, please contact your Payroll Service Representative.  Please do not reply to the email directly.”

The first sign are the grammatical errors.  (Professional hint:  If you are going to be a scammer, you should take a remedial English writing course.)

The second trouble sign is that the email comes from a guy named Jihadl in Africa.  Maybe  ADP outsources around the world, but I don’t think they have any alliances in Africa.  Therefore if you ignore their note and reply directly, you will be talking to Jhadl.  Lucky him. (Maybe we should all respond to him crashing his inbox with 100,000 emails.)

The third sign that if you were to move your cursor over their hyperlinks, you would probably find that the hyperlinks lead to a site other than ADP.

The best advice is that you should not open anything looking for private information if you are tired.  Instead, call ADP or any of your alliances before going forward.  The little time it takes to check things out can prevent a monumental disaster of compromising your employees’ personal information.

Have You Received Fraudulent Bank Emails? Here Are Some Tips to Protect Yourself.

Rick_E_Norris_An_Accountancy_Corporation_Have_You_Recieved_Fraudulent_Bank_Emails_Here_Are_Some_Tips_to_Protect_YourselfI love Fraudsters.  They make me laugh at their little games.  Have you gotten emails asking that you “confirm” your secret bank information?  But how do you know what is legitimate  and what is                                                                             not?  Here are some                                                                                 tips:

  1. Banks, the IRS, and other institutions do not ask you to provide your information.  Automatically, you should consider such “security prevention” as “phishing.”
  2. If you think there is a problem with your bank, don’t use the email to log in.  Go to the site from a bookmark or Google search and log on the way you would normally do.
  3. Look at the address of the party who is sending the email.  The email below came from SMChaseNotification@ChaseNotification.com. If you log into the REAL Chase bank, you would see www.chase.com or www.chaseonline.chase.com.  I copied the link and put it into my browser and my Chrome browser gave me a warning sign that it was tagged as a phishing site.
  4. Now if you ran your cursor over the “Continue to the verification process:” you would see that it does not point to a Chase Bank site, but www.csedesignsolutions.com/js/restrectedonline.php . This obviously is NOT Chase, and notice the misspelling of “restrictedonline.” Just too funny.  If you are going to cheat me, you better be a good speller.
  5. But the best part, was the bottom. I almost missed it.  Under the E-mail Security Information, they enter the REAL Chase websites.  So, people click there and say, “OK, it’s Chase.”  Clever little devils.
  6. I also looked up Dana Ingle and there is a Linked In person stating that they were educated at Ohio State and was the Vice President of Operations and Fraud.  Was this a fraudulent Linked In account?  Go figure.
  7. Do Not Click on any of these hypelinks.  You never know.   They could load  viruses on your computer (I dismantled them for this article.)
Beware!  Don’t “Chase” it.
URGENT: Account Verification Required
Dear Chase OnlineSM Customer:
As part of our ongoing effort to protect your account and our relationship,
we monitor your account for possible fraudulent and or unusual activity. We need to confirm your identity
as same as information we have on file and your account security:
Please
click on continue to the verification process and ensure your identity as
same as information we have on file and your account security:
Continue to the verification process:
Your satisfaction is important to us, and we appreciate your prompt attention
to this matter. If you already had the opportunity to discuss this matter
with us, please disregard this message. You may also call 800-355-5265
from the U.S. and Canada. If you prefer, use the phone number on the back of
your Chase Debit card. Internationally, you can reach us at 866-686-6670.
For your convenience, we are available to take your call 24 hours a day,7
days a week.
Thank you for being our customer.
Sincerely,
Dana Ingle
Vice President
Chase Security Prevention Department
E-mail
Security Information
E-mail intended for: Your Chase Account On File .

If you are concerned about the authenticity of this message, please
click here or call the phone number on the
back of your debit card. If you would like to learn more about e-mail
security or want to report a suspicious e-mail,   click here .
Note: If you are concerned about clicking links in this
e-mail, the Chase Online services mentioned above can be accessed by
typing   www.chase.com
directly into your browser.

CPA Tip: Be Careful of Phoney IRS E-mails and Sites

Rick_E_Norris_An_Accountancy_Corporation_CPA_Tip_Be_Careful_Of_Phony_IRS_E-mails_And_SitesI find it amusing and a challenge to get bogus IRS e-mails.   First of all, the IRS will never send you an e-mail stating you owe taxes, or a refund.  They are paper-people.  So, knowing that the e-mail is a fraud,  I usually perform an easy test:  I move my mouse over the hyperlinks (which say that they link to the IRS sites) and see where they REALLY link to.  The site is always some bogus site that has ” IRS,” “taxes,” or some other word that sounds legitimate.

The Internal Revenue Service is issuing a warning about a new tax scam that uses a website that mimics the IRS e-Services online registration page.

The actual IRS e-Services page offers web-based products for tax preparers and payers, not the general public. The phony web page looks almost identical to the real one.

The IRS gets many reports of fake websites like this. Criminals use these sites to lure people into providing personal and financial information that may be used to steal the victim’s money or identity.

The address of the official IRS website is www.irs.gov. Don’t be misled by sites claiming to be the IRS but ending in .com, .net, .org or other designations instead of .gov.

If you find a suspicious website that claims to be the IRS, send the site’s URL by email to phishing@irs.gov. Use the subject line, ‘Suspicious website’.

Be aware that the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

If you get an unsolicited email that appears to be from the IRS, report it by sending it to phishing@irs.gov.

The IRS has information at www.irs.govthat can help you protect yourself from tax scams of all kinds. Search the site using the term “phishing.”  (Source: IRS)

______________________________________________________________________________

IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the U.S. Department of the Treasury and Internal Revenue Service, we inform you that any tax advice contained in this e-mail (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (a) avoiding penalties under the Internal Revenue Code or state tax authority, or (b) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

CPA Fraud Alert: The Day the FAKE Giorgio Armani “Rep” Tried to Rip Me Off

Rick_E_Norris_An_Accountancy_Corporation_CPA_Fraud_Alert_The_Day_The_Fake_Giorgio_Armani_Rep_Tried_to_rip_Me_offI slipped the money from the ATM into my wallet as I hurried to my car.  “Hey, excuse’!” I stopped.  A young man yelled out his car window in the parking lot. “Can you a tell me to aeroporto?”

I answered using what broken Italian I knew.  He was very grateful, and I told him my family was Calabresi.  “Hey, me a too!  My name is a  Gianni!” He said.   Gianni pulled his car over and told me he wanted to give me a present.  He gave me his business card which read Giorgio Armani in big letters.  Then he opened up his back door and showed my three “Giorgio Reportage Armani” leather jackets.

“I a give a to you.  They are a worth $500 each.  I don’t want to pay the taxes on them when I leave the country to fly back to Italy right now. ” He yelled. (I thought, why would HE pay any excise taxes for Giorgio Armani?)

He put a handled paper bag in my hand and folded the three coats in them.  I started to laugh.  Then my phone rang.  It was my oldest son.  “Sorry Brandon, I can’t talk right now, I am busy being swindled, ” I laughed.

I waited for the punch line, still smiling broadly.

“Hey, you a my friend.  Take them as my gift.”  Then he paused. “Oh, tomorrow is my son’s birthday and I would like to give him a present.  Can you give me whatever cash you can?”

I doubled over laughing, still holding the bag.  That was the worst con I heard in  a long time.  I opened the car door and stuck the bag in the back seat.

“Ciao,” I said getting into my car, still laughing.

So, what precautions should you take when approached by someone like this:

  1. If it is too good to be true, it probably is: As a CPA, I have  conducted fraud investigations, or exposed deficiencies in internal control.  So, I am skeptical in any bargain. You should always start from a skeptical frame of mind and make the other party earn your confidence.  Start with “the smell test.” If your intuition is tells you “no,” go with it and don’t look back.
  2. Don’t venture outside of your expertise: The one thing that Gianni didn’t factor was that I don’t buy clothes.  My wardrobe consists of birthday and Christmas presents.  My wife buys things for me from time to time.  But, I hate shopping, especially clothes.  When my wife takes me to a mall, I bring a book and carry her packages. So, if you don’t know anything about an  item, don’t buy it.
  3. Don’t let anyone pressure you: Gianna spoke very fast and tried to increase the tempo of the transaction in order to cloud my thinking.  Most people will say, “I have another offer.”  Or, ” This deal will not last.”  Take a breath and step back.  If the person continues to talk, shut him down.
  4. Look at all available data:  If I had time, I could have looked closer at his card.  Here is what I discovered after I left:
    1. He did not have an Armani email address.  His  email address is Armanirep@yahoo.it.  It bounced when I tried it later.
    2. His address read Milano, but the phone number is in an American format 335-565-3504.  The number was no good.  An Italian number would have looked like +39 02 7602 1743.
    3. I found a number of scams on the Internet selling the same fraudulent brand. https://reviews.ebay.com/How-to-Spot-a-Fake-Armani-Men-apos-s-Leather-Jacket?ugid=10000000002354776
    4. Here is a similar incident to one who caved in. https://www.ripoffreport.com/organized-crime/rga-giorgio-armani-r/rga-giorgio-armani-reportage-l-2d487.htm
  5. Don’t be afraid to say no to a “great” deal: “Once in a lifetime chances” usually come by all of the time.  As I said to my son who could not close a deal with his first car, “Good deals come by all of the time.  If you miss one, look for the next.  But, bad deals  will hurt you a long time, financially and emotionally.”

As a CPA. I have seen many shady dealings in the last 30 years.  I guess part of my CPA training help me become a financial skeptic.  Don’t be afraid to look at something from many different angles.  You can also call on your CPA or financial professional to help you.

Check Out The Podcast! Click Link Below!Improving Business
Episode #2 The Story Of ThePhony Giorgio Armani Salesperson Scam Artist & HowTo Avoid Rip-off artists

 

The IRS Does Not Send Tax E-Mails. Don’t Get Fooled.

It happened again this week.  A nervous client, who owns an entertainment partnership, received an E-mail from the IRS (with the IRS logo and such) claiming that his tax payment was rejected.  My gut reaction was “scam,” he didn’t make any tax payments for either his partnership,  or individual tax return.

The IRS is warning clients again. https://www.irs.gov/newsroom/article/0,,id=98129,00.html 

The IRS does not send unsolicited e-mail to taxpayers either about their tax accounts or requesting sensitive personal and financial information.       

Nevertheless, taxpayers do receive e-mails claiming to come from the IRS, sometimes containing a real or made-up employee name, address and similar information to make an e-mail seem credible.    

These e-mails usually are scams whose purpose is to obtain personal and financial information — such as name, Social Security number, bank account and credit card or even PIN numbers — from taxpayers which can be used by the scammers to commit identity theft. Identity thieves use the data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name, file fraudulent tax returns and more.

Typically, IRS-impersonation scam e-mails state that the IRS needs certain personal and financial information to process a tax return, tax payment or refund. They may claim the e-mail recipient is being audited. They may mention specific monetary amounts or genuine programs, such as the Electronic Federal Tax Payment System (EFTPS), to add credible detail to the scam. The e-mails often contain links or attachments to what appears to be the IRS web site or an IRS form. However genuine in appearance, these phonies are designed to elicit the information the scammers are looking for.

Alternatively, a link in a scam e-mail may download malicious software onto the taxpayer’s computer when clicked. The software is often designed to search out and send back to the scammer personal and financial information contained on the taxpayer’s computer or obtained through keystrokes that the scammer can use to commit identity theft.             

Unsolicited e-mails claiming to be from the IRS or an IRS-related component, such as EFTPS, should be reported to phishing@irs.gov.

Anytime you are asked for sensitive information in an email, e.g., PayPal, IRS, or your bank, assume first that it is a scam.  You can call these organizations, or e-mail them directly to inquire about the issue. Never, never e-mail them using a link they have provided you.

Taxes seems to be the topic that prompts people to lose objectivity.  Taxes cause anxiety because most people don’t understand the tax law and procedures.  Don’t let the pseudo-IRS inflict such emotions.  Call your tax professional before making any decisions.

______________________________________________________________________________

IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the U.S. Department of the Treasury and Internal Revenue Service, we inform you that any tax advice contained in this e-mail (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (a) avoiding penalties under the Internal Revenue Code or state tax authority, or (b) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

Strategic Thinking: Don’t Confuse Tactics for Strategy

Rick_E_Norris,_An_Accountancy_Corporation_Strategic_Thinking_Don't_Confuse_Tactics_For_Strategy“There’s nothing worse than a sharp picture of a fuzzy concept.”  —Ansel Adams

“There is nothing more wasteful than becoming highly efficient at doing the wrong thing.” –Peter Drucker

Mike Michalowicz’s article The 90-Day Method: A Strategy For Business Growth in Difficult Times offers some suggestions for business to strategize.  He says that a business owner should ask what they have done in the last 90 days that has brought results, and then replicate those things that were successful.  Even though these may sound like sage advice, they can be interpreted as tactics instead of strategy.

I found that Bill Birnbaum’s book, Strategic Thinking, A Four Piece Puzzle, distinguished between the two very well.  Bill defines strategic thinking as a top-down big picture.  When thinking strategically, you are not concerned about whether you ran a double-shift to produce your product.  That would fall under Mike Michalowicz’s “things you did right,” but would be a tactic.  Instead, Bill Birnbaum argues to think strategically, “you would consider the needs of your customer, the benefits you offer that customer, and the reason your customer buys your products or services.”  In other words, you’d be concerned with doing the right things, rather than doing things right.

Another way Bill put it was that you use strategic thinking in deciding what to do, and tactical thinking in deciding how to do it.

Thinking tactically is very tempting because most managers and owners are in the trenches “putting out fires” and fixing problems.

But why is it important to think strategically?  Strategic thinking is important because it results in a strategic vision that is shared among your management team which is based on the team’s deep understanding of the business.

Don’t get me wrong.  Strategic planning is a highly structured process with well thought-out objectives and a number of strategies  designed to accomplish these objectives.

So, what is the easiest way to think strategically?  A commonly used tool is the SWOT matrix.  Most managers know that it stands for strengths, weaknesses, opportunities, and threats.  However, where business people miss their marks is  that they don’t consider these four attributes in line with their key success factors. According to Bill, you must list these factors this way. For our organization to be successful, we must be especially good at the following three activities…

Taking these steps will help a lot in getting business owners to think strategically in order to see the horizon, and not technically in order to just avoid the pot hole in front of you.

Are Business Strategies Obsolete? Does it Matter?

ISTANBUL - 23 JULY: Vintage furniture, art objects and antiques in popular second hand store of Cukurcuma district. Cukurcuma of Beyoglu quarter is the city's oldest antiques district

My wife and I have started a new hobby of collecting and reselling small antiques. We really enjoy “the hunt,” but one of the most rewarding aspects is our increased knowledge of 100 year old household tools.  One such item was a nickle/steel handle with a cone cup on the end.  The cone cup had a butterfly handle on the end of the cone that turned blades inside the cone,  scraping the sides.

Almost nobody guessed its function, which was a Delmonico ice cream scoop.

Today, the basic operation of the Delmonico ice cream scoop is the same, scoop it up, and scrape it out.

The McKinsey Quarterly published an article by Bradley, Hirt, and Smit entitled Have you tested your strategy lately? The article listed ten tests of which most companies strategies failed.  The first test was the most comprehensive, “Will your strategy beat the market?”

Looking at my Delmonico ice cream scoop, I question whether any of today’s companies can execute a strategy that can produce a product or service that can be an industry standard 100 years from now.

A major complaint about American corporations is that in the last 25 years, they have been striving for the short-term profits, and not planning for the distant future.  We have seen that in the auto industry.

But what about small/medium-sized business strategies?  Will they follow in the footsteps of the some of the large corporations?

That all depends. If you are like most small/medium-sized businesses, you are only concerned about Sales and whether you have enough cash to meet payroll.

Bradley’s ten tests may be a good place whether you are in the business plan or seasoned stage.   In my experience, most businesses of these sizes could not pass three of these tests.

Managers and owners must review their strategies continuously during its implementation.  Too many fall into The E Myth (Michael Gerber) and have the business run them, and not them running the business.  Or as Gerber puts it, ” working on your business” as to “working in your business.”

When it comes to strategy, Bradley et al proclaim that it is not the newest strategy that a business owner should find, but flaws in their current strategy.

Business Acumen: Beware of Useless Advice

Check financial health. Businessman check money health stethoscope and magnifying glass. Finance health, stethoscope finance, magnifying glass finance health, care finance health illustration

There are brilliant people that study for years to provide brilliant advice based on solid, empirical evidence.  Then, there are others that just talk well.

Financing, Outsourcing And 7 Other Tips from an Expertby Shira Levine, touts the advice of two business women, Amy Abrams, and Adelaide Lancaster who are releasing a book in September based on 100 interviews of entrepreneurs.

The article sets forth the following advice:

  1. You’re never finished with your homework
  2. Really ask yourself what you want out of your business
  3. Focus on what is meaningful to you vs. what you are passionate about
  4. Figure out your business goals
  5. Determine what to outsource
  6. Find access to capital
  7. Specialization is key

Now, I have not read the book.  And based on these seven points, I probably won’t buy it.  The reason is because these points don’t present a case that is no more than common sense.  Business people do not need motivational speakers or cheerleaders.  Instead, they need experience, knowledgeable and trained people to give them real advice of what, how, and when to do things.

To prove my point, if you were to buy this book, may I suggest that you spend an extra $50 and buy the following:

Good to Great  by Jim Collins

Blue Ocean Strategy by W. Chan Kim and Renee’ Maugorgne

Predictable Success by Les McKeown

If you do not have the time or budget to read those, at least buy a smaller guide, Achieving Strategic Alignment by Barry MacKechanie.

Most of these books are critically acclaimed with sound business advice based on years of research by highly educated and experienced strategists.  In these books, you will find recurring themes.

Compare what they say to Abrams/Adelaide book if you choose to buy it.  Small business owners cannot hire the seasoned professional, but can learn from them through their writings.  Business acumen has a price, but the inability to develop it has a much bigger price.

A CPA/Planner Tip on How to Survive in the New Business Economy

Young Male Plumber Fixing Sink In Bathroom

I worked with a plumber, Dan, when I was 15 years old.  I learned some plumbing, but mostly I ran to his truck for tools and dug ditches…lots of ditches.  Dan told me that I was good, but I wasn’t as good as “Speedy” from Big Springs, Texas.  Speedy earned this ditch-digging title over all of the other plumber helpers.

One day, the boss bought a mechanical trencher.  A trencher required one operator to walk behind it and guide it.  Everybody wagered bets.  Some on Speedy and the others on the trencher.  Speedy was amazing digging a ditch along side the machine who worked at a steady pace.  Speedy actually pulled a little ahead, until he had reached about twenty feet.  Speedy started to lose steam, and slowly dropped farther and farther behind until the machine had reached the forty foot finish line, first.

This story parallels many situations in our new business economy.  Of course, as a CPA/Planner I have seen this scenario in the world of business and in history, e.g., the steam locomotive, blacksmith, and prop-driven passenger aircraft.  However, today’s new business economy has injected this phenonemon with steroids.  Not only do you have to be ahead of your competition, you have to be ahead of your industry and any verticle industry that may steal your market share.

Take Apple for example.  Twenty years ago when they were pushing the Macintosh, who would have guessed that they would now dominate not only the personal computer world with their ipad, but the music delivery system, itunes?

John Mariotti’s article, What’s Your Impossible Dream? tries to inspire business people to think big in whatever they do.  He encourages people to do what they are good at, and what they love to do.

CPA/Planners take issue with motivational speakers.  They seem to push people downhill but really give no guidance to where they are to go, and how they are to get there.  That just won’t work in the new business economy because jobs are increasingly driven overseas, the wealth has been sucked into the top 5% of our population, and governments are being increasingly squeezed and cannot create jobs.

Looking at it from a planning perspective, I recommend Jim Collin’s books, Good to Great and Built to Last.  Jim speaks of the three circles: Passion, economic denominator, and best in the world.  In other words, do what you are passionate about, do something that can make money, and do something that you can be the best in the world at.  The intersection of these circles should be your BHAG (“Big Hairy Audacious Goal”).  In addition, keep your plan simple.  Jim called it the “hedge hog” concept because the hedgehog was the best of doing just one thing to outsmart a fox.

Of course, as a CPA, I would suggest you quatify the economic aspect of this application.

The new business economy will require you to choose your path very carefully, but with all the elements above.  To take the safe road may reduce you to the masses and risk whatever potential you have.

“Far better to date mighty things, to win glorious triumps, even though checkered by failure, than to take rank with those poor spirits who neither enjoy much nor suffer much, because they live in the gray twilight that knows not victory, not defeat. –Theodore Roosevelt, 1899

Financial Independence: Does That Define Your Small Business?

Rick_E_Norris,_An_Accountancy_Corporation_Financial_Independence_Does_That_Define_Your_Small_Business

I grew up in a family of small business people.  It started with my grandparents who opened an Italian restaurant in 1949 with their four high school children.  At that point, my grandfather would arrive at the restaurant at 4 am and make the pizza dough that would raise by 9 AM.  However, at 6 AM he was at Terminal Island in Los Angeles building navy ships as an electrician.  Several years later, he achieved financial independence in which he could retire from shipbuilding and work full time at the restaurant.  The restaurant supported, in part, five more of his children, and a couple of dozen  grandchildren who worked such jobs as pizza makers, waitresses, dishwashers, and parking lot attendants.

This memory of small business financial independence came to me when I read Nell Merlino’s article, Building a plan to achieve financial independence with your small business.  Nell lists three good points: Recognize your worth, get a mentor or coach, and don’t fear math.  But even with these, you will not achieve the small business financial independence if you are unable to delegate to others.  The end result is that you will end up working 80 hours a week in a business that you cannot sell and dies when you die.

The book, The E Myth Revisited by Michael E Gerber will help you understand your “worth” by leveraging your talents in supervising others.  Most small businesses cannot achieve financial independence if the owners perform all of the main functions themselves.  It is very hard to grow your business in a predictable and productive way, if you are so concerned with the nuts and bolts of the operation.  You must step back and train others.  He states that you must transform your thinking from a technician’s perspective to an entrepreneurial perspective.  For example, Michael distinguishes these views as, “The entrepreneurial perspective asks the question: ‘How must the business work?’  The technician’s perspective asks: ‘What work has to be done?'”

In most cases, if you choose a technician’s perspective, you will not achieve financial independence because you will have to solve every problem yourself.  In addition, you will not be able to enjoy (or even go on) a vacation because you will be on the phone every day putting out fires from your vacation spot.

The most important goal this year should be your financial independence.  Identify where you are in your business, where you want to be, and how will you get there.