NEW YORK – New York Attorney General Letitia James today issued a consumer alert to warn New Yorkers about tax preparation frauds and to provide tips to avoid common scams during tax season. While scams can take many forms, consumers should be particularly aware of those using artificial intelligence (AI) technologies. With two weeks until Tax Day, Attorney General James is encouraging New Yorkers to stay vigilant to protect their personal and financial information and report suspected scams to the Office of the Attorney General (OAG).
“Scammers are increasingly using sophisticated AI programs to create more deceptive schemes this tax season,” said Attorney General James. “As New Yorkers file their taxes, I encourage everyone to be on the lookout for scammers who try to steal their money and personal information. I encourage everyone to follow the tips from my office and contact us…
This category refers to crimes committed by employees or insiders against their own organizations. It is often the most damaging because the perpetrator has authorized access to systems.
- Asset Misappropriation: The most common form, involving the theft of company resources. This ranges from simple “skimming” (taking cash before it’s recorded) to complex schemes involving the theft of inventory or intellectual property.
- Payroll Fraud: Employees may create “ghost employees” on the system, falsify their own timesheets to claim unworked overtime, or divert salary payments to their own accounts.
- Financial Statement Fraud: Management deliberately misrepresents the company’s financial health by inflating revenue or hiding liabilities to attract investors or meet performance bonuses.