Employees in Nitro, W.Va., Struggle After Tax Data Breach

A data security incident involving the City of Nitro, West Virginia, has left employees grappling with tax filing issues, as personal information was compromised. Many affected employees, including Tiffany Brogan, have found their tax refunds delayed or denied by the IRS due to fraudulent filings made using their data.

Brogan had planned a long-awaited honeymoon to Myrtle Beach with her husband, but those plans have been thwarted. “We were supposed to go on our honeymoon next week,” she stated, explaining that they relied on their tax refund to fund the trip. Unfortunately, the IRS rejected her tax filing because her husband’s W-2 information was compromised.

In an internal email dated February 18, 2023, Natalie Wright, the deputy treasurer for the city, expressed concern about the breach. “I am concerned that our W-2s were compromised,” she wrote. The compromised data includes names, addresses, and Social Security numbers, which are critical for filing tax returns. Wright indicated that the breach could have originated from either a third-party processing company or a hack on city systems.

City representatives confirmed that they became aware of the data security incident in January 2023. The statement outlined that unauthorized access to limited employee information occurred, leading to fraudulent tax filings for some city staff. The breach was traced back to an email fraud scheme. External cybersecurity experts have since been engaged to ensure the city’s systems are secure.

To mitigate the impact, the city has notified affected employees and provided them with 12 months of complimentary identity monitoring, credit monitoring, fraud consultation, and identity restoration services. Despite these measures, Brogan remains frustrated by the lack of communication from the city regarding the breach.

Brogan explained how she has navigated the IRS’s complex fraud procedures largely on her own. “I just figured it all out by talking to the IRS,” she said. She added that the IRS informed her that the refund process could take up to 580 days while they investigate the fraudulent filings.

While city officials have not disclosed how many employees were affected by the breach, the situation has left many in a state of uncertainty regarding their tax refunds. For Brogan and others, the delay not only complicates their financial planning but also jeopardizes personal milestones, such as planned vacations.

As the situation unfolds, city officials have indicated that they are implementing additional safeguards to prevent future data breaches. Still, the lingering effects of this incident highlight the vulnerability of personal information and the challenges faced by employees in protecting their financial interests.