February 09, 2026
February is here, and tax season is in full swing. Your accountant is flooded with work, your bookkeeper is sorting through stacks of documents, and everyone is laser-focused on W-2s, 1099s, and looming deadlines.
But there's a critical threat that rarely makes it to your calendar: the initial tax-season headache often isn't a form - it's a scam.
One scam surfaces early in the year, targeting small businesses with alarming effectiveness because it's simple, believable, and might already be lurking in someone's inbox.
Understanding the W-2 Scam: The Mechanics
Here's how it unfolds:
An employee—typically from payroll or HR—receives an email that appears to be from the CEO, business owner, or a high-level executive.
The email is brief and urgent:
"I need all employee W-2 copies for an immediate meeting with the accountant. Please send them over right away. I'm swamped today."
The message seems legitimate. The tone matches, the urgency feels natural during tax season, and the request sounds reasonable.
Trusting this, your employee sends the W-2 forms.
But the catch? The email isn't from your CEO. It's a criminal using a spoofed email address or a nearly identical domain.
Now, that fraudster has full access to confidential employee data:
• Full legal names
• Social Security numbers
• Home addresses
• Salary details
All the essentials to commit identity theft and file fraudulent tax returns before your employees do.
The Aftermath: What You Should Expect
Typically, victims discover the scam when:
Your employee files their tax return, only to have it rejected with a message like: "Return already filed for this Social Security number."
Someone else has already submitted a return using their identity and claimed their refund.
Suddenly, your employee faces dealing with the IRS, enrolling in credit monitoring, identity theft protection services, and months of complicated paperwork — all due to a deceptively convincing email.
Now multiply this problem across your whole payroll. Imagine the challenge of explaining to your team that their personal data was compromised because of one phishing email.
This isn't just a security breach; it's a trust crisis, an HR nightmare, the potential for legal action, and a serious blow to your company's reputation.
Why Does This Scam Work So Effectively?
This isn't some obvious scam email from a Nigerian prince. It's tailored and deceiving.
The reasons it succeeds include:
The timing is spot-on. W-2 requests are expected in February, so it raises no suspicion.
The request sounds reasonable. Unlike demands for money transfers or gift cards, asking for W-2s during tax season is standard procedure.
The tone implies urgency but feels natural within a hectic office environment.
The sender's identity appears legitimate. Cybercriminals do their research—knowing names of CEOs, accountants, and executives—to craft convincing messages.
Employees want to be helpful and may bypass verification steps to assist their boss quickly.
Proactive Strategies to Safeguard Your Business (Before the Scam Strikes)
The silver lining? This scam is entirely preventable through clear policies and a strong workplace culture, not just advanced technology.
Implement a strict "no sending W-2s via email" policy. No exceptions. Sensitive payroll documents should never leave your premises as email attachments. If someone requests them by email, the answer must be a firm "no," even if the request seems to come from the CEO.
Always verify sensitive requests through a different communication channel—call, in-person, or secure chat—using contact information already on file, never the number provided in the suspicious email. This extra step takes just seconds but can prevent extensive damage.
Hold a brief, 10-minute tax scam awareness meeting immediately—not later. Provide your payroll and HR teams with clear examples and action plans to handle these scams. Awareness is your most cost-effective defense.
Secure your payroll and HR systems with Multi-Factor Authentication (MFA). MFA acts as a critical safeguard if employee credentials are compromised.
Foster a culture where verification is encouraged, not criticized. Reward employees who question suspicious requests, especially those that appear to come from high-ranking officials. Creating an environment of vigilance makes it harder for scams to thrive.
These five straightforward rules are easy to implement immediately and powerful enough to block the initial wave of attacks.
Looking Beyond: The Broader Tax Season Threat Landscape
The W-2 scam is merely the beginning.
From now until April, anticipate a surge in tax-related cyberattacks, including:
• Fraudulent IRS notices demanding urgent payments
• Phishing campaigns disguised as tax software updates
• Spoofed emails pretending to be from your accountant packed with malicious links
• Fake invoices crafted to mimic legitimate tax expenses
Cybercriminals exploit tax season's hectic pace, knowing financial requests won't immediately arouse suspicion.
Businesses that successfully navigate tax season without incident don't rely on luck—they rely on preparedness.
They implement robust policies, train their teams meticulously, and deploy systems designed to catch dangerous requests before damage occurs.
Is Your Business Equipped to Handle These Threats?
If your organization already has strong policies and knowledgeable staff, you are ahead of most small businesses.
If not, there's no better time to act than now—before you face your first scam attack.
Alerted by this article? Schedule a complimentary 15-minute Tax Season Security Review.
During this call, we'll assess:
• Payroll and HR system access and MFA setup
• Your W-2 verification procedures
• Email security measures to detect spoofing
• A key policy adjustment most businesses overlook
Even if your business feels protected, consider sharing this information with someone who might benefit. Forward this article—it could prevent them a costly nightmare.
Click here or give us a call at (210) 582-5814 to schedule your free Discovery Call.
Because tax season is challenging enough without the added burden of identity theft.
