February 09, 2026
February is here, and with it comes the height of tax season. Your accountant's schedule is filling up, your bookkeeper is gathering critical documents, and everyone is focused on W-2s, 1099s, and looming deadlines.
But amidst this busy period, there's one issue often overlooked: the first major tax season challenge often isn't paperwork—it's a scam.
One particularly dangerous scam tends to appear well before April. It's simple, convincing, and targets small businesses. It could already be lurking in someone's inbox at your company.
Understanding the W-2 Scam: What You Need to Know
Here's how it unfolds:
Usually, someone managing payroll or HR receives an email that appears to come from the CEO, owner, or a high-level executive.
The message is brief, urgent, and convincing:
"I need copies of all employee W-2s immediately for an upcoming meeting with the accountant. Can you send them ASAP? My schedule is packed today."
The tone and urgency feel authentic, perfectly matching the hectic tax season atmosphere. The request seems entirely plausible.
Trusting the email, your employee forwards the W-2 forms.
But that email wasn't from your CEO—it came from a cybercriminal using a fake sender address or a nearly identical domain.
With that information in hand, the thief now has:
• Employees' full legal names
• Social Security numbers
• Home addresses
• Salary details
This complete data set enables identity theft and lets scammers file fraudulent tax claims before your employees can.
The Aftermath: What to Expect
How do victims usually discover the fraud?
When your employee files their taxes, their returns get rejected with the message: "Return already filed for this Social Security number."
The scammer has filed first, stolen the refund, and left your employee facing IRS disputes, credit monitoring needs, identity protection hassles, and months of paperwork.
Now scale this risk across your entire workforce. Imagine breaking the news that their sensitive personal information was stolen because of a deceptive email.
This is more than a security breach—it's a breakdown of trust, an HR crisis, a legal liability, and a hit to your company's reputation.
Why the W-2 Scam is So Effective
This isn't a blatantly fraudulent email from a distant prince. It's far more sophisticated:
The timing is impeccable—W-2 forms are standard requests in February, so it escapes suspicion.
The request is reasonable—no suspicious money transfers, only something expected during tax season.
The sense of urgency feels natural—"I'm overwhelmed today, please send this quickly" blends right into busy office routines.
The sender's identity looks real—cybercriminals research targets thoroughly, using correct names and even familiar contacts.
Employees want to help, especially their leaders, so they often comply without pause.
Shield Your Business: Proven Prevention Strategies
The reassuring truth is that these scams can be stopped with clear policies and a vigilant culture—not just technology.
Implement a strict "no W-2 forms via email" policy, no exceptions. Sensitive payroll documents should never leave your premises through email attachments, no matter who requests them.
Verify any sensitive requests through an independent channel. Call, speak in person, or use an established chat platform—never reply directly to the suspicious email. Use known contact numbers to confirm. This quick step can prevent extensive damage.
Conduct a brief, focused training session immediately. Inform your payroll and HR teams about these scams, their signs, and your response plans. Early awareness is a powerful defense.
Secure your payroll and HR systems with multi-factor authentication (MFA). Even if passwords are compromised, MFA adds a crucial barrier against unauthorized access.
Encourage a culture that prioritizes verification. Employees who double-check unusual requests from leadership should be commended—not penalized. When cautious behavior is rewarded, fraudulent schemes struggle to succeed.
These five straightforward rules can be put in place this week and provide robust defense against the initial onslaught.
The Larger Threat Landscape During Tax Time
The W-2 scam is just one example of the increasing tax season cyber threats.
Expect to see a surge in:
• Fraudulent IRS notices demanding rapid payment
• Phishing emails masked as essential tax software updates
• Spoofed emails from "your accountant" containing harmful links
• Deceptive invoices timed to mimic legitimate tax expenses
Cybercriminals exploit tax season distractions and urgency, making financial requests seem routine.
Companies that navigate tax season without incident don't get lucky—they're equipped with strong policies, well-trained staff, and effective systems that flag suspicious activity early.
Is Your Business Prepared to Defend Against Tax Season Scams?
If your team already follows these protocols and understands the risks, congratulations—you're ahead of the curve.
If not, don't wait for a breach to occur. Now is the ideal moment to act.
Schedule a 15-minute Tax Season Security Check to review critical areas including:
• Payroll and HR system access controls with MFA
• Your W-2 document verification procedures
• Email security features that prevent spoofing
• Key policy adjustments commonly overlooked by businesses
If you feel secure, that's excellent. But chances are, you know a business owner who could benefit from this information. Share this article with them—it could prevent a costly security breach.
Click here or give us a call at 877-310-0123 to schedule your free 15-Minute Discovery Call.
Make tax season less stressful—protect your business from the risk of identity theft.
