February 09, 2026
February is here, and with it comes the busy tax season. Accountants are swamped, bookkeepers are gathering important documents, and everyone is focused on managing W-2s, 1099s, and crucial deadlines.
But what often catches businesses off guard isn't a tax form—it's a cleverly disguised scam.
One particularly dangerous scam arrives early in the season because it's easy to believe and directly targets small businesses. It might already be lurking in someone's inbox at your company.
Understanding the W-2 Scam: A Step-by-Step Breakdown
Here's how it unfolds:
An employee responsible for payroll or HR receives an email that appears to come from the CEO, owner, or a high-ranking executive.
The email is brief, urgent, and seems legitimate:
"Please send me copies of all employee W-2 forms for a meeting with the accountant. I'm overwhelmed today, so your quick response is appreciated."
The tone is believable, the urgency feels natural given tax season, and the request is perfectly reasonable.
So, the employee complies and sends the W-2s.
However, this email was never sent by the CEO. It came from a criminal using a spoofed email address or a deceptive, similar-looking domain.
Now the scammer has access to sensitive employee data, including:
• Full names
• Social Security numbers
• Home addresses
• Salary details
All the information required to commit identity theft or file fraudulent tax returns before your employees can.
The Aftermath: What Happens to Your Employees
Typically, victims find out when their tax returns are rejected because:
"A return has already been filed with that Social Security number."
Someone has already stolen their identity and claimed their tax refund.
Suddenly, your employee is caught up in dealing with the IRS, identity theft protection services, credit monitoring, and extensive paperwork—all due to a phishing email they didn't realize was fraudulent.
Now imagine this multiplied across your entire workforce and the challenge of explaining this breach of trust.
This situation extends well beyond cybersecurity—it becomes a critical human resources issue, exposes your business to legal risks, and can damage your reputation.
Why This Scam Is So Effective
This isn't a phishing email that's obviously fake—it's sophisticated and convincing.
It succeeds because:
The timing is ideal. Receiving W-2 requests in February is normal and expected.
The request is plausible—it's not asking for money or gift cards, just standard tax season documents.
The urgency sounds authentic—"I'm swamped today; please send this quickly."
The sender appears legitimate. Scammers research their targets, use real names, and mimic authentic email addresses.
Employees naturally want to help, especially during busy times, making them less likely to verify unusual requests.
Essential Steps to Shield Your Business Before the Scam Strikes
Fortunately, this scam can be stopped with smart policies and a strong workplace culture—no complex technology required.
Implement a strict "no W-2s via email" policy. Absolutely no exceptions. Sensitive payroll documents must never leave your organization through email attachments, regardless of who requests them.
Always verify sensitive requests through a separate channel—make a phone call, send a chat message, or check in person. Never respond directly to the email and use known contact information.
Hold a quick tax-scam awareness meeting now to educate payroll and HR teams on recognizing threats and the procedures they must follow.
Secure payroll and HR systems using multi-factor authentication (MFA) to add an extra layer of protection against unauthorized access.
Promote a culture where verifying requests is encouraged—not seen as paranoid. Employees who double-check suspicious emails should be celebrated.
These five straightforward rules can be put in place immediately to significantly reduce your risk during tax season.
Looking Beyond: Tax Season Threats Ahead
The W-2 scam is only the beginning.
Expect a surge in tax-related cyber threats, including:
• Fraudulent IRS notices demanding urgent payments
• Phishing attempts disguised as tax software updates
• Spoofed emails appearing to come from accountants with malicious links
• Fake invoices designed to mimic tax expenses
Cybercriminals exploit the rush and distractions of tax season, making financial requests appear routine.
Businesses that emerge from tax season without incident aren't lucky—they're prepared with clear policies, training, and effective detection systems.
Is Your Business Protected and Prepared?
If your organization already enforces strict protocols and your team is alert to scams, you're ahead of many small businesses.
If not, now is the crucial time to act—before the first attack.
Consider scheduling a 15-minute Tax Season Security Check with us.
During the assessment, we'll cover:
• Payroll and HR system security, including MFA
• W-2 handling and verification processes
• Email defenses against spoofing and phishing
• One often overlooked policy adjustment that can enhance your protection
If you don't need this now, share this resource with another business owner who might—it could prevent a costly crisis.
Click here or give us a call at 858-202-0304 to schedule your free 15-Minute Discovery Call.
Because tax season is challenging enough without added risks like identity theft.
