February 09, 2026
February signals the start of tax season. Your accountant's schedule fills up quickly, your bookkeeper is busy gathering documents, and everyone is focused on W-2s, 1099s, and looming deadlines.
But there's an often overlooked challenge that crops up early in tax season—it isn't a form or deadline, but a scam.
One of the earliest and most common threats hits small businesses right away because it is simple, credible, and often already waiting in someone's inbox.
The W-2 Scam Explained: How It Unfolds
Here's the typical scenario:
An employee responsible for payroll or HR receives an email seemingly from the CEO, owner, or another top executive.
The message is brief and urgent:
"I need copies of all employee W-2 forms for a meeting with the accountant. Can you send them over immediately? I'm swamped today."
This request looks perfectly normal. The tone matches the busy season, the sense of urgency feels natural, and the task seems entirely reasonable.
So, the employee forwards the W-2s.
But the email isn't actually from the CEO—it's a fraudster using a spoofed email address or a deceptive domain.
With these documents, the scammer gains access to every employee's:
• Full legal name
• Social Security number
• Home address
• Salary details
All the data they need for identity theft and to file fraudulent tax returns ahead of your employees.
What Happens After the Scam?
Victims usually discover the breach when their tax return is rejected as already filed using their Social Security number.
Somebody else has already submitted a return and claimed their refund.
Your employee then faces dealing with the IRS, credit monitoring services, identity theft protection, and extensive paperwork—all from a document they unknowingly sent.
Imagine this happening across your entire payroll, and then having to explain to your team how their personal information was compromised due to a deceptive email.
It's more than just a cybersecurity issue—it damages trust, creates HR crises, risks lawsuits, and harms your company's reputation.
Why Is This Scam So Effective?
This is no obvious phishing attempt; it's a sophisticated social engineering attack.
Here's why it succeeds:
The timing is impeccable. February is prime time for W-2 requests, so no one suspects anything unusual.
The request is plausible. It's not a demand for wire transfers or gift cards—it's a normal tax season document.
The urgency feels genuine. An overwhelmed boss asking for quick delivery doesn't raise alarms in a busy office.
The sender appears authentic. Scammers do thorough research, knowing the CEO's or accountant's names to craft credible emails.
Employees want to assist, especially their leaders, so urgent requests often bypass skeptical thinking.
Steps to Shield Your Business Before the Scam Strikes
The encouraging news is this threat is avoidable with the right policies and a security-minded culture—not just technology.
Institute a strict "no W-2s sent via email" policy. No exceptions. Treat all sensitive payroll information as in-house only. Any email requests for these documents must be declined, no matter who appears to send them.
Always confirm sensitive requests through a separate communication channel. Make a phone call, speak in person, or use a known chat platform. Don't reply directly to the suspicious email. Using existing contact information takes just moments but can prevent months of hassle.
Hold a brief training session now with your payroll and HR teams. Don't delay until closer to tax deadlines. Educate them on recognizing scams, what signs to watch for, and the immediate steps to take. Awareness here is invaluable protection.
Secure all payroll and HR platforms with multi-factor authentication (MFA). If credentials are compromised, MFA serves as a critical last line of defense.
Encourage a culture of verification. Employees who double-check requests, even from top executives, should be commended rather than discouraged. Creating an environment where questioning is welcomed wipes out opportunities for scams.
These five straightforward steps are easy to implement right away, yet robust enough to block the initial waves of attack.
Looking Beyond the W-2 Scam
The W-2 scam is just one of many tax-season cyber threats you must anticipate.
As tax deadlines approach, watch for:
• Fraudulent IRS notices demanding payments
• Phishing campaigns disguised as tax software updates
• Fake communications from your accountant containing dangerous links
• Bogus invoices crafted to mimic tax-related expenses
Cybercriminals exploit tax season's fast pace and distraction to target businesses more aggressively.
Companies that navigate tax season without incident aren't lucky—they are prepared. They've established policies, conducted training, and deployed systems to detect and prevent suspicious activity before it causes damage.
Is Your Business Protected?
If your team already follows best security practices and recognizes these threats, you're ahead of many small businesses.
If not, now is the critical moment to act—not after a costly scam hits.
If your business fits this description, schedule a 15-minute Tax Season Security Check.
During this brief consultation, we'll assess:
• Payroll and HR system access controls and MFA implementation
• W-2 verification procedures
• Email safeguards that detect spoofing attempts
• The key policy adjustment most businesses overlook
And if you're already prepared, fantastic! But please share this essential information with business owners you know who might be vulnerable. It could prevent a costly nightmare.
Click here or give us a call at 760-770-5200 to schedule your free Quick and Easy Call.
Because tax season is stressful enough—don't let identity theft make it worse.
