February 09, 2026
February marks the beginning of a hectic tax season. Accountants are swamped, bookkeepers scramble to gather documents, and everyone's focus shifts to managing W-2s, 1099s, and looming deadlines.
But here's a crucial fact often overlooked: the true challenge of tax season often comes not from paperwork, but from cleverly disguised scams.
Among these threats, one particularly deceptive scam tends to strike early—long before April arrives. It's crafted to deceive small businesses and might already be lurking in someone's inbox within your company.
Understanding the W-2 Scam: A Closer Look
Here's how it unfolds:
An employee, usually in payroll or HR, receives an email seemingly from the CEO, owner, or a high-ranking executive.
The email is brief and pressing:
"Please send me all employee W-2 forms for a meeting with the accountant. I'm swamped today, so ASAP would be great."
It feels legitimate—the tone matches the urgency of tax season, and the request sounds entirely reasonable.
Without hesitation, your employee shares the W-2 forms.
But here's the catch: the email isn't from your CEO. It's a deception crafted by a criminal using a forged email address or a suspiciously similar domain.
Now, the scammer has access to every employee's:
• Full legal name
• Social Security number
• Home address
• Salary details
All the information needed for identity theft and to file fraudulent tax returns before your employees can.
The Aftermath: What to Expect
Typically, the victims discover the fraud when:
An employee submits their tax return, only to have it denied with the message: "Return already filed for this Social Security number."
Someone else has already filed using their identity and claimed the refund.
This triggers a complicated process involving interactions with the IRS, monitoring credit reports, implementing identity theft protections, and enduring months of administrative hassle—all due to an email they never realized was malicious.
Imagine multiplying this scenario across your entire payroll. Now consider having to inform your staff that their personal data was compromised due to falling victim to a fraudulent email.
This represents more than a security breach—it's a severe trust issue, an HR crisis, a potential legal liability, and a significant blow to your company's reputation.
Why This Scam Is Shockingly Effective
This isn't an obvious, poorly written phishing attempt.
The scam succeeds because:
The timing is impeccable—requests for W-2 forms are normal in February, so no suspicion arises.
The request itself is believable—it isn't asking for money or unusual favors, just information commonly exchanged during tax season.
The sense of urgency aligns perfectly with the busy atmosphere, making "I'm slammed today—can you quickly send this?" seem authentic.
The sender appears legitimate because the fraudsters research their target, knowing executive names and sometimes even accountants, crafting convincing emails.
Employees naturally want to assist their leaders, and this urge often outweighs caution against verifying requests.
Shielding Your Business: Proactive Prevention
The silver lining? This scam can be stopped with straightforward policies and a security-conscious culture—not just advanced technology.
Implement a strict "no W-2 forms via email" policy. Without exceptions, sensitive payroll documents should never be sent through email attachments. Any such request—even if seemingly from your CEO—must be declined.
Ensure every sensitive request is confirmed through a secondary method—phone call, face-to-face, instant messaging—never by simply replying to the email. Use trusted contact information that you already have, not details provided in the suspicious message. This quick verification can spare you months of trouble.
Hold a focused 10-minute meeting with your payroll and HR teams now—don't wait. Explain the surge in tax-related scams, how they look, and the proper response. Awareness is the most affordable insurance.
Secure your payroll and HR systems with multi-factor authentication (MFA) to protect sensitive employee data. MFA serves as the last barrier if credentials are compromised.
Encourage and reward a culture where employees feel empowered to verify unusual requests without fear of backlash. Praising those who double-check suspicious emails ensures scams can't take root.
Follow these five straightforward rules, implement them this week, and fortify your first line of defense against tax-season scams.
Looking Beyond: The Wider Risk Landscape
The W-2 scam is only the beginning.
Between now and April, you can expect an onslaught of tax-related cyber threats like:
• Fake IRS notices demanding immediate payments
• Phishing attacks disguised as software updates from tax programs
• Fraudulent messages appearing to come from your accountant featuring harmful links
• Bogus invoices that look like legitimate tax expenses
Cybercriminals exploit the distraction and fast pace of tax season, making financial requests seem routine and lowering defenses.
Companies that navigate tax season without incident aren't lucky—they are well-prepared with policies, education, and vigilant systems that detect threats before damage occurs.
Is Your Business Equipped to Face These Threats?
If your company already has robust policies and educated teams, congratulations—you're ahead of most small businesses.
If not, now is the critical moment to act—before you become a victim.
To assist, schedule a 15-minute Tax Season Security Check. We'll evaluate:
• Payroll and HR system access controls and MFA
• Your protocols for W-2 verification
• Email safeguards that detect spoofing attempts
• The one crucial policy many companies overlook
If your business isn't in this situation, that's excellent. However, you probably know someone who is. Share this article—it could save them from a costly disaster.
Click here or give us a call at 332-217-0601 to Speak to an Expert.
Because tax season should be stressful only for the right reasons—not identity theft.
