February 09, 2026
February signals the arrival of tax season, a time when your accountant's schedule fills up and your bookkeeper starts gathering crucial documents. W-2s, 1099s, and looming deadlines dominate everyone's mind.
But the real tax season challenge that often catches businesses off guard isn't a form—it's a scam.
One particularly dangerous scam surfaces well before April, targeting small businesses with a convincing ease. It might already be lurking in your team's inbox.
Understanding the W-2 Scam: The Method Behind the Fraud
Here's how it unfolds:
An individual in your company—often someone from payroll or HR—receives a seemingly legitimate email that impersonates the CEO, owner, or a high-ranking executive.
The message is concise and urgent:
"I need all employee W-2s immediately for a meeting with the accountant. Can you send them over ASAP? I'm swamped today."
It feels authentic—the tone fits the busy season, and the urgent request appears reasonable.
Consequently, your employee forwards the W-2s.
In reality, the email is a fraudulent copy, sent by a cybercriminal using a spoofed address or a deceptively similar domain.
Now, this criminal has access to every employee's:
• Full legal name
• Social Security number
• Home address
• Salary details
This is everything needed to commit identity theft and to file fake tax returns before your employees even get a chance.
Aftermath: What Victims Face
Typically, victims discover the scam when:
An 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 fraudulently filed in their name and claimed the refund.
Your employee then faces the frustrating battle with the IRS, requires credit monitoring, identity theft assistance, and months of paperwork over a breach they never anticipated.
Imagine this happening across your entire payroll and then having to explain that personal data was compromised due to a deceptive email.
This isn't just about security—it strikes at trust, creates HR crises, exposes your company to legal risks, and can damage your reputation.
Why the W-2 Scam Is So Effective
This scam doesn't scream "fraud" at first glance—it's subtle and sophisticated.
Its success owes to several factors:
The timing is impeccable. W-2 requests are expected in February, so no one finds it suspicious.
The request is logical. Unlike phishing for wire transfers or gift cards, it asks for information commonly shared during tax season.
The urgency feels genuine. The claim "I'm overwhelmed today; can you get this done quickly?" fits a busy workplace.
The impersonator's email appears credible. Cybercriminals research executives' names and create convincing sender details.
Employees, eager to assist leadership, often respond swiftly without verifying, which the scam exploits.
Shielding Your Business: Proactive Steps to Prevent This Scam
The great news is that with the right policies and culture, this scam is completely avoidable.
Implement a strict "no W-2s sent via email" policy—no exceptions. Never allow sensitive payroll documents to be shared as email attachments outside your organization. If requested, say "no," even if the request appears to come from your CEO.
Always verify sensitive requests through a separate communication channel: a phone call, face-to-face conversation, or a trusted chat app. Do not reply to the suspicious email directly. Use known contacts, not details from the suspect message. This quick check can prevent months of damage.
Host a brief 10-minute meeting with your payroll and HR teams now—don't wait until tax season peaks—to raise awareness about these scams. Arm them with signs to spot and steps to follow.
Secure payroll and HR software with multi-factor authentication (MFA) to block unauthorized access even if credentials are compromised.
Foster a workplace culture where verifying unusual requests is encouraged and applauded. An employee who double-checks a request from the CEO should be commended, not questioned. Such vigilance is your strongest defense.
Just five straightforward rules can be implemented this week to stop scams before they start.
Broader Threats During Tax Season
The W-2 scam is merely the beginning.
From now until April, prepare for an onslaught of tax-related cyberattacks, including:
• Fraudulent IRS notices demanding immediate payment
• Phishing emails posing as tax software updates
• Fake emails from "your accountant" containing dangerous links
• Bogus invoices disguised as legitimate tax expenses
Cybercriminals exploit tax season's fast pace and distraction, counting on financial requests blending into the noise.
Businesses that navigate tax season unscathed aren't lucky—they're prepared.
They maintain strong policies, rigorous training, and layered defenses to catch fraudulent activities before damage occurs.
Is Your Business Prepared to Defend Against These Threats?
If your team already understands these risks and you have security measures in place, you're ahead of the curve.
If not, now is the critical moment to act—don't wait until the first scam affects your business.
If you recognize your business in this warning, schedule a 15-minute Tax Season Security Check today.
During this check, we'll assess:
• Payroll and HR access controls including MFA
• Your verification process for W-2 requests
• Email security measures designed to stop spoofing
• A vital policy update many businesses overlook
If this doesn't sound like your situation, fantastic—but please share this with any business owner you know who might benefit. It could save them from a costly nightmare.
Click here or give us a call at 320-310-4321 to schedule your free 15-Minute Discovery Call.
Because tax time is challenging enough without the added burden of identity theft.
