February 09, 2026
It's February, and tax season is in full swing. Your accountant's workload is increasing, your bookkeeper is busy gathering documents, and everyone is focused on W-2s, 1099s, and looming deadlines.
But here's a critical issue that often flies under the radar during tax season: the first major headache isn't a tax form—it's a scam.
One particularly prevalent scam emerges early because it's both convincing and targets small businesses directly. It might already be lurking in your team's inbox.
Understanding the W-2 Scam: The Mechanics
Here's how it unfolds:
An individual in your company, usually someone who manages payroll or HR, receives an email that appears to come from the CEO, owner, or a high-ranking executive.
The email is brief and demands immediate attention:
"Hi, I urgently need copies of all employee W-2 forms for a meeting with the accountant. Please send them ASAP—I'm swamped today."
At first glance, it seems legitimate. The tone matches typical executive communication during tax season, urgency feels genuine, and the request is plausible.
Consequently, your employee complies and shares the W-2 documents.
However, this email is not from the CEO—instead, it's sent by a cybercriminal using a spoofed address or a deceptive domain.
Now the scammer has access to every employee's:
• Full legal name
• Social Security number
• Home address
• Salary details
With this information, they can commit identity theft and submit fraudulent tax returns before your employees do.
The Aftermath of the Scam
Usually, the fraud is uncovered when your employee files their tax return and it gets rejected with the message: "Return already filed for this Social Security number."
It means that fraudsters have already filed in their name and claimed their refund.
Now, your employee is forced to navigate the IRS, enroll in credit monitoring, take identity theft protection measures, and handle months of administrative hassle due to information they unknowingly shared.
Multiply this risk across your entire workforce. Imagine explaining to your staff how their personal data was compromised due to a single deceptive email.
This isn't just a security concern—it's a breach of trust, a challenge for HR, a legal risk, and a potential damage to your company's reputation.
Why the W-2 Scam is So Effective
This phishing attempt doesn't resemble typical spam or obvious scams.
It succeeds because:
Timing is impeccable—W-2 requests are expected in February, so the email doesn't seem suspicious.
The request is legitimate-sounding, not outrageous like asking for large wire transfers or gift cards.
The urgency feels natural, mimicking a busy executive's tone.
The sender appears authentic—criminals research their targets, using real names and look-alike domains to mislead.
Employees naturally want to assist leadership, and this desire often overrides cautious verification.
How to Shield Your Business From This Threat
The encouraging news: this scam can be stopped with the right policies and a culture of vigilance—not just high-tech solutions.
Implement a strict "no W-2s sent by email" policy with zero exceptions. Sensitive payroll documents must never leave your premises as email attachments. If anyone requests them via email, respond with a firm "no," even if the message claims to be from the CEO.
Always confirm sensitive requests through an independent channel—call, in-person verification, or a chat tool you already use. Never reply directly to the suspicious email. A 30-second verification can prevent months of remediation.
Schedule a quick, focused tax-scam awareness session immediately—don't delay. Inform payroll and HR teams about upcoming phishing attempts, their appearance, and your protocols. Knowledge is the best preventative tool.
Strengthen security on payroll and HR platforms by enforcing multi-factor authentication (MFA). MFA creates a robust barrier even if credentials are compromised.
Encourage a culture where verification is praised, not discouraged. An employee who double-checks a suspicious CEO request should be applauded rather than questioned. When staff feel empowered to confirm authenticity, scams find no place to hide.
These five straightforward steps are easy to enact now and powerful enough to stop early phishing attempts.
Looking Beyond the W-2 Scam
The W-2 scam is just the initial wave.
Between now and April, anticipate a surge in tax-related cyberattacks, including:
• Fake IRS notices demanding urgent payments
• Phishing emails masked as tax software updates
• Fraudulent messages impersonating your accountant with harmful links
• Bogus invoices timed to appear as legitimate tax expenses
Tax season's hectic pace and financial urgency make it a prime target for criminals.
The businesses that navigate tax season safely are not lucky—they're prepared.
They have established policies, comprehensive training, and systems designed to intercept suspicious requests before they escalate.
Is Your Business Equipped to Handle This?
If your company already has strong policies and your team is educated about these scams, you're ahead of many.
If not, now's the perfect moment to act—not after you've faced an incident.
If this resonates with your organization, schedule a free 15-minute Tax Season Security Check.
During this review, we'll cover:
• Payroll and HR access controls with MFA
• Your specific W-2 verification procedures
• Email security measures to block spoofing
• The crucial policy adjustment many companies overlook
If you're confident your business is secure, fantastic. But if you know someone who might benefit, please share this article with them—it could save them from a costly ordeal.
Click here or give us a call at 985-302-3083 to schedule your free A Quick Call.
Because tax season is challenging enough without adding the burden of identity theft.
