February 09, 2026
February marks the start of tax season, ramping up your accountant's workload and prompting your bookkeeper to gather essential documents. As everyone focuses on W-2s, 1099s, and approaching deadlines, one urgent threat often gets overlooked.
That hidden danger? A cunning scam that arrives well before April, cleverly designed to trick small businesses. It might already be lurking in a team member's inbox.
Understanding the W-2 Scam: A Step-by-Step Breakdown
Here's how it typically unfolds:
An email, appearing to come from your CEO, owner, or top executive, lands in the inbox of whoever handles payroll or HR.
The message is brief and pressing:
"I need copies of all employee W-2s for an important meeting with the accountant. Please send them ASAP—I'm overwhelmed today."
This request feels authentic. The urgency matches the hectic tax season pace, and the tone sounds genuine.
So, the employee complies and sends the W-2 forms.
But in reality, the email isn't from the CEO. It's a fraudster 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
All the pieces needed to commit identity theft or file fake tax returns ahead of your team.
The Aftermath: What Victims Experience
Typically, employees realize the breach when their tax returns are rejected with messages like "Return already filed for this Social Security number."
Somebody else has already filed using their identity and claimed their refund.
This leads to a grueling process involving the IRS, credit monitoring services, identity theft protection, and extensive paperwork—all triggered by a single deceptive email.
Multiply this risk across your entire payroll, and you face a serious breach of trust, potential legal issues, and damage to your company's reputation.
Why the W-2 Scam Is So Effective
This scam isn't your typical "Nigerian prince" email—it's subtle and convincing.
The key reasons it succeeds include:
- The timing aligns perfectly with common W-2 requests in February—raising no suspicion.
- The request seems plausible—no outrageous demands like money transfers or gift cards.
- The urgency matches the busy tax season's pace, prompting quick responses without second thoughts.
- The sender's identity looks authentic, often leveraging real executive names or accountants, thanks to criminals researching their targets.
- Employees want to be helpful, especially to leadership, often prioritizing speed over verification.
How to Safeguard Your Business Before the Scam Strikes
The silver lining? You can stop this scam with clear policies and a vigilant culture—no expensive tech needed.
- Implement a strict "no sending W-2s via email" rule. Absolutely no exceptions. Sensitive payroll documents should never leave your company through email attachments.
- Verify any sensitive requests through a different channel—call, chat, or in-person—using trusted contact information, not reply emails.
- Hold a quick 10-minute briefing with your payroll and HR teams now to educate them on spotting these scams and your response procedures.
- Secure payroll and HR systems with Multi-Factor Authentication (MFA) to prevent unauthorized access.
- Encourage a culture where employees feel supported to double-check even seemingly urgent requests. Reward vigilance to keep scams at bay.
These simple steps can be implemented quickly and effectively to block the initial wave of this widespread scam.
Looking Ahead: The Broader Tax Season Threat Landscape
The W-2 scam is just the beginning. Between now and April, anticipate an influx of tax-related cyberattacks, such as:
- Fake IRS notices demanding urgent payments
- Phishing emails disguised as tax software updates
- Fraudulent messages claiming to be from your accountant, containing harmful links
- Fake invoices mimicking legitimate tax expenses
Scammers exploit the distraction and brisk pace of tax season, hoping financial requests won't raise alarms.
The businesses that navigate tax season without incident are those prepared with strong policies, trained staff, and systems to spot threats early.
Is Your Business Prepared for Tax Season Security?
If you've already established effective safeguards and your team knows the warning signs, you're ahead of many small businesses.
If you haven't, now is the crucial moment to act—don't wait until after a breach.
Schedule a 15-minute Tax Season Security Check with us. During this session, we will assess:
- Accessibility and multi-factor authentication for payroll and HR
- Your current W-2 verification procedures
- Email security measures to prevent spoofing
- Critical policy updates often overlooked by businesses
Don't wait until it's too late. If this message doesn't apply to you, consider forwarding it to a fellow business owner who could benefit.
Click here or give us a call at 833-863-2120 to schedule your free Consult.
Because tax season is challenging enough—don't let identity theft add to your stress.
