February 09, 2026
It's February, and tax season is accelerating. Your accountant is overwhelmed, your bookkeeper is gathering essential documents, and everyone is focused on W-2s, 1099s, and fast-approaching deadlines.
However, what many don't anticipate is that the season's first major headache rarely comes from paperwork—it's a scam targeting small businesses.
This scam often arrives early, before April, because it's convincing and easily executed. It might already be lurking in someone's inbox.
Understanding the W-2 Scam: The Mechanics
Here's the scenario:
A key staff member, typically in payroll or HR, receives an email that appears to come from the CEO, owner, or a high-ranking executive.
The message is brief and urgent:
"I need copies of all employee W-2 forms for a meeting with the accountant. Please send them over right away—I'm swamped today."
On the surface, it seems legitimate. The tone matches the busy tax season, and the request sounds perfectly reasonable.
Consequently, the employee complies and sends the W-2s.
However, the email isn't from the CEO. It's actually from a fraudster using a spoofed email address or a deceptive domain.
Now, the criminal possesses detailed employee information, including:
• Full legal names
• Social Security numbers
• Home addresses
• Salary details
This data is a goldmine for identity theft and enables filing fraudulent tax returns ahead of your employees.
Consequences and Aftermath
Victims typically discover the breach when their tax returns are rejected with messages like: "Return already filed for this Social Security number."
Fraudsters have already filed taxes, claimed refunds, and received payments in your employees' names.
Your employees then face a difficult journey involving the IRS, credit monitoring services, identity theft protection, and weeks or even months of paperwork—all from a document they unknowingly shared.
Imagine this scenario multiplied across your entire workforce, then having to explain to your team that their sensitive information was compromised because of a deceptive email.
This situation isn't just a security breach; it damages trust, creates HR challenges, opens up potential legal liabilities, and can severely harm your company's reputation.
Why This Scam Is So Successful
This scam stands apart from obvious schemes—they don't resemble a typical Nigerian prince email.
Its effectiveness comes down to several factors:
• Perfect Timing: Requests for W-2s in February aren't suspicious.
• Reasonable Request: It's a common document shared during tax season, unlike demands for money or gift cards.
• Urgency That Feels Natural: Busy office dynamics make quick compliance seem normal.
• Authentic Appearance: Fraudsters research their targets, impersonating known executives and accounting staff.
• Employee Willingness to Help: Staff want to assist leadership, often overlooking verification during busy times.
Proactive Steps to Shield Your Business
The encouraging news is this scam can be stopped with straightforward policies and cultivating a vigilant company culture—not just high-tech solutions.
Implement a strict "no W-2s via email" policy. Without exception, sensitive payroll documents should never be emailed. Deny any email request for these forms—even if seemingly from your CEO.
Mandate that any sensitive information requests must be confirmed through a different channel—by phone call, in-person discussion, or company chat. Always use established contact details, not those provided in the suspicious email. This simple step takes seconds and prevents extensive damage.
Hold a brief, focused training session now to alert payroll and HR staff about the expected rise in scams. Address what these scams look like and your company's response protocols. Early awareness is invaluable protection.
Secure your payroll and HR platforms with multi-factor authentication (MFA). If credentials get compromised, MFA acts as a robust final barrier.
Promote a culture where verifying suspicious requests is encouraged and applauded. Employees who double-check seemingly urgent messages from executives should be celebrated, not second-guessed. Where verification is the norm, scams find no foothold.
These five straightforward rules are simple to put into action immediately and powerful enough to block the initial wave of attacks.
Looking Beyond: The Larger Threat Landscape
The W-2 scam is just the starting point.
From now until April, anticipate a surge of tax-related fraud attempts, including:
• Bogus IRS payment notices demanding immediate action
• Phishing campaigns disguised as tax software updates
• Fraudulent emails impersonating your accountant with malicious links
• Fake invoices crafted to appear like tax-related expenses
Tax season attracts criminals because of the fast pace and routine financial exchanges.
Businesses that survive the season unscathed haven't been lucky—they're equipped with strong policies, targeted training, and systems that identify risky requests before damage happens.
Is Your Company Prepared?
If your organization already enforces security policies and your staff knows what threats to watch for, you're ahead of many small businesses.
If not, now is the critical moment to act—before the first scam causes costly damage.
Consider scheduling a complimentary 15-minute Tax Season Security Check.
During this consultation, we'll evaluate:
• Payroll and HR access controls with MFA
• Your W-2 verification procedures
• Email safeguards against spoofing
• One crucial policy adjustment most companies overlook
If your business is already secure, fantastic. Otherwise, forward this article to a business owner you know who might benefit—it could prevent a costly identity theft crisis.
Click here or give us a call at 336-310-0277 to schedule your free Discovery Call.
Because tax season should be about compliance, not dealing with identity theft nightmares.
