February 09, 2026
February marks the peak of tax season. Accountants are busier than ever, bookkeepers are gathering essential documents, and W-2s, 1099s, and crucial deadlines dominate everyone's minds.
But here's the hidden challenge that doesn't show up on any calendar: the initial tax season headache often isn't a form, it's a sophisticated scam targeting small businesses.
In fact, one of the earliest and most prevalent threats arrives well before April, cleverly disguised and easy to fall for—possibly even lurking in your team's inbox right now.
Understanding the W-2 Scam
Here's the scenario:
An employee responsible for payroll or HR receives an email that appears to come from the CEO, owner, or a top executive.
The message is brief but urgent:
"I need copies of all employee W-2s for an upcoming tax meeting. Can you send them over immediately? I'm swamped today."
This request seems legitimate. The tone matches the hectic tax season pace, making the urgency feel natural. It sounds reasonable.
Trusting the message, your employee complies and sends the W-2 forms.
But in reality, the email wasn't from the executive. Instead, it came from a cybercriminal using a spoofed email address or a nearly identical domain.
Now, the attacker owns confidential employee details including:
• Full legal names
• Social Security numbers
• Home addresses
• Salary data
All the key information needed for identity theft and to file fraudulent tax returns before your employees can.
The Aftermath: What Your Team Faces
You'll often hear about this problem when an employee tries to file their tax return only to receive a rejection: "Return already filed for this Social Security number."
Another party has already filed in their name and claimed their refund.
From there, your employees are forced into the tedious process of working with the IRS, enrolling in credit monitoring, securing identity theft protection, and slogging through months of paperwork — all because of a single deceptive email.
Imagine multiplying this impact across your entire payroll. Then imagine having to explain how such a preventable breach happened — a scenario that threatens trust, complicates HR, opens the door to lawsuits, and damages your business reputation.
Why This Scam Is So Effective
This isn't a crude scam from a distant stranger; it's a carefully crafted attack designed to blend in.
Here's why it works flawlessly:
Perfect Timing: W-2 requests are common in February, making such emails expected and rarely questioned.
Reasonable Request: Unlike demands for large wire transfers or gift cards, asking for W-2s sounds legitimate during tax season.
Urgency Feels Natural: Messages saying "I'm slammed today" don't raise alarms amidst the usual busyness.
Sender Appears Authentic: Criminals do their homework, using real CEO or accountant names, and domains that look genuine.
Employees Aim to Help: Especially when the request seems to come from leadership, staff often prioritize quick compliance over verification.
Protect Your Business from This Threat
The positive news is that this scam can be stopped with the right policies and workplace culture — no need for expensive technology alone.
Implement a strict "no W-2s shared via email" policy. This rule should be absolute: sensitive payroll documents must not be transmitted through email, even if it seems to come from the CEO.
Require verification of all sensitive requests through a second channel, such as a phone call, in-person confirmation, or secure chat, using known contact details—not those in the email. This quick step takes seconds and can prevent months of fallout.
Hold a brief tax scam awareness meeting immediately. Educate your payroll and HR teams about the potential spike in these attacks, how to recognize them, and the steps to respond
Secure all payroll and HR platforms with multi-factor authentication (MFA). This extra security layer protects employee data even if login credentials are compromised.
Foster a culture where verification is encouraged and praised. When employees are commended for double-checking requests—especially urgent ones from executives—fraudulent attempts find no foothold.
Just five straightforward rules can be adopted this week and offer powerful defense against the initial surge of scams.
Considering the Larger Threat Landscape
The W-2 scam is only the beginning. As we approach April, anticipate an increase in tax-related cyberattacks including:
• Fake IRS notices demanding immediate payments
• Phishing emails masked as tax software updates
• Fraudulent messages from supposed accountants containing harmful links
• False invoices timed to exploit tax expense processing
Tax season is a gold mine for criminals because everyone's distracted, time-sensitive requests are typical, and urgency is normal.
Businesses that navigate tax season without incident aren't merely lucky—they're well-prepared with robust policies, thorough training, and systems designed to intercept malicious requests before they cause damage.
Is Your Business Equipped to Face These Challenges?
If your organization has already established strong security policies and your team is trained to spot red flags, you're ahead of many peers.
If not, the moment to act is now, not after an attack occurs.
Consider scheduling a 15-minute Tax Season Security Check with us.
During this quick consultation, we'll evaluate:
• Payroll and HR access controls including MFA
• Your W-2 handling and verification procedures
• Email security measures to identify spoofing attempts
• The critical policy adjustment many businesses overlook
Even if you feel secure, you might know a business owner who isn't. Share this article and potentially save them from a costly security breach.
Click here or give us a call at (949) 537-2909 to schedule your free 10-Minute Discovery Call.
After all, tax season is stressful enough without the added burden of identity theft.
