February 09, 2026
February signals the onset of tax season—a hectic time when your accountant's schedule fills up and your bookkeeper scrambles to gather essential documents. Conversations buzz around W-2s, 1099s, and looming deadlines.
But here's what most don't anticipate: the primary challenge of tax season isn't paperwork—it's a sophisticated scam.
In fact, a particularly deceptive scam surfaces well before April, preying on small businesses with tactics so convincing it could already be lurking in someone's inbox.
Understanding the W-2 Scam
Here's how the con unfolds:
An individual within your company—often from payroll or HR—receives a seemingly urgent email, apparently from your CEO, owner, or a top executive.
The message is brief, pressured, and direct:
"Hey, I urgently need all employee W-2 copies for a meeting with the accountant. Can you send them over right away? I'm swamped today."
It appears perfectly legitimate; the sense of urgency fits the hectic tax season, and the request sounds standard.
Trusting this, your employee complies and sends the W-2s.
But the email wasn't from the CEO. It was from a cybercriminal using a spoofed email address or a cleverly disguised domain.
Now, this fraudster holds full access to every employee's:
• Legal name
• Social Security number
• Home address
• Salary details
All the information they need to commit identity theft and file fraudulent tax returns before your employees can.
Consequences of Falling Victim
This is often how the breach is uncovered:
An employee submits their tax return, only to have it rejected with the message: "Return already filed for this Social Security number."
Someone else has already filed under their identity and claimed their refund.
Now, your employee must navigate IRS audits, credit monitoring, identity protection services, and months of frustrating paperwork—all triggered by a scam they never saw coming.
Imagine this scenario multiplied across your entire workforce. Explaining to your employees that their sensitive personal information was compromised due to a false email is not just a security issue—it's a trust breach, an HR emergency, a legal risk, and a reputational blow.
Why This Scam Is So Convincing
This isn't your typical suspicious phishing email.
The scam succeeds because:
- The timing is impeccable. W-2 requests naturally intensify around February, so such emails go unquestioned.
- The request is reasonable—not an outrageous demand for money but a common tax season document sharing.
- The urgency feels genuine—"I'm slammed today, please send ASAP" echoes real workplace pressures.
- The sender appears authentic. Scammers research targets thoroughly, often knowing the CEO's or accountant's names, making their emails highly credible.
- Employees eager to help often bypass verification when the supposed boss reaches out.
How to Shield Your Business Before It's Too Late
The silver lining: this massive threat is entirely preventable with clear policies and a cautious culture—not necessarily advanced technology.
Implement a strict "no W-2s sent via email" policy. Without exception, sensitive payroll documents must never leave your premises as email attachments. If a request arrives by email, the answer is always "no," regardless of the sender.
Always verify sensitive requests through a separate communication channel—call, face-to-face, or secure chat—using known contact information, not details in the email. Spending 30 seconds here can save you months of remediation.
Hold a quick, focused meeting with your payroll and HR teams immediately. Inform them about these scams' rise, how to recognize them, and what steps to take. Awareness is your most cost-effective defense.
Secure your payroll and HR systems by enforcing multi-factor authentication (MFA) on any platforms handling employee data. MFA acts as a vital barrier if credentials are compromised.
Cultivate a culture where verification is encouraged, not penalized. Praise employees who double-check suspicious requests instead of dismissing them. When vigilance is celebrated, scammers find it harder to succeed.
Five straightforward steps—easy to implement right now and powerful enough to block the initial wave of attacks.
Looking Beyond: The Tax Season Threat Landscape
The W-2 scam is just the beginning.
From now through April, anticipate a surge in tax-related cyber threats including:
- Fake IRS demands for immediate payment
- Phishing schemes posing as tax software updates
- Spoofed emails impersonating your accountant with malicious links
- Fraudulent invoices disguised as tax expenses
Tax season's fast pace and financial focus make it a prime hunting ground for criminals.
Businesses that emerge unscathed aren't lucky—they're prepared.
They establish clear policies, educate their teams, and employ systems that detect and deter fraudulent requests before damage occurs.
Is Your Company Equipped?
If your policies are solid and your team knows what to look for, you're ahead of most small businesses.
If not, the moment to act is now—not after you've been targeted.
If this situation sounds familiar, schedule a free 15-minute Tax Season Security Check with us.
In this review, we'll cover:
• Assessment of payroll/HR system access and MFA practices
• Evaluation of your W-2 request verification protocols
• Analysis of email defenses against spoofing
• One critical policy adjustment that many businesses overlook
And if you're already well-prepared, fantastic! But you might know someone who could benefit—please share this information with any business owner concerned about tax season fraud.
Click here or give us a call at (918) 770-9150 to schedule your free 15-Minute Discovery Call.
Because tax season is hectic enough without the added burden of identity theft.
