February 09, 2026
It's February, and tax season is in full swing. Your accountant's workload is escalating, your bookkeeper is scrambling to collect documents, and everyone is preoccupied with W-2s, 1099s, and looming deadlines.
But here's the reality no calendar marks: the earliest tax season troubles often don't come from forms—they come in the form of a scam.
One of the sneakiest cons strikes well before April, targeting small businesses with a scheme that's simple, convincing, and could already be lurking in someone's inbox.
The W-2 Scam Explained: How It Unfolds
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 and urgent:
"I need copies of all employee W-2s for a meeting with the accountant. Please send them over ASAP—I'm swamped today."
It all seems legitimate. The tone is appropriate, the urgency feels genuine during this hectic season, and the request appears wholly reasonable.
So, your employee complies and forwards the W-2s.
But the catch: the email isn't from the CEO at all. It's a cybercriminal utilizing a spoofed email address or a deceptive domain.
With these documents, the criminal gains access to every employee's:
• Full legal name
• Social Security number
• Home address
• Salary details
All the critical data needed for identity theft and to file fake tax returns before your employees get the chance.
Consequences After the Breach
Here's when the problem becomes painfully clear:
An employee files their tax return only to have it rejected, with a notice saying: "Return already filed for this Social Security number."
Someone has already stolen their identity, claimed their refund, and pocketed the money.
Your employee is now faced with dealing with the IRS, monitoring credit, securing identity theft protection, and handling extensive paperwork—all due to an email they never suspected was fraudulent.
Now imagine this happening across your entire payroll. Explaining this to your team turns a security breach into a massive trust crisis, an HR disaster, a legal liability, and a serious blow to your company's reputation.
Why This Scam Is So Effective
This isn't a typical phishing attempt from a foreign prince—it's far more subtle.
Its success lies in several factors:
• Perfect timing: W-2 requests in February raise no suspicion.
• Reasonable demands: Unlike requests for large wire transfers or gift cards, asking for W-2s during tax season sounds plausible.
• Natural urgency: Busy workplaces accept quick-turnaround requests without question.
• Realistic appearance: Cybercriminals research and impersonate executives accurately.
• Employee helpfulness: Staff often prioritize assisting the boss and may skip verification.
How to Shield Your Business Before a Scam Strikes
The upside: this threat is avoidable. But prevention requires both clear policies and a vigilant culture—not just fancy technology.
Implement a strict rule: never send W-2s or sensitive payroll data via email attachments—no exceptions.
Always confirm sensitive requests through a second communication channel—whether a phone call, in-person talk, or chat message—using contact information already on file, never relying on details in the suspicious email.
Conduct a brief, 10-minute meeting about tax-season scams immediately. Equip payroll and HR teams to recognize scams and know exactly how to respond. Awareness is your cheapest and strongest defense.
Secure payroll and HR systems with multi-factor authentication (MFA) to ensure compromised credentials still don't grant access.
Promote a culture where double-checking strange or urgent requests is encouraged and applauded. Employees who verify suspicious messages protect the entire company.
By applying these five straightforward strategies this week, you can fortify your business against the initial surge of tax-related scams.
Understanding the Larger Threat Landscape
The W-2 scam is merely the opening act.
Expect an onslaught of tax-themed cyberattacks before April, including:
• Fraudulent IRS notices demanding urgent payment
• Phishing emails disguised as tax software updates
• Spoofed emails from "your accountant" containing harmful links
• Fake invoices designed to mimic tax-related expenses
Cybercriminals exploit the tax season chaos, knowing people move quickly and financial requests appear routine.
Businesses that pass through tax season unscathed aren't lucky—they're prepared with policies, training, and systems that detect and block deceptive requests before disaster strikes.
Is Your Business Prepared?
If your organization already has clear policies and trained personnel who recognize these scams, you're ahead of the curve.
If not, now is the critical moment to act—before the first scam reaches your door.
Schedule a 15-minute Tax Season Security Check with us.
We'll assess:
• Payroll and HR system access controls including MFA
• Your current W-2 verification procedures
• Email defense mechanisms against spoofing
• Key policy adjustments most companies overlook
If this doesn't describe your business, great—yet you likely know another small business owner who could benefit. Share this information; it might be the difference between security and a costly breach.
Click here or give us a call at (760) 266-5444 to schedule your free Discovery Call.
Because tax season is difficult enough without adding the burden of identity theft.
