February 09, 2026
February has arrived, and with it, the busy tax season kicks into high gear. Your accountant's schedule is packed, your bookkeeper is scrambling to gather documents, and the buzz around W-2s, 1099s, and looming deadlines fills the office.
But what few anticipate is that the first major challenge during tax season isn't a complex form—it's a cleverly disguised scam.
This scam typically appears early in the season because it's simple, convincing, and targets small businesses. It could already be lurking in someone's inbox right now.
Understanding the W-2 Scam: What You Need to Know
Here's how it usually unfolds:
An employee, usually from payroll or HR, receives an email seemingly from the CEO, owner, or a senior executive.
The email is brief and creates urgency:
"I urgently need copies of all employee W-2s for a meeting with the accountant. Please send them ASAP—I'm swamped today."
This request feels routine and urgent, perfectly in line with the hectic tax season. It sounds legitimate.
Consequently, the employee sends the requested W-2s.
But the reality? The email was a fake—sent by a fraudster using a spoofed address or a look-alike domain.
Now, that criminal has access to every employee's:
• Full legal name
• Social Security number
• Home address
• Salary details
All the information needed to commit identity theft and submit fraudulent tax returns before your employees can.
Consequences That Follow
Typically, victims become aware when:
An employee files their tax return only to have it rejected with a message like: "Return already filed for this Social Security number."
Someone else has already claimed their tax refund.
Your employee then faces the daunting task of dealing with the IRS, monitoring their credit, securing identity theft protection, and managing months of frustrating paperwork—all because of a deceptive email.
Imagine the impact multiplied across your entire payroll. Explaining this breach to your team damages trust, creates an HR calamity, invites potential lawsuits, and hurts your company's reputation.
Why Does This Scam Succeed So Often?
This scam isn't some obvious phishing attempt. It's crafted to look authentic.
The reasons it works include:
The timing is flawless: W-2 requests are standard in February, so no one questions them.
The request appears sensible. Unlike urgent money transfers or gift card purchases, it's a typical tax season document request.
The urgency feels natural—a busy executive needing quick responses is believable.
The sender's identity seems genuine. Fraudsters research their targets, knowing names of CEOs or accountants to make the email convincing.
Employees generally want to comply with leadership, and urgency often trumps caution.
Steps to Shield Your Business From This Threat
The reassuring news is that preventing this scam is simple and mostly relies on policies and workplace culture rather than expensive technology.
Implement a strict "no sending W-2s via email" rule. No exceptions whatsoever. Sensitive payroll documents should never leave your premises through email attachments. If an email requests them, say "no," even if it appears to come from the CEO.
Always verify sensitive requests through a separate channel—make a phone call, meet in person, or send a distinct chat message. Use trusted contact information, not the details in the suspicious email. This quick check takes seconds but can prevent enormous problems.
Conduct a brief, 10-minute session with your payroll and HR teams right now. Don't wait until tax season peaks. Educate them on how to spot these scams and the procedures to follow. This awareness is your best defense.
Secure payroll and HR systems with multi-factor authentication (MFA). If credentials are compromised, MFA acts as a critical barrier against unauthorized access.
Encourage a culture where verification is applauded, not questioned. An employee confirming a request from the CEO should be praised. When your team feels empowered to double-check, scams stand no chance.
These five essential rules are straightforward enough to roll out this week, yet powerful enough to stop the initial wave of tax season scams.
Looking Beyond the W-2 Scam
The W-2 scam is only the beginning.
From now until April, be prepared for a surge in tax-related cyberattacks including:
• Fraudulent IRS notices demanding immediate payments
• Phishing emails disguised as tax software updates
• Fake messages from "accountants" containing malicious links
• Bogus invoices presented as tax expenses
Attackers exploit the chaos and haste of tax season, making financial requests seem normal and less scrutinized.
Companies that emerge from tax season untouched aren't lucky—they're well-prepared.
They leverage clear policies, comprehensive training, and sophisticated systems to intercept suspicious activity before disaster strikes.
Is Your Business Prepared for This Tax Season?
If your protocols are established and your staff educated, you're ahead of many small businesses.
If you haven't set these measures in place, there's no better time than now—before the first scam hits.
Consider booking a 15-minute Tax Season Security Check to review:
• Payroll and HR system access with MFA
• W-2 verification policies
• Email safeguards against spoofing
• Crucial policy updates often overlooked by businesses
Not ready? That's okay — but if you know someone who could benefit from this information, please share this article. It could prevent an expensive crisis.
Click here or give us a call at 419-678-2083 to schedule your free 10-Minute Discovery Call.
Because tax season is stressful enough—don't let identity theft add to the burden.
