February 09, 2026
February means one thing: tax season is in full swing. Your accountant's schedule is packed, your bookkeeper is gathering paperwork, and everyone's focus is on W-2s, 1099s, and looming deadlines.
But here's an often overlooked challenge that arrives before the first form—the real tax-season threat: a cyber scam.
One particularly deceptive scam targets small businesses early—it's believable, simple, and could already be lurking in someone's inbox.
Unmasking the W-2 Scam: The Dangerous Setup
This is how it happens:
An employee, often from payroll or HR, receives a convincing email impersonating your CEO, owner, or senior executive.
The message is brief but urgent:
"I need all employee W-2 forms for an urgent meeting with the accountant. Send them ASAP—I'm swamped today."
The request feels entirely normal. Given the tax season rush, its urgency and tone appear genuine.
Trusting this, your employee forwards the W-2s.
But the truth? The email isn't from your CEO at all; it's a cybercriminal using a spoofed sender or deceptive domain.
With those documents, the scammer now has:
• Legal names of your employees
• Social Security numbers
• Home addresses
• Salary details
All the critical data needed to commit identity theft and submit fraudulent tax returns before your team does.
The Aftermath: What Your Employees Face
Victims usually discover the crime when their legitimate tax returns get rejected due to prior fraudulent filings under their Social Security numbers.
Fraudsters have already claimed refunds, leaving your employees entangled with the IRS, credit monitoring, and months of cumbersome identity theft recovery.
Now, multiply this scenario across your entire workforce. Imagine the difficult conversations about breached personal data caused by a single email mistake.
This is not just a security breach—it erodes trust, creates HR nightmares, risks lawsuits, and damages your company's reputation.
Why This Deceptive Scam Is So Effective
Unlike obvious phishing attempts, this scam initially looks legitimate because:
- Perfect timing: W-2 requests are expected in February, so no suspicion arises.
- Reasonable demand: It's a genuine tax season request, not a crazy ask for money or gift cards.
- Natural urgency: A busy CEO needing quick info feels authentic and relevant.
- Credible sender: Scammers research your executives and mimic their email addresses or domains.
- Helpful mindset: Employees want to assist their boss promptly, often sidelining caution.
Shielding Your Business: Practical Steps to Prevent the Scam
Here's the good news — you can stop this before it starts by combining simple policies and a vigilant culture.
- Ban emailing W-2s: Establish a strict no-email policy for sending sensitive payroll documents, without exceptions.
- Verify unusual requests: Confirm any sensitive information requests by phone, in person, or through an independent communication channel—not through email replies. Use known contact information.
- Conduct quick awareness sessions: Host a brief tax-season safety meeting now to train payroll and HR teams on recognizing and handling these scams.
- Secure access control: Enforce multi-factor authentication (MFA) on all payroll and HR systems to lock down employee data.
- Promote a verification culture: Encourage and praise employees who double-check requests—even from executives. This active caution helps block scams entirely.
These five simple rules are easy to apply immediately and powerful enough to thwart the initial wave of scams.
Looking Ahead: Protecting Against the Entire Tax Season Threat
The W-2 scam is just the beginning.
From now through April, expect multiple tax-themed attacks, including:
- Fake IRS notices demanding urgent payment
- Phishing emails disguised as tax software updates
- Spoofed emails from "your accountant" containing malicious links
- Fake invoices crafted to appear as legitimate tax expenses
Cybercriminals exploit the season's hustle and distraction, making financial fraud look routine.
Businesses that navigate tax season without incident are those with solid policies, proper training, and vigilant systems.
Is Your Business Prepared?
If your team is informed and policies are active, you're already ahead of most small businesses.
If not, now's the time to act—don't wait for the first scam to strike.
We invite you to schedule a 15-minute Tax Season Security Check where we'll assess:
• Payroll and HR system access controls including MFA
• W-2 document verification procedures
• Email defenses against spoofing attempts
• A key policy adjustment many businesses overlook
Click here or give us a call at (541) 726-7775 to schedule your free 15-Minute Discovery Call.
Because tax season should be busy, not burdensome with identity theft concerns.
