February 09, 2026
It's February, and tax season is in full swing. Accountants are busier than ever, bookkeepers are gathering documents, and everyone is focused on W-2s, 1099s, and looming deadlines.
But here's a critical point that no calendar notes: the first real challenge of tax season often isn't a complicated form, but a clever scam.
One particular scam appears early, sometimes before April, and targets small businesses with a convincing and straightforward approach—you might already have the scam email sitting in an employee's inbox.
The W-2 Scam Decoded: What You Need to Know
The scam starts like this:
An employee handling payroll or HR receives an email that seems to come from the CEO, owner, or a top executive.
The message is brief but urgent:
"Hi, I need copies of all employee W-2s for a meeting with the accountant. Please send them ASAP—I'm swamped today."
The email sounds normal, the urgency fits the busy tax season, and the request seems perfectly reasonable.
Trusting the message, the employee sends over the W-2 forms.
But here's the catch: the email did not actually come from the CEO. Instead, it's from a cybercriminal using a spoofed sender address or a fake domain.
Now, this criminal has access to every employee's:
• Full legal name
• Social Security number
• Home address
• Salary details
All the data needed to commit identity theft and file fraudulent tax returns before your employees even file theirs.
Unfolding Consequences: What Happens After the Scam
Typically, victims learn about the scam when:
The 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 submitted a tax return in their name, claimed their refund, and collected the money.
The employee now faces ongoing battles with the IRS, credit monitoring, identity theft protection services, and months of complicated paperwork—all triggered by an email they never should have trusted.
Multiply this risk across your entire payroll, and imagine having to explain to your team how their personal info was compromised due to a fraudulent email.
This isn't just a security breach; it's a breakdown of trust, an HR crisis, a legal risk, and a potential blow to your company's reputation.
Why the W-2 Scam Is So Effective
This scam isn't like obvious phishing attempts.
It succeeds because:
• The timing is flawless. W-2 requests are common in February, so no one questions why they come now.
• The request sounds legitimate. It's not a bizarre demand like "wire $50,000." Instead, it's a typical tax-season document request.
• The urgency feels natural. A message saying "I'm slammed today, can you send this quickly?" fits a busy office vibe.
• The sender appears authentic. Cybercriminals research your leaders and accountants, crafting emails that look genuine.
• Employees want to be helpful and responsive, especially to senior staff, so they often overlook verification steps.
Proven Strategies to Protect Your Business Now
The encouraging news: this scam is avoidable with the right policies and workplace culture—even more than with just technology.
Implement a strict "no W-2s via email" policy. No exceptions. Sensitive payroll data should never leave your office via email attachments. If anyone requests them by email, respond with a firm "no," even if the message appears to come from the CEO.
Require verification of all sensitive requests through a secondary channel—whether a phone call, face-to-face conversation, or internal chat message. Don't reply directly to the email; use contact info you already have on file. Just 30 seconds can save months of damage control.
Hold a brief, 10-minute tax-scam awareness meeting immediately. Educate your payroll and HR teams about impending threat spikes, what scam emails look like, and how to respond. Awareness acts as affordable, powerful insurance.
Secure your payroll and HR systems with multi-factor authentication (MFA) wherever employee data is accessed. Even if login info is compromised, MFA is your last line of defense.
Encourage a culture where verifying suspicious requests is the norm, not a burden. Employees who double-check a CEO's request should be applauded for their vigilance, not treated as paranoid. With this mindset, scams find no foothold.
Follow these five practical rules now. They're easy to put in place this week and strong enough to block the first wave of scams.
Looking Beyond the W-2 Scam
The W-2 scam is only the beginning.
From now until April, anticipate a surge in tax-related threats such as:
• Fraudulent IRS notices demanding immediate payment
• Phishing campaigns disguised as tax software updates
• Spoofed emails posing as your accountant with malicious links
• Fake invoices timed like legitimate tax expenses
Tax season is a favorite period for criminals because everyone's busy and financial requests seem routine.
Companies that get through tax season without incident aren't lucky—they're prepared.
They have clear policies, staff training, and safeguards that intercept fraudulent requests before they develop into costly disasters.
Is Your Business Fully Prepared?
If your policies are strong and your team is alert, you're ahead of most small businesses.
If not, now is the perfect moment to act—before the first scam strikes.
Consider booking a 15-minute Tax Season Security Check with us.
We will review:
• Payroll and HR access controls and MFA
• W-2 document verification procedures
• Email filtering measures to catch spoofing attempts
• Critical policy updates often overlooked by businesses
If you feel confident in your setup, that's fantastic. But chances are you know another business owner who could use this guidance. Please share this article with them—it might save them from a costly crisis.
Click here or give us a call at 907-865-3100 to schedule your free Discovery Call.
Because tax season is stressful enough—avoid adding identity theft to the mix.
