February 08, 2026
It's February, and tax season is in full swing. Accountants are busier than ever, bookkeepers are gathering documents, and everyone's focused on W-2s, 1099s, and looming deadlines.
But what no one marks on their calendar is this: the biggest headache during tax season often isn't a form—it's a scam.
One scam, in particular, strikes early because it's simple, believable, and targets small businesses. It could already be lurking in an employee's inbox.
The W-2 Scam Explained: The Danger You Need to Know
Here's how the scam unfolds:
An employee responsible for payroll or HR receives an email that appears to come from the CEO, owner, or senior executive.
The message is brief and urgent:
"Hey, I need copies of all employee W-2s for a meeting with the accountant. Can you send them over ASAP? I'm swamped today."
The tone is casual but urgent, perfectly mimicking the busy vibe typical of tax season. The request feels completely reasonable.
So, your employee complies and sends the W-2s.
But here's the catch: the email isn't from the CEO. It's a cybercriminal using a spoofed address or a cleverly disguised domain.
Now, the scammer has access to every employee's:
• Full legal name
• Social Security number
• Home address
• Salary details
All the information needed for identity theft—and to file fraudulent tax returns before your employees can.
The Aftermath: What Victims Face
Typically, victims realize something's wrong when they file their tax return and it's rejected with a message like, "Return already filed for this Social Security number."
It means someone else already filed under their name and claimed the refund.
Your employee now faces dealing with the IRS, monitoring credit, securing identity theft protection, and slogging through months of paperwork for a mistake sparked by a fake email.
Imagine this happening across your entire payroll. The breach isn't just a security failure—it's a breach of trust, a major HR crisis, a legal risk, and a damaging blow to your company's reputation.
Why This Scam Is So Convincing
This isn't a spammy or obviously fake message. Here's why it works:
Timing is spot-on. It's normal to request W-2s in February, so no one questions it.
The ask seems reasonable—it's not demanding money or gift cards, but actual tax season documents.
The urgency sounds natural, matching the hectic pace of tax season.
The sender appears legitimate because scammers do their homework to mimic real executives or accountants.
Employees want to be helpful—especially when a request seems to come from the boss.
Proven Steps to Shield Your Business Now
The best part? You can stop this scam before it causes damage. It requires a combination of clear policies and a security-first culture—not just technology.
Create a strict "no W-2s sent via email" rule. No exceptions. Sensitive payroll documents like W-2s should never leave your company through email attachments. If anyone requests them via email—even if the message looks like it's from the CEO—the answer must be "no."
Always verify sensitive requests through a separate channel—call, in-person chat, or an independent number you have on file. Don't reply to emails directly. This quick step takes just seconds but saves months of cleanup.
Hold a brief tax-scam awareness meeting with your payroll and HR teams immediately. Don't wait—arm them with knowledge about these scams before they arise. Awareness acts as inexpensive yet effective insurance.
Secure payroll and HR systems with multi-factor authentication (MFA). If credentials are phished, MFA acts as an essential final barrier.
Encourage a culture where verifying requests is celebrated, not criticized. An employee who double-checks a "CEO" request should be praised for vigilance—creating an environment where scams can't thrive.
These five simple but powerful rules can be implemented in a week to stop the initial wave of scams.
Seeing the Larger Threat Landscape
The W-2 scam is just the beginning.
Between now and April, expect numerous tax-related attacks, including:
• Fake IRS notices demanding immediate payment
• Phishing emails disguised as tax software updates
• Spoofed messages from "your accountant" containing harmful links
• Fraudulent invoices disguised as tax expenses
Tax season provides ideal cover for scammers because everyone's busy and expecting legitimate financial requests.
Businesses that navigate tax season unscathed aren't lucky—they're prepared with policies, training, and systems designed to spot suspicious requests before they escalate.
Are You Prepared to Protect Your Business?
If your policies and team are already ready for these scams, you're ahead of most small businesses.
If not, now is the crucial time to act—not after the first breach.
To help, schedule a 15-minute Tax Season Security Check.
We will review:
• Payroll and HR access with MFA
• Your current W-2 verification procedures
• Email defenses that block spoofing attempts
• Key policy adjustments many businesses overlook
And if this doesn't sound like your situation, share this article with a business owner who might benefit—it could spare them a costly headache.
Click here or give us a call at 1300 136 410 to schedule your free 15-Minute Discovery Call.
Because tax season is stressful enough without falling victim to identity theft.
