February 09, 2026
February is here, and tax season is officially in full swing. Your accountant's schedule is filling up fast, your bookkeeper is busy gathering documents, and your team is focused on W-2s, 1099s, and looming deadlines.
But here's the hidden challenge that no one marks on the calendar: the first major tax season headache often isn't about paperwork—it's a scam targeting small businesses.
This scam arrives early, even before April, because it's straightforward, convincing, and preys on companies just like yours. It may already be lurking in someone's inbox right now.
Understanding the W-2 Scam: The Danger Lurking in Your Inbox
Here's how it unfolds:
A member of your team—often someone in 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 immediately—I'm swamped today."
On the surface, it seems normal. The tone fits, urgency seems justified due to tax season, and the request itself appears legitimate.
Trusting the email, your employee forwards the W-2 forms.
But here's the catch: the email isn't from your CEO—it's from a cybercriminal using a fake sender address or a cleverly disguised look-alike domain.
Now, the scammer has access to every employee's:
• Full legal name
• Social Security number
• Home address
• Salary details
All the sensitive data needed to commit identity theft and file fraudulent tax returns before your employees even have a chance.
What Happens Once the Scam Occurs
Typically, employees discover the fraud when:
Their tax returns are rejected with messages like, "Return already filed for this Social Security number."
Someone else has already filed taxes using their identity and claimed their refunds.
Now, your employee faces dealing with the IRS, monitoring their credit, obtaining identity theft protection, and slogging through months of paperwork—all from a document they unknowingly shared.
Imagine that multiplied across your entire payroll. Then, try explaining to your staff that their private information was exposed due to a simple phishing scam.
This isn't merely a security breach—it's a breach of trust, a human resources crisis, a liability concern, and a hit to your company's reputation.
Why the W-2 Scam is So Effective
This isn't an obvious, clumsy scam—the kind you'd ignore right away.
It succeeds because:
• Perfect Timing: Requests for W-2s are normal in February, so no one questions the timing.
• Reasonable Request: It's not an outrageous demand like wiring money or buying gift cards. It's something typical in tax season.
• Authentic Urgency: A simple "I'm swamped, please send this quickly" feels genuine in a hectic office.
• Legitimate-Looking Sender: Scammers do their homework, mimicking executives or accountants you know.
• Helpful Employees: People want to assist their bosses, often skipping verification out of urgency.
Practical Steps to Protect Your Business Before an Attack Happens
The best part? You can stop this scam before it strikes—using policies and workplace culture, not just expensive technology.
• Establish a clear, no-exceptions rule: never send W-2s or sensitive payroll documents via email. If requested by email, refuse—even if the message seems to come from the CEO.
• Always verify sensitive requests through a separate channel—call, in-person, or official chat—not by replying to the email. Use trusted contact information you already have.
• Hold a brief, 10-minute meeting immediately to raise tax scam awareness among payroll and HR staff. Explain what the scam looks like and how to respond.
• Secure payroll and HR systems with multi-factor authentication (MFA) to prevent unauthorized access—even if credentials are compromised.
• Foster a company culture that praises cautious verification. Employees who double-check suspicious emails shouldn't feel paranoid—they should be commended. This creates an environment where scams struggle to succeed.
Implementing these five straightforward rules can protect your business quickly and effectively.
Looking at the Bigger Tax Season Threat Landscape
The W-2 scam is just the beginning.
Expect a wave of tax-related cyberattacks before April, including:
• Fraudulent IRS notices demanding prompt payment
• Phishing emails disguised as updates for tax software
• Spoofed messages impersonating your accountant with harmful links
• Fake invoices crafted to look like legitimate tax expenses
Cybercriminals exploit the busy tax season when everyone is rushing and sensitive financial requests appear routine.
Companies that navigate tax season without incident aren't lucky—they're prepared with strong policies, ongoing training, and systems that detect suspicious activity before disaster strikes.
Are You Confident Your Business is Protected?
If you've already established robust policies and your team knows how to spot scams, you're ahead of many small businesses.
If not, the right time to act is now—not after a costly breach.
Schedule a free, 15-minute Tax Season Security Check to assess your defenses.
We'll review key areas including:
• Payroll and HR system security and MFA
• Your protocols for verifying W-2 requests
• Email safeguards against spoofing
• Critical policy updates most businesses overlook
And if you're already secure, consider sharing this information with another business owner who could benefit.
Click here or give us a call at 507-718-4288 to schedule your free 15-Minute Call.
Because tax season is stressful enough without the added crisis of identity theft.
