Three questions to start:
- Are your payroll and HR teams already pulling tax documents?
- Are W-2s, 1099s, and deadlines moving faster than usual?
- Do you assume the real tax season risk starts closer to April?
For many small businesses, the first tax season problem is not a form or a filing deadline.
It is a scam.
And there is one that shows up early every year, quietly and convincingly, aimed directly at small businesses and accounting workflows. Chances are it is already sitting in someone’s inbox.
A February Scenario That Plays Out Every Year
February is busy. Accountants are requesting documentation. Bookkeepers are reconciling numbers. Executives are juggling deadlines and meetings.
At one small business, an HR coordinator received a short email from what appeared to be the CEO. The message asked for copies of employee W-2s ahead of a meeting with the accountant. The tone felt normal. The timing made sense. Nothing about it felt suspicious.
So she sent the files.
The email was not from the CEO.
Weeks later, employees began receiving IRS notices stating tax returns had already been filed using their Social Security numbers. Refunds were gone. Identity theft protection became necessary. What started as a routine tax request became an HR, security, and trust crisis.
This is how the W-2 scam works.
How the W-2 Scam Works
This attack is simple and highly effective.
An employee in payroll or HR receives an email that appears to come from a senior executive, often the CEO or business owner. The message is short, urgent, and believable.
It usually sounds like this:
“I need copies of all employee W-2s for a quick review with the accountant. Can you send them over ASAP? I’m tied up today.”
The employee complies.
What they do not realize is that the email came from a spoofed address or a look alike domain controlled by a criminal.
At that moment, the attacker gains access to full employee names, Social Security numbers, home addresses, and salary information. Everything needed for identity theft and fraudulent tax filings.
This is why small businesses, and especially those working closely with accountants and finance teams, are frequent targets during tax season.
What Happens After the Data Is Stolen
Most businesses do not discover the issue immediately.
They find out when employees attempt to file their tax returns and receive a rejection stating a return has already been submitted under their Social Security number. The refund is already gone.
Now imagine explaining to your team that their personal data was exposed because of a single email.
This is not just a cybersecurity issue. It becomes an HR problem, a trust issue, and potentially a legal and reputational one. For businesses in finance and accounting, it can also undermine client confidence.
Why This Scam Works So Well
The W-2 scam succeeds because it blends seamlessly into normal business operations.
- The timing feels expected
February is when W-2s are discussed and shared. The request does not raise suspicion. - The request feels legitimate
This is not a wire transfer or gift card request. It is something that genuinely happens during tax season. - The urgency feels normal
Executives are busy. Quick requests are common and rarely questioned. - The sender looks authentic
Attackers research leadership names, job titles, and even accounting partners to make emails feel real. - Employees want to be helpful
Especially when the request appears to come from leadership.This is not a technology failure. It is a human trust exploit.
How to Protect Your Business Before This Happens
The good news is that this scam is highly preventable. It does not require expensive tools or complicated systems.
1. Create a strict no W-2s via email rule
Sensitive payroll documents should never be sent as email attachments. No exceptions, even if the request appears to come from the CEO.
Why it matters
Clear rules eliminate judgment calls under pressure.
2. Verify sensitive requests using a second channel
Any request involving payroll or employee data should be verified by phone, chat, or in person using known contact information.
Why it matters
A quick verification can prevent months of damage.
3. Hold a short tax season awareness huddle
Spend ten minutes reminding payroll, HR, and finance teams that tax scams spike early and what to watch for.
Why it matters
Awareness is one of the most effective security controls.
4. Lock down payroll and HR systems with MFA
Multi factor authentication should be enabled anywhere employee or financial data lives.
Why it matters
MFA often stops attackers even when credentials are compromised. This is a core component of a strong managed cybersecurity strategy.
5. Make verification part of your culture
Employees should feel encouraged, not embarrassed, for double checking requests from leadership or accountants.
Why it matters
When verification is rewarded, scams have nowhere to hide.
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We are an Award-winning IT Provider and Comprehensive IT Solutions in San Francisco, San Jose, and throughout the Bay Area.
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The Bigger Tax Season Threat Landscape
The W-2 scam is only the beginning.
Between now and April, businesses should expect fake IRS notices, phishing emails disguised as tax software updates, spoofed messages from accountants, and fraudulent invoices timed to look like tax expenses.
Tax season creates urgency and distraction. Criminals rely on both.
This is especially true for accounting and finance focused organizations where sensitive data, compliance, and deadlines overlap. TruAdvantage works closely with these firms to build secure and compliant IT environments that protect both internal operations and client trust.
Is Your Business Ready for Tax Season?
If your policies are clear, your team knows what to look for, and your systems are secured, you are ahead of most small businesses.
If not, now is the right time to act, before the first scam hits.
TruAdvantage offers a short Tax Season Security Check designed for small businesses. In a brief session, we review payroll access, verification practices, email protections, and the one policy most organizations overlook.
If you already have this covered, great. But chances are you know another business owner, CFO, or accounting leader who does not.
Share this article with them. It could save their team from a very expensive headache.
Book Your Free Consultation Now
Tax season is stressful enough without identity theft on top of it.
Iman Oskoorouchi Iman Oskoorouchi, President and Co-founder of TruAdvantage, studied Electrical Engineering at UC Davis and holds multiple IT certifications. With over two decades of experience helping Bay Area and California businesses and healthcare practices navigate digital transformation, Iman is known for his personal touch and deep industry expertise. He believes technology should serve people first, then systems, combining technical insight with a human-centered approach to build secure and efficient IT environments. A lifelong learner inspired by books like The Untethered Soul and The 5AM Club, he finds balance in backcountry skiing, philosophy, and Thai green curry.
President, Co-Founder
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