Tax Season Scams: The Early Threat to Small Businesses
- Brett Brumm
- 6 days ago
- 3 min read
It is February, and while your accountant is busy pulling documents and deadlines are approaching, criminals are already launching their first major attacks of the year. For small businesses, the first real tax-season headache usually isn't a complex form—it is a sophisticated scam sitting in your inbox right now.
The W-2 scam shows up long before April because it is easy, believable, and aimed straight at the heart of your operations.
How the W-2 Scam Works
The setup is simple: an employee in your company—usually someone in payroll or HR—receives an email that appears to be from the CEO, owner, or a senior executive. The message is short and carries a sense of urgency: "Hey, I need copies of all employee W-2s for a meeting with the accountant. Can you send them over ASAP? I'm slammed today."
It looks normal, the tone sounds right, and the urgency feels natural during a busy tax season. If the employee sends those W-2s, a criminal now has every staff member’s full legal name, Social Security number, home address, and salary information. This is everything needed to file fraudulent tax returns and steal identities before your employees even have a chance to file their own paperwork.
The Consequences of a Breach
Victims usually find out when their legitimate tax return is rejected by the IRS because someone else has already claimed their refund. For the business owner, this isn't just a security problem; it is a trust problem and a potential legal nightmare. Explaining to your entire team that their personal information was compromised due to a fake email can lead to a significant reputation hit and an HR disaster that lasts for months.
Why This Scam Succeeds
This isn't a generic phishing attempt. It works because:
The Timing is Perfect: W-2 requests are expected in February.
The Request is Reasonable: Sending W-2s to an owner or accountant is a standard task.
The Sender Looks Legitimate: Criminals research your company to spoof addresses or use look-alike domains that appear authentic at a glance.
5 Rules to Protect Your Business
At CETech, we believe in proactive protection. You can stop this scam before it hits by implementing these five simple rules:
No W-2s via Email: Establish a strict policy that W-2s and sensitive payroll documents never leave the building as email attachments. No exceptions.
Verify via a Second Channel: If a sensitive request arrives via email, verify it through a phone call, a text, or an in-person conversation using a known contact number.
Host a Tax-Scam Huddle: Take ten minutes to brief your HR and payroll teams. Awareness is the most cost-effective insurance you can have.
Lock Down Systems with MFA: Multi-factor authentication (MFA) is your last line of defense. If a criminal steals credentials, MFA stops them from accessing the data.
Build a Culture of Verification: Reward employees who double-check requests. When questioning is encouraged, scams have nowhere to hide.
The Bigger Picture
The W-2 scam is only the opening act. Between now and April, expect a flood of fake IRS notices, phishing emails disguised as software updates, and fraudulent invoices. Businesses that get through tax season safely aren't just lucky; they are prepared with the right policies and systems.
If you aren't sure if your business is ready, now is the time to act. We can help you review your payroll access, MFA settings, and email protections to ensure you are secure.
Contact us to book a 10-minute discovery call and let’s make sure your business stays protected.