Tax season hasn’t even peaked yet — and already, small businesses across East Tennessee are facing one of the most damaging and preventable cyber scams of the year.
It doesn’t start with ransomware.
It doesn’t start with malware.
It starts with a simple email.
And it’s hitting payroll and HR teams right now.
What Is the W-2 Email Scam?
The W-2 scam is a targeted phishing attack aimed directly at small businesses during tax season.
Here’s how it typically works:
An employee — often in payroll, HR, or accounting — receives an email that appears to come from the CEO, owner, or senior executive.
The message is short. Urgent. Familiar.
“Hey, can you send me copies of all employee W-2s for a meeting with the accountant? I’m slammed today — need them ASAP.”
Everything about the request feels normal.
It’s February. W-2s are expected. The urgency makes sense.
So the employee sends them.
Except the email wasn’t legitimate.
What Happens When the Scam Works
Once those W-2s are sent, the damage is immediate and severe.
The attacker now has:
- Full legal names
- Social Security numbers
- Home addresses
- Salary information
Everything needed for identity theft and fraudulent tax filings.
Most businesses don’t realize what happened until employees’ tax returns are rejected because someone already filed using their information.
At that point:
- Employees are dealing with the IRS for months
- Credit monitoring becomes necessary
- Trust inside the company is damaged
- Legal and HR exposure increases
- Leadership is forced into crisis mode
This isn’t just a cybersecurity issue.
It’s an employee trust crisis.
Why This Scam Works So Well
The W-2 scam succeeds because it exploits human behavior — not technical flaws.
It works because:
- The timing is perfect (February–March)
- The request is reasonable
- The urgency feels normal
- The sender looks legitimate
- Employees want to be helpful
Attackers research your business. They know names. They know titles. Sometimes they even reference your accountant.
This is social engineering — and it works frighteningly well.
How East Tennessee Businesses Can Stop the W-2 Scam
The good news? This scam is highly preventable.
Here are five steps every business should implement immediately:
- Create a “No W-2s via Email” Policy
W-2s and payroll documents should never be sent as email attachments — no exceptions.
- Require Second-Channel Verification
Any sensitive request must be verified by phone, in person, or internal chat — using known contact information.
- Train Payroll & HR Teams Now
A 10-minute awareness conversation today prevents months of damage later.
- Lock Down Payroll Systems
Enable multi-factor authentication on payroll, HR, and accounting platforms.
- Reward Verification Culture
Employees who double-check executive requests should be praised — not questioned.
The Bigger Tax-Season Threat Landscape
The W-2 scam is only the beginning.
During tax season, businesses should also expect:
- Fake IRS payment notices
- Spoofed emails from “your accountant”
- Phony tax software updates
- Fraudulent invoices disguised as tax expenses
Cybercriminals love tax season because everyone is busy and distracted.
Prepared businesses don’t survive tax season by luck — they survive it by policy, training, and prevention.
Is Your Business Ready?
If you’re not sure your policies, email security, and payroll systems are ready for tax-season scams, now is the time to check — not after someone gets hit.
👉 Book a 10-minute discovery call
We’ll quickly review:
- Payroll and HR access controls
- MFA coverage
- Email spoofing protection
- The one policy most businesses are missing
Because tax season is stressful enough without identity theft added to it.
