Tax season is a peak time for phishing attacks, and HR and payroll teams are frequent targets. Scammers know that W-2 forms contain highly sensitive information and that tax-related requests often feel urgent, making it easier to trick well-intentioned employees into responding quickly.
Understanding how these scams work and knowing what to watch for can help prevent costly data breaches and identity theft.
Why W-2 phishing scams are so common
W-2 forms contain Social Security numbers, wage information, and addresses. This data can be used for tax fraud, identity theft, and other financial crimes. During tax season, attackers take advantage of increased activity around payroll and reporting deadlines to make their messages seem legitimate.
HR and payroll staff are often targeted because they have access to employee tax records and are accustomed to handling sensitive requests.
Common W-2 phishing tactics
Some of the most common schemes include:
Executive impersonation
Emails that appear to come from a company executive requesting copies of employee W-2s or payroll data. These messages often use urgency or authority to pressure quick action.
Fake IRS or tax agency messages
Messages claiming to be from the IRS or a state tax authority requesting verification of employee information. The IRS does not initiate contact by email requesting sensitive data.
Spoofed internal requests
Emails that look like they come from another HR or payroll employee asking for tax forms or updates, often using a slightly altered email address.
Attachment or link-based attacks
Messages with attachments or links claiming to contain tax documents or updates that actually install malware or lead to credential theft.
Red flags to watch for
HR professionals should be cautious of:
- Requests for W-2s or employee data sent by email
- Messages that create urgency or threaten consequences
- Requests that bypass normal approval or verification processes
- Slight misspellings in email addresses or unusual sender domains
- Requests made outside normal business channels
Even messages that appear internal should be verified before responding.
Best practices for prevention
To reduce risk during tax season:
- Never send W-2s or employee tax data by email
- Verify requests for sensitive information through a second method such asa phone call
- Limit access to tax documents to only those who need it
- Use secure systems or portals for sharing payroll and tax information
- Remind employees that the IRS does not request sensitive data by email
Regular reminders and refresher training during tax season can help keep security topof mind.
What to do if a suspicious request is received
If an employee receives a suspicious tax-related request, they should not respond or click any links. Instead, the message should be reported to HR or IT immediately so it can be reviewed and blocked if necessary.
Quick reporting can prevent broader exposure and protect employee information.
Staying vigilant during tax season
Phishing attacks tied to W-2s are predictable, persistent, and preventable. A cautious approach, combined with clear internal procedures, can significantly reduce the risk of accidental data disclosure during one of the busiest times of year forHR and payroll teams.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).
This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
