With the beginning of the 2016 tax season, employers should be on high alert for the wave of W-2 spear phishing scams coming their way once again this year. Companies that fall victim to this type of scam likely will be faced with the unauthorized disclosure of their employees’ W-2 information, which can result in a host of legal obligations, potential fraudulent tax returns filed in the names of their employees, a decrease in employee confidence and morale, as well as potential class actions.

What Are Spear Phishing Scams? -

This time last year, HR and payroll professionals across the country received spoofed e-mails designed to look like they were being sent by company executives who were asking for payroll data. These spoofed e-mails were typically framed as a request for W-2 forms, which contained social security numbers and other sensitive personal information. The fraudsters then used the information to submit false 2015 tax returns in order to steal tax refunds.