Here are some FAQs about protecting yourself from theft of W-2 information.

What is social engineering?

Social engineering is a technique used by malicious actors to exploit human error, often in an effort to gain access to sensitive information, such as the information included in a W-2.  

How does social engineering work?

Malicious actors work to identify – generally by searching publicly available information on the internet – those individuals who are likely to have access to sensitive information, including copies of W-2 forms. Those individuals often include human resources professionals and individuals who assist with the preparation and filing of tax returns, such as certified public accountants. Once the targets are identified, malicious actors “phish” them by emailing them seemingly legitimate requests for information. In the case of a phishing exploit involving W-2s, the target responds as requested by providing copies of W-2 forms, and the malicious actor pulls the information and then electronically files fraudulent tax returns so he or she can steal the tax refunds.

What can be done to prevent a W-2-related exploit? 

Individuals who receive, process, or maintain copies of W-2s must be trained to understand that they are targets for malicious actors, especially during tax season. Organizations must have technology in place sufficient to safeguard copies of W-2s. They should also establish processes to ensure the legitimacy of any request for sensitive information, including copies of W-2s. If a W-2 is to be sent by email, which is not recommended, it should be encrypted or password protected. 

Is a successful W-2 exploit a data breach?

Yes. A W-2 contains “personal information” as defined by all state data breach notification statutes because it includes individuals’ names and Social Security numbers. Documents equivalent to Form W-2 in other countries contain similarly sensitive data.