Tax phishing scheme hooks victims in Texas town famous for its water features

March 17, 2017

Aquarena Springs in San Marcos, Texas, was famous in its heyday, part of which just happened to coincide with my youth, as a wonderful water park. No visit to relatives in nearby San Antonio was complete until we headed to Aquarena to ride in a glass-bottom boat, marvel at the mermaids and cheer Ralph the swimming pig as he made his famous swine dive.

Fish spotted from glass-bottomed boat ride at San Marcos Aquarena Springs

Click fish image for full video view of Aquarena Springs from a glass-bottom boat.

The park is gone, replaced by a water research program under the auspices of Texas State University, or Southwest Texas State as it was known when I was a kid.

But I'm delighted that the school was able to integrate the boats that let you peer down at the fishy inhabitants of the clear spring-fed lake into its scientific mission.

So it's perversely fitting that 803 San Marcos residents — the human, not gill-breathing ones — were caught in a tax phishing scam.

W-2 tax scam nets new victims: The confidential personal and financial information of current and former City of San Marcos employees was compromised on March 13 when a municipal payroll employee sent the data in response to what appeared to be request from the mayor.

In this scam, which has been around for a year or so, tax identity thieves pose as company, or in this case local government, big wigs and send official looking fake messages under that guise. The message from the purported boss asks that the human resources or payroll staffer send back all the firm's (city's) employee data, including the latest W-2 forms.

These tax documents, which contain the workers' addresses and, most importantly, their Social Security numbers, is then used by the cyber crooks to file fake federal returns seeking fraudulent tax refunds.

The San Marcos scam was discovered after some of the unknowingly victimized city employees reported that their efforts to file their taxes was rejected by the Internal Revenue Service. The reason? The IRS told them they had already filed their 1040s.

Filing season resurgence: The IRS issued a warning just as the 2017 tax filing season began about the resurgence of this fake CEO phishing scheme. In that alert, the agency noted that the W-2 seeking scam, which was initially aimed at the corporate sector, had spread to other large institutional targets, such as school districts, tribal organizations and nonprofits.

Last May, the National Basketball Association's Milwaukee Bucks team fell victim to the tax document scam. Yes, the tax data of professional basketball players was stolen.

More recently and closer to San Marcos, crooks posing as the superintendent of the Belton, Texas, school district obtained W-2 forms for around 1,700 of the system's employee.

And in November 2016, the El Paso Times reported that officials of that Texas-Mexico border city sent $3.2 million intended for a city project contractor to fraudulent bank accounts after being duped in a phishing scam.

Given that the W-2 phishing scheme is still out there and apparently still succeeding, be extra careful this filing season. If you get what appears to be a questionable or unusual email from your boss, don't do anything until you check with her or him in person.

The extra scam prevention care — not just during tax filing season, but year round — could save you, your boss and your coworkers a lot of identity theft and tax fraud grief.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
6 tax moves to consider this June

June 3, 2026

Definitely take a break this June. But taxes don’t take vacations. So, you also should…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments