March 10, 2025
As tax season nears, businesses are busy preparing financial documents, filing returns, and adhering to strict deadlines. This hectic period presents an ideal opportunity for cybercriminals, who target business owners and employees distracted by their workload.
Hackers are constantly seeking ways to exploit sensitive information, defraud businesses, and sow discord. In this blog, we will explore how tax season gives cybercriminals a significant edge and offer strategies to help you stay ahead of them.
Why Tax Season Attracts Cybercriminals
1. Increased Exchange Of Sensitive Data
The tax season involves a lot of sharing of sensitive financial and personal information, both within companies and with outside parties like accountants or payroll providers. This creates multiple vulnerabilities for hackers, particularly through deceptive emails.
2. Tight Deadlines Lead To Mistakes
With the pressure of looming deadlines, employees may overlook the need to carefully check emails, links, or attachments. This lapse in vigilance makes it easier for phishing scams and malware to infiltrate.
3. Higher Volume Of E-mails
During tax season, businesses receive a surge of emails related to forms, payment requests, and compliance updates. Cybercriminals take advantage of this influx by sending convincing phishing emails that appear legitimate, aiming to capture sensitive information.
4. Widespread Scams Targeting Taxpayers
Hackers frequently impersonate trusted organizations like the IRS or tax preparation services to deceive businesses into divulging confidential information or making fraudulent payments.
Common Tax Season Threats You Need To Watch Out For
- Phishing E-mails: Fraudulent communications that claim to be from the IRS, your bookkeeper, or a tax service, requesting sensitive information or directing you to harmful links.
- Fake Invoices Or Payment Requests: Scammers may issue counterfeit invoices or payment demands to trick businesses into transferring funds.
- Ransomware Attacks: Hackers may encrypt essential financial data and demand a ransom for its release.
- Social Engineering: Impersonation calls or emails from supposed accountants, payroll providers, or other trusted contacts seeking to extract information.
How To Protect Your Business This Tax Season
1. Train Your Team
Educate employees on the latest scams and how to identify phishing attempts. Instruct them to:
- Verify email senders before opening attachments or clicking links.
- Exercise caution with urgent payment requests or unusual account updates.
- Report suspicious emails without delay.
2. Secure Your Communications
Ensure that all data exchanges are encrypted, particularly when sharing sensitive tax documents. Whenever possible, use secure portals or file-sharing tools instead of email.
3. Implement Multifactor Authentication (MFA)
Require MFA for access to financial systems, email accounts, and any platforms used for tax-related activities. This adds an additional layer of security, even if login credentials are compromised.
The importance of this feature cannot be overstated. If your password is compromised, MFA can help protect you. If any of your accounts offer this feature, make sure to enable it.
4. Conduct A Cybersecurity Audit
Collaborate with your IT provider to identify vulnerabilities in your systems before hackers can take advantage of them. Focus on:
- Keeping software updated and applying patches.
- Securing network endpoints and devices.
- Verifying the integrity of data backups.
5. Verify All Financial Requests
Thoroughly check payment requests, particularly those involving significant amounts or sensitive accounts. Confirm the request through a second method of communication (such as a phone call) to ensure its legitimacy.
Don't Let Hackers Score This Tax Season
Tax season doesn't have to be a free-for-all for hackers. By remaining vigilant, educating your team, and implementing proactive cybersecurity measures, you can safeguard your business from becoming a target.
Let's make sure the only thing you're filing this
season is a successful tax return - not a cybersecurity incident report. Start
with a FREE Discovery Call to uncover potential vulnerabilities and
ensure your systems are ready to handle whatever comes your way.
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