March 10, 2025
As tax season approaches, businesses are busy preparing financial documents, filing returns, and meeting tight deadlines. Unfortunately, cybercriminals view this hectic period as an ideal opportunity to attack, knowing that business owners and employees are preoccupied.
Many hackers aim to exploit sensitive data, scam businesses, and create disruption. In this blog, we will discuss why tax season presents a significant advantage for cybercriminals and how you can stay ahead of them.
Why Tax Season Attracts Cybercriminals
1. Increased Exchange Of Sensitive Data
Tax season requires the sharing of sensitive financial and personal information, both within organizations and with external parties like accountants or payroll providers. This creates multiple vulnerabilities that hackers can exploit, particularly through phishing emails.
2. Tight Deadlines Lead To Mistakes
With the pressure of impending deadlines, employees may become less careful about verifying emails, links, or attachments. This lapse in vigilance can make it easier for phishing scams and malware to infiltrate systems.
3. Higher Volume Of E-mails
During tax season, businesses deal with a surge of emails related to forms, payment requests, and compliance updates. Cybercriminals take advantage of this by sending convincing phishing emails that seem legitimate, aiming to intercept sensitive data.
4. Widespread Scams Targeting Taxpayers
Hackers often impersonate trusted organizations like the IRS or tax preparation services to deceive businesses into disclosing confidential information or making fraudulent payments.
Common Tax Season Threats You Need To Watch Out For
- Phishing E-mails: Fraudulent communications posing as the IRS, your bookkeeper, or a tax service, requesting sensitive information or directing you to harmful links.
- Fake Invoices Or Payment Requests: Scammers may send counterfeit invoices or payment demands to trick businesses into transferring money.
- Ransomware Attacks: Hackers could encrypt essential financial data and demand a ransom for its release.
- Social Engineering: Phone calls or emails pretending to be from accountants, payroll providers, or other trusted contacts to extract information.
How To Protect Your Business This Tax Season
1. Train Your Team
Educate employees about current scams and how to spot phishing attempts. Instruct them to:
- Verify email senders before opening attachments or clicking links.
- Be cautious of urgent payment requests or unusual account updates.
- Report suspicious emails immediately.
2. Secure Your Communications
Ensure that all data exchanges are encrypted, particularly when sharing sensitive tax documents. Utilize secure portals or file-sharing tools instead of email whenever possible.
3. Implement Multifactor Authentication (MFA)
Mandate 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 credentials are compromised. The importance of this feature cannot be overstated; if your password is compromised, MFA can help protect you. Enable it wherever possible.
4. Conduct A Cybersecurity Audit
Collaborate with your IT provider to identify vulnerabilities in your systems before hackers can exploit them. Focus on:
- Updating software and applying patches.
- Securing network endpoints and devices.
- Verifying data backup integrity.
5. Verify All Financial Requests
Double-check payment requests, especially those involving significant sums or sensitive accounts. Confirm through a second communication method (such as a phone call) to ensure authenticity.
Don't Let Hackers Score This Tax Season
Tax season doesn't have to be a target for hackers. By remaining vigilant, educating your team, and implementing proactive cybersecurity measures, you can safeguard your business from becoming a victim.
Let's make sure the only thing you're filing this
season is a successful tax return - not a cybersecurity incident report. Start
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