March 10, 2025
As tax season nears, businesses are busy preparing financial documents, filing returns, and adhering to strict deadlines. Unfortunately, this hectic period offers cybercriminals an ideal opportunity to exploit the distraction of business owners and employees.
Many hackers aim to take advantage of sensitive data, defraud businesses, and sow disorder. In this blog, we will discuss why tax season gives cybercriminals a significant advantage and how you can stay ahead of them.
Why Tax Season Attracts Cybercriminals
1. Increased Exchange Of Sensitive Data
The tax season requires sharing sensitive financial and personal information both within your organization and with external parties like accountants and payroll providers. This creates numerous vulnerabilities for hackers to exploit, particularly through phishing emails.
2. Tight Deadlines Lead To Mistakes
Under the pressure of looming deadlines, employees may become less careful about verifying emails, links, or attachments. This oversight can allow phishing scams and malware to infiltrate the system more easily.
3. Higher Volume Of E-mails
Businesses receive a surge of emails related to forms, payment requests, and compliance updates during tax season. Cybercriminals take advantage of this by sending convincing phishing emails that appear legitimate to capture sensitive information.
4. Widespread Scams Targeting Taxpayers
Hackers often impersonate trusted organizations such as the IRS or tax preparation services to deceive businesses into revealing confidential information or making fraudulent payments.
Common Tax Season Threats You Need To Watch Out For
- Phishing E-mails: Fraudulent communications that appear 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 fake invoices or payment demands to trick businesses into transferring funds.
- Ransomware Attacks: Cybercriminals might encrypt crucial financial data and demand payment for its release.
- Social Engineering: Impersonation through phone calls or emails from accountants, payroll providers, or other trusted contacts to extract information.
How To Protect Your Business This Tax Season
1. Train Your Team
Inform employees about the latest scams and how to identify phishing attempts. Instruct them to:
- Verify email senders before opening attachments or clicking on links.
- Exercise caution with 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 feasible.
3. Implement Multifactor Authentication (MFA)
Enforce 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 provide protection. If available on any of your accounts, be 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. Focus on:
- Updating software and applying necessary patches.
- Securing network endpoints and devices.
- Verifying the integrity of data backups.
5. Verify All Financial Requests
Always double-check payment requests, particularly those involving significant amounts or sensitive accounts. Confirm through a secondary communication method (such as a phone call) to ensure the request's authenticity.
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 victim.
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 15-Minute Discovery Call to uncover potential vulnerabilities and
ensure your systems are ready to handle whatever comes your way.
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