March 10, 2025
As tax season approaches, businesses are busy preparing financial documents, filing returns, and meeting tight deadlines. Unfortunately, this hectic period presents an opportunity for cybercriminals, who target business owners and employees distracted by their workload.
Many hackers seek to exploit sensitive data, scam businesses, and create disruption. In this blog, we will discuss why tax season is particularly advantageous for cybercriminals and how you can stay ahead of them.
Why Tax Season Attracts Cybercriminals
1. Increased Exchange Of Sensitive Data
During tax season, sensitive financial and personal information is shared both internally and externally, such as with accountants or payroll providers. This creates various vulnerabilities for hackers to exploit, especially through deceptive emails.
2. Tight Deadlines Lead To Mistakes
With the pressure of looming deadlines, employees may overlook the need to verify emails, links, or file attachments. This can make it easier for phishing scams and malware to infiltrate systems.
3. Higher Volume Of E-mails
Businesses receive a surge of emails regarding forms, payment requests, and compliance updates during tax season. Cybercriminals take advantage of this by sending convincing phishing emails that appear legitimate, aiming to intercept sensitive data.
4. Widespread Scams Targeting Taxpayers
Hackers frequently impersonate trusted organizations like the IRS or tax preparation services to deceive businesses into sharing confidential information or making fraudulent payments.
Common Tax Season Threats You Need To Watch Out For
- Phishing E-mails: Fraudulent messages pretending to be from the IRS, your bookkeeper, or a tax service, soliciting sensitive information or directing you to harmful links.
- Fake Invoices Or Payment Requests: Scammers may send deceptive invoices or payment demands to trick businesses into wiring money.
- Ransomware Attacks: Hackers can encrypt critical financial data and demand payment for its release.
- Social Engineering: Phone calls or emails impersonating 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 identify phishing attempts. Instruct them to:
- Verify email senders before opening attachments or clicking links.
- Be wary 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)
Require MFA for accessing financial systems, email accounts, and any platforms used for tax-related activities. This adds an extra layer of security, even if credentials are compromised. The importance of this feature cannot be overstated; if your password is compromised, MFA can provide vital protection. If available, please enable it on any relevant accounts.
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:
- Updating software and applying patches.
- Securing network endpoints and devices.
- Verifying the integrity of data backups.
5. Verify All Financial Requests
Double-check payment requests, especially those involving large amounts or sensitive accounts. Confirm via an alternative communication method (e.g., 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 against 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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