March 10, 2025
As tax season approaches, businesses are busy preparing financial documents, filing returns, and meeting tight deadlines. Unfortunately, this hectic time presents an ideal opportunity for cybercriminals to strike while business owners and employees are preoccupied.
Hackers often seek to exploit sensitive data, scam businesses, and create chaos. 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
During tax season, sensitive financial and personal information is shared both within organizations and with external parties like accountants or payroll providers. This creates multiple vulnerabilities for hackers, particularly through phishing emails.
2. Tight Deadlines Lead To Mistakes
The pressure to meet deadlines can cause employees to be less vigilant about verifying emails, links, or file attachments, making it easier for phishing scams and malware to penetrate.
3. Higher Volume Of E-mails
Businesses deal with a large volume of emails related to forms, payment requests, and compliance updates during tax season. Cybercriminals exploit this by sending convincing phishing emails that appear legitimate to capture sensitive data.
4. Widespread Scams Targeting Taxpayers
Hackers frequently impersonate trusted entities like the IRS or tax preparation services to deceive businesses into providing confidential information or making fraudulent payments.
Common Tax Season Threats You Need To Watch Out For
- Phishing E-mails: Fraudulent messages posing as the IRS, your bookkeeper, or a tax service requesting sensitive information or directing you to malicious links.
- Fake Invoices Or Payment Requests: Scammers send counterfeit invoices or payment demands to trick businesses into transferring money.
- Ransomware Attacks: Hackers may encrypt critical financial data and demand payment to unlock it.
- 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 the latest scams and how to identify 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. Use secure portals or file-sharing tools instead of email whenever possible.
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 credentials are compromised.
The importance of this feature cannot be overstated. If your password is compromised, MFA can help protect you. If it's available on any of your accounts, please enable it.
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 large sums or sensitive accounts. Confirm their authenticity through a secondary communication method, such as a phone call.
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 protect your business from becoming a victim.
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