March 10, 2025
As tax season approaches, businesses are busy preparing financial documents, filing returns, and adhering to tight deadlines. Unfortunately, this hectic period presents an ideal opportunity for cybercriminals, who target preoccupied business owners and employees.
Cybercriminals seek to exploit sensitive data, defraud businesses, and create disorder. In this blog, we will discuss why tax season offers cybercriminals a significant advantage 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 within organizations and with external parties like accountants and payroll providers. This creates multiple vulnerabilities for hackers to exploit, particularly through phishing emails.
2. Tight Deadlines Lead To Mistakes
The pressure to meet deadlines can cause employees to overlook the need for careful verification of emails, links, or attachments, making 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 by sending convincing phishing emails that appear legitimate in order to intercept sensitive data.
4. Widespread Scams Targeting Taxpayers
Hackers often impersonate trusted organizations such as 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 messages that claim to be from 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 funds.
- Ransomware Attacks: Hackers may 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 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 extra layer of security, even if credentials are compromised. We cannot emphasize enough how crucial this feature is; if your password is compromised, MFA can be a lifesaver. If it's available on any of your accounts, make sure to 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 the integrity of data backups.
5. Verify All Financial Requests
Double-check payment requests, especially those involving large amounts or sensitive accounts. Confirm using a second 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 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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