March 10, 2025
As tax season approaches, businesses are busy preparing financial documents, filing returns, and meeting strict deadlines. Unfortunately, this hectic period presents an ideal opportunity for cybercriminals, who target distracted business owners and employees.
Many hackers aim 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 numerous vulnerabilities for hackers to exploit, especially through fraudulent emails.
2. Tight Deadlines Lead To Mistakes
The pressure to meet deadlines can cause employees to be less careful about verifying emails, links, or attachments. This oversight makes it easier for phishing scams and malware to infiltrate systems.
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 seem legitimate, aiming to intercept sensitive information.
4. Widespread Scams Targeting Taxpayers
Hackers often 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 that appear 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 money.
- Ransomware Attacks: Hackers may encrypt critical financial data and demand a ransom to restore access.
- Social Engineering: Phone calls or emails that impersonate accountants, payroll providers, or other trusted contacts to extract information.
How To Protect Your Business This Tax Season
1. Train Your Team
Educate employees on the latest scams and how to recognize phishing attempts. Instruct them to:
- Verify email senders before opening attachments or clicking links.
- Be cautious of urgent payment requests or unusual account changes.
- Report suspicious emails immediately.
2. Secure Your Communications
Ensure that all data exchanges are encrypted, especially when sharing sensitive tax documents. Use secure portals or file-sharing tools instead of email whenever feasible.
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 significance of this feature cannot be overstated. If your password is compromised, MFA can help protect you. If available on any account, 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 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 sums or sensitive accounts. Confirm legitimacy through a second 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 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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