Cybercriminals Love Tax Season – Here’s How To Protect Your Business

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 to strike while business owners and employees are distracted.

Many hackers aim to exploit sensitive data, defraud businesses, and create 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

Tax season requires sharing sensitive financial and personal information both internally 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

With the pressure of looming deadlines, employees may become less careful about verifying emails, links, or attachments. This lapse in vigilance makes it easier for phishing scams and malware to infiltrate systems.

3. Higher Volume Of E-mails

During tax season, businesses deal with an influx of emails related to forms, payment requests, and compliance updates. Cybercriminals take advantage of this by crafting 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 disclosing 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 harmful links.

- Fake Invoices Or Payment Requests: Scammers send counterfeit invoices or payment demands to deceive businesses into transferring money.

- Ransomware Attacks: Cybercriminals may encrypt critical financial data and demand payment for its release.

- Social Engineering: Phone calls or emails pretending to be from 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 all data exchanges are encrypted, particularly when sharing sensitive tax documents. Whenever possible, use secure portals or file-sharing tools instead of email.

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. The importance of this feature cannot be overstated. If your password is compromised, MFA can help protect your information. If it's available on any account you have, please 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, particularly those involving large sums or sensitive accounts. Confirm the authenticity 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.

Click here or give us a call at (949) 396-1100 to schedule your FREE 15-Minute Discovery Call now!