Cybercriminals Love Tax Season – Here’s How To Protect Your Business
As tax season approaches, businesses are busy preparing financial documents, filing returns, and racing to meet tight deadlines. Unfortunately, cybercriminals view this time of year—when business owners and employees are distracted and overwhelmed—as the perfect opportunity to strike.
Hackers often target sensitive data, attempt scams, and create chaos. In today’s blog, we’ll explore why tax season gives cybercriminals an advantage and how you can stay one step ahead of them.
Why Tax Season Attracts Cybercriminals
1. Increased Exchange of Sensitive Data
Tax season involves sharing highly sensitive financial and personal information, both within your organization and with third parties like accountants or payroll providers. This creates numerous vulnerabilities that hackers can exploit, especially through phishing attacks.
2. Tight Deadlines Lead to Mistakes
The pressure of meeting deadlines can cause employees to overlook important details like email senders, suspicious links, or file attachments. This makes it easier for phishing scams and malware to slip through undetected.
3. Higher Volume of Emails
During tax season, businesses receive a flood of emails related to forms, payment requests, and compliance updates. Cybercriminals capitalize on this high volume by sending convincing phishing emails that look legitimate in an attempt to intercept sensitive data.
4. Widespread Scams Targeting Taxpayers
Hackers often impersonate trusted entities such as the IRS or tax preparation services to trick businesses into divulging confidential information or making fraudulent payments.
Common Tax Season Threats You Need to Watch Out For
- Phishing Emails: Fraudulent emails that claim to be from the IRS, your bookkeeper, or tax services, asking for sensitive information or directing you to malicious links.
- Fake Invoices or Payment Requests: Scammers send fake invoices or payment demands to trick businesses into transferring money.
- Ransomware Attacks: Hackers may encrypt critical financial data and demand payment to release it.
- Social Engineering: Scammers impersonate accountants, payroll providers, or other trusted contacts to extract confidential information.
How to Protect Your Business This Tax Season
1. Train Your Team
Educate your employees about the latest scams and how to recognize phishing attempts. Make sure they understand how to:
- Verify email senders before opening attachments or clicking on links.
- Be cautious about 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 accessing financial systems, email accounts, and platforms used for tax-related activities. This extra layer of security adds protection, even if your login credentials are compromised.
Pro Tip: MFA is a critical security feature. If available on any of your accounts, enable it as an additional safeguard.
4. Conduct a Cybersecurity Audit
Work with your IT provider to identify and fix 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 your data backups.
5. Verify All Financial Requests
Double-check all payment requests, particularly those involving large sums or sensitive accounts. Always confirm requests through a secondary communication method (e.g., phone calls) to ensure their legitimacy.
Don’t Let Hackers Score This Tax Season
Tax season doesn’t have to be open season for hackers. By staying vigilant, educating your team, and implementing proactive cybersecurity measures, you can protect your business from falling victim to cyber threats.
Let’s ensure that the only thing you’re filing this season is a successful tax return—without an added cybersecurity incident report. Start with a FREE Network Assessment to uncover potential vulnerabilities and ensure your systems are secure.
