March 10, 2025
As tax season approaches, businesses are busy preparing financial documents, filing returns, and meeting strict deadlines. Unfortunately, cybercriminals view this hectic period, when business owners and employees are distracted, as an opportune time to attack.
Many hackers aim to exploit sensitive information, defraud businesses, and create disruption. 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 the sharing of sensitive financial and personal information, both within your organization and with external parties like accountants or payroll providers. This creates numerous vulnerabilities for hackers to exploit, particularly through fraudulent emails.
2. Tight Deadlines Lead To Mistakes
With the pressure to meet deadlines, employees may pay less attention to verifying emails, links, or file attachments. This oversight makes 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, aiming to capture 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 pretending 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 issue fake invoices or payment demands to trick businesses into transferring money.
- Ransomware Attacks: Cybercriminals may encrypt essential 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.
- Exercise caution with 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 provide crucial protection. If it's available for any of your accounts, 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 significant amounts or sensitive accounts. Confirm through a second communication method (such as a phone call) to ensure their authenticity.
Don't Let Hackers Score This Tax Season
Tax season doesn't have to be a target 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 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 (210) 582-5814 to schedule your FREE Discovery Call now!
