March 10, 2025
As tax season approaches, businesses are busy preparing financial documents, filing returns, and meeting tight deadlines. Unfortunately, this hectic time presents an ideal opportunity for cybercriminals to strike, as business owners and employees are often preoccupied.
Many hackers aim to exploit sensitive data, scam 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 sharing sensitive financial and personal information, both within your organization and with external parties such as accountants or payroll providers. This creates multiple vulnerabilities for hackers to exploit, particularly through phishing emails.
2. Tight Deadlines Lead To Mistakes
With the pressure to meet deadlines, employees may overlook important details, making them less vigilant about verifying emails, links, or file attachments. This increases the risk of falling for phishing scams and malware attacks.
3. Higher Volume Of E-mails
During tax season, businesses manage a significant influx of emails related to forms, payment requests, and compliance updates. Cybercriminals take advantage of this by sending convincing phishing emails that appear legitimate to capture sensitive data.
4. Widespread Scams Targeting Taxpayers
Hackers often impersonate trusted entities like the IRS or tax preparation services to deceive businesses into revealing 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 harmful 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 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 the latest scams and how to spot phishing attempts. Teach 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
Make sure all data exchanges are encrypted, especially 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 this enough; if your password is compromised, MFA can help protect you. If this feature is available on any of your accounts, please 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 data backup integrity.
5. Verify All Financial Requests
Double-check payment requests, particularly those involving large amounts or sensitive accounts. Confirm through a secondary communication method (e.g., a phone call) to ensure authenticity.
Don't Let Hackers Score This Tax Season
Tax time doesn't have to be a free-for-all for hackers. By staying vigilant, educating your team, and implementing proactive cybersecurity measures, you can protect 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 10-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 608-416-2400 to schedule your FREE 10-Minute Discovery Call now!
