March 10, 2025
As tax season approaches, businesses are busy preparing financial documents, filing returns, and meeting tight deadlines. This hectic period attracts cybercriminals who see an opportunity to exploit the distraction of business owners and employees.
Hackers are constantly searching for ways to access sensitive data, defraud businesses, and create turmoil. In this blog, we will discuss why tax season presents a significant opportunity for cybercriminals 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 internally and with external parties like 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 details when checking emails, links, or attachments. This can make it easier for phishing scams and malware to go unnoticed.
3. Higher Volume Of E-mails
During tax season, businesses deal with a surge of emails concerning forms, payment requests, and compliance updates. Cybercriminals take advantage of this by sending convincing phishing emails that appear legitimate to capture sensitive information.
4. Widespread Scams Targeting Taxpayers
Hackers frequently impersonate trusted organizations, such as the IRS or tax preparation services, to deceive businesses into providing 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 may send bogus invoices or payment demands to trick businesses into transferring money.
- Ransomware Attacks: Hackers can encrypt critical financial data and demand payment for its release.
- 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 about the latest scams and how to identify phishing attempts. Encourage 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, particularly when sharing sensitive tax documents. Utilize 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. If MFA is available for any of your accounts, it is crucial to enable it.
4. Conduct A Cybersecurity Audit
Collaborate with your IT provider to identify vulnerabilities in your systems before hackers can take advantage. 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 amounts or sensitive accounts. Confirm 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.
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