March 10, 2025
As tax season approaches, businesses are busy preparing financial documents, filing returns, and meeting tight deadlines. This hectic period presents an opportunity for cybercriminals, who target preoccupied business owners and employees.
Many hackers aim to exploit sensitive data, defraud businesses, and create disruption. In this blog, we will discuss why tax season is advantageous for cybercriminals and how you can stay ahead of their tactics.
Why Tax Season Attracts Cybercriminals
1. Increased Exchange Of Sensitive Data
Tax season requires sharing sensitive financial and personal information within organizations and with external parties, such as accountants and payroll providers. This creates multiple vulnerabilities that hackers can exploit, particularly through phishing emails.
2. Tight Deadlines Lead To Mistakes
With the pressure of looming deadlines, employees may be less attentive to verifying emails, links, or attachments. This can allow phishing scams and malware to infiltrate systems more easily.
3. Higher Volume Of E-mails
During tax season, businesses deal with a surge of emails related to forms, payment requests, and compliance updates. Cybercriminals take advantage of this by sending convincing phishing emails that seem legitimate to capture sensitive information.
4. Widespread Scams Targeting Taxpayers
Hackers often impersonate trusted organizations, such as 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 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 send counterfeit invoices or payment demands to mislead businesses into transferring money.
- Ransomware Attacks: Hackers may encrypt essential financial data and demand payment to restore access.
- Social Engineering: 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. Teach them to:
- Verify email senders before opening attachments or clicking links.
- Be cautious with urgent payment requests or unusual account updates.
- Report suspicious emails right away.
2. Secure Your Communications
Ensure that 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 additional layer of security, even if credentials are compromised.
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 large amounts or sensitive accounts. Confirm authenticity through a secondary communication method, such as a phone call.
Don't Let Hackers Score This Tax Season
Tax season does not 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. Speak to an Expert to uncover potential vulnerabilities and
ensure your systems are ready to handle whatever comes your way.
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