As tax season approaches, businesses are busy compiling financial records, filing returns, and meeting strict deadlines. Unfortunately, cybercriminals see this busy season as a prime opportunity to strike, taking advantage of distracted employees and the increased exchange of sensitive data.
Hackers are constantly seeking ways to exploit confidential information, launch scams, and disrupt operations. In this article, we’ll explore why tax season is a goldmine for cybercriminals and how you can safeguard your business against their tactics.
Why Tax Season Puts Businesses at Risk
1. Increased Exchange of Sensitive Information
Tax season requires the frequent sharing of confidential financial and personal data, both internally and with external entities like accountants and payroll providers. This creates multiple points of vulnerability that hackers can exploit, often through fraudulent emails and phishing attacks.
2. Tight Deadlines Lead to Costly Mistakes
With the pressure to meet tax deadlines, employees may be less cautious about scrutinizing emails, links, and file attachments. This slip of vigilance makes it easier for cybercriminals to deploy phishing scams and malware.
3. Higher Volume of Emails Create Opportunities for Fraud
During tax season, businesses handle an influx of emails related to financial transactions, tax forms, and compliance updates. Hackers capitalize on this by sending convincing phishing emails designed to steal credentials or infect systems with malware.
4. Tax Scams are Widespread and Deceptive
Cybercriminals frequently impersonate trusted entities such as the IRS, tax preparation services, and financial institutions to deceive businesses into sharing confidential data or making fraudulent payments.
Top Tax Season Cyber Threats to Watch For
- Phishing Emails: Fraudulent messages posing as the IRS, bookkeepers, or tax services requesting sensitive information or directing recipients to malicious links.
- Fake Invoices and Payment Requests: Scammers send counterfeit invoices, or urgent payment demands to trick businesses into transferring funds.
- Ransomware Attacks: Cybercriminals encrypt critical financial data and demand payment for its release.
- Social Engineering Attacks: Fraudsters use phone calls or emails to impersonate accountants, payroll providers, or other trusted figures to extract confidential information.
How to Strengthen Your Business’s Cybersecurity This Tax Season
1. Educate Your Team
Ensure employees are aware of the latest tax-season scams and how to recognize phishing attempts. Train them to:
- Verify email senders before opening attachments or clicking links.
- Be cautious of unexpected payment requests or urgent account changes.
- Report suspicious emails and activities immediately.
2. Secure Data Exchanges
Encrypt all communications involving sensitive tax documents. Whenever possible, use secure portals or file-sharing tools instead of email to minimize the risk of data interception.
3. Implement Multifactor Authentication (MFA)
Require MFA for access to all financial systems, email accounts, and platforms used for tax-related transactions. This extra layer of security helps prevent unauthorized access, even if login credentials are compromised.
We cannot stress the importance of this feature enough. If your password is compromised, this can help save you. If it’s an available feature on any account you have, please set it up.
4. Conduct a Cybersecurity Audit
Partner with your IT provider to assess vulnerabilities before cybercriminals can exploit them. Key areas to focus on include:
- Updating software and applying security patches.
- Securing network endpoints and devices.
- Verifying the integrity of data backups to prevent ransomware damage.
5. Verify All Financial Transactions
Before processing any financial request, especially those involving large sums, confirm the request’s legitimacy through a second communication method, such as a direct phone call.
Stay Ahead of Cybercriminals This Tax Season
Tax season doesn’t have to mean open season for hackers. By staying vigilant, educating employees, and implementing proactive cybersecurity measures, you can keep your business secure and prevent costly cyber incidents.
Make sure the only thing you’re filing this season is a successful tax return—not a cybersecurity breach report. Take the first step by scheduling a FREE Network Assessment today to identify potential vulnerabilities and strengthen your defenses.
Click here or call (281) 646-1200 to schedule your FREE Network Assessment now!
