March 10, 2025
As tax season approaches, businesses are busy preparing financial documents, filing returns, and meeting tight deadlines. Unfortunately, cybercriminals view this hectic time as an ideal opportunity to strike, taking advantage of the preoccupation of business owners and employees.
Hackers are constantly looking for ways to exploit sensitive data, deceive businesses, and create disruption. In this blog, we will discuss why tax season presents a significant opportunity for cybercriminals and how you can stay ahead of their tactics.
Why Tax Season Attracts Cybercriminals
1. Increased Exchange Of Sensitive Data
During tax season, there is a lot of sharing of sensitive financial and personal information, both within organizations and with external parties like accountants or payroll providers. This creates numerous vulnerabilities for hackers to exploit, particularly through phishing emails.
2. Tight Deadlines Lead To Mistakes
The pressure to meet deadlines can lead employees to be less careful about checking emails, links, or file attachments. This oversight makes it easier for phishing scams and malware to infiltrate systems.
3. Higher Volume Of E-mails
Businesses receive a high volume of emails related to forms, payment requests, and compliance updates during tax season. Cybercriminals take advantage of this by sending convincing phishing emails that seem legitimate to intercept sensitive data.
4. Widespread Scams Targeting Taxpayers
Hackers often impersonate trusted organizations, such as the IRS or tax preparation services, to trick businesses into divulging 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 may send fraudulent invoices or payment demands to trick businesses into transferring money.
- Ransomware Attacks: Cybercriminals might encrypt crucial 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 identify 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. It's crucial to enable this feature wherever possible.
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 data backup integrity.
5. Verify All Financial Requests
Double-check payment requests, especially those involving large sums or sensitive accounts. Confirm through a different communication method (like a phone call) to ensure authenticity.
Don't Let Hackers Score This Tax Season
Tax season doesn't have to be a playground 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 15-Minute Discovery Call to uncover potential vulnerabilities and
ensure your systems are ready to handle whatever comes your way.
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