In today’s blog, we’ll explore why cybercriminals target tax season and share how you can protect your business from falling victim.
Why Cybercriminals Target Tax Season
1. Increased Exchange of Sensitive Data
During tax season, businesses share sensitive financial and personal information both internally and with external parties like accountants or payroll providers. This creates several vulnerable points for hackers to exploit, especially through fake emails.
2. Tight Deadlines Lead to Mistakes
Under the pressure of meeting deadlines, employees may not be as diligent about double-checking emails, links, or attachments. This creates an opening for phishing scams and malware to slip past unnoticed.
3. Higher Volume of Emails
Tax season brings a flood of emails related to forms, payments, and compliance updates. Cybercriminals capitalize on this by crafting convincing phishing emails that look legitimate, aiming to intercept sensitive data.
4. Impersonating Trusted Entities
Hackers often impersonate trusted entities like the IRS or tax preparation services to trick businesses into sharing confidential information or making fraudulent payments.
Common Tax Season Threats
- Phishing Emails: Fraudulent messages claiming to be from the IRS, your bookkeeper, or a tax service asking for sensitive info or directing you to malicious links.
- Fake Invoices or Payment Requests: Scammers sending fake invoices or payment demands to trick businesses into transferring money.
- Ransomware: Hackers encrypting critical financial data and demanding a ransom to release it.
- Social Engineering: Phone calls or emails impersonating trusted contacts like accountants or payroll providers to extract sensitive information.
How to Protect Your Business This Tax Season
1. Train Your Team
Make sure your employees are educated on the latest scams and how to recognize 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
Ensure all sensitive tax data is shared securely. Use encrypted portals or file-sharing tools instead of email when possible.
3. Implement Multifactor Authentication (MFA)
Enforce MFA for financial systems, email accounts, and any platforms used during tax season. It adds an extra layer of security if credentials are compromised. This feature can be a lifesaver, so enable it wherever possible.
4. Conduct a Cybersecurity Audit
Work with your IT provider to identify vulnerabilities before hackers exploit them. Focus on:
- Updating software and applying security patches.
- Securing network endpoints and devices.
- Verifying the integrity of your data backups.
5. Verify Financial Requests
Always double-check payment requests, especially large transactions or those invo