Tax season means businesses are busy prepping financial documents, filing returns, and managing deadlines. However, it’s also prime time for cybercriminals who take advantage of the hectic period to target distracted business owners and employees.

Hackers aim to steal sensitive data, scam businesses, and cause disruptions. So in this blog, we’ll explain why tax season is a goldmine for cybercriminals and how you can protect your business and stay ahead of potential threats.

Why Tax Season is a Hotspot for Cybercriminals

1. High Volume of Sensitive Data Sharing

During tax season, there’s a surge in the exchange of sensitive information within companies and with external entities such as accountants or payroll services. This increased flow creates numerous opportunities for cybercriminals to intervene, often using deceptive emails designed to look legitimate.

2. Pressure of Deadlines Causes Oversights

The rush to meet tax deadlines can cause employees to let their guard down. They might not scrutinize emails, links, or attachments as carefully as they should, leaving openings for phishing attacks and malware infections to take hold.

3. Increase in Email Traffic

Tax season sees a spike in email communication involving forms, financial transactions, and regulatory updates. Cybercriminals take advantage of this influx by sending phishing emails that mimic legitimate correspondence, aiming to steal sensitive data.

4. Prevalence of Tax-Related Scams

During this busy period, hackers frequently pose as credible organizations such as the IRS or tax advisory firms. Their goal is to deceive businesses into disclosing private information or sending money to fraudulent accounts.

Tax Season Cyber Threats to Be Aware Of

• Phishing Emails: Be cautious of emails posing as the IRS, your accountant, or tax preparation services. These may ask for personal information or direct you to harmful links.
• Fraudulent Invoices or Payment Requests: Watch out for fake invoices or payment demands designed to trick you into transferring funds to scammers.
• Ransomware Attacks: Cybercriminals might lock access to your crucial financial data and demand a ransom for its release.
• Social Engineering: Be wary of phone calls or emails that seem to be from familiar professionals like accountants or payroll handlers. These attempts aim to deceive you into revealing sensitive information.

Protecting Your Business During Tax Season

1. Train Your Team

First, be sure to educate your employees on the latest scams and teach them to recognize phishing emails. People are often the weakest link in any environment, which makes training incredibly important! Key training points should include:

• Always confirm the sender’s identity before opening attachments or clicking on links.
• Approach urgent payment requests or unexpected account changes with skepticism.
• Promptly report any suspicious emails to your IT department.

2. Secure Your Communications

Next, make sure all your data transfers are encrypted, particularly when you’re sending sensitive tax information. Opt for secure portals or specialized file-sharing services rather than relying on email for such exchanges.

3. Implement Multifactor Authentication (MFA)

Enforce MFA for all financial, email, and tax-related systems. Adding this extra verification step significantly boosts security by ensuring that compromised passwords alone can’t grant access.

It’s vital to activate this feature wherever possible, as it can be crucial in protecting your accounts even if passwords are exposed.

4. Conduct A Cybersecurity Audit

Partner with your IT team to check for and address vulnerabilities in your network. Key focus areas should include:

• Regularly updating software and installing security patches.
• Strengthening defenses at network endpoints and connected devices.
• Ensuring the reliability and security of your data backups.

5. Verify All Financial Requests

Always double-check any requests for payments, particularly those that involve substantial amounts or sensitive accounts. Use a secondary method of communication, like a direct phone call, to confirm requests are legitimate.

Keep Hackers at Bay This Tax Season

Tax season doesn’t have to be a boon for hackers. By remaining alert, training your employees, and putting strong cybersecurity practices in place, you can safeguard your business from attacks.

This season, aim to file only your tax returns, not reports of security breaches. Schedule a Discovery Call with Haider Consulting! Our experts can help your business spot potential risks and confirm your defenses are robust enough to withstand threats.

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