Why Tax Season Puts Small Businesses at Risk
As tax season approaches, small businesses are busy organizing financial records, filing returns, and meeting tight deadlines. Unfortunately, cybercriminals see this as the perfect time to strike, exploiting the hectic environment to steal sensitive data, deploy ransomware, and scam unsuspecting businesses.
In this article, we’ll explore why tax season is a prime target for cyberattacks and the steps you can take to protect your business from becoming a victim.
Why Tax Season Attracts Cybercriminals
- Increased Exchange of Sensitive Data
Tax season requires businesses to exchange financial and personal data with accountants, payroll providers, and tax agencies. Hackers take advantage of this increased flow of sensitive information, often using phishing emails disguised as official communications.
- Tight Deadlines Lead to Costly Mistakes
Under pressure to meet filing deadlines, employees may let their guard down and overlook suspicious emails or unusual payment requests, making them easier targets for scams.
- High Volume of Emails Creates Opportunity
With businesses handling a surge of emails related to tax filings, cybercriminals craft deceptive messages that appear legitimate, tricking recipients into clicking malicious links or downloading harmful attachments.
- IRS and Tax Scams Are Rampant
Hackers frequently impersonate the IRS or tax preparation services, sending fraudulent emails or making phone calls demanding immediate payments or confidential information.
Common Cyber Threats During Tax Season
- Phishing Emails
Hackers send fake messages pretending to be from the IRS, accountants, or payroll services, urging businesses to share confidential data or click on harmful links.
- Fake Invoices and Payment Requests
Fraudsters send convincing invoices or urgent payment requests, tricking businesses into wiring money to fraudulent accounts.
- Ransomware Attacks
Cybercriminals encrypt critical business data and demand ransom for its release, often causing operational disruptions.
- Social Engineering Attacks
Hackers impersonate trusted contacts, such as accountants or financial institutions, via phone calls or emails to manipulate employees into divulging sensitive information.
How to Protect Your Business During Tax Season
- Train Your Employees to Recognize Threats
Educate your team about common tax scams and phishing tactics. Key training points include:
- Verifying the sender before opening attachments or clicking links.
- Being wary of urgent payment requests or unusual account changes.
- Reporting suspicious emails immediately.
- Secure Data Exchanges
Ensure all financial documents are shared through encrypted file-sharing services instead of email. Implement security controls to protect sensitive information from unauthorized access.
- Enable Multifactor Authentication (MFA)
Require MFA on all financial systems, email accounts, and any tax-related platforms. This adds an extra layer of protection, even if login credentials are compromised.
- Perform a Cybersecurity Audit
Work with your IT provider to conduct a cybersecurity assessment, identifying weaknesses before hackers do. Key focus areas include:
- Updating software and applying security patches.
- Strengthening network security and device protection.
- Ensuring data backup systems are reliable and tested.
- Verify All Financial Transactions
Double-check financial requests, especially large transactions. Use a secondary communication method, such as a phone call, to confirm legitimacy before processing any payments.
Don’t Let Hackers Take Advantage of Tax Season
Tax time shouldn’t mean open season for cybercriminals. By staying vigilant, educating employees, and implementing proactive cybersecurity measures, your business can stay protected.
Let’s ensure the only thing you’re filing this season is a successful tax return – not a cybersecurity incident report.
Start with a FREE Network Assessment!
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