Tax season is here, and so are cybercriminals looking to exploit businesses and individuals alike. The increased sharing of sensitive financial information makes this time of year particularly vulnerable to scams, phishing, and data breaches. In this post, we’ll cover the top threats and practical steps you can take to protect your business during tax season.
Common Tax Season Cyber Threats to Watch Out For
Cybercriminals are constantly evolving their methods, and tax season is one of their favorite times to strike. Here are some of the most common scams:
- Tax Refund Phishing Emails: Scammers send fake emails claiming to be from tax authorities like the IRS, often promising refunds or demanding immediate action. These emails may contain malicious links or attachments.
- Fake Tax Preparation Services: Fraudulent websites or individuals posing as tax preparers can steal your sensitive financial data, including Social Security numbers and business tax IDs.
- Business Email Compromise (BEC): Cybercriminals impersonate executives or accounting personnel, requesting sensitive documents such as W-2 forms from employees.
- Malware-Laden Attachments: Fraudsters may send tax-related documents designed to install ransomware or spyware on your systems.
How to Recognize Phishing Attempts During Tax Season
Phishing remains a top method for stealing information. To spot potential phishing attempts:
- Verify Sender Details: Check for suspicious email addresses or misspelled domain names.
- Be Wary of Urgency: Fraudulent messages often use scare tactics or create a false sense of urgency to trick recipients into acting without thinking.
- Avoid Unverified Links and Attachments: Never click on links or download attachments from unsolicited emails.
- Grammar and Spelling Errors: Legitimate tax authorities typically won’t send communications with obvious errors.
Secure File Sharing and Communication Practices
Sharing sensitive financial information during tax season should be done with the utmost care. Here’s how to ensure safe communication:
- Use Encrypted Channels: Always share sensitive tax documents through encrypted email services or secure cloud platforms.
- Enable Multi-Factor Authentication (MFA): MFA adds an extra layer of protection to any account handling financial data by requiring multiple verification steps.
- Limit Access: Ensure only trusted employees or verified third-party tax preparers have access to sensitive documents.
Vet Your Tax Preparers and Providers
Before sharing sensitive information, confirm that your tax preparers are legitimate professionals:
- Research Credentials: Ensure your tax preparer has the necessary certifications and a solid reputation.
- Ask About Their Security Measures: Inquire about how they store and protect client data. Ensure they follow best practices for data encryption and secure storage.
Backup and Monitor Financial Data
Protecting your financial data goes beyond securing communications:
- Regular Backups: Back up all critical financial data regularly and store it securely, preferably offline or in a highly secure cloud environment.
- Monitor for Unusual Activity: Keep an eye on your systems and financial accounts for any unusual login attempts or transactions. Early detection of suspicious activity can prevent serious breaches.
Quick Tips for Your Team
Empower your employees with these quick cybersecurity tips:
- Verify Requests: Always verify tax-related requests with the appropriate person before taking action.
- Report Suspicious Activity: Encourage immediate reporting of any suspected phishing attempts or unusual communications.
- Stay Informed: Regularly update your team on the latest tax scams and cybersecurity best practices.
Stay Safe This Tax Season
Tax season doesn’t have to be stressful when cybersecurity is a priority. By being aware of common threats and following best practices, you can protect your business’s sensitive data. If you’d like a review of your file-sharing and data protection processes, contact us today for assistance. Safeguarding your business during tax season is essential to staying secure year-round!
