Cybercriminals Love Tax Season – Here’s How To Protect Your Business

Here's a comprehensive blog article for Securafy.com on the topic:

Cybercriminals Love Tax Season – Here’s How To Protect Your Business

Introduction: The Hidden Threat of Tax Season

Tax season is stressful enough without the added threat of cybercriminals lurking in the background. Each year, businesses and individuals alike fall victim to tax-related cyberattacks, from phishing scams to identity theft. In fact, the IRS reports thousands of cases of tax fraud annually, with losses totaling billions of dollars.

Cybercriminals capitalize on the urgency and sensitive nature of tax filings, using tactics that exploit human error and outdated security systems. For businesses, a single data breach can expose financial records, employee information, and customer data—resulting in regulatory fines, reputational damage, and financial losses.

So how can you safeguard your business from cyber threats this tax season? Let’s explore the risks and outline proactive steps to stay protected.

The Cyber Threats Lurking During Tax Season

Cybercriminals use a variety of attack methods to steal tax-related data. Here are some of the most common threats businesses face:

1. Tax-Themed Phishing Scams

Phishing emails impersonating the IRS, tax professionals, or accounting software providers flood inboxes during tax season. These messages often contain:

• Urgent subject lines like “Action Required: Tax Payment Overdue” or “Final Notice from IRS”
• Fraudulent links leading to fake tax portals requesting sensitive data
• Malware-laden attachments disguised as tax forms

Protective Measures:
✅ Verify the sender before clicking on any links or downloading attachments
✅ Train employees to recognize phishing attempts
✅ Enable email filtering and advanced threat protection

2. Business Email Compromise (BEC)

Cybercriminals target finance departments by impersonating executives or accountants, requesting urgent wire transfers or W-2 records. These highly targeted attacks rely on social engineering and email spoofing.

Protective Measures:
✅ Implement strict verification protocols for financial transactions
✅ Use email authentication methods like DMARC, SPF, and DKIM
✅ Require multi-factor authentication (MFA) for sensitive data access

3. Malware & Ransomware Attacks

Tax software and accounting systems are prime targets for malware. Cybercriminals use malicious downloads or software vulnerabilities to infect devices, steal credentials, or encrypt business data for ransom.

Protective Measures:
✅ Keep tax software and all business systems updated
✅ Use endpoint detection and response (EDR) solutions
✅ Back up tax records in secure, encrypted locations

4. Fake Tax Preparers & Imposter Scams

Fraudulent tax preparers trick businesses into handing over sensitive data under the guise of offering tax filing services. These scammers collect information and disappear, leaving victims with stolen identities and fraudulent tax returns.

Protective Measures:
✅ Work only with verified, reputable tax professionals
✅ Check credentials through the IRS Directory of Certified Tax Preparers
✅ Never share tax-related information via unsecured email

How to Strengthen Your Business’s Cybersecurity This Tax Season

Now that you know the threats, let’s break down how to fortify your cybersecurity defenses.

1. Secure Your Tax Data & Financial Records

🔹 Store all tax documents and financial data in encrypted, access-controlled environments.
🔹 Restrict access to tax records—only authorized personnel should handle sensitive files.
🔹 Use a virtual private network (VPN) when accessing tax systems remotely.

2. Enable Multi-Factor Authentication (MFA)

🔹 Require MFA for access to email accounts, tax software, and financial platforms.
🔹 Use authentication apps instead of SMS-based verification for enhanced security.

3. Conduct Employee Cyber Awareness Training

🔹 Train employees to recognize phishing attempts and tax-related fraud schemes.
🔹 Run simulated phishing campaigns to test staff vigilance.
🔹 Implement a “think before you click” policy.

4. Keep Software & Systems Up to Date

🔹 Ensure all tax software, accounting tools, and operating systems have the latest security patches.
🔹 Disable unused accounts and remove outdated software to minimize vulnerabilities.

5. Monitor & Audit Financial Transactions

🔹 Regularly review financial activity for any suspicious transactions.
🔹 Set up alerts for unauthorized access attempts.
🔹 Implement role-based access controls (RBAC) to limit privileges.

What to Do If Your Business Falls Victim to a Tax Scam

Despite taking precautions, cyber incidents can still occur. Here’s how to respond:

1️⃣ Report Suspicious IRS Communications:

• If you receive a fraudulent IRS-related email, forward it to phishing@irs.gov.
• Report suspicious tax preparers to the Treasury Inspector General for Tax Administration (TIGTA).

2️⃣ Notify Affected Parties:

• Inform your IT and cybersecurity team immediately.
• Alert employees or customers whose data may have been compromised.

3️⃣ Freeze Affected Accounts & Monitor for Fraud:

• Contact your bank or financial institution to freeze compromised accounts.
• Monitor for unauthorized transactions and consider credit monitoring services.

4️⃣ Implement Damage Control Measures:

• Change compromised passwords and update security protocols.
• Work with cybersecurity professionals to assess the impact and strengthen defenses.

Final Thoughts: Stay Vigilant, Stay Secure

Tax season is a prime opportunity for cybercriminals, but businesses that prioritize cybersecurity can stay ahead of the threats. By implementing strong security measures, educating employees, and remaining vigilant against scams, you can ensure that your financial data stays protected.

At Securafy, we help businesses safeguard their systems with advanced cybersecurity solutions. Don’t wait until it’s too late—contact us today for a free cybersecurity assessment and fortify your defenses against tax-season threats.