Cybersecurity tips for tax season

As tax season approaches, cybercriminals are increasingly targeting individuals and businesses through various scams.

Every February through April, there is a rise in tax fraud by cyber criminals keen on stealing financial data people and businesses alike. Learn how to prevent these types of cyberattacks by being aware of the scams being used and having a solid cybersecurity program in place during tax season and all year long. Credit: LuckyStep/Adobe Stock

Tax season cybercrime is becoming more common, with an increase in tax fraud issues from February to April — prime tax season. Business email compromise and phishing attempts are widespread during these months. Small businesses send and receive a significant amount of financial and confidential information to their accountants or tax preparers.

This type of environment is a prime target for cyberattacks. In 2023 alone, the IRS identified more than $5.5 billion in tax fraud and financial crimes.

The Federal Trade Commission reported that tax-related identity theft is the most common type of identity theft. Examples of tax fraud scams, which target both individual taxpayers and businesses, include:

Cybersecurity tips for tax season, beyond

You can protect your business from tax fraud scams and cyberattacks by implementing employee cybersecurity training and data privacy verification procedures, such as:

Suspected tax fraud

If you believe you are a victim of tax-related identity theft or fraud, contact the IRS immediately at the number on the IRS notice. If you didn’t receive a notice, call the IRS Identity Protection Specialized Unit (IPSU). The government identity theft website also provides information on the next steps you need to take.

Michelle Page of AmTrust Financial. Credit: Courtesy photo

Michelle Page is a director of cyber services and incident response at AmTrust. In this role, she handles cyber claims from inception to closure by bringing in necessary vendors to assist, evaluating coverage, and supporting Insureds from start to finish. Prior to joining AmTrust, Michelle worked in private practice as a corporate and data privacy attorney.

This piece originally appeared on the AmTrust Financial website. It is republished here with permission.

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