Tax Season Cyber Threats – What CPAs & Bookkeepers Must Know

Dear IT Colorado followers,

Tax season is one of the most dangerous times of the year for cyberattacks, and finance professionals are top targets. CPAs, bookkeepers, and tax preparers handle an overwhelming amount of sensitive financial data, making them attractive to cybercriminals looking to steal tax returns, Social Security numbers, and payroll information.

Hackers use sophisticated tactics to trick finance professionals into exposing client data or granting unauthorized access to tax software and banking systems. One mistake—such as clicking a malicious link or using a weak password—can lead to a full-scale breach that compromises your firm and your clients.

Protecting yourself isn’t just about compliance—it’s about ensuring the trust and financial security of your clients. Let’s break down the biggest cybersecurity risks this tax season and the essential steps to keep your business secure.

Why Finance Professionals Are at High Risk

Cybercriminals know that CPAs and bookkeepers store and process highly valuable financial data, which makes them a prime target for:

• Identity theft and fraudulent tax returns
• Payroll fraud and direct deposit scams
• Ransomware attacks demanding payment to unlock files
• Business email compromise (BEC) scams that trick firms into transferring money

Unlike individuals, who may file one tax return per year, accounting firms handle hundreds or even thousands of tax filings—multiplying the risk of exposure. One breach could mean stolen tax refunds, fraudulent business filings, or even legal liability for mishandling client data.

During tax season, cybercriminals ramp up their efforts, launching attacks that can exploit human error, weak security protocols, and outdated technology.

Key Steps to Stay Secure This Tax Season

Strengthen Login Security and Access Controls

Many cyberattacks begin with stolen passwords. Hackers can guess or steal credentials through phishing emails, leaked data, or malware. To prevent unauthorized access:

• Use multi-factor authentication (MFA) for all logins to tax software, email, and financial platforms.
• Require strong, unique passwords and use a password manager to generate and store them securely.
• Limit access to critical systems, ensuring only authorized employees can view or modify sensitive data.

Secure Client Communications and Data Transfers

One of the biggest risks for CPAs and bookkeepers is unsecure document sharing. Sending sensitive tax records via email can expose them to hackers who intercept messages or access compromised accounts.

• Use secure client portals instead of email to share tax documents and sensitive information.
• Verify all requests for tax records, wire transfers, or direct deposit changes by calling the requester directly.
• Encrypt and password-protect files when sending them electronically, and share passwords separately through a different communication channel.

Watch for Phishing Scams and Fraudulent Requests

Tax season phishing scams are designed to trick finance professionals into revealing sensitive data or credentials. Hackers impersonate clients, executives, tax software providers, and even the IRS to gain access.

• Train your team to recognize suspicious emails, especially those that create a sense of urgency or contain unexpected attachments.
• Never click on unverified links in emails claiming to be from the IRS, QuickBooks, or a financial institution. Instead, visit the official website manually.
• Beware of urgent requests for wire transfers, tax records, or payroll changes. Always verify these requests through another method before taking action.

Protect Your Systems Against Malware and Ransomware

A ransomware attack can lock you out of critical tax files right in the middle of tax season. Hackers may demand a ransom payment to unlock your files—but there’s no guarantee they’ll restore your data.

• Keep all software, including tax platforms and antivirus programs, updated with the latest security patches.
• Use email filtering and endpoint protection to block phishing emails and malware before they reach your inbox.
• Regularly back up all client tax records, financial files, and software configurations to a secure, encrypted location that is disconnected from your main network.

Implement a Cybersecurity Awareness Plan

Even the best security tools can’t protect your firm if employees don’t know how to recognize cyber threats. A single accidental click on a phishing email or mismanaged client data can open the door to hackers.

• Educate your team and clients on security best practices, including phishing awareness and secure document handling.
• Develop an incident response plan so employees know who to contact if they suspect a security breach.
• Conduct a tax season security checkup, updating passwords, testing backups, and reviewing cybersecurity policies before the busy season begins.

Final Thoughts: Don’t Let Cybercriminals Disrupt Your Tax Season

The stakes are high for CPAs, bookkeepers, and tax professionals. One security slip can lead to devastating financial losses, reputational damage, and legal liability. But with the right precautions, you can keep your firm and your clients safe from cyber threats.

Take action today:

• Review your cybersecurity protocols and update them as needed.
• Educate your team about phishing scams and secure document handling.
• Implement strong security measures like MFA, encrypted backups, and email filtering.

Need expert guidance on securing your tax season operations? IT Colorado is here to help.

Book a free 20-minute cybersecurity strategy session to assess your firm’s risks and build a stronger defense against cyber threats.

Have you experienced an increase in suspicious emails or security threats this tax season? Share your insights in the comments.

Thank you for joining us for this edition of our Cyber Brief!

Best regards,

Michael Roybal at IT Colorado

Click below to sign up for the free 20 minute strategy session

https://link.itcolorado.com/bookacall