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We remind you to stay vigilant and focus on safeguarding your financial, personal, and employee information from the ever-present threat of scams and cybercriminals.
Protect Your Business from Financial and Identity Theft
At Paley & Prehn, we understand the critical importance of data security for small businesses. The IRS has highlighted the increasing instances of financial and identity theft schemes targeting small businesses, tax professionals, and individual taxpayers. Let’s delve into how you can protect your business from these threats.
The Growing Threat of Cybercrime
Cybercriminals are relentless and sophisticated, employing various methods to steal sensitive information. Among the most common tactics are “phishing” and “spearphishing” scams. These scams often involve fraudulent emails that appear legitimate and aim to trick recipients into divulging personal data or clicking on malicious links. For instance, the Form W-2 scam, where identity thieves pose as company executives to request sensitive employee information, continues to be a significant threat.
I experienced a phishing attempt at a company I used to work for. While the HR director fell victim to it, I was able to recognize and avoid the scam. It was scary!
The Cost of Falling Victim to Cybercrime
Falling victim to these scams can have severe financial consequences. Identity theft can lead to fraudulent tax returns, drained business bank accounts, compromised business identities, and more.
IRS Commissioner Danny Werfel emphasizes the importance of staying informed about the latest scams and implementing robust cybersecurity measures to protect your business.
Essential Cybersecurity Measures
To safeguard your business against cybercrime, consider implementing the following cybersecurity best practices:
Update Software Regularly
Ensure that all software, including apps, web browsers, and operating systems, is updated automatically to protect against vulnerabilities.
Secure Business Files
Back up important files offline, on an external hard drive, or in the cloud. Securely store paper files as well.
Use Strong Passwords
Create strong, unique passwords for all devices and accounts. Avoid reusing passwords and sharing them via phone, text, or email.
Encrypt Devices
Encrypt all devices containing sensitive information, including laptops, tablets, smartphones, and backup drives.
Employ Multi-Factor Authentication
Require multi-factor authentication for accessing sensitive information, adding an extra layer of security beyond just a password.
Protecting Your Business Network
Securing your business’s wireless network is equally crucial. Here are some steps to enhance network security:
Secure the Router
Change the default name and password of your router, turn off remote management, and log out as the administrator after setup.
Use WPA2 or WPA3 Encryption
Ensure your router offers WPA2 or WPA3 encryption and that it is enabled to protect information transmitted over your network.
Training and Preparedness
Creating a culture of security within your business is vital. Regularly train employees on data security practices and stay informed about the latest threats. Develop a data breach response plan, including steps to notify customers and protect their information in the event of a breach.
How Can You Report and Recover from Scams?
If your business falls victim to identity theft, the IRS provides resources to help you recover. Filing Form 14039-B, Business Identity Theft Affidavit, allows you to proactively report identity theft to the IRS. Additionally, keep your Employer Identification Number (EIN) application information current by reporting changes of address or responsible party using Form 8822-B.
The Dirty Dozen: Stay Informed
The IRS’s annual “Dirty Dozen” list highlights prevalent scams and fraudulent schemes targeting small businesses and other taxpayers. Staying informed about these scams can help you recognize and avoid them. For instance, the “New Client” spearphishing scam involves cybercriminals posing as potential clients to trick business owners into revealing sensitive information.
Report Scams Immediately
Reporting scams promptly helps authorities track and mitigate emerging threats. Send suspicious emails or text messages to phishing@irs.gov, including the sender’s email address, the caller’s phone number, and any other relevant details. The IRS and other federal agencies provide resources for reporting and addressing scams, ensuring that you and your business are protected.
How Paley & Prehn Can Help You
At Paley & Prehn, PLC we are committed to helping small business owners protect their investments from the ever-evolving threats of tax scams and cybercrime. By staying vigilant, implementing robust cybersecurity measures, and educating yourself and your employees, you can significantly reduce the risk of falling victim to these schemes. For more information on protecting your business and navigating legal challenges, visit our blog or contact our team of experienced professionals.
Remember, proactive steps today can safeguard your business’s future. Stay informed, stay secure, and continue to thrive.