According to a nationwide survey conducted by the National Cybersecurity Alliance, 73 percent of small businesses rely on trusted Internet connections and 77 percent report that information security is of the utmost importance. Despite this, over 87 percent of small businesses are unprepared for data breaches that may occur online or through other, traditional methods.
The Risks of Tax Season
One of the worst times when it comes to security risks is tax season. In the weeks leading up to tax day, business administrators, bookkeepers and accountants begin pulling files and documents from cabinets and start sorting and transferring electronic files to various hard drives. Documents with sensitive company or customer data that were once in secure locations may wind up in places that are easily compromised.
The aforementioned chaos of tax season creates perfect environment for data theft. Some businesses may take care to lock up paper documents and forget about computer files while others secure hard drives but leave paper files in areas accessible to just about anyone. In addition, some companies may keep their paper files secure while they are still in use, but when they are finished with them, they are tossed in the trash instead of going through security shredding.
Computer Network Security
Cyber threats during tax season are becoming increasingly common each year, and among all types of businesses, small businesses are those hit the hardest. This is because most small businesses do not have the money in their budgets to hire a fulltime IT staff or to purchase the latest security equipment.
Combating online attacks during tax season starts with securing company email accounts and email servers. One of the ways thieves get into computer networks is through phishing attacks. Phishing occurs when data thieves send emails that appear to be legitimate but trick recipients into inadvertently giving up security data or installing malware programs.
The next important step in online security is to use a reputable firewall. Software firewalls are powerful tools that can keep hackers out of computer networks and prevent them from removing any data they find if they do get inside the network. Along with a firewall, a small business must have an antivirus suite installed so that hackers cannot use malware to obtain access to sensitive information.
Paper Document Security
While many businesses are attempting to go paperless, very few are able to do so completely. Whenever sensitive documents are not in use, they should be safely secured in locked file cabinets, closets or safes. When the documents are being used, a trusted individual should always be present.
The easiest way to steal information on paper is to wait until sensitive material is thrown in the trash. It is not too difficult to take full bags of documents from dumpsters in a search for valuable data. The best defense against this is shredding. Businesses that do not have their own shredders or that have too much paperwork for employees to shred can look into hiring a reputable company that specializes in security shredding.
About the author: George Hillston is an information security specialist who loves to write any about business.
Getting up to speed on identity theft precautions is just one more thing for small business owners to deal with and unfortunately, many are not up to speed. Security breaches are getting out of hand. Your made some really good points about how information can be leaked through the tax filing process. The more hands personal information has to go through, the more likely it becomes that something will slip though. The average small biz owner would feel terrible if it happened plus have a liability headache to deal with.