Tax preparers are increasingly vulnerable to cyberattacks that can put clients’ personal information at risk and damage their business reputation. These incidents can lead to significant financial losses and hurt credibility. To safeguard your tax practice, it’s important to implement strong security protections. In this article, we’ll explore how investing in cyber insurance can give you financial support if a data breach occurs, helping your business recover from potential losses.
What is cyber insurance?
Cyber insurance protects businesses of all kinds from internet and digital-related attacks. It is usually separate from a general liability policy. This type of coverage will protect against any liability in case of a data breach where your customer’s data leaks. This personal data could include Social Security numbers, credit and debit cards, health information, and driver’s license numbers.
Cyber insurance is especially important for businesses . Remote work environments often lack the robust security measures found in traditional office settings.considering a remote office set up. Remote work environments often lack the robust security measures found in traditional office settings.
What types of cyber risks might my business be vulnerable to?
There are several types of cyber-attacks to be aware of today. Some of the most common attacks include:
- Phishing – Phishing is when an attacker sends fraudulent communications that appear real, typically by email. In a phishing attempt, you may be asked to provide your credit card information or a password and username. This type of attack has become more prevalent in recent years.
- Malware – Malware is malicious software that is downloaded onto your computer. There are several types of malware, including spyware, ransomware, and viruses. You can even install malware by accident by clicking on a broken link.
- Man-in-the-middle – This attack occurs when hackers intercept a transaction between you and a third party, allowing them to eavesdrop, capture sensitive information, or manipulate data. Connecting to unsecured public Wi-Fi, such as in a coffee shop, increases the risk of hackers collecting your login credentials, credit card details, or other personal data.
All these attacks expose different vulnerabilities your business may have. Unfortunately, it is hard to protect against them, but it is essential to try. Cyber insurance will help protect your business if you do experience a breach.
Why does my tax business need cyber insurance?
Your business is important to you. Sometimes one data breach can cause you to lose your business entirely. You may consider cyber insurance if you:
- Gather customer data, like social security numbers and driver’s license numbers
- Manage financial information, including W-2s and 1099s
- Process payment
- Transmit data electronically
Make sure you are prepared in the event of a hack. Cyber insurance will help you to:
- Recoup revenue lost during the breach
- Recover stolen information
- Restore business operations
If you’re looking for valuable resources to safeguard your business, TaxSlayer Pro offers partner programs, including cyber security solutions, to increase revenue and protect your business.
