IRS Compliance: Choosing a Cyber Security Provider

IRS Compliance Essentials / March 13, 2023

Cybersecurity has become a crucial concern in today's society, with data breaches and new threats emerging every day. As a result, cyber security firms have become a necessary component for tax preparation businesses of any size, offering expert protection for your sensitive data. However, the increasing demand for cybersecurity services has also given rise to fraudulent providers looking to scam unsuspecting businesses. This is particularly problematic for tax preparers who must meet strict IRS compliance standards. The purpose of this article is to educate you on how to distinguish between genuine cybersecurity firms and fraudulent ones, so you can safeguard your business against potential security breaches and financial losses.

It's crucial to recognize that not all cybersecurity companies are created equal. There are many different types of cybersecurity companies, each with their own unique strengths and weaknesses, depending on the market segment they serve. Some companies may specialize in serving small businesses, while others may focus on large corporations. Some may have expertise in protecting specific types of data, such as financial data or healthcare information, while others may have more generalized knowledge.

When it comes to selecting a cybersecurity firm, it's essential to find one that has experience and expertise in your industry. This ensures that they understand the specific risks and challenges that your business faces and can provide tailored solutions to address those vulnerabilities. Additionally, a firm that is familiar with your industry regulations and compliance standards can help ensure that your business remains in good standing with any relevant governing bodies.

A specialized cybersecurity firm can provide the necessary protection for both your business and your clients. By choosing a company that understands the intricacies of your industry, you can rest assured that your sensitive data is being safeguarded in the best possible way. It's important to take the time to research and vet potential cybersecurity providers to ensure that you select the right one for your needs.

How to Identify a Legitimate Cyber Security Company: Tips and Strategies

As cyber attacks continue to grow in number and sophistication, finding a reliable cyber security company is more critical than ever. However, not all companies are created equal, and some may even put your business at greater risk. It's essential to identify a legitimate cyber security company that can provide the right products and services to meet your specific needs. In this section, we'll provide tips and strategies to help you identify and choose a trustworthy cyber security provider.

When it comes to cyber security, protecting your company from threats and vulnerabilities is not just about installing a new firewall or antivirus software. It requires a collaborative effort from the entire team. As a tax preparer, finding the right cyber security team is critical for your success and continued compliance.

When searching for a security company, one of the most important factors to consider is third-party validation. This certification process ensures that the company has a strong background and can be trusted. Certifications can come in various forms such as ISO, ITIL, and SOC, among others. These certifications demonstrate that the company has undergone rigorous testing and evaluation to ensure their knowledge in the industry.

While certification is a good indicator of a legitimate cyber security company, the lack of visible credentials does not necessarily mean that they cannot provide appropriate services. There are other signs to look for to ensure that you are on the right track to selecting a legitimate cyber security company, such as:

Proof of certification or third-party validation
Information about the employees
Secure website with HTTPS protocol
Easy and readily available contact information
No request for sensitive information before starting the project
Provision of expert and verifiable knowledge on their claimed subject matter

Signs You're Being Ripped Off by a Fake Cybersecurity Company

It's essential to be cautious when choosing a cybersecurity company to work with, as there are many fake companies out there that are looking to scam you. Being aware of the signs that a cybersecurity company might be fake can help you avoid being ripped off.

One of the most important things to look out for is a lack of transparency. A legitimate cybersecurity company should be open and upfront about their pricing, physical address, and contact details. If a company doesn't have a clear process for how they will protect your data, or if they don't provide any contact information, it's a red flag.

Checking a company's website is often a good way to determine whether they're real or fake. A legitimate company will usually have a professional-looking website that includes a physical address and phone number. If a company doesn't have a website or social media presence, it's another indication that they might not be legitimate.

Another sign of a fake cybersecurity company is if they offer you a quick fix without doing any research. A legitimate cybersecurity company will take the time to understand the root cause of your problem and come up with a comprehensive solution to fix it.

The way a company communicates with you can be a sign of whether they're real or fake. A legitimate cybersecurity company will be responsive and proactive about following up with you, while a fake company may not respond to your emails or phone calls. If you notice any of these signs, it's best to avoid the company and find a more trustworthy cybersecurity provider.

Here are some more signs that can help you identify a fake cybersecurity company:

They send out emails that include coupons or discounts that seem too good to be true. A legitimate company does not need to lure customers with fake discounts.
The company is only selling one product or service. A real cybersecurity company should offer a range of services to meet different needs.
They have an aggressive marketing strategy and try to sell you something that is not needed. They may try to scare you into buying their services by overemphasizing the risks to your cybersecurity.
They lack any information about their physical location or phone numbers on their website, which is a major red flag for any type of company in the 21st century.
They have a professional-looking website with a good amount of information on it, but when you contact them, they don't seem like they know what they're doing or that they're licensed to do the job at all.
They lack reviews on sites like Yelp or Google Reviews. Genuine companies have real customers who are happy to leave positive reviews.
The employees aren’t willing to provide any legitimate information about themselves or their business. A genuine cybersecurity company will be transparent and willing to provide any information you need to verify their legitimacy.

One thing to consider about a scam cybersecurity company is that they may use fake reviews and social media posts to bolster their reputation. They create fake profiles on social media sites and post fake reviews on their company's behalf, which increases their legitimacy in the eyes of their potential customers. That's why it's important to look at more than one metric in determining what cybersecurity company you want to sign up with. Check their website for information about their certifications, look for genuine reviews from customers, and verify their physical location and phone number. By doing your due diligence, you can avoid being ripped off by a fake cybersecurity company.

Common Scams Used by Fake Cybersecurity Companies to Gain Business

As technology continues to advance, cybersecurity threats have become more sophisticated, making it essential for businesses to protect themselves. The growing demand for cybersecurity services has led to an increase in fake cybersecurity companies using deceptive tactics to gain business from unsuspecting individuals. In this section, we will look at some of the most common scams these fake companies use and how you can avoid falling victim to their schemes.

Scare Tactics

One of the most common tactics used by fake cybersecurity companies is scare tactics. They use fear to convince people that their computers or networks have been hacked or compromised, causing them to panic and seek immediate assistance. This is where the scammer comes in, posing as a legitimate cybersecurity company to offer their services at exorbitant prices.

Pop-up scams are a popular example of scare tactics. These pop-ups are usually generated from malicious websites and mimic legitimate antivirus programs. They claim that your computer is infected with a virus and that you need to call a phone number to get it fixed. The scammers on the other end of the line will then try to sell you their services, which are often ineffective and overpriced.

Offer Tactic

Another common tactic used by fake cybersecurity companies is the offer tactic. They offer a service for free or at a discounted price to lure unsuspecting individuals into signing up for their services. They claim that the free trial will give you access to their full suite of protection for a certain period. However, once the trial ends, they will charge you a high fee for continued service.

Fake Discounts

Fake discounts are another tactic used by fake cybersecurity companies. They offer ridiculous discounts that are not possible from legitimate cybersecurity companies to lure individuals into signing up for their services. It is important to be wary of such discounts as real cybersecurity products and services are expensive, and no legitimate company can afford to provide them at such a low cost.

How to Avoid Falling Victim to Scams

To avoid falling victim to these scams, it is essential to do your research and be aware of the services that are offered. Always verify that a company is legitimate before giving out any personal or financial information. Check for evidence of their work, including customer testimonials and references from other reputable companies. A real cybersecurity company will have a physical address and phone number, a privacy policy on their website, and a clear process for how they will protect your data.

Importance of Support Lines in Cyber Security Companies

As the number of cyber attacks continues to increase every day, cyber security has become a critical concern for individuals and businesses alike. In this digital age, everyone wants to safeguard their online data from any potential threats, which is why having a support line that is available 24/7 is essential. The best cyber security companies understand this and offer support lines to their customers as a way to provide assistance and peace of mind.

A reliable support line is an excellent resource for individuals and businesses to contact for any security-related inquiries or concerns. Having a dedicated team of security experts on standby to provide guidance and assistance can help alleviate anxiety and fear, especially in the event of a security breach or suspicious activity.

A support line can also offer live security experts who can answer questions and provide valuable insight into any suspicious activity. This can help customers quickly identify potential threats and take the necessary steps to protect their data.

In a recent study conducted by the Ponemon Institute, it was found that nearly two-thirds of Americans are not confident that their data is secure. This demonstrates that there is a growing need for an extra layer of protection and a reliable support line can offer customers the assurance they need that their data is being safeguarded by experts.

Cybersecurity companies that offer support lines demonstrate a commitment to their customers' safety and security. It provides customers with the confidence they need to trust that their data is in safe hands. So, it's important to choose a cyber security company that provides excellent customer support, including a 24/7 support line, to ensure that you and your business are protected from potential threats.

Taking Action for Your IRS Compliance and Cybersecurity

In conclusion, safeguarding your clients' sensitive information is a critical aspect of your role as a tax professional. IRS Publication 4557 provides a good starting point for complying with IRS regulations, but it is important to continue learning and staying up-to-date on the latest cybersecurity threats and best practices.

To ensure the safety and security of your clients' data, make sure to regularly review and update your cybersecurity measures, train your employees on cybersecurity best practices, and consider working with a reputable cybersecurity company that specializes in IRS compliance.

If you have any questions or concerns regarding your IRS compliance and cybersecurity, feel free to reach out to us for assistance. And if you are not satisfied with the cybersecurity company you are currently working with, book a discovery call to learn more about what is required of you as a tax professional and to find a company that better meets your needs. Remember, the safety and security of your clients' data is essential, and taking proactive measures can go a long way in protecting them from cyber threats.