Photo by Pixabay
Cybercriminals are increasingly sophisticated. As technology advances, so do the tactics they use to steal your identity during tax season. Since the consequences of not filing income taxes are rather unpleasant, how can you prevent becoming a victim?
File Early
The Internal Revenue Service (IRS) encourages early filing as a preventive measure against identity theft and tax fraud. When you file early, you reduce the window of opportunity for scammers to impersonate you. Consider filing your taxes as soon as you receive all your statements like: W-2s, 1099s, and tax deduction records. Here is a full list. If a cybercriminal steals enough of your Personally Identifiable Information, (PII) then they can use it to impersonate you, file tax returns, and claim your refunds. You can beat them to the punch by submitting your legitimate returns as soon as possible. This also allows you to address any discrepancies on your return with the IRS before fraudsters can exploit them.
If Someone Files for You
If you choose to enlist the help of a tax preparer, ask them about their data protection practices. How do they ensure the security of your PII? When a tax professional fills out your return, you have to trust them with most of your personal and financial data, so do your research. Read reviews and get referrals from people you trust. Does the tax preparer comply with industry standards and regulations regarding the handling of sensitive financial information? What are their professional certifications? Are they members of reputable organizations, such as the National Association of Tax Professionals or the American Institute of Certified Public Accountants? While not a guarantee, these affiliations expect adherence to strict ethical standards and data protection guidelines. When you do select a tax professional, before turning over any PII, ask about their security measures for safeguarding client information. A trustworthy tax preparer should have strong data protection policies like encryption protocols, secure file storage, and restricted access to client files.
If You File Your Own
Network: When filing your taxes online, make sure to use a secure and password-protected internet connection. Do not use public Wi-Fi networks to file. They are notorious for their lax security measures. Hackers love taking advantage of them.
Software: Make sure your computer’s operating system, antivirus software, and tax preparation software are up to date. Regular updates often include security patches that protect against known vulnerabilities.
Passwords: Use complex passwords for your online tax accounts, and avoid using the same password across multiple platforms. You know the drill. Your password should contain an uppercase letter, a number, a special character, and a haiku. Just kidding. A combination of letters, numbers, and special characters will do the job.
Authentication: Many tax preparation platforms offer Multi-Factor Authentication for an added layer of security. Even if it means waiting for a code to arrive on your mobile device, it is better to be patient than hacked.
Phishing: Think before you click on links or open attachments to emails whose subject lines say they are about your tax filings. Phishing scams mimic official communication from tax authorities and look extremely authentic. They can deceive you into unwittingly and unwillingly disclosing your PII.
How will you safeguard your PII this tax season? Please share in the comments.