The financial sector is particularly attractive to cybercriminals due to the nature and value of the data involved. One of the most efficient ways to protect your data is to start using a VPN service. VPN stands for a virtual private network, a service that enables you to select a server and location you want to use to connect to the internet. The technology has been in use since 2005 and is well-tested and safe to use. It’s debatable whether this is good or bad, but it’s a fact, and the numbers keep increasing. Even though the internet and digital technologies help and make our lives easier, they also carry certain dangers.
- As GoBankingRates explained, even if a website itself is secure, “when using a public internet connection at a library or a coffee shop, for example, other people might be able to see what you’re sending.”
- He shared steps tax professionals can take, tips for guiding clients on data security, and emerging threats to watch for.
- Cloud-based platforms provide advantages such as immediate data backups, remote accessibility, and the ability to scale with a business’s expanding requirements.
- VPN stands for a virtual private network, a service that enables you to select a server and location you want to use to connect to the internet.
- The tips mentioned above will help keep your data safe and provide peace of mind.
Use unique, complex passwords for every account – including your home WiFi network
He also recommends using a password manager like LastPass or NordPass. Password managers not only store all your passwords but also help you create unique and impossible-to-guess passwords. Schulte points out that many devices come with encryption programs like BitLocker, which allows you to encrypt your entire hard drive.
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This disruption can delay tax filings, block people from accessing their funds, and create chaos for businesses and individuals alike. Cybercriminals know that during such a high-stakes season, companies may be more likely to pay the ransom to restore operations quickly. The average number of data breaches and cyberattacks has increased by 15% compared to last year’s figures. Adopting the best cybersecurity practices is the only way to protect your data. The tips mentioned above will help keep your data safe and provide peace of mind.
Implementing Managed Security Services for Proactive Protection
Here’s a checklist of operational areas to review and potential action steps. Under federal law, you must comply with data safeguard rules set by the Federal Trade Commission (FTC). The IRS doesn’t initiate contact with taxpayers by email, text messages or social media channels to request tips for keeping your tax data secure personal or financial information. Generally, the IRS first mails a paper bill to a person who owes taxes. In some special situations, the IRS will call or come to a home or business. When shopping online, taxpayers should confirm they’re on a reputable and secure retailer’s website and avoid sites with invalid digital certificates.
- You can keep your data safe online by using strong, unique passwords; enabling Multi-Factor Authentication (MFA); encrypting confidential information and more.
- Because biometric data is extremely difficult to replicate and fast to gain access, this method delivers both security and convenience.
- Brute force attacks, in which a threat actor tries to crack a password using bots, are more likely to succeed with short passwords or passwords that include dictionary words.
- The IRS recommends retaining copies of your tax returns and supporting documents for a minimum of three years to a maximum of seven years.
Brute force attacks, in which a threat actor tries to crack a password using bots, are more likely to succeed with short passwords or passwords that include dictionary words. Filing online means your tax returns are securely stored in the cloud, so a computer crash or lost device won’t wipe out your files. You can also sign in from any device, like a laptop, tablet, or mobile, to work on your return at your convenience. By following these tips, taxpayers can reduce the risk of losing their identity, money or accounts to criminals. Because of the sensitive data, the loss or theft of these documents could lead to identity theft and have an economic impact.
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Advise clients to watch out for phishing and scams — and offer them tips on identifying suspicious activity. Steinhauer suggests tax preparers make sure clients know what email you’ll use to communicate with them and what your website looks like. The IRS has teamed up with state revenue departments and the tax industry to make sure you understand the dangers to your personal and financial data. Regularly updating your systems helps close security gaps and prevents cybercriminals from exploiting outdated technology to gain access to your financial data. If you need to send physical copies of tax documents, use a trusted courier service with tracking options instead of standard mail. The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice.
In addition, tax practitioners should contact federal, state, and local law enforcement as appropriate to report a breach. If someone is requesting a taxpayer’s personal information – their date of birth, age, address, Social Security number or bank account information – the taxpayer should be cautious. Ask why the information is needed and only provide what’s absolutely necessary. It’s also a good practice not to respond to emailed, texted or other requests but instead to seek out the requestor’s website or to contact them directly.
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If you’ve already gone ahead and clicked yes, take-backs are allowed. According to the Post, “if you agreed to these requests while preparing your taxes and have now changed your mind, you can try to revoke access.” He also recommends offering clients a “trusted method of communication” — which could simply be handing them your business card with your phone number. “When unexpected things happen, they can go back to that business card and call the number on the business card,” Steinhauer explained. Here are some tips to follow to keep you and your private information safe in various situations.
Implementing best practices will go a long way toward securing your data and maintaining your peace of mind when using the internet. Data breaches are common, and your account information could get leaked. If your data is intercepted by threat actors, it could be sold to cybercriminals on the dark web.
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The IRS and Security Summit partners remind tax professionals that federal law requires them to have a written information security plan. In addition to the required information security plan, tax pros also should consider an emergency response plan should they experience a breach and data theft. This time-saving step should include contact information for the IRS Stakeholder Liaisons, who are the first point of contact for data theft reporting to the IRS and to the states. Cliff Steinhauer is the Director of Information Security and Engagement at the National Cybersecurity Alliance — a nonprofit that advocates for safe technology use. He shared steps tax professionals can take, tips for guiding clients on data security, and emerging threats to watch for. A well-timed ransomware attack can lock down entire systems, preventing tax professionals, banks, and even payroll departments from accessing critical files.
Use a unique password for each website, and “bring some randomness and special characters into it,” advised NPR. You might even consider turning on two-factor authentication for accounts that are especially important, which is when you’re asked to confirm your login through a second factor, like a text message or an app on your phone. With new and ongoing data security threats, a cybersecurity expert offers his advice for protecting taxpayer data this filing season. Cloud-based platforms provide advantages such as immediate data backups, remote accessibility, and the ability to scale with a business’s expanding requirements. Nonetheless, it’s crucial to recognize the shared responsibility framework in cloud security, which necessitates both the service provider and the user to actively participate in safeguarding data. Multi-factor authentication (MFA) enhances security by necessitating that users present multiple forms of verification.
“So even if your computer was stolen, no one could access the hard drive,” he says. Other third-party encryption software options include VeraCrypt, 7-ZIp, NordLocker and OneDrive. Encrypting data, both at rest and in transit, ensures that even if data is intercepted or accessed by unauthorized individuals, it remains unreadable and secure. Constant monitoring of who accesses what data and when is essential for detecting and preventing unauthorized access. Implementing software solutions that track and manage user access can be a key tool in this process.
Online shopping is extremely common and convenient, but most retailers will ask you to create an account. That means your email and other sensitive information is stored all over the internet, in dozens of accounts, any of which could experience a data breach at any time. Cybercriminals sometimes research a victim for months before targeting them, especially in cases of identity theft and harassment. Any PII or details about your life, such as your location, birthday or the names of your loved ones could be used by a cybercriminal to attack your accounts or steal your identity. While VPNs have pros and cons, a quality VPN will successfully encrypt your web traffic and hide your location. For example, if you are playing an online video game or using public WiFi, we recommend using a VPN.
