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Online Security Threats and Your Taxes
March 19, 2008
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Summary For most of us, preparing and filing our income tax returns is a big enough headache as it is, but now you have something else to worry about – online threats. Whether you prepare and file your tax return online, on paper, or via a professional tax preparer, you have reason to be vigilant. Online thieves would love to get their hands on the information in your tax return – your name, address, social security number, dependents’ names and, yes, your income. Here are a few tips to keep them from getting it.
Web-based Tax Preparation
If you choose Web-based tax preparation and filing software, you will be sending your sensitive financial information back and forth between your PC and the Web site that provides the software. It’s important, therefore, that your PC, your tax service’s Web site, and the connection between your PC and the Web site are secure.
- Is the online tax preparation Web site secure? It should offer SSL (secure sockets layer) encryption and security authentication by Verisign or a similar service.
- Is your information private? Like every other Web site to which you provide personal information, read the site’s privacy policy statement and make sure they are dedicated to preserving the privacy of your information. Look for the TRUSTe emblem, and use it to verify the site’s privacy standards.
Tax Preparation Software
Popular programs that you purchase and install on your computer can greatly simplify tax preparation by guiding you through the process and by offering help along the way. Because this software resides on your computer and not on a remote Web site, the only time you’ll send your financial information over the Internet, is when you file electronically. Therefore, your primary security concern will be your PC and your Internet connection (more on those in a minute).
Professional Tax Preparers
Many accounting and tax preparation firms enable you to send financial data to them electronically. Typically, they will send and receive only encrypted data, but to be on the safe side, verify that they do. Also make sure that they store your data on secure servers.
Securing your PC
No matter which tax prep method you choose, if it involves your PC, then your PC and your Internet connection should be as secure as you can make them.
- Passwords — Protect your PC, your financial files and your Internet connection with passwords. Use different passwords for each and change them often.
- Security software — Install good security software such as Norton 360™ or Norton Internet Security™. Keep it turned on and up-to-date. It will protect against spyware and block phishing Web sites that may try to intercept your financial transactions.
- Backup — Backup software like Norton™ Save & Restore or included in Norton 360 protect your financial data against system crashes, which could be just as devastating as the theft of your data.
- Wireless connection — If you use a wireless connection make sure the wireless router is security enabled. Also, don’t prepare your taxes in a public wireless hot spot.
A Taxing Time?
So long as you are reasonably vigilant, today’s tax prep software can make your tax season a lot less taxing than it used to be. Now, if we could just figure out a way to make sure you get a refund.
