Safety Tips for Tax Preparation Online

[KilJaden]

In 2008, the IRS electronic system received almost 90 million tax returns . Filing tax returns over the Internet is simple and could spare some extra time and money that taxpayers would otherwise use for toiling intricate tax forms.

Still, without paying a close attention to the way a user manipulates his or her sensitive data over the World Wide Web, chances are to become the victim of an identity theft or have a third party filing tax returns or collecting refunds on the taxpayer behalf.

Users should beware in the first place of frauds and scams they receive via e-mail . Spam campaigns and phishing raids promising to eliminate tax debt, help the taxpayer with filing taxes for free or advertising some extremely cheap services from tax preparation companies are nothing more than trouble. Instead of saving a few bucks, users might get tricked into revealing their name, address, social security number, as well as the value of their income and their credit card details (for payment options) to cybercriminals.

But spam and phishing schemes are not the only e-threats to be aware of. Trojan, spyware, adware, keyloggers and passwords stealers, botnets and other types of malware are to be feared as well. For instance, disguised as a Mozilla® Firefox® additional component, Trojan.PWS.ChromeInject.A downloads onto the Firefox Plug-ins folder and gets executed each time the user opens the browser. ChromeInject filters the data that a compromised machine sends to over 100 online banking Web sites, which include: bankofamerica.com, chase.com, halifax-online.co.uk, wachovia.com, paypal.com and e-gold.com. The login credentials are sent to a Web address similar to [removed]eex.ru, which could indicate Russia as the origin of this e-threat.

To protect your systems and data and avoid becoming a victim of on-line tax frauds, follow the ten security tips below:

#1 Read carefully all the documents and relevant guidelines available. If you need help in filling in the on-line forms or you get stuck, maybe you should consider asking for the advice of someone you trust or a subject matter expert. Better safe than sorry!

#2 Check with the IRS. Pay a visit to irs.gov and see what options you have, for both federal and state taxes, including payments and refunds.

#3 Be careful when handling your sensitive data. Whether you choose to prepare and file your tax return over the World Wide Web, using a specially crafted tax preparation software or via a third party company, it means you have to provide highly sensitive personal information form your computer to another computer using the Internet. Therefore, always double-check to whom you send your data before actually doing it!

#4 Make sure your computer is safe and secure:

• install and activate a reliable antimalware, firewall solution and spam filter, such as those provided by BitDefender .

• update your antimalware, firewall and spam filter as frequent as possible, with the latest virus definitions and suspicious applications/files signatures.

• scan your system frequently.

• check on a regular basis with your operating system provider – download and install the latest security updates and malicious removal tools, as well as other patches or fixes.

#5 Stay away from spam and phishing:

•do not open e-mails and e-mail attachments from senders you do not know.

• do not open e-mails with Tax-related text in the Subject line.

• do not respond by submitting any personal information (such as user names and passwords, social security number, bank account or credit card numbers) to any alleged e-mail requests from the IRS or tax preparation companies. These organizations usually do not send general e-mails (addressed to a Dear customer), but customized printed notification forms (including your full name, as well as other unique identification details) through a regular postal service. If you have any doubt about an e-mail you received from such organization, contact them immediately.

• do not click any links contained in the spam e-mails, including the “unsubscribe” ones; you might trigger other malware and compromise your system’s security.

#6 If you choose to prepare and file your tax return via World Wide Web, you should:

• make sure that you read the Terms and Conditions, as well as the Privacy Policy of the on-line solution you choose.

• activate or turn on your antiphishing or phishing filter.

• ensure that the recipient Web site uses SSL encryption (Secure Socket Layer) and security authentication methods – look for the “https” prefix and the locked padlock, as depicted in the image below:

• if you are requested to accept a certificate for the session, check that the name on the certificate matches the name of the institution you wish to deal with and that the certificate is signed by a known Certificate Authority such as Thawte™ or VeriSign® before accepting.

#7 If you choose to prepare and file your tax return using a dedicated software, you should:

• check for a list of available preparation software with the IRS (e-file Solutions for Taxpayers ) or seek for the advice of someone you trust.

• if you downloaded the software from a Web site, run an antivirus scan of the installation file/package before actually installing it.

• if you use bookkeeping software that can automatically generate some of the data you need, scan the file before importing it into the professional tax software, especially if you transferred it from another computer or downloaded from an e-mail attachment.

#8 If you decide to prepare and file your tax return using a company, you should:

• choose it wisely and verify its reputation.

• ask about its Privacy Policy.

• if the company accepts your data in an electronic format, ask about the transmission methods (is there any encryption method) and the storage policy (who can access your data after it was recorded into their systems).

#9 When sending your data over the Internet (whether by using on-line forms, the output of your tax preparation program or the information the preparation company needs), make sure that:

• your antimalware, antiphishing, firewall, as well as any other security applications or suites are turned on and updated.

• you look for the available encryption options previously described.

• if your on-line e-filing application requires an user account, make sure you DO NOT USE the same user name and password you choose for your e-mail, e-banking or e-commerce accounts when registering.

• make sure you back up your data and store it securely using the appropriate tools, such as the Back-up or File Vault features of BitDefender Total Security.

• avoid using a non-secured computer (like a friend’s desktop or job colleague laptop). Still, if you are forced to do so, make sure you at least run BitDefender’s advanced scanning on-line tool, Quick Scan , before proceeding.

• do not prepare and/or file your tax returns from public computers connected to Internet (like those in a library or Internet Café).

• if you use a wireless connection, make sure that your connection is secured and encrypted and that you know and trust the owner of the access point; also, refrain from using an unsecured public wireless connection (like those in airports or hotels) when sending data over the Internet.

#10 If you have any suspicions, do not hesitate to contact the authorities:

• Federal Trade Commission

• Social Security Administration

• Internal Revenue Service

• Federal Bureau of Investigation

• Department of Justice

View: Original Article