Taxes are due next Tuesday and many will be spending their weekend “finishing” (read: starting) their taxes. Many will eFile. Check Point sent SvenOnTech this great write up on what to watch out for when filing over the Internet.

Despite the growing awareness of online identity theft, many electronic filers still do not know the basic and necessary measures to protect themselves and their tax information, said the security experts behind Check Point’s ZoneAlarm Internet Security Suite today. The IRS reports that last year, about 73 million people submitted federal tax returns electronically. About 20 million of these individuals filed via the Internet using home computers, an increase of 18% from 2005.

“It’s amazing how many e-filers take pains to keep their jewelry in a safe at home and their financial paperwork in a locked desk but don’t take minimal precautions on their personal home computer,” said Laura Yecies, vice president at Check Point Software Technologies and general manager of the ZoneAlarm consumer division. “For starters, we hope everyone knows by now that they shouldn’t wirelessly file tax returns from the local coffee shop, which may not be secure.”

The IRS expects a steady increase in the number of e-filers this year as consumers are increasingly taking advantage of the conveniences of the Internet to file, getting their returns faster and helping them avoid the long lines that mar the post office on Tax Day.

With Tax Day coming two days later on April 17 this year, many consumers are greeting the extra days with a sigh of relief – they now have 48 more hours to wrap up their taxes. But this also means that today’s malicious cyberthieves also have some additional time to exploit the hundreds of returns that will be filed in those extra days. Criminals are increasingly using the Internet as an avenue to steal and sell personal information.

Below is a list of tips compiled by ZoneAlarm’s security team, for online tax filers to ensure the smooth and secure transmission of their tax data online and the proper disposal of confidential documents:

1. Update your security software before beginning your tax preparation. Verify that you have at basic protection: a firewall, anti-virus, anti-spyware, anti-spam, privacy settings and anti-phishing features.

2. Update your Window’s operating system and install the latest security patches.

3. Using wireless at home? Make sure your wireless router’s security is enabled (IE WEP or WPA). Never do your taxes at a public wireless hotspot.

4. Run antivirus and anti-spyware scans immediately before you begin to ensure a spyware-free PC. (For a free online scan, visit: http://www.zonealarm.com/scanner)

5. If you are using an online tax service, read the posted security/privacy policy. To ensure the transaction is encrypted, verify that a little yellow closed-lock icon appears in the bottom right corner of your browser, and that the URL begins with “https” (as opposed to “http”).

6. If you use an accountant or a brick-and-mortar tax preparation service, inquire about their security practices and ask if they have a standard set of policies and processes to protect your data.

7. Protect all passwords used to access tax filing accounts. Do not tape them to your computer or write them down nearby. Use a combination of numbers, letters and characters, and avoid common passwords such as your pet’s name or your place of birth.

8. Back-up your tax filing to a CD or portable USB drive, and then delete all associated files off your hard drive. If your PC is compromised in the future, your tax information, Social Security Number and other sensitive data will not be revealed. Shred any documents you may have printed – do not throw them in the trash.

9. Beware of fraudulent e-mails (called “phishing”). Never click on a link in an e-mail or open an attachment. Common scams include claims of outlandish refunds, suspicious tax filing services, or a warning that your tax filing was rejected or your IRS account was hacked. If in doubt, visit http://www.irs.gov directly or call them at 1-800-829-1040.

10. If your computer is extremely sluggish or is “acting up” even after you run a scan, consider filing the old-fashioned way: by snail mail.

For tips from the IRS on phishing and online scams.

For the top Tax Scams.

One Response to “Don’t Let Your Tax Return Get Lost in Cyberspace”

1. Ron Says:
   December 27th, 2007 at 0:45

   Nice set of tips on filing taxes online. Most tax filing sites are legitimate, but there are dishonest people out there ready to fleece the unsuspecting buyers.

   In addition to saving your tax info to a CD or Usb (#8), I also suggest you print out a paper copy. Any decent tax preperation service will have an adobe .pdf document of your files for you to print out. Don’t shred them save them! You may need a paper copy in the future.