Keep your financial data secure this tax season

TLDR:

Key Points:

• Tax season brings serious privacy and security concerns for financial data.
• Tax preparation companies have been misusing or failing to protect customer data.

Tax season is a stressful time with the IRS deadline approaching, raising concerns about the safety of financial data. Recent cases have shown tax preparation companies misusing or inadequately protecting sensitive information. Some companies have shared clients’ data with tech giants, potentially violating federal law. Cybercriminal activity peaks during tax season, with instances of identity theft and fraudulent tax returns increasing. Individuals should research tax prep companies, use encryption, strong passwords, and monitor credit reports. Tax prep organizations must automate encryption, control access, and train employees on data protection. Temporary workers should undergo background checks and security training. Clients should notify the IRS in cases of fraud. Ongoing security assessments are vital to identify weaknesses and improve security protocols. Protecting customer privacy is crucial for any business handling sensitive financial data.