Protecting Your Data: Why Privacy Matters During Tax Season
Tax season is a prime time for cybercriminals to target individuals and businesses. With sensitive financial data being shared online and through various platforms, safeguarding your personal information is more important than ever. As a financial advisor, I’ve seen firsthand how a lack of data privacy can lead to identity theft, fraud, and financial loss.
Let’s explore why data privacy is crucial during tax time and how you can protect yourself.
The Risks of Poor Data Privacy
- Identity Theft – Cybercriminals can use your Social Security number, bank details, and tax information to file fraudulent tax returns in your name.
- Phishing Scams – Fake IRS emails and phone calls trick taxpayers into revealing sensitive information.
- Data Breaches – If you use tax preparation software or hire a tax professional, your information may be stored digitally, making it a target for hackers.
Best Practices for Data Protection During Tax Season
Use Secure Networks – Always file taxes from a private, secure Wi-Fi network rather than a public hotspot.
Choose Strong Passwords – Enable multi-factor authentication (MFA) on your tax software and financial accounts.
Beware of Scams – The IRS never contacts taxpayers via email, phone, or text for personal details—stay vigilant!
Encrypt and Back Up Data – Use encrypted tax software and store backups in secure cloud services or external drives.
Shred Physical Documents – Paper tax forms and financial statements should be shredded before disposal to prevent dumpster diving fraud.
Final Thoughts
Tax season can be stressful, but taking proactive steps to protect your data ensures you avoid costly mistakes. Prioritizing cybersecurity and financial safety not only helps you during tax time but also builds long-term financial security.
Stay safe, stay secure, and happy filing!
*Prepared by Jonathan Neher
Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Avenues to Wealth Financial Advisors and Cambridge are not affiliated.
