Tips from IRS on Preventing Online Identity Fraud
In the rapidly evolving digital landscape, safeguarding sensitive information has become a critical concern. This is particularly true for businesses in the AI sector, as highlighted in a guide aimed at helping companies maintain their competitive edge while protecting their AI products offered as services.
Various social media platforms such as Facebook, Messenger, Twitter, Pinterest, LinkedIn, Whatsapp, and Email are mentioned in the context of virtual lawyering tools and technologies. The need for virtual lawyers to choose appropriate tools and technologies from the vast array available is also emphasized.
To protect individuals' identity and financial information from scammers, the Internal Revenue Service (IRS) has issued recommendations primarily focused on vigilance, protective measures, and securing sensitive data.
Individuals can take several key steps to protect themselves:
- Use the IRS Identity Protection PIN (IP PIN), a unique six-digit number that helps prevent misuse of a taxpayer’s Social Security number on fraudulent federal income tax returns.
- Regularly check IRS accounts for unauthorized activity to detect potential identity theft early.
- Encrypt and password-protect all tax-related documents to safeguard sensitive taxpayer data, especially when stored digitally or transmitted electronically.
- Be cautious with emails and attachments by avoiding suspicious or unsolicited communications that may be phishing attempts.
- If identity theft is suspected, promptly report it using IRS Form 14039, Identity Theft Affidavit, to alert the IRS and start resolution steps.
For tax professionals, the Security Summit urges maintaining a comprehensive Written Information Security Plan (WISP) as a federal mandate to protect client data. Both practitioners and taxpayers benefit from strong organizational security protocols.
In the technology sphere, securing wireless networks by encrypting them and creating a password is essential. Security software helps protect computers against digital threats and is crucial for protecting sensitive financial/tax documents. It's also advisable to set security software to update automatically to keep pace with evolving malware.
Being cautious when using public wireless networks is also important, as they may not be secure and sensitive information may be accessed. Look for "https" at the beginning of a web address to ensure a site uses encryption for secure online shopping or banking.
In a separate development, Kaspersky Lab, a Russian security software producer, has filed a U.S. federal lawsuit to overturn a Trump administration ban on its products in government networks. The company claims the ban deprived it of its due process rights and argues that the U.S. Department of Homeland Security (DHS) failed to provide the company with a fair hearing.
These steps form a defense against evolving scams that increasingly target both individuals and tax preparers, highlighting the importance of staying informed, vigilant, and prepared to protect sensitive financial and personal information. For more information, read the IRS Publication 4524, Security Awareness for Taxpayers.
- In the realm of personal-finance, it's essential to encrypt and password-protect tax-related documents, given the rise of cybersecurity threats targeting sensitive financial information.
- As technology advancements continue to influence finance, businesses must prioritize cybersecurity measures, such as securing wireless networks and using security software, to safeguard AI products and services offerings, especially in the AI sector.
