Tax

The 'Security Six' protects tax pros against cyberattacks

As data thieves get more cunning, the Internal Revenue Service and its partners in the Security Summit have laid out half a dozen steps for practitioners to take to begin protecting themselves as data thieves get more cunning.

"Tax professionals face a number of challenges running a business and keeping up with the latest tax law changes, but they shouldn't overlook some security basics," said IRS Commissioner Danny Werfel.

Tax pros with a security problem can contact an IRS Stakeholder Liaison or the Federal Trade Commission, but in the meantime, the IRS and its Security Summit partners have reiterated the six steps to safeguard taxpayer information (including some you're required to take):

1. The latest antivirus software 

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This scans computer files or memory for patterns of malware — and cybercrooks update the latter regularly to probe for vulnerabilities. Tax pros have to install the latest updates of antivirus software.

2. Firewalls 

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These shield computers and networks from malicious or unnecessary web traffic and help block malware.

3. Multifactor authentication

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This adds a layer of protection beyond a password — and under new FTC rules all tax pros must use it. The returning user enters a username and password and then another bit of ID info, such as a security code, token or a biometric like a fingerprint. 

4. Backup software or services 

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Backups on external sources should be routinely used by tax pros for critical files on computers and hard drives, to protect not just against cyberattack but also in case of device failure or natural disaster. 

5. Drive encryption 

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This transforms data on a computer into files unreadable to outsiders.

6. VPNs 

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Virtual private networks shield data when tax firms' employees must connect to unknown networks or work from home, providing an encrypted tunnel to transmit data between a remote user over the internet and the company network. 
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