The top cyber threats facing the manufacturing industry are ransomware, supply chain attacks, insider threats, phishing and social engineering attacks. In 2023, the manufacturing sector accounted
The most secure way to send tax documents is by using a platform with zero-knowledge encryption such as a password manager. Zero-knowledge encryption is one of the safest ways to store sensitive data because it encrypts and decrypts data at the device level, not the company’s servers or in the cloud. Using a password manager with zero knowledge removes the anxiety of having your sensitive information breached by unauthorized parties.
Continue reading to learn more about using a password manager and best practices when sharing tax documents online.
The Importance of Securely Sending Tax Documents
If you do not take precautions when sending confidential documents, you are putting yourself in a vulnerable situation where cybercriminals can steal your information and data. Typically the primary objective of cybercriminals is to steal money, leaving a financial burden on the victims. Here are the two security risks of carelessly sending tax documents online.
1. Identity theft
With tax documents containing valuable information such as Social Security numbers, bank account numbers and income statements, they tend to be a primary target for cybercriminals to commit identity theft. Identity theft is a crime where someone steals another person’s Personally Identifiable Information (PII) to impersonate them for financial gain or other reasons. Perpetrators typically use the stolen identity to open up bank accounts, credit cards and apply for loans. The results of identity theft are severe as the victims are stuck with damaged credit scores, legal consequences, debt and reputational damage. Moreover, the emotional toll is heavy, resulting in stress and anxiety.
2. Tax fraud
There are many different types of fraud. One example of fraud that involves tax documents is when someone uses another person’s Social Security number to file tax returns and claim the refund for themself. The victim never receives their refund and may even face penalties from the IRS.
The Safest Way To Send Your Tax Documents
Using a password manager ensures that your sensitive information will remain protected when you’re sharing tax documents with your accountant, which is especially important during tax season, because cybercriminals are particularly active during this time. Despite the name, a password manager does more than just store passwords. Password managers also store your files, identification, financial information and more, in an encrypted digital vault that can only be accessed using your master password. The master password acts like a key that decrypts all the information stored in your vault, so you only have to remember a single password. In addition, password managers allow you to securely share information with other trusted individuals.
It is essential to get a password manager that offers zero-knowledge encryption because it ensures that your passwords and files remain private, even from the service provider. This ensures that you are in full control over the encryption and decryption of your stored data. Even in the case your provider were to fall victim to a data breach, your information and data would remain protected.
Why Other File-Sharing Methods Are Not Secure
There may be tons of simple options out there to share tax documents, but they are not strong enough to protect you against cybercriminals. Two common ways people send their tax documents are through text messages and encrypted emails.
Sharing tax documents through text messages
A common mistake people make is sharing their tax documents and sensitive information through text messages. Although this is a simple and convenient option, it opens up room for breaches and attacks. Text messages are not encrypted, which can lead cybercriminals to easily intercept and obtain your information.
Sharing tax documents through emails
Another mistake is using email to share tax documents and sensitive information. Many popular email service providers such as Gmail, Outlook and Yahoo have an encryption feature, called Transport Layer Security (TLS). Transport layer security encrypts emails while they are in transit. However these email providers do not promise full end-to-end encryption.
In addition, there is still a risk of cybercriminals stealing your emails during transit and converting the encrypted files to plaintext. Cybercriminals do this by stealing email account’s encryption keys by exploiting the vulnerabilities in the system. For example, a brute force attack is a common technique among cybercriminals because many people use weak and repetitive passwords.
Securely Store and Send Your Tax Documents With Keeper®
Prioritizing your security when sending tax documents is not just a precautionary measure, it upholds your financial security. A password manager like Keeper enhances the security of your confidential information by providing secure storage and sharing.
Ready to prepare and protect yourself during tax season? Start a free 30-day trial of Keeper Password Manager today.