How to use 2-Factor Authentication and other tips to avoid tax-related identity theft

In this article, we shall be looking at how you can protect yourself from tax-related identity theft using 2-factor authentication tips and other related tips. It is important that you take this seriously to protect your tax identity.

Two-factor authentication is also called 2 steps verification or multi-factor authentication. This name is given to it because it comes in each time you want to connect to the account online with another device or browser, some set of information is needed.

For any unauthorized attempt made on the account with another device, two-factor authentication will stop and hinder it from taking place.

Do yourself good to follow up this step and guide in order to enable and enhance more security to your financial accounts online.

Why 2-Factor Authentication for Taxpayer?

Over time, a false sense of security has existed that has made taxpayers oblivious of the threat they face to their tax documents or accounts. This threat has been analyzed through a report based on the U.S taxpayer system, and the results are as follows:

  • About 58% of the taxpayers in the country do not worry or care little about the exisence of tax fraud, despite over 600,000 fraudlent returns filed, which attempted to obtain over $3 billion in refunds in 2018
  • Only a mere 35% of tax preparers actually allow the use of 2-factor authentication to protect their information
  • There are only 18 tax preparers who encrypty important tax documents
  • About 38% leave unprotected tax documents in their computer drive, which can be simply accessed by hackers.
  • And, a whopping 57% of the tax preparers file their taxes very close to the deadline, which makes it possible for fraudlent impoersonation both offline and online to occur

How to protect yourself with 2-factor authentication and other tips

To protect yourself in the event that you do not trust your tax prepares, use the steps below:

  • Use different passwords for different accounts, as it makes it hard for hackers to penetrate your account
  • Enable 2-factor authentication for all your accounts that matters, and extedn this to your tax preparers, that is, only work with tax preparers that have enabled 2-factor authentication too.
  • Ensure that you take extra precautions against pop up ads offering tax preparation services, as most of them are scammers.
  • Try and move your most sensitive tax documents to a secure USB and encrypt it.
  • Try and file your tax early enough

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