Your tax-time files are identity thief's delight

Sun Sentinel (MCT) - Millions of Americans file their income taxes online every year because it is convenient and returns are processed quickly.

But identity theft experts warn that, if you don't take precautions, filing online can expose you to thieves who can access your personal, sensitive information. Taxpayers need to destroy electronic files after they send them, shred paper documents they no longer need and monitor their credit for suspicious activity.

Todd Feinman, the CEO of Identity Finder (identityfinder.com), a company that designs and sells software to help consumers be safe online, offers the following advice to avoid mistakes.

Personal information: Tax records and other personal information are not safe on your computer if you don't take the proper measures to safeguard them. Hackers can access your computer with malicious software. Use a password to protect all your tax return files and destroy unprotected computer files that contain personal information used to prepare your tax return.

Also, install the latest updates to your computer operating system to secure Windows or Mac vulnerabilities that can be exploited by hackers. Don't save your password in your Web browser when accessing payroll services, employers, banks or other institutions that keep your personal information.

Electronic filings: Every time you send information electronically without precautions, you put yourself at risk. Hackers and thieves can spy on you when your computer is unprotected. You can protect yourself by encrypting supporting tax documents you plan to e-mail to your accountant or the IRS to prevent hackers from gaining access to your financial information.

Encryption turns computer files into code that can't be read without a software key that you control. Encryption software, some of it free, can be found at IdentityFinder.com and elsewhere on the Internet.

Also, create hard-to-guess passwords when registering or downloading your IRS W2 forms, 1099s and other personal tax documents from your employer.

Paper documents: Don't think that paper documents are safer than electronic files. Identity thieves are creative and they can find ways to access your information, such as stealing your documents from your garbage or unlocked mailbox. Drop the documents at a local post office and, for added security, use certified mail. Use a paper shredder to destroy printed documents you no longer need after tax preparation.

For information on how to file your taxes electronically, go to the Internal Revenue Service Web site, www.irs.gov.

___

© 2009, Sun Sentinel.