Do’s and don’ts of secure online tax filing

Ensuring your personal information remains secure while online is a crucial concern for many. Often, we save sensitive data such as passwords and banking PINs on our devices, which poses a significant risk if these devices are ever misplaced or stolen. It's generally advised against keeping such critical information on your mobile devices to avoid potential security breaches.

The surge in online fraud is becoming a major issue globally, marking one of the quickest expanding areas of crime. The anonymity provided by the internet, combined with its worldwide reach, presents a formidable challenge for law enforcement agencies trying to mitigate these crimes. This is particularly important to remember when filing tax returns, as taking specific precautions can help ensure a safe and secure process.

Here are some key strategies to adopt:

1. Prioritize your digital security by opting for trusted software solutions, frequently changing your passwords, applying software patches promptly, and steering clear of public Wi-Fi networks without secure connections.

2. Staying alert and knowing how to spot potential fraud attempts is crucial in preventing scams. Recognizing the signs of fraudulent contact can significantly reduce the risk of falling prey to such schemes.

3. Having a contingency plan in place for unexpected incidents is essential. Should you find yourself a victim of online fraud or any security breach, it's important to act swiftly and report the incident to the appropriate authorities without delay.

By adhering to these guidelines, you can enhance your online safety, particularly during sensitive activities like tax filing, and protect yourself against the growing threat of digital fraud.

Here are 7 do’s and don’ts that you should keep in mind for safe online tax filing.

1. Embrace NETFILE for Your Tax Filing

NETFILE stands as the authorized electronic channel provided by the Canadian authorities for submitting your tax returns online. It's advised to utilize software that has received official approval for use with NETFILE to ensure the protection of your personal data. Such software undergoes thorough evaluations by both the Canada Revenue Agency (CRA) and Revenue Quebec to secure its certification. This process guarantees that data sent from your device to the CRA via NETFILE is encrypted, effectively shielding your information from potential interception by external parties.

2. Avoid Public Wi-Fi for Tax Transactions

A critical piece of advice for those engaging in online tax submissions is to steer clear of public Wi-Fi networks. Conducting tax filings in communal spaces like cafes or libraries poses a risk, given the necessity to input sensitive personal data such as your home address, social insurance number, and banking details. The security of these networks cannot be guaranteed, making them unsuitable for such confidential tasks.

In scenarios where you're compelled to use public internet access due to the lack of a secure connection at home, employing a Virtual Private Network (VPN) is a wise choice. A VPN helps in anonymizing your online presence and encrypting your data, thereby safeguarding your personal information from potential digital threats.

3. Consistently Update Your Devices

Maintaining the security of the device you plan to use for filing taxes, be it a smartphone or a computer, is of utmost importance. Regularly updating your device's software is crucial. By ensuring your device runs the most recent version of its software, you equip it with the latest security enhancements. This not only minimizes the risk of unauthorized access by cybercriminals but also keeps your personal information secure.

4. Secure Your Documents Vigilantly

Handling your tax documents online necessitates the storage of critical documents like tax returns, employment income statements, and other relevant receipts on your digital devices. These documents are rich in personal details that could potentially be targeted by cyber thieves aiming to commit identity theft.

For optimal security of these documents:

- Prefer storing these documents within the designated "Documents" folder on your computer rather than leaving them on the Desktop where they are more easily accessible.

- Equip your device with a reputable antivirus software to fend off malware and other cyber threats.

- Encrypting your documents with a password adds an additional layer of security, making it considerably more difficult for unauthorized parties to view your information should your security be breached.

5. Stay Vigilant Against Scams

The digital age has brought about an increase in sophisticated online scams, making it tough to stay ahead of new threats. This is especially true when filing taxes over public Wi-Fi, where the risk of encountering fraudulent schemes is heightened. Be wary of any unusual emails, texts, or messages that could be phishing attempts.

The CRA has ramped up its efforts to crack down on scam operations within Canada, where fraudsters pose as CRA officials to solicit personal information, often claiming that the individual owes taxes or faces penalties.

To safeguard yourself, heed the following advice:

- Never reveal sensitive information like passwords, PINs, or your Social Insurance Number in response to unsolicited communications.

- Remember, the CRA does not ask for personal details via email.

- Exercise caution with calls claiming to be from the CRA, especially those offering to file benefits for you. Always verify the identity of the caller by asking for their details and contacting the CRA directly for confirmation.

- Be aware that legitimate CRA agents will not demand payment via gift cards, cryptocurrency, or direct credit card transactions.

- Resist any undue pressure to make immediate decisions or payments over the phone.

6. Regularly Update Your Password

Using simplistic or repetitive passwords across multiple accounts greatly simplifies the task for hackers attempting to breach your privacy. It's wise to periodically check if your passwords have been exposed in any data breaches through reputable online security services.

Changing your passwords regularly is a critical step in protecting your digital identity. This practice significantly lowers the chances of unauthorized access to your accounts, ensuring your personal and financial information remains secure.

7. Develop a Response Strategy for Emergencies

Despite taking all necessary precautions, there's always a risk of unexpected incidents. Having a predefined emergency plan, including contacts and immediate actions, is essential for promptly addressing any security breaches.

In the event you become a target of fraudulent activity, immediate steps should be taken to minimize the impact:

- Promptly inform your local law enforcement, your bank, and credit bureaus to initiate protective measures.

- To report fraudulent activities, the Canadian Anti-Fraud Centre can be contacted at 1-888-495-8501 for assistance.

- Should there be a concern regarding the unauthorized use of your Social Insurance Number, notifying Service Canada at 1-866-274-6627 is crucial.

- In cases where your CRA account may have been compromised, it's important to alert the CRA directly by calling 1-800-959-8281.

Constant vigilance over your financial transactions and account activities is key to detecting any irregularities early. Reporting any suspicious activities to the relevant authorities immediately can significantly reduce the risk of further damage and help protect your financial integrity.

For your income tax filing needs, opting for CRA-certified online software tools not only facilitates a smoother filing process but also ensures that your sensitive personal data is handled securely.