Around this time of year many people are required to file their tax returns (in the U.S., for example, the required time falls within April, each year). In addition to the time-consuming nature of the task, there are also some cybersecurity concerns.
Looking into the security issues for Digital Journal is Bala Kumar, CPO of Jumio.
Kumar warns that it is vital that “consumers to keep their identity safe online”. It is important to be more acutely aware of risks when many people are engaging in the same activity, be that filing taxes or shopping for the holidays. Those seeking to defraud others often try to do so when people are likely to be distracted.
A well as for the citizen, businesses also need to be careful. Here Kumar explains that organizations need to know “who they are doing business with. “
This is because, as Kumar outlines: “Fraudsters are regularly looking for new, sophisticated methods to exploit consumers and businesses, and Tax Day presents such an opportunity.”
Looking at the U.S. situation, Kumar says: “Last year, the IRS reported the discovery of over $10 billion in financial crimes and tax fraud, while 1.4 million Americans reported being victims of identity theft.”
This signals a recurrent concern and a sign that safeguarding measures are not sufficiently robust. This leads to a call from Kumar to businesses: “It’s time organizations improve their identity verification capabilities to prevent scammers from impersonating unknowing consumers.”
There are different ways to boost identity. Kumar recommends: “Rather than requesting users to input their personal data or credentials to confirm their identity, organizations must require more secure alternatives to ensure a user is truly who they say they are.”
Kumar recommends: “Biometric authentication (leveraging a person’s unique human traits to verify identity) is far more secure than traditional methods, as it confirms the user logging in is the person they are claiming to be and ensures personal data is protected from cybercriminals.”
Kumar also advises: “On a consumer level, individuals must stay wary of phishing schemes, as scammers may attempt to impersonate IRS agents through emails, text messages and phone calls.”
