What Happens if Your Tax Software Has a Data Breach?

Millions of people each year submit their tax return via online tax software programs. Tax software is typically secure, but is in no way completely foolproof. There is always the chance that there could be a data breach. More and more industries are dealing with identity theft and data breaches every year. Here is how to deal with a breach if you are in one.

Freeze Your Credit

One of the main reasons that people hack into tax companies is to receive personal information. You can put a freeze on your credit if you are concerned about someone using your social security number to get credit products in your name.

Track Your Return

If someone is able to breach tax software and extract information, they may be trying to submit your tax return and claim a refund in your name before your actual tax forms go through. If your return is rejected because it has already been put through the system, get in contact with the IRS about identity theft to report the issue.

Monitor Your Refund

Another reason for tax software data breaches is the interception of income. Be sure to keep an eye on your refund and make sure it is still going to the correct bank. You can also put the refund on a prepaid card if you are concerned about a possible breach allowing thieves to gain access to your personal bank account.

Image credit: Justin Grimes