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Accounting and Cybersecurity: What are the Pros Saying?

Accounting and Cybersecurity: What are the Pros Saying?

Accountants and cybersecurity. Because accountants and tax professionals are in custody of sensitive and personal client information, it is crucial that they are updated on all things cybersecurity to protect that data. In this month's #TaxBuzzChat, we discussed different ways to help keep data secure. It was definitely an engaging topic. We had the opportunity to chat with industry leaders, tax experts and small business owners to get their thoughts on the IRS, security, privacy, and data breach. Here are some of the questions we covered in today's tax chat:

  • What are some examples of IRS or tax scams your clients may have fallen for?
  • Do you think the IRS is on the right track making tax professionals more accountable for tax fraud?
  • Do you think the IRS using the internet to e-file increases the danger to client data and tax fraud? If so what would be your solution?
  • What steps have you taken to secure your logins and passwords?
  • Are you using a secure file sharing system to protext client data?
  • Will more automation and AI lead to more data manipulation and data theft?
  • Share some of your tips to reduce the likelyhood if your client data or your preparation software being hacket.

These are just a few of the questions discussed in this month's live Twitter chat.

We know how busy everyone is, so thank you to those who took the time to participate! Be sure to check out the chat highlights below.

Q1. What are some examples of IRS or tax scams your clients may have fallen for? #taxbuzzchat pic.twitter.com/JEXRIwVfjN

These are the same ghost tax preparers that open up shop for the season and disappear. Be very carefully who you choose to work with. #TaxBuzzChat

A1: The big one I have is one for the phone scam..I had a client on her way to Western Union, she had the presence to call me BEFORE she wired the $$!! #taxbuzzchat Another was when a client got a letter in the mail that looked EXACTLY like it could have come from the IRS.

A1: The dreaded phone call. It really scares them. My sister-in-law, and one of my close friends. I almost feel like they would be embarrassed to ask if I didn't know them so well. #TaxBuzzChat

A1 - emails with links to official looking sites. Luckily they didn't give any sensitieve information away before they called me.#TaxBuzzChat

A1. (a) I will get your tax liens removed without paying any money to the IRS. (b) You do not have to pay taxes, it is voluntary, and I will show you how.

(c) But the sign on my car allows me to deduct 1005 of car expenses, my wife's and children's as well. #TaxBuzzChat

Q2. Do you think the #IRS is on the right track making tax professionals more accountable for tax fraud? #taxbuzzchat pic.twitter.com/KfgT4nk1IG

So true. And the IRS can prevent that by not issuing EFINs to someone with a tax preparation history. #taxbuzzchat

A-2 Additional security required for tax e-filings = additional personal information I have in my files about each client. #TaxBuzzChat #PhishTarget

A2: Kind of like locks: It keeps the honest people out. But, thieves will do their thing regardless. I'm used to it though. Lots of regulation in aviation as well. #TaxBuzzChat

A2. No. Cheaters are cheaters, no matter the profession. I think that imposing more rules on #taxpros just makes their jobs harder, it doesn't deter the bad guys.#taxbuzzchat

A2. Yes, but you will never counter all #fraud because criminals are always looking for new ways to scam the system. We need to educate our clients about how to effectively protect their information and their identity. #taxbuzzchat #taxtips #taxfraud

A2.  It is standard practice for tax professionals to protect #taxpayer data - #IRS should take their own advice.  Now the Security Summit says get the Driver's License Number and expiration date - great, now the tax professional houses all the data of the taxpayer #TaxBuzzChat

A2 What DOES make a difference is IRS' filtering of refund requests and limiting them to 3 per bank account (or so) #taxbuzzchat

A2> I feel we should be aware of scams and present to our clients. Not so sure we should be the main line of defense. That is the IRS's job. #TaxBuzzChat

Q3. Do you think the #IRS using the Internet to e-file increases the danger to client data and tax fraud? If so what would be your solution? #taxfraud #TaxBuzzChat pic.twitter.com/T0X6u5ZKHW

I've advocated for new ID numbers for years! I think it's foolish to rely on a SSN for so many things, including filing a tax return. #TaxBuzzChat #CyberSecurity

it also means that IRS data entry folks don't have to key in the information - and make errors. #taxbuzzchat

A3. I generally believe that e-filing is more efficient and should help protect data and prevent fraud. That said, I am not a proponent of mandatory e-filing bc I think asking some #taxpros to step outside of what works for them causes unnecessary complications.#TaxBuzzChat

#taxbuzzchat I think that e-filing, for the most part, is safer for clients than mailing.

A3 > They make it very easy to game the system. Though efile is not the issue. It seems easy enough to flag the unsavory techniques they use but many are not politically correct changes. #TaxBuzzChat

A3. E-file increases efficiency and facilitates document matching. The actual transmission of tax returns is done via secure channels with the Treasury Department, and vendors with the #IRS maintaining security over their systems. #taxbuzzchat

A3> I think the internet with safeguards is better than mail or most other delivery systems. Care should be taken to authenticate preparers and efilers using 2 step identification so at least it is known who is efiling the returns. #TaxBuzzChat

Q7. What steps have you taken to secure your logins and passwords? #taxbuzzchat #cybersecurity pic.twitter.com/YZmwywspsZ

Q7. What steps have you taken to secure your logins and passwords? #taxbuzzchat #cybersecurity pic.twitter.com/YZmwywspsZ

A7 - Even though frustrating to everyone, we have everyone change passwords at least every 90 days for the system and the tax software. They have to be complex passwords.#TaxBuzzChat #CyberSecurity

A7. Two-factor authentication is useful. A little annoying, but useful. #TaxBuzzChat

#TaxBuzzChat A7. Use of password managers is basically required-reuse of passwords is a killer. Also, 2FA is mandatory, preferably with a security key. Next best, an app that generates codes. Far less secure, text messages.

A7. We use @LastPass firm wide to secure all passwords. Their enterprise product is something all firms should review and determine the efficacy of using it in their practice. #TaxBuzzChat #passwords #security #taxchat #taxtalk

A7. Use of unfamiliar to me passwords, no dog names, names of children, ages, addresses, etc.  I do not store on my computer #TaxBuzzChat

A7. Also watch out for spoofed friend requests. Often, they turn out to be folks offering you scams and deals. #taxbuzzchat

A8 - yes, we use the CCH Prosystems Portal for most items and SafeSend Returns for tax return delivery. There is a learning curve (both for staff and clients) but you can make it work.#TaxBuzzChat #CyberSecurity

You do get some complaints, but I tell them the alternative is to come by the office and pick up a paper copy.

#taxbuzzchat A8. Definitely! The hardest part though is with some of my clients. They still can't get the hang of it. They email me papers with social security numbers and other sensitive information all the time. Or text message me photos of documents.

Q8. Absolutely! And recommend them to all my students - in all my various courses #taxbuzzchat

A8. My website(s) use a portal system using the most current security available and accessed via HTTPS addresses. Less secure documents I use Adobe Send and Track often. #taxbuzzchat

#TaxBuzzChat A8. Yes, but realize that the key problem is not encryption (trivial) but insuring that only the authorized person got the keys to get in. Authentication is hard and a lot of systems are horrible on that issues or default to punting on the issue.

A8 > Email and even most encryption tools are not secure. Even the topics in email include private information. Best practice is to use a secure portal protected by https, bank grade security. #TaxBuzzChat

A8. We use @SmartVault and now require all client data be stored in this platform. We also recently moved all client communication to the @Zendesk platform, thereby eliminating e-mail as a means of communication. #TaxBuzzChat #dataprotection #security #cybersecurity

Q10. Will more automation and #AI lead to more data manipulation and data theft? #TaxBuzzChat#artificialintelligence #cybersecurity pic.twitter.com/UoRSaItj7Q

A10: Look what you can do with Adobe Acrobat. One can totally change the document in the original font. #Cyber criminals have a leg up on all of us. #TaxBuzzChat

A10. In my humble opinion, data thieves will evolve as technology evolves. So, this will always be an issue, even if AI provides some protection. #taxbuzzchat

A10 - I think there will be more manipulation and data theft, I'm not sure automation and AI will be the cause of it. Maybe just enhance what would have been there anyways.#TaxBuzzChat #CyberSecurity

Q10 - EVERYTHING leads to new ideas and ways to be criminals - for those who are criminally bent. #taxbuzzchat

A10. I believe security of information will always be a vulnerability, it will always need to be addressed and monitored. #taxbuzzchat #taxtalk

#TaxBuzzChat A10: Security issues creep in when systems are designed primarily for convenience and ease of use. Someone has to push back to insure security systems are thought about even if it they make a system a bit harder to use. But that makes them hard to sell, so...

A10> Probably; as time goes on people come up with more complex plots anyway. Additional automation will create more software backdoors to get around the safeguards. #TaxBuzzChat

A12. Secure portal for documents, safe send for signatures with PINs required. Our office computers all have passwords for each user and most annoying, our software shuts down if you leave it alone. #taxbuzzchat

A12: Update often, restart your computer, clear your cache, always log out, be alert. Remember your audit skills: Be inquisitive, don't accept anything at face value. #TaxBuzzChat

A12 - frequently remind staff (including partners) and clients about the risks and how to avoid them. I'll admit it's easy to try to skirt a security rule from time to time but remembering why it's there enhances compliance.#TaxBuzzChat #CyberSecurity

A12 -

- Only use secure WiFi access to share sensitive info (personal or work)

- Change passwords frequently (even personal accounts)

- Lock computers and phones when not in use.

- Don't email sensitive data. EVER.#TaxBuzzChat #CyberSecurity

A12. I use a separate computer for my #tax work only connect it to the Internet when I am transmitting e-files or downloading the tax software and updates. It is not connected to office the network and I use email on that computer. Limit my exposure #TaxBuzzChat #taxtips

A12. We have found that partnering with the elite software developers and building a strong password policy has given us some protection, but the key is to stay abreast of recent developments in the area & not become complacent with the current way of doing business #TaxBuzzChat

A12> Make sure your software allows for two step ID as well as changing passwords every 30 days. Make sure all computers that use prep software have all data drives encrypted and password protected. Use a portal to receive and send client documents. #TaxBuzzChat

Thank you for hosting another fun #TaxBuzzChat. It's helpful to hear how everyone else is dealing with these issues and tips for improvement!

Thanks to everyone out there who offered suggestions and tips! I know I learned a lot :)

— Brian Streig, CPA (@cbriancpa) September 5, 2018 We had a great time chatting with everyone about these hot topics. A huge thank you to all who make the time every month to join us. We love our "regulars"! And thank you to the new faces that joined in today. Feel free to use our #TaxBuzzChat hashtag or tweet us at @taxbuzzonline if you have any additional questions you'd like answered.

We'll be hosting #TaxBuzzChat the first Wednesday of every month at 10am PT/1pm ET for our monthly discussion on all things tax and accounting. Hope you can join us in October!

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TaxBuzz Staff

TaxBuzz Staff

Our experts cover the hot topics in tax, personal finance and business planning. Follow us on @taxbuzzonline to get the latest updates year round.

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