Income Tax Season Opens the Floodgates to Identity Theft

While many cringe at the thought of losing their shirts at tax time, they can't begin to imagine the implications of having their identity stolen as well. The just-released whitepaper prepared by ParetoLogic (http://www.paretologic.com/downloads/taxwhitepaper.pdf) outlines the risks of using tax preparation software and online filing programs as well as the best ways to mitigate those risks. One third of all North Americans, plan to prepare and/or submit their taxes electronically and are vulnerable to identity theft and the theft of confidential financial information. A world-wide problem, the proliferation of sophisticated spyware has resulted in a staggering increase in identity theft through tax fraud.

Spyware, software that installs without the user's knowledge that may capture keystrokes (keyloggers) and personal information, operates silently and reports information back to a third party. Tax season is a lucrative time for identity thieves because the personal information entered into tax filings is exactly the type of information that they need in order to take over someone's identity for their own purposes. Despite the fact that electronic filings are high-profile targets for spyware and keylogger developers, the most popular individual tax filing software programs on the market do not include embedded anti-spyware security features. At this time, the only way individuals can protect themselves from this threat is by using a dedicated anti-spyware application.

Many people using tax software and electronic filing systems have some familiarity with the Internet and its inherent risks but very few use security tools in conjunction with their tax preparation activities. Under the illusion that anti-virus applications solve all of their security needs, many computer users operate under a false sense of security, believing that viruses are their biggest threat. Unfortunately, spyware (specifically keyloggers) is far more likely than viruses to intercept information that could steal an identity. An informed and proactive computer user can minimize this risk by implementing the steps outlined in ParetoLogic's Whitepaper: Online Filing, Tax Software, and Keylogger Vulnerability (http://www.paretologic.com/downloads/taxwhitepaper.pdf).

About ParetoLogic:

ParetoLogic is an international software development company headquartered in Victoria, British Columbia, Canada. A member of SIIA, we specialize in providing advanced security applications for enterprise, business and personal computer use as well as providing custom software solutions for business and government.

Contact:

Amanda Cooper

Marketing Communications Specialist

Paretologic Inc.

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