Tax season is prime time for identity theft. Confidential fianancial information shared between accountants and clients needs to be encrypted to be transmitted thru the internet. Otherwise it is easy prey to identity theft. Article discusses methods of data theft, effect on individuals and the prevention of data theft that leads to Identity Theft.

Certified Internet consultants frequently advise small-to medium-sized firms of all varieties. They may not know all the complex details of clients businesses, but it is their business to know the complexities of the Internet. Did you know that any information transmitted over open wireless waves can be picked up and hacked into? Such information as customer names and credit card numbers can be seen in clear text without hacking activity.

Secure Socket Layer (SSL) encryption technology is vital to those who deal in personal information, whether it is credit card information from an e-commerce site or tax information from a client to an accounting firm corresponding through the Internet.


With the proliferation of the Internet and easy access to e-mail, financial information is frequently and thoughtlessly sent over the Internet. But these files often contain bank account information, credit card information, and Social Security numbers. Data files, including those with financial information, sent with an e-mail, may be checked for viruses, but they are neither secured nor encrypted. This data can easily be intercepted and confidential information can be stolen.

While many small accounting firms and partnerships maintain confidential practices within their office walls, they are unaware of this dangerous exposure on the Internet itself. But even worse, some are aware because they have been advised by Internet experts, and still they choose to put their clients at risk.

The lack of integrity some accounting firms have is appalling. It is astounding when the encrypted data transfer protocol recommended by the FTC is rejected by firms that deal with such sensitive information over the Internet. Such was the case with a well-known accounting firm in Central Connecticut. The firm preferred to maintain its current method of e-mail transmission, despite the documented risk to its client base.

At the start of this tax season, H & R Block was fined because it made the colossal mistake of printing social security numbers on the mailing labels of the reminder letters it sent to past clients. According to John Voice, of Pre-Paid Legal Inc. and Kroll Background America, this is the key to the mother lode of personal information for Identity Theft. There are basically five types of Identity Theft, Financial, Credit Card Fraud, Social Security Identity Theft, DMV, Medical, and Character or Criminal Identity Theft. All of these can be devastating and any of these can be launched with a Social Security number. That number opens up many paths to criminal activity. One person in 8 falls victim to Identity Theft. Information taken from Internet transmissions accounted for 11.6% of Identity Theft in 2004. Mr. Voice states it takes the average victim 600 hours and about $1,400 in expenses to restore ones good name. Since the average person cant take 600 hours (15 weeks) off from work, the restoration process can last for years.

West Hartford, CT (PRWEB) April 8, 2006 — With the onset of yet another tax season, the accounting profession is busy collecting and preparing tax returns for businesses and individuals. Businesses and individuals need to ask, “Are my accountants taking every precaution with my confidential financial data?” If they are asking for Quick Book files, or other financial information within an email or as an attachment, they probably are not.


It is the responsibility of a certified Internet consultant to keep up to date on the trends of Internet use and communication. By researching the best practices of the industries served and seeking advice from experts in associated fields, one is prepared to provide solutions to the needs of clients.

John Voice, who consulted on this article, has researched this crime since it began hitting the news three years ago and conducts Identity Theft Seminars throughout New England. He also provides Legal Protection Plans to families nationwide.

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