Taxpayers will notice more alerts, stricter log-in rules

  • The Washington Post
  • Thursday, November 19, 2015 3:36pm
  • Business

WASHINGTON – Taxpayers will notice tougher log-in measures when they attempt to sign in to their online tax software accounts over the next several months.

Tax companies, including Intuit, the maker of TurboTax, H&R Block and TaxSlayer, reminded taxpayers Thursday that they’ll need to provide stronger passwords, answer new security questions and face being locked out of their accounts if they have too many failed log in attempts. The tax companies also reiterated that they will share information about suspicious returns regularly with the IRS and state tax authorities to help them catch fraud earlier.

Some of the more significant changes will be noticed by people who use TurboTax, the largest online tax software company in the United States. When TurboTax online software becomes available in early December, users may see new alerts and other security measures intended to make it easier for taxpayers to know if someone has accessed their accounts or stolen their personal information,the company said.

Most notably, existing customers will be alerted if a second account is created using the same Social Security number. That should give taxpayers a chance to block thieves attempting to use TurboTax to file a fraudulent tax return in their name. If a customer alerts Intuit to say they didn’t create that second account, the company says it will temporarily lock down both accounts until it can verify the identity of the legitimate taxpayer. Previously, multiple accounts could use the same Social Security number and customers would not be notified.

Intuit also said it would alert customers when changes are made to their accounts, which could give them a hint that a fraudster may have accessed their accounts and their personal data. For instance, taxpayers will be notified if someone changes the bank account associated with the return, which could be a sign that a thief is trying to divert their tax refund to another account.

Customers will be told if their password is changed or if a PDF of their tax return is downloaded, a move taken by some identity thieves who took over existing TurboTax accounts last year and used the information on previous tax returns to file phony tax returns that closely resembled those filed by legitimate taxpayers.

The changes were announced on a day when the IRS, state tax authorities and other tax preparers met to warn consumers to be more cautious with their data as they head into the holiday shopping season. Tax authorities and tax software providers have had to up their security measures after an apparent spike in tax fraud earlier this year. IRS Commissioner John Koskinen has previously said that the IRS stopped 3 million suspicious tax returns this year, 700,000 more than last year.

“Refund fraud caused by identity theft has recently become a more serious and complicated threat,” Koskinen said Thursday, adding that thieves are stealing “unimaginable amounts of personal data” and using it to collect “huge refunds.”

During the upcoming filing season, the IRS will issue weekly tax tips online and through YouTube reminding taxpayers of the steps they can take to protect their identities. The campaign will warn against phishing emails and phone scams that trick consumers into sharing their Social Security numbers, bank account information and other sensitive information. The tips will also tell taxpayers to keep their anti-virus software updated and to encrypt tax returns and other files.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Black Press Media operates Sound Publishing, the largest community news organization in Washington State with dailies and community news outlets in Alaska.
Black Press Media concludes transition of ownership

Black Press Media, which operates Sound Publishing, completed its sale Monday (March 25), following the formerly announced corporate restructuring.

Maygen Hetherington, executive director of the Historic Downtown Snohomish Association, laughs during an interview in her office on Thursday, Feb. 15, 2024, in Snohomish, Washington. (Ryan Berry / The Herald)
Maygen Hetherington: tireless advocate for the city of Snohomish

Historic Downtown Snohomish Association receives the Opportunity Lives Here award from Economic Alliance.

FILE - Washington Secretary of State Steve Hobbs poses in front of photos of the 15 people who previously held the office on Nov. 22, 2021, after he was sworn in at the Capitol in Olympia, Wash. Hobbs faces several challengers as he runs for election to the office he was appointed to last fall. (AP Photo/Ted S. Warren, File)
Secretary of State Steve Hobbs: ‘I wanted to serve my country’

Hobbs, a former Lake Stevens senator, is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mark Duffy poses for a photo in his office at the Mountain Pacific Bank headquarters on Wednesday, Feb. 14, 2024 in Everett, Washington. (Annie Barker / The Herald)
Mark Duffy: Building a hometown bank; giving kids an opportunity

Mountain Pacific Bank’s founder is the recipient of the Fluke Award from Economic Alliance Snohomish County.

Barb Tolbert poses for a photo at Silver Scoop Ice Cream on Thursday, Feb. 29, 2024 in Arlington, Washington. (Annie Barker / The Herald)
Barb Tolbert: Former mayor piloted Arlington out of economic brink

Tolbert won the Elson S. Floyd Award, honoring a leader who has “created lasting opportunities” for the underserved.

Photo provided by 
Economic Alliance
Economic Alliance presented one of the Washington Rising Stem Awards to Katie Larios, a senior at Mountlake Terrace High School.
Mountlake Terrace High School senior wins state STEM award

Katie Larios was honored at an Economic Alliance gathering: “A champion for other young women of color in STEM.”

The Westwood Rainier is one of the seven ships in the Westwood line. The ships serve ports in the Pacific Northwest and Northeast Asia. (Photo provided by Swire Shipping)
Westwood Shipping Lines, an Everett mainstay, has new name

The four green-hulled Westwood vessels will keep their names, but the ships will display the Swire Shipping flag.

A Keyport ship docked at Lake Union in Seattle in June 2018. The ship spends most of the year in Alaska harvesting Golden King crab in the Bering Sea. During the summer it ties up for maintenance and repairs at Lake Union. (Keyport LLC)
In crabbers’ turbulent moment, Edmonds seafood processor ‘saved our season’

When a processing plant in Alaska closed, Edmonds-based business Keyport stepped up to solve a “no-win situation.”

Angela Harris, Executive Director of the Port of Edmonds, stands at the port’s marina on Wednesday, Jan. 24, 2024, in Edmonds, Washington. (Ryan Berry / The Herald)
Leadership, love for the Port of Edmonds got exec the job

Shoring up an aging seawall is the first order of business for Angela Harris, the first woman to lead the Edmonds port.

The Cascade Warbirds fly over Naval Station Everett. (Sue Misao / The Herald file)
Bothell High School senior awarded $2,500 to keep on flying

Cascade Warbirds scholarship helps students 16-21 continue flight training and earn a private pilot’s certificate.

Rachel Gardner, the owner of Musicology Co., a new music boutique record store on Thursday, Jan. 18, 2024 in Edmonds, Washington. Musicology Co. will open in February, selling used and new vinyl, CDs and other music-related merchandise. (Olivia Vanni / The Herald)
New Edmonds record shop intends to be a ‘destination for every musician’

Rachel Gardner opened Musicology Co. this month, filling a record store gap in Edmonds.

MyMyToyStore.com owner Tom Harrison at his brick and mortar storefront on Tuesday, Sept. 6, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Burst pipe permanently closes downtown Everett toy store

After a pipe flooded the store, MyMyToystore in downtown Everett closed. Owner Tom Harrison is already on to his next venture.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.