As the online payment of income tax is gaining ground with increasing numbers of taxpayers likely going for e-filing, cyber frauds are also seen to spurt. Herein, some of the most common types of online fraud surfacing are phishing and identity theft.
Phishing involves gaining access to the user account for obtaining personal and financial details. The personal information is further exploited for identity theft.
A look at online fraud while filing ITR
As per reports, many taxpayers have fallen prey to phishing as a consequence of tax-related data theft. Scammers send email from a seemingly credible site, such as a concerned financial institution, and solicit for passwords, PIN, or similar information related to credit cards or other financial accounts.
The modus operating of these types of internet frauds often follows a portrayal of some technical issue with the computer system of a taxpayer for which the information has to be re-submitted. Individuals are enticed with promises of huge discounts or refund, thus resulting in data compromise.
Internet banking fraud is also rampant where unauthorised transactions are undertaken to siphon funds from a user’s account.
Measures to adopt for fraud protection
Here are a few tips individuals follow to keep their finances protected from such breaches –
- Maintain a strong password
Usually, users are of a tendency to put in a simple password as it is easier to memorise. That can be counterproductive in the long run though, making one susceptible to online frauds. It is thus essential to make sure that you select a strong password. It should ideally be unique, inclusive of symbols, numbers, with case-sensitive letters. Also, the same password should never be used across multiple accounts or sites.
- Opt for multifactor authentication
For all entities offering tax services, there is a minimum of two-factor authentication. If it is available, one should ideally opt for additional authentication login. If tax consultants are engaged, it is imperative to find out the measures they undertake for data protection. In case of any dubious transaction, an identity assure cover may come in handy in blocking payment cards with a single call to mitigate financial losses.
- Ensure to remain aware of phishing emails
Phishing emails have become rampant, soliciting personal information from unsuspecting individuals or offering tax refunds, enormous discounts, or such lucrative financial offers. If one receives such an email, he/she must become immediately alert. It should be opened only after due authenticity check for fraud prevention.
- Secured internet connectivity
Using a public Wi-Fi network can compromise the security of your device, especially when making tax payments or filing ITRs as they are directly related to your account credentials. If any personal or financial information is put through a public hotspot, it has a much higher chance of being exposed to cybercriminals. Any transaction of a similar nature should thus always be done through Wi-Fi at home or a trusted network to avoid online fraud.
Further, if one avails Wallet Care plan offered by Bajaj Finserv under their Pocket Insurance & Subscriptions, coverage benefits of up to Rs.2 lakh are available against card-related frauds.
While there has not been any foolproof measure that would help in mitigating online fraud so far, a combined effect of all the measures listed would surely secure a taxpayer’s finances remarkably. Its safety can be further enhanced by cyber security cover, an insurance plan that provides added protection against financial losses during such frauds.
One can also log in to the official website of the Income Tax Department and check the ‘reminders/campaigns’ tabs for measures to undertake for enhanced cyber security during tax payments. Keeping an eye around for such updates from reliable institutions can help enhance overall safety of finances.