Richcpaman Posted July 19, 2013 Report Share Posted July 19, 2013 Have a read at this one: http://www.accountingtoday.com/news/Identity-Theft-Cautionary-Tale-Tax-Preparer-Colleagues-67437-1.html?taxpro And the worst part? When she contacted the IRS, they said they could do NOTHING about it. She TOLD the IRS that 500 (my estimate, it could be more or less) taxpayers Names Addresses and SSN's have been compromised, and all the IRS did was shrug. And then issue the refunds to the crooks. Wow. Rich Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted July 19, 2013 Report Share Posted July 19, 2013 This is just the begining of the nightmare. I am sure there will be some lawsuits! All the more reason for us to encrypt our computers. Truecrypt is an opensource encryption software. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted July 19, 2013 Report Share Posted July 19, 2013 I don't see how we can encrypt the files we work with, unless you want to begin fresh every year by re-entering all of the personal data and previous year's depreciation, etc. ATX, or any other software I have worked with, doesn't seem to have a system for encrypting the rollover files from itself. I wonder, if upon discovery of any similar situation, we should go ahead and file identity theft affidavit's with the IRS and our state revenue office. While that would be a real pain for 500 clients, or the thousands that some preparers have, would it at least flag their files and maybe prevent some of the problems with false returns being filed? Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted July 19, 2013 Report Share Posted July 19, 2013 I don't see how we can encrypt the files we work with, unless you want to begin fresh every year by re-entering all of the personal data and previous year's depreciation, etc. ATX, or any other software I have worked with, doesn't seem to have a system for encrypting the rollover files from itself. I wonder, if upon discovery of any similar situation, we should go ahead and file identity theft affidavit's with the IRS and our state revenue office. While that would be a real pain for 500 clients, or the thousands that some preparers have, would it at least flag their files and maybe prevent some of the problems with false returns being filed? I don't think any tax prep software offers built in encryption, pls. correct me if I am wrong. You will need an encryption software like Truecrypt to encrypt the entire hard drive of your computer. So as an example each morning after you start the computer you must wait for some time for the hardrive to decrypt and mount. There are several level of passkeys that are also required. Then you can use your software applications as usual. At the end of the day you again encrypt the hard drive. So if there is a theft after hours, the thief walks away with an encrypted hard drive that is inaccessible. Is it 100% fail safe, probably not? Your second point is something we should have a conversation. Is it better to call your lawyer before you file ID theft affidavits? At some point in time that would become a necessity. What does the E&O carrier requires of us? All good questions?? Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted July 19, 2013 Author Report Share Posted July 19, 2013 ***Filing the Identity Theft Affidavits with the IRS*** Seems like a good idea. Because the nusiance factor with the IRS for our clients is going to be pretty high. If the badguys file returns for ALL of your clients, which, appears to be the case here, then, it at least puts the onus on the IRS to at least PROTECT your clients. Rich Quote Link to comment Share on other sites More sharing options...
Catherine Posted July 19, 2013 Report Share Posted July 19, 2013 PGP encryption also does the whole disk -- and has an email interface, as well, for those of you who use Outlook. So even if they steal the computer, without the password all they can get is gobbledygook. Other than a different (PGP instead of Windows) initial login screen, it is seamless. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted July 19, 2013 Report Share Posted July 19, 2013 Windows 7 Pro or Ultimate has the hard drive encryption ability built in. Quote Link to comment Share on other sites More sharing options...
Kea Posted July 19, 2013 Report Share Posted July 19, 2013 There's also Gold Key where you have to insert a USB gizmo before the hard drive will work. Note: I haven't used it, yet, because I've been too afraid to encrypt my computer and then find out I did something wrong and end of killing it. I guess I need to test on an unused PC to make sure I know what I'm doing first. That way if I kill something I haven't done any real damage. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted July 19, 2013 Report Share Posted July 19, 2013 My friend used Gold Key on his laptop and loved it. Quote Link to comment Share on other sites More sharing options...
Kea Posted December 31, 2013 Report Share Posted December 31, 2013 Just got new PC with Win 7 Pro. I'm thinking about encrypting the whole hard drive so I don't have to worry about putting folders in hidden containers (so ATX can find all its files). Any pros / cons with Win 7 built-in or wit TrueCrypt? Any major speed slow downs? Anything I need to consider? I want to do it now before I start loading all my programs,so that if something gets screwed up & my computer (hard drive) gets toasted, I can start over more easily. Thanks! Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted December 31, 2013 Report Share Posted December 31, 2013 I got Truecrypt on my laptop but then I am not using ATX. Better make sure ATX can live with that before you decide to encrypt the laptop with client data files. From the reviews of Win 7 pro the built in encryption (bitlocker) is pretty good too. Quote Link to comment Share on other sites More sharing options...
Kea Posted December 31, 2013 Report Share Posted December 31, 2013 Yep, that's one of my concerns. Will ATX, TaxWise, TaxWorks, Excel, Word, etc all function properly? No changing directory paths so that s/w can find all their necessary files. Any other concerns to worry about? If I try it and it doesn't work, can I undo it? Just call me paranoid! Quote Link to comment Share on other sites More sharing options...
Mr. Pencil Posted December 31, 2013 Report Share Posted December 31, 2013 And the worst part? When she contacted the IRS, they said they could do NOTHING about it. I just don't know what to say, except there always seems to be more to the story when people complain that government doesn't work. The link goes to a site that requires registration, so I can't see what the burglary victim says about herself; she seems to run a side business doing public speaking and seminars. But here's another story reporting that she admitted she DID get full cooperation from the IRS. http://www.lostcard.com/tax-preparer-issues-warning-to-colleagues-about-identity-theft/. That author runs a data protection service. And here's still another story that says the case was solved by state and local law enforcement after a jurisdictional dispute with IRS. http://www.actionnewsjax.com/news/national/story/WSB-TV-Channel-2-Action-News-viewers-help-bust/YHtLVMc9lkCvmiIgQwBfoA.cspx. That story is by a news channel that wants some publicity for its own role. So, yeah, there's criminals out there, and we all love to hate the IRS. I just don't know what to say. 1 Quote Link to comment Share on other sites More sharing options...
Pacun Posted December 31, 2013 Report Share Posted December 31, 2013 What's encryption? For a stand alone computer, it is just an extra layer of security that doesn't interfere with the rest of the operation. It will cause a lot of headaches to network environments if you don't know much of what you are doing. Another issue is to have MACs and IBM-compatible computers with different encryptions on the same network. Again, if you don't know what you are doing, be careful with network installs but don't be afraid if you only have one computer. What encryption does is to add a seal to the hard drive and the only way to open up the hard drive is with your encryption password. Once that password has been entered, the hard drive is open for business just like any other hard drive. So, rolling over returns on the same computer from year to year is not an issue because the only hard drive you use is as open as the unencrypted one you are using. So, if your unencrypted hard drive is stolen (or your computer), anyone can connect the hard drive to a computer and read the data in it. If the hard drive is encrypted, they will have to have your encryption pin or password to open it and the other computer will need to have the encryption software installed in order to read the hard drive. If your computer or hard drive breaks, the only way to read your data from the hard drive is with another computer with the same encryption and your encryption password or pin (key). So, don't be afraid to encrypt your hard drive if you only have one computer. Quote Link to comment Share on other sites More sharing options...
Kea Posted December 31, 2013 Report Share Posted December 31, 2013 Thanks Pacun. I am "somewhat" tech savvy, but haven't dealt with encryption before. I've always used password protection but know that's easy to get around. I don't use a network. I keep my laptop in a safe when not using it. But when I travel, I don't have that option. I just want to make sure I don't screw up! I've been reading lots of stuff online. Some says you can do whole disk encryption on Win 7 Pro and some say you can't. It looks like TrueCrypt can? Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted December 31, 2013 Report Share Posted December 31, 2013 If you have never used encryption with ATX , I would suggest you try it first before tax season begins and do a few returns just to make sure it is working the way you want. Depending on the speed of your laptop computer it may take several minutes from the time you punch in the password to mount the drive (decrypt). So if you are in a rush to do something you may be disappointed. Quote Link to comment Share on other sites More sharing options...
shdytxmn Posted December 31, 2013 Report Share Posted December 31, 2013 A simple computer login password will make use of your computer very difficult if not impossible. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted December 31, 2013 Report Share Posted December 31, 2013 I am afraid a simple login password will be no good if the hacker removes your hard drive from your computer and reads it on another computer. You need encryption though that may not be 100% fool proof either! Quote Link to comment Share on other sites More sharing options...
David1980 Posted December 31, 2013 Report Share Posted December 31, 2013 This is just the begining of the nightmare. I am sure there will be some lawsuits! All the more reason for us to encrypt our computers. Truecrypt is an opensource encryption software. Definitely. I could see taxpayers suing the preparer for letting the data get stolen. Much how we're going to see class action lawsuits against Target over their breach. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted December 31, 2013 Report Share Posted December 31, 2013 I am sure the insurers of Target are breaking out their calculators trying to figure out what it will end up costing them to feed the class action attorneys. The shoppers may see a $20 coupon if they are lucky! Most will be held harmless by their credit/debit card issuers. Quote Link to comment Share on other sites More sharing options...
Pacun Posted December 31, 2013 Report Share Posted December 31, 2013 Kea, You can use bitlocker which is a MS product built in with Win7 pro and other flavors. Make sure you have the recovery key in a safe place and handy. If you have issues, you can decrypt or un-encrypt the hard drive and go back to where you are now. Again, if you are using a stand alone computer, you shouldn't have any issues. You will be delayed only about 45 seconds everyday. 1 Quote Link to comment Share on other sites More sharing options...
Kea Posted December 31, 2013 Report Share Posted December 31, 2013 Thanks. I decided to go with TrueCrypt. Started it this morning and it says it has another 6 hours left. Fingers crossed that all goes well! Quote Link to comment Share on other sites More sharing options...
Pacun Posted January 1, 2014 Report Share Posted January 1, 2014 wow, you must have a very old computer. The normal encryption time is 3 hours. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted January 1, 2014 Report Share Posted January 1, 2014 How long does it take to unencrypte or hack a computer? I have an understanding that not all computers are hack when lost or stolen, most end up with a new OS system in a pawn shop for example. Even in Hollywood movies the computer has to fall in the wrong hands. We had a state auditor that would leave her laptop overnight in our office because it was a hassle to carry it everyday, but even if we wanted to do something with it, what would we do with a computer that has inscribe property of the state? Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 1, 2014 Report Share Posted January 1, 2014 wow, you must have a very old computer. The normal encryption time is 3 hours. I think it depends on the HD size as well. If I recall my 80GB drive on the laptop took about 2 hours. Also before I encrypted I had done a fresh install to get rid of junk data. Quote Link to comment Share on other sites More sharing options...
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