April 13, 2015 By Douglas Bonderud 2 min read

According to new research from identity protection firm Protect Your Bubble, 46 percent of Americans are now filing taxes online each year. The problem? Sixty-five percent of those filers are using public Wi-Fi networks to do so, leaving them open to potential cyberattacks. Are great refunds worth this kind of risk?

Wi-Fi Worries

Many businesses now offer public Wi-Fi to customers, and the ubiquity of online interactions often dulls users’ security senses. They think the business surely must use some form of encryption or Wi-Fi Protected Access. However, according to Network World, the following are some of the easy ways cybercriminals can grab user data, even on encrypted Wi-Fi networks:

  • Network Sniffing: Using a sniffing application, malicious actors intercept and read all visible traffic on a channel. Even encrypted networks may be vulnerable if attackers can sniff out the pre-shared key or if network administrators choose an easy-to-guess password.
  • Third-Party Data Gathering: Data is sometimes collected by the same business offering the Wi-Fi connection. While there may be no ill intent, the collection and storage of this data puts it at risk.
  • Malicious Access Points: Is the “Coffee Shop” network really provided by the business itself, or is it a dummy network set up to trick unsuspecting users? Unlocked or generically named Wi-Fi hotspots can trick even the savviest of Internet users.

Of course, just accessing an insecure Wi-Fi network doesn’t put data at risk, but nearly two-thirds of online tax filers are now willing to send their returns via these networks. This is a massive opportunity for attackers, given the large amount of personally identifiable information (PII) contained in a tax return, from Social Security numbers to dates of birth, income totals, addresses and phone numbers. This is everything a cybercriminal needs to impersonate citizens and redirect their tax return or open a fake credit card account.

Why Wi-Fi?

So why are users willing to put their data at risk? According to Protect Your Bubble’s Brian Richards, “They could be getting comfortable in a routine and not be aware of the Wi-Fi they’re logged in to.”

In other words, it’s easy to get distracted by ease of use. When smartphones, tablets and laptops all easily or automatically connect to the Internet, users can fall into the trap of assuming that all connections are inherently secure or that there is enough traffic constantly generated that their small piece of PII is relatively safe. There is also the problem of home networks. Many users don’t create strong passwords — or any passwords at all — for their home Wi-Fi networks, making them just as vulnerable as the publicly available connections in coffee shops and airports.

When it comes to filing taxes online, two rules apply. First, always use a secure connection. This could be a desktop with a wired router connection or via a laptop over a password-protected, well-encrypted corporate network. Second, always keep an eye out. No connection is 100 percent secure, and taxes contain some of the most valuable PII available to cybercriminals. Always be on alert for odd emails, strange phone calls or bank activity that may indicate PII has been compromised.

The IRS is making Americans’ lives easier with online tax filing, but convenience isn’t worth identity compromise.

More from

Cyberattack on American Water: A warning to critical infrastructure

3 min read - American Water, the largest publicly traded United States water and wastewater utility, recently experienced a cybersecurity incident that forced the company to disconnect key systems, including its customer billing platform. As the company’s investigation continues, there are growing concerns about the vulnerabilities that persist in the water sector, which has increasingly become a target for cyberattacks. The breach is a stark reminder of the critical infrastructure risks that have long plagued the industry. While the water utility has confirmed that…

What’s behind unchecked CVE proliferation, and what to do about it

4 min read - The volume of Common Vulnerabilities and Exposures (CVEs) has reached staggering levels, placing immense pressure on organizations' cyber defenses. According to SecurityScorecard, there were 29,000 vulnerabilities recorded in 2023, and by mid-2024, nearly 27,500 had already been identified.Meanwhile, Coalition's 2024 Cyber Threat Index forecasts that the total number of CVEs for 2024 will hit 34,888—a 25% increase compared to the previous year. This upward trend presents a significant challenge for organizations trying to manage vulnerabilities and mitigate potential exploits.What’s behind…

Quishing: A growing threat hiding in plain sight

4 min read - Our mobile devices go everywhere we go, and we can use them for almost anything. For businesses, the accessibility of mobile devices has also made it easier to create more interactive ways to introduce new products and services while improving user experiences across different industries. Quick-response (QR) codes are a good example of this in action and help mobile devices quickly navigate to web pages or install new software by simply scanning an image.However, legitimate organizations aren’t the only ones…

Topic updates

Get email updates and stay ahead of the latest threats to the security landscape, thought leadership and research.
Subscribe today