IRS
IRS Data Breach Was Much Worse Than Initially Thought
The IRS has a confession: The data breach involving its “Get Transcript” app was larger than it initially reported. How much larger? About three times as much.
Aug. 19, 2015
The IRS has a confession: The data breach involving its “Get Transcript” app was larger than it initially reported. How much larger? About three times as much.
Back in May – right after the close of tax filing season – the IRS revealed that hackers had gained access to the personal information of taxpayers through the Get Transcript program. Initially, the nation’s tax collection agency said that 225,000 accounts had been targeted, resulting in approximately 114,000 successful breaches. But now, after careful review, it is updating those numbers.
In a press release issued on August 17, the IRS admitted that roughly 330,000 accounts were hacked, while the ID thieves targeted another 280,000.
What’s more, the crimes go back further than the IRS first thought. When it first announced the breach, the IRS stated that the cyber-attack was launched in February. Now it has discovered that the crooks started the thefts as early as November of last year.
The IRS shut down the Get Transcript service in May when the breach was discovered. It is still out of service. Transcripts are currently available only through the mail.
Hackers were able to “break in and enter” the Get Transcript application where taxpayers can view tax returns and other filings from prior years. They cleared security screens requiring specific knowledge, such as a Personal Identification Numbers (PINs), dates of birth, tax filing status and street addresses. In some cases, they were even able to provide the name of the taxpayer’s high school mascot!
The IRS presumes that this personal information was stolen from other sources. Armed with the additional information, the ID thieves may use it to file fraudulent tax returns or for other nefarious means. Thus, we undoubtedly haven’t heard the last of the repercussions.
Potential victims will be notified and offered free credit monitoring services by the IRS. Separately, the IRS has said that these benefits are exempt from federal income tax. It will also offer to enroll potential victims in a program assigning special ID numbers that taxpayers may use when they file their tax returns.
Who is responsible for the hacks of the Get Transcript program? The IRS is still working with other authorities on finding the culprits.