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IRS: Personal Info of 100,000 Taxpayers Accessed Illegally

An anonymous reader writes: The Associated Press reports that an online service provided by the IRS was used to gather the personal information of more than 100,000 taxpayers. Criminals were able to scrape the "Get Transcript" system to acquire tax return information. They already had a significant amount of information about these taxpayers, though — the system required a security check that included knowledge of a person's social security number, date of birth, and filing status. The system has been shut down while the IRS investigates and implements better security, and they're notifying the taxpayers whose information was accessed.

21 of 85 comments (clear)

  1. DoB, SSN & Filing Status?? by CrimsonAvenger · · Score: 4, Insightful

    That's all the ID the IRS requires to use their "secure" site???

    Jaysus, you can get most of that (SSN & DoB) by looking at someone's Driver License in most States.

    And guessing Married Filing Jointly will work more often than not, I expect....

    --

    "I do not agree with what you say, but I will defend to the death your right to say it"
    1. Re:DoB, SSN & Filing Status?? by pehrs · · Score: 4, Interesting

      Say after me ten times: Identity is not Authentication, nor Authorization. Identity is not Authentication, nor Authorization. Identity is not...

      Now, got that? You are making the same sad mistake that the IRS did. You are confusing Identity with Authentication.

      SSN & DoB are perfectly fine identifiers for a person. Not quite unique, but they will work for the purpose.

      The problem is that there is no authentication, nor any authorization infrastructure for them to use as far as I know. There are in other countries (see for example https://www.bankid.com/en/). I have understood that there are ideological reasons not to roll out a decent Authentication/Authorization infrastructure in the US, but the lack of such an infrastructure will cost US business (and private person) more and more dearly as important information moves to the internet.

    2. Re:DoB, SSN & Filing Status?? by Charliemopps · · Score: 4, Insightful

      That's all the ID the IRS requires to use their "secure" site???

      Jaysus, you can get most of that (SSN & DoB) by looking at someone's Driver License in most States.

      And guessing Married Filing Jointly will work more often than not, I expect....

      I know, it's hilarious. These agencies/companies get hacked due to their own willful negligence... then scream "Hackers did it!" like hackers have magic hacking wands that turn servers inside out. It seems that the only piece of info that would have been remotely hard to get was filing status... which the "hackers" just guessed at. It looks like they were 50% successful, and I bet if compared with the victims filing status, they likely had a 50% chance of filing jointly or something. What a joke. This is completely and entirely the IRS's fault.

      Make a new law, if you get hacked, you have to pay the person whos data you lost $100,000. Problem solved. You can then decide if spending time on securing the data is worth it, or if you just want to not store it. It IS possible to prevent this sort of thing. These agencies and companies just don't think it's profitable to do so when the penalty for losing a persons info is nothing more than a press release.

    3. Re:DoB, SSN & Filing Status?? by ShanghaiBill · · Score: 4, Insightful

      No-one should have your SSN beyond the government.

      That is silly. The original point of SSNs was so that employers could use them to identify workers when paying social security taxes to the government. So, obviously, your employer needs to know it.

      We need to get away from the ridiculous idea that something can be both widely known and secret. SSNs should only be used for identification, and should never be used for authentication. We should have a separate system for that.

    4. Re:DoB, SSN & Filing Status?? by NicBenjamin · · Score: 3, Informative

      There's more to it then that.

      There's a section asking questions taken partly from the IRS database, and partly from your credit report. The questions are hard enough that when I did taxes at H and R Block it was not unusual for people to fail the test. In particular the form was very finicky about your address, and god help you getting on the site if you'd misspelled your street name on your tax return. But if I had been a determined hacker with one of those PII databases I probably could have turned a good half of them into transcripts, and used the transcripts to file tax returns. You get a couple tries a day, after all.

      BTW, it's currently illegal to use an SSN as a Driver's License number. Has been since 2004:
      [Public Law 108-458] "Prohibits Federal, State, and local governments from displaying SSNs, or any derivative thereof, on drivers' licenses, motor vehicle registrations, or other identification documents issued by State departments of motor vehicles."

    5. Re:DoB, SSN & Filing Status?? by Charliemopps · · Score: 2

      Better yet, those same agencies are 100% supportive of fining private enterprise for the same thing... But they believe they are simply innocent victims of outside attacks and shouldn't be held responsible.

      But this wasn't even an "attack" they used the form as it was intended to be used and just guessed at the inputs. That's like putting a combination lock on your safe that only has 1 digit, setting it to "1" then, after your customers Jewelry is stolen claiming there's nothing to can do to stop a determined Global criminal organizations that employ master safe crackers.

  2. Contradictory information by Anonymous Coward · · Score: 2, Insightful

    In order to access the information, the thieves cleared a security screen that required knowledge about the taxpayer, including Social Security number, date of birth, tax filing status and street address.

    In all, about 200,000 attempts were made from questionable email domains, with more than 100,000 of those attempts successfully clearing authentication hurdles.

    Email doesn't go through a "security screen". Do they mean "questionable IP addresses" rather than "email domains"?

    1. Re:Contradictory information by Loconut1389 · · Score: 2

      I believe they meant:
      After the page where you fill in security questions, they ask for the email and send you the report and the addresses the reports were sent to were suspicious.

  3. Mad Lib by Voyager529 · · Score: 4, Insightful

    [NEWS_OUTLET] reports that an online service provided by [ORGANIZATION_WITH_PERSONAL_DATA] was used to gather the personal information of [CUSTOMERS_OR_USERS]. Criminals were able to scrape [INSECURE_SYSTEM] to acquire [SUPPOSEDLY_SECURED_INFORMATION]. The system has been shut down while [OVERPAID_AND_INCOMPETENT_ANALYSTS] investigate and [PROMISE], and they're notifying [CUSTOMERS_OR_USERS] whose information was accessed.

    At this point, you can turn this story into a Mad Lib, and fill in the blanks with basically any set of nouns, and it'll mostly be true.

  4. Very Serious by Anonymous Coward · · Score: 3, Insightful

    This is actual even more serious than it sounds since the IRS basically gave the criminal a mean of mass validating their existing data. They have in effect proven valid SSN/Birthday pairs now ready to be used and abused.

    1. Re:Very Serious by DaHat · · Score: 2

      We are talking about the same national government that couldn't rollout a website with major issues, on time or for a reasonable cost... why do you think a national PKI would be any easier or efficient to implement & rollout?

    2. Re:Very Serious by DaHat · · Score: 2

      Exactly... and even if they happened to create a perfect system on day one, the training required to get the average person to be able to use it would be herculean task.

      It's hard enough convincing many of our parents not to type in their username & password to just everywhere "Look for the lock icon in the address bar" we used to say, until malicious sites started setting the icon of the site to a lock.

      PKI is fantastic when it's largely automated and transparent... and I trust my parents web browser and OS's binary signature checking far more than I do their ability to learn how to actively participate in such a system.

    3. Re:Very Serious by Jason+Levine · · Score: 2

      I've done some research on the topic, being a victim of identity theft myself. From what I understand, the person who steals the identity rarely uses the stolen identity. Instead, they sell it to someone else who then uses it. This way, the real thief gets some quick cash with less risk of getting caught - especially if it's an inside job. (e.g. Someone in HR at your company downloads your company's employee records to a USB drive and decides to make a little money on the side.) Meanwhile, the people using the stolen identities can run up a big tab on the stolen credit lines without needing to do any messy hacking of computer systems. It's a win-win for the criminals - and a lose-lose for the person whose identity was stolen.

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
  5. Yeah by Anonymous Coward · · Score: 5, Interesting

    The existence of this system was reported previously on slashdot, and people were recommending that you sign up before a criminal signs up in your name. That way you can protect the account with your own strong password.

    Which is exactly what I did. And I am now quite happy I did. And I don't mind a bit that they shut it down anyway.

    1. Re:Yeah by ChromaticDragon · · Score: 5, Interesting

      So did I.

      But then I stopped and thought a bit about the concept of Testing for Success vs. Testing for Failure. The former is weak testing... lazy testing. It WORKS. That's nice... But does it fail as it should? Have you tested when and how it fails? Do you know the limits?

      So... I decided to act as an identify thief. As previously reported then and now, getting the credentials to sign up are easy. OK. But I had already signed up. So that'd protect me, right?

      NOT AT ALL.

      It was trivially easy to sign up again. Oh sure, an email gets sent to the first email address set up. But this leads to one of two situations. First, the proper user doesn't check his email for a while. Then whatever the thief is going to do they can do. Second, the proper users finds out immediately and gets on and takes it back over. All good? Comically, no. Believe it or not (and I was really stunned at this part) the webapp doesn't force logout the identity thief when the proper user reregisters.

      I was a tad sickened at this point.

      As far as I could tell, this was utterly and completely insecure. The only way for an "average joe" to protect themself here was to sign up and then freeze credit completely at all the credit bureaus. Supposedly (haven't finished this part yet) once you do that, the 20-question stuff will IMMEDIATELY fail and anything like this IRS.GOV site that depends on it will also fail.

      Oh... but it was rather interesting to see what the IRS had stored on me... and what they didn't have. It was somewhat perplexing.

  6. Re:Lawsuit by acoustix · · Score: 2

    Those affected should be able to sue, there needs to be accountability.

    While I agree 100%, we're talking about the US government here. Nobody will be fired. Nothing will change.

    --
    "A plan fiendishly clever in its intricacies"- Homer Simpson
  7. Last Straw by frovingslosh · · Score: 5, Funny

    That does it. I'm going to quit giving them my business.

    --
    I'm an American. I love this country and the freedoms that we used to have.
    1. Re:Last Straw by Anonymous Coward · · Score: 2, Funny

      I guess the IRS couldn't fix their security because they were too busy harassing any groups that the Obama Administration didn't like.

  8. It's not just the IRS by Sir_Eptishous · · Score: 3, Insightful

    Yea, /. had a story about the IRS and SS sites a while back.
    Make sure your log in and create an account for the Social Security Administration too.

    It really is getting ridiculous how frequent this shit is happening now.
    It's almost to the point where people don't even pay attention:
    "Oh wow, another big financial institution got hacked... Another fifty million Americans data is in the hands of criminals... What can we do about it?"

    The average American is at their wits fucking end trying to keep up with all their accounts, passwords, blah diddy fucking blah shit they have to keep track of. For most of us this isn't an issue, but you can guarantee that for the vast majority of Americans, they are flying blind when it comes to all various requirements for being secure online. Oh, and lest I forget(how could I?) all of these security problems we encounter daily are always for convenience of the user(Trust Us!). Convenient apps/plugins/sites/tools to make your life easier:
    "Isn't your life easier with our no security, pro-hacker enabled widget? Why, within a matter of moments of using our widget your personal data, financial data and medical data will be in the hands of our trusty hacker/malware infested servers in DerkaDerkaStan, where our trusty staff of well trained consultants will bleed you dry before you can click the X in the upper right hand corner. Why, to deny such a widget would be an affront to America, to the very meaning of Freedom and Capitalism!"

    To be less hyperbolic, think of what it takes to have even a modicum of security online. We've got to have hardened browsers(NoScript, AdBlock, etc), we have to have different id/pw combinations for all important sites(that one really messes with people...), we have to have an account with a credit monitoring/credit agency(Equifax, etc) to monitor our financial accounts, we have to have up to date settings, firmware on our DSL/Cable modems, we have to have our OS security settings correct, AV/AntiMalware, etc, etc, etc

    Have fun with all that, average American(it's bad enough for "advanced" users).

    --
    We play the game with the bravery of being out of range
  9. Re:Freeze your credit. Problem solved. by Jason+Levine · · Score: 2

    That's what we did when my identity was stolen. My name, address, SSN, and DOB were used to open a card in my name. I was lucky and the credit card company sent it to me (due to the thieves paying for rush delivery) instead of processing the address change and sending it to the thieves. It's a pain when I want to use my credit (refinance mortgage, buy a car, etc), but most days I don't need to touch my credit and don't want anyone else touching it either.

    Of course, the credit agencies don't like when you freeze your credit. Frozen credit files are less profitable (can't sell them to credit card companies hawking even more lines of credit) and so they like pushing "fraud alerts" instead. These expire every 90 days unless you renew them and are voluntary. If I were a credit card company opening a line of credit on someone, it's recommended that I check the fraud alert, but I could just ignore it, open the credit line, and suffer no consequences.

    To credit agencies and credit card companies, identity theft is an inconvenience that you just write off. No big deal. To the victim, though, it's a horrible experience. I felt completely violated knowing that someone was walking around with my private information, pretending to be me, and doing their best to run up a huge tab to send my way.

    --
    My sci-fi novel, Ghost Thief, is now available from Amazon.com.
  10. Re:Adding insult... by NicBenjamin · · Score: 2

    If you owed money you'd have to send it in anyway. Identity theft is not gonna get you out of the failure to pay penalty.

    Keep in mind all this would go away if we were just willing to wait for our tax refunds. He beats you to the IRS? Who cares -- by May they will have the correct income documents so they'll know which one of you is you and which is the fraudster. But since we have to have our money NOW we deal with fraud.

    OTOH, since we basically run our Welfare State through the tax system (ObamaCare is technically an income tax subsidy, the Earned income Credit is the major cash benefit we give poor people, much of our higher education subsidy is the American Opportunity Credit, etc.) many of them genuinely need the money as quickly as possible. But the tradeoff for getting them the money quickly is that fraudsters can claim those credits quickly and get paid quickly.