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IRS Gets Hacked Again, Forced To Scrap Their Entire PIN System (engadget.com)
The IRS has abandoned a system of PIN numbers used when filing tax returns online after they detected "automated attacks taking place at an increasing frequency," adding that only "a small number" of taxpayers were affected. An anonymous reader quotes the highlights from Engadget:
The IRS chose not to kill the tool back in February, since most commercial tax software products use it... If you'll recall, identity thieves used malware to steal taxpayers' info from other websites, which was then used to generate 100,000 PINs, back in February... This time, the IRS detected "automated attacks taking place at an increasing frequency" thanks to the additional defenses it added after that initial hack... the agency determined that it would be safer to give up on a verification method that's scheduled for the chopping block anyway.
There are plenty of great second factor solutions. The better ones are really easy to use and provide a lot more security. But providers don't want roll out fancy new technology, and users are blissfully unaware of how security works, so they want the same thing that they have had for the last couple of decades.
The upshot is that even when second factors are rolled out, we essentially end up with something no more secure than password and pin, whereas there are beautiful solutions such as FIDO U2F that are ignored.