IRS Awards $7 Million Fraud Prevention Contract To Equifax (politico.com)

An anonymous reader quotes a report from Politico: The IRS will pay Equifax $7.25 million to verify taxpayer identities and help prevent fraud under a no-bid contract issued last week, even as lawmakers lash the embattled company about a massive security breach that exposed personal information of as many as 145.5 million Americans. A contract award for Equifax's data services was posted to the Federal Business Opportunities database Sept. 30 -- the final day of the fiscal year. The credit agency will "verify taxpayer identity" and "assist in ongoing identity verification and validations" at the IRS, according to the award. The notice describes the contract as a "sole source order," meaning Equifax is the only company deemed capable of providing the service. It says the order was issued to prevent a lapse in identity checks while officials resolve a dispute over a separate contract. Lawmakers on both sides of the aisle blasted the IRS decision.

Comments

The IRS just stepped in it....

[Zurkeyon3733]

Time to Start up a Class Action Against the IRS for ENABLING data compromised companies to perform government contracts involving IDENTITY! Appalling!

Re:Swamp

[The-Ixian]

Someone should really drain that thing and build a castle...

capable

[pD-brane]

Equifax is the only company deemed capable ...

Since Equifax has shown to be very incapable (of exactly the things they should be capable of), what does this say about all other companies in this business?

Re:Don't blame the IRS

[Big Hairy Ian]

Also it looks like they didn't have any choice as Equifax laughably appears to be the only company on their approved supplier list for this service

Re:Don't blame the IRS

[TWX]

I may agree in other circumstances, but awarding a contract for fraud prevention to what's probably the largest victim of a form of fraud in human history- an entity that is now trying to deflect blame by citing conditions that they themselves created in the first place, is about as stupid as it gets.

Equifax deserves to have its charter revoked, basically the corporate death penalty, with its assets liquidated and all of the proceeds going to a mitigation fund to attempt to combat the expected identity theft that the public will see in the upcoming years. Its officers should be prosecuted and if the ensuing investigation shows they were willfully negligent, the personal gains they made through those negligent actions should be confiscated through a civil forfeiture process as they're sentenced to jailtime. This is not the company that one awards a no-bid contract to.

Sole Source

[BKuhl]

Why is it a "sole source orderâoe? We have verified at least a few other parties have access to all the same data now....

More regulations

[Anonymous Coward]

It won't happen. Listen my fellow peasant, we have to just bend over and take it.

And when we get the letter stating that our taxes have already been filed (probably by some illegal alien using our SSN to get his refund and CTC, EITC, ACTC), WE will be the ones that will have to spend the time filling out forms to prove that we are who we are.

Then, every tax year, WE will have to provide the documentation stating that we are who we say we are.

All because businesses are careless with the data they insist on collecting about us. It's no skin off of their asses.

My wife's neurologist system was broken into and we got the letter stating that the break-in happened and "how they take patient privacy seriously".

Dumb shits.

Suck it up! There's nothing else to do!
We NEED European style privacy laws and regulations because businesses cannot be trusted to take responsibility.

Re:More regulations

[Archangel Michael]

A number is not proof of identity. It is a reference number to help establish that you are who you say you are. Having identifying information, like a Social Security Number is not proof of identity, it simply is a tool in what should be a chain of tools to help one verify (key word) identity.

People who accept it as "proof" of identity are misusing it, and should be held accountable for that misuse. Any Line of Credit established without enough other evidence is itself evidence of lack of due diligence.

Re:More regulations

[HiThere]

The problem is, when someone, say Equifax, collects the "other evidence useful for proof of identity", then they can impersonate you to anyone who don't personally know you. And if they share that information with some other entity, willingly or not, THAT entity can no impersonate you to anyone who doesn't know you.

We aren't just talking about one piece of information here.

Re-open the bidding

[mwvdlee]

[quote]The notice describes the contract as a "sole source order," meaning Equifax is the only company deemed capable of providing the service[/quote]
While that may have been true at the time of posting the order, pretty much every company has access to the same data as Equifax now.

This IRS calling to check your identity we need yo

[Joe_Dragon]

This IRS calling to check your identity we need your
Name
Address
SS number or tax ID number