Economy

IRS hands fraud prevention contract to Equifax despite massive hack

IRS hands fraud prevention contract to Equifax despite massive hack”

They also asked for a copy of every active contract between the IRS and Equifax, and they want the information no later than October 11, 2017.

In the Equifax breach last month, the stolen data included "names, Social Security numbers, birth dates, addresses and, in some instances, driver's license numbers", according to a statement by the company.

A man dressed up as the iconic character, Rich Uncle Pennybags, from the famous Monopoly boardgame appeared Wednesday at a Senate hearing about the Equifax data breach with former CEO Richard Smith in Washington, CNBC reported. On 2nd October, Equifax announced that the number of consumers potentially impacted by the breach was 145.5 million, 2.5 million more than previously believed.

"We were taken aback when it came to our attention that last week the IRS awarded Equifax a sole source contract worth over seven million dollars for 'verify [ing] taxpayer identity and. assist [ing] in ongoing identity verification and validations needs of the Service, '" they wrote.

The credit agency was awarded the $7.25 million contract to "verify taxpayer identity" and "assist in ongoing identity verification and validations", according to text of the agreement posted in the Federal Business Opportunities database on September 30. The contract was also offered as a "sole source order" which meant that no other firm was able to bid for the contract.

The company at the center of the biggest breach of personal information just signed a contract with the federal government to provide, well, personal information.

The committee's ranking Democrat, Ron Wyden, was not impressed: "The Finance Committee will be looking into why Equifax was the only company to apply for and be rewarded with this". The contract stated that Equifax was the only company capable of providing these services to the IRS, and it was deemed a "critical" service that couldn't lapse.

In 2015, the Equifax KBA system used by the IRS was hacked in a data breach that resulted in the loss of more than 700,000 tax records.



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