Friday 29 May 2015

IRS Believes Russian Hackers Behind Major Data Breach

(TRNS) – The Internal Revenue Service believes Russian hackers are responsible for the data breach of more than 100,000 tax returns in the U.S., CNN reported Thursday, according to two sources familiar on the data breach.

The IRS announced Tuesday that the hackers stole $50 million by filing for fraudulent tax refunds through the agency’s “Get Transcript” feature. The IRS added that the hackers stole information about tax payers from elsewhere in order to fake the tax returns.

The IRS’ Criminal Investigation Unit and the Treasury Inspector General for Tax Administration said they are investigating the source of the breach on Tuesday. The FBI announced Thursday that it would also begin an investigation into the data theft.

The IRS data breach is occurring after officials believe Russian hackers previously infiltrated the White House and the State Department last fall.

Now lawmakers want to also look into the IRS breach themselves, as the Senate Finance Committee plans to hold a public hearing Tuesday morning to ask top IRS officials about it’s security system. In a letter to the IRS Wednesday, Sen. Orrin Hatch (R-UT), chair of the Finance Committee said the committee has been very concerned over criminals stealing taxpayers’ personal identities for refunds. In January, the IRS reported that it had also paid $5.8 billion for fraudulent tax refunds just last year.

Hatch also requested that IRS allow a confidential hearing with the Senate Finance Committee in addition to the public hearing on Tuesday.

“When the federal government fails to protect private and confidential taxpayer information, Congress must act,” Hatch said in a statement. “Taxpayers deserve to know what happened at the IRS regarding the data theft.”

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