Category Archives: irs

Tax prep firm reaches settlement with FTC over cybersecurity lapses

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TaxSlayer, a tax preparation company hacked by a ring of identity thieves in 2015, has agreed to settle a Federal Trade Commission complaint about its cybersecurity and data privacy practices — consenting to adopt a new security program and pay for third-party audits of its services. “Tax preparation services are responsible for very sensitive information, so it’s critical they implement appropriate safeguards,” said Tom Pahl, acting director of the FTC’s Bureau of Consumer Protection in a statement. “TaxSlayer didn’t have an adequate risk assessment plan.” The FTC announced the settlement in a statement Tuesday, saying the company was in violation of the Gramm-Leach-Bliley Act’s Safeguards Rule, which requires financial institutions to implement security safeguards to protect customers’ personal information; and its Privacy Rule, which requires financial institutions to tell customers about their privacy practices — the widely ignored “privacy notices” that they distribute. There is no direct financial penalty, but the company has to bear the […]

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Private Eye Allegedly Used Leaky Goverment Tool in Bid to Find Tax Data on Trump

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In March 2017, KrebsOnSecurity warned that thieves who perpetrate tax refund fraud with the U.S. Internal Revenue Service were leveraging a widely-used online student loan tool to find critical data on consumers that allows them to claim huge refunds with the IRS in someone else’s name. This week, it emerged that a Louisiana-based private investigator is being charged with using the same online tool to glean tax data on then-presidential candidate Donald J. Trump.

A story today at Diverseeducation.com points to court filings in the U.S. District Court for the Middle District of Louisiana, in which local private eye Jordan Hamlett is accused by federal prosecutors of abusing an automated tool at the U.S. Department of Education website that is designed to make it easier for families to complete the Education Department’s Free Application for Federal Student Aid (FAFSA) — a lengthy form that serves as the starting point for students seeking federal financial assistance to pay for college or career school. Continue reading Private Eye Allegedly Used Leaky Goverment Tool in Bid to Find Tax Data on Trump→

Phishing 101 at the School of Hard Knocks

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A recent, massive spike in sophisticated and successful phishing attacks is prompting many universities to speed up timetables for deploying mandatory two-factor authentication (2FA) — requiring a one-time code in addition to a password — for access to student and faculty services online. This is the story of one university that accelerated plans to require 2FA after witnessing nearly twice as many phishing victims in the first two-and-half months of this year than it saw in all of 2015. Continue reading Phishing 101 at the School of Hard Knocks→

Phishing 101 at the School of Hard Knocks

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A recent, massive spike in sophisticated and successful phishing attacks is prompting many universities to speed up timetables for deploying mandatory two-factor authentication (2FA) — requiring a one-time code in addition to a password — for access to student and faculty services online. This is the story of one university that accelerated plans to require 2FA after witnessing nearly twice as many phishing victims in the first two-and-half months of this year than it saw in all of 2015. Continue reading Phishing 101 at the School of Hard Knocks→

Student Aid Tool Held Key for Tax Fraudsters

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Citing concerns over criminal activity and fraud, the U.S. Internal Revenue Service (IRS) has disabled an automated tool on its Web site that was used to help students and their families apply for federal financial aid. The removal of the tool has created unexpected hurdles for many families hoping to qualify for financial aid, but the action also eliminated a key source of data that fraudsters could use to conduct tax refund fraud.

Last week, the IRS and the Department of Education said in a joint statement that they were temporarily shutting down the IRS’s Data Retrieval Tool. The service was designed to make it easier to complete the Education Department’s Free Application for Federal Student Aid (FAFSA) — a lengthy form that serves as the starting point for students seeking federal financial assistance to pay for college or career school. Continue reading Student Aid Tool Held Key for Tax Fraudsters→