IRS Data Breach - Who Is Next?

On Tuesday May 26th, 2015, the Internal Revenue Service (IRS) announced that cyber criminals used an online service to access personal tax information from more than 100,000 taxpayers out of 200,000 total identified attempts. Attackers gained access through a system call "Get Transcript" where taxpayers can get tax returns and other filings from previous years. In order to gain access to this system the attackers needed to clear a security screen that required knowledge about the taxpayer, including Social Security Number, date of birth, tax filing status and street address, the IRS said. It’s possible that some of these transcript accesses were made with an eye toward using them for identity theft for next year’s tax season.

The IRS said it will be notifying all affected taxpayers by US mail and offering free credit monitoring. The IRS offering however contains major gaps in proactive monitoring and identity monitoring, and no resolution services. Additionally single bureau credit monitoring can miss as much as 73% of potential identity theft events.

We have seen a tremendous uptick in employees opting in to Identity Theft protection using our Benefits Administration and Private Exchange which is powered by bswift. Participation as high as 60%. In situations such as this our partner, ID Watchdog, is able to provide full coverage for anyone affected.

Employers are offering more and more voluntary products to their employee benefit packages with ID Theft being one that is simple and affordable. This helps demonstrate the employer’s commitment to providing employees with the tools they need to address areas of concern aside from the typical benefits they have traditionally offered.

Think about offering ID Theft in your next renewal. You don’t need a benefits administration platform or a private exchange to enhance your benefit plan options.

Important identity theft facts

• Identity theft is the fastest growing crime in America.
• In 2012 there were 12.6 million victims of identity theft.
• Every minute about 19 people fall victim to identity theft.
• It takes the average victim an estimated $500 and 30 hours to resolve each identity theft crime.
• Studies have shown that it’s becoming more common for the ones stealing your identity to be those closest to you. One study found 32% of identity theft victims discovered a family member or relative was responsible for stealing their identity. That same study found 18% were victimized by a friend, neighbor or in-home employee.
• Most cases of identity theft can be resolved if they are caught early.
• Financial institutions – like banks and creditors – usually only hold the victim responsible for the first $50 of fraudulent charges.
• Only 28% of identity theft cases involve credit or financial fraud. Phone, utility, bank and employment fraud make up another 50% of cases.