Well, this certainly does not instil confidence that the IRS will handle FATCA data safely.
Criminals use IRS website to steal data on 104,000 people.
Yesterday, CNN reported:
A “sophisticated” organized crime syndicate used the IRS website to steal tax forms full of personal financial information on 104,000 taxpayers, the agency said Tuesday.
The crooks weren’t as successful as they wanted to be. They only got about half of the 200,000 accounts they targeted. They used about 15,000 of them to claim tax refunds in other people’s names.
But the potential damage is worse. IRS Commissioner John Koskinen said he believes the criminals’ true mission was to gather vast amounts of personal information. Armed with that info, fraudsters can open bank accounts, credit lines and steal tax refunds in the future.
“This is just the latest manifestation of people getting enough data to masquerade as a taxpayer,” Koskinen said.
Now today CNN reports IRS believes the massive data theft originated in Russia.
This is exactly what we have been setting off alarm bells about. Why won’t Finance Canada or governments around the world listen?!? These thefts are with far less information than what will be provided with FATCA.
FBI is investigating.
“Congress must act,” says Senator Orrin Hatch. so, Congress will review how data was stolen. (but not till next week).
Here’s a better solution. Hire Edward Snowden to investigate. He’s hanging out in Russia now. Snowden cares far more about protecting private information than the IRS, US Treasury, US government or any other government around the world.
And what happens when the next data theft comes from Yemen, Syria or Iraq?
IRS Data Breach May Be Sign of More Personalized Schemes says New York Times.
But hey it’s happening everywhere, so don’t blame the IRS! And gee whiz their own funds and staff have been slashed, so we should expect all of this say the experts.
Again, I think they should hire Snowden to investigate. He has the skills, abilities and knowledge.
Most importantly, Snowden has a rather old-fashioned belief: Privacy Matters.
Now Washington Times reports IRS bilked for billions in bogus refunds.
in 2012, IRS paid out $2.1 billion in bogus refunds. Hmmm. Isn’t FATCA only supposed to raise $800 million per year? Could IRS be looking in all the wrong places?
How can governments around the world even think of handing over far more complex and sensitive information to them?!?
“IRS believes the massive data theft originated in Russia.” Sounds like another case of Blame Russia and in the words of Rahm Emmanuel, “Never let a serious crisis go to waste.” The current agenda is to poke, poke, poke the Russian Bear so even a criminal data theft can be used to demonize the country they currently have in their war mongering sights. The real culprit here is the IRS who left the door open for the data thief and Koskinen will probably have the gall to say if they had more money they would be able to afford a better but undoubtedly very expensive door closer.
doesn’t exactly inspire confidence, does it? Not that I had any before this. I agree, they’re targeting the wrong people, the wrong issue. They need to concentrate on cleaning up their own act within their own borders. Stop the never ending data breaches, stop the govt officials from tax evasion, stop giving kajillion dollar companies so many tax breaks that they actually get refunds on their taxes.
But, it’s much, much easier to go after the little folk around the world who don’t have any representation or any support from their governments.
@EmBee Here we go. CNN asks: Is IRS too broke to protect your info?
Then they point out IRS is still using Windows XP and some technology from the Kennedy era. What?!?
But, they are not too broke to hire $1000 hour lawyers to handle confidential information in violation of federal law.
But hey. Washington Post says this is all just a wrinkle in a mammoth problem facing IRS.
Doesn’t all of that give you confidence Outraged?
2.7 million taxpayers had identities stolen last year says IRS.
The IRS Commissioner said:
IRS paid identity thieves $5.6 Billion in 2011 alone. FATCA is expected to raise $800 million a year. Could they be looking in all the wrong places?
But don’t worry. IRS assured Congress they will fix the security problems by 2016. Yeah right.
And of course, the first FATCA data will be reported this year. This is alarming. If they can’t handle routine tax information safely, how in the world will they deal with far nore sensitive information?!?
That should be 5.6 Billion (with a b). Quite a bit more.
Ooops. That was my error. I knew it was Billion. One little letter. Huge difference. I will correct.
Thanks Duke for catching that and poInting it out.
Interesting information from Virginia La Torre Jeker
http://blogs.angloinfo.com/us-tax/2015/06/03/irs-changes-policy-will-provide-bogus-tax-returns-to-victims-of-identity-theft/
“When the taxpayer explains that he was the victim of identity theft and did not actually file the tax return, the IRS has, up until now, flatly refused to provide the taxpayer with a copy of the return.”
Yep. That sounds like the IRS. Protect the privacy of the fraudster crooks but FATCA people who live a world away and may not even be U.S. citizens!
Even more alarming is that a U.S. court agreed with the IRS!
They are insane in the U.S.
Can’t the Yanks manage any data?!?
Now personnel records of four million federal workers have been breached.
This time the U.S. is blaming the Chinese. Chinese hackers breach federal government personnel office
Last week it was the Russians they were blaming. This week it’s the Chinese. Where is American responsibility?!?
FATCA will be an absolute treasure trove for crooks and terrorists.
IRS Watchdog: We Told Them
Why am I not surprised that IRS did not listen nor heed the warnings?
IRS solution to help us? They made videos! More on the way!
http://www.accountingtoday.com/news/tax-practice/irs-offers-resources-for-taxpayers-abroad-74813-1.html
While American, Canadian, Australian and other governments pass laws to snoop into our private lives under the guise of stopping terrorism, FATCA has the potential to place anyone born in the U.S. in harm`s way.
Between IRS and ISIS shows how the recent data breach could have consequences beyond financial. This was written with Lebanon in mind, but it could be a risk in many other countries.
Attack Gave Chinese Hackers Privileged Access to U.S. Systems in the New York Times reports on the failure of the U.S. government to protect financial, medical and employment records of one million American government workers.
These were personnel records that were breached–not IRS–but the government was warned and did little to prevent it from happening.
One senior administration official said:
And no one knows what the hackers plans are for the information:
Pretty frightening–especially considering that Finance Canada tells us they trust the Americans with the sensitive private information of Canadians.
The number of people who had their private information stolen from federal personnel records is now over 21 million.
http://www.cnn.com/2015/07/09/politics/office-of-personnel-management-data-breach-20-million/index.html
We had to see this coming. IRS says cyberattacks more extensive than previously reported.
Why am I not surprised? Anyone want to bet it’s even greater than what IRS is now reporting?
On second thought, when I win that bet, the IRS would want to tax me on my Canadian winnings that are not taxable in Canada.