How Safe is Taxpayer Data?

How Safe is Taxpayer Data?

How Safe is Taxpayer Data?The Treasury Department's inspector general for tax administration stated that the IRS needs to boost its efforts to protect tax payer data, according to a report filed last October.  The document states that the IRS does not take adequate measures to secure taxpayer information before sharing it with state exchanges created by Obamacare.

Having tax payer information at risk is nothing new.

Although the vast majority of employees are trustworthy, misuse of taxpayer information can result in legal liability, lost revenues and a tarnished reputation creating a major concern for tax agencies. There are 6000-8000 complaints on average filed each year against IRS employees for civic and criminal investigations according to the US Treasury Inspector General. In 2011 the IRS watchdog, Treasury Inspector General for Tax Administration (TIGTA) announced that 2,200 databases used by the IRS to manage and process taxpayer information were not secure.

As early as 1997, the Internal Revenue Service fired 23 employees, disciplined 349 and counseled 472 after agency audits found that government computers were being misused by employees to browse tax records of friends, relatives and celebrities.

More recently, data leakage has even been blamed for impacting the results of a presidential election. In 2012, Fox News reported that an anti-gay marriage group bent on banning same sex marriage in the U.S. accused the IRS of leaking tax documents that showed GOP presidential candidate Mitt Romney as a contributor.

In addition to leaking information, tax agency employees have ample opportunities for financial gain. Bogus claims can be filed to receive unemployment and other social benefits, and tax credits can be fabricated or artificially inflated to boost the size of tax refunds.

Last year the Justice Department charged 13 Internal Revenue Service employees with "brazenly stealing" over $250,000 in government benefits including unemployment insurance, food stamps, welfare, and housing vouchers. In 2012, an IRS employee claimed  a non-existent school in South Carolina was attended by dozens of children to enable tax payers to receive larger tax refunds, and the previous year more than 100 IRS employees fraudulently claimed a first-time homebuyer tax credit.

Whistle blowing is one way to combat insider fraud, but it has its limitations. Many employees can be afraid of repercussions including poor performance reviews, receiving less favorable work conditions or even a possible termination.

There are several technologies available which can help detect misuse of taxpayer information. Data Leakage Prevention (DLP) solutions can identify when employees print sensitive documents, transfer data to USBs and external drives or email taxpayer information. However, these methods are usually more effective for unintentional data leakage. Employees who steal data intentionally can easily bypass DLP solutions by using a mobile phone to take pictures of data on a screen, or slightly altering the sensitive data before transmitting it, in addition to utilizing other methods.

One method for detecting intentional data leakage is to analyze log file data. This method detects when taxpayer data is changed or added but cannot detect users who browse tax payer records since log files don’t typically track when files are accessed but not edited.

A more effective approach to counteract intentional leakage is to monitor employee online activity by sniffing network traffic. In this case all user activity is monitored and analyzed including when they add, modify, browse or query taxpayer data. When behavioral analysis is performed on the captured data it can detect suspicious activity that shows intent to leak sensitive data, before any data is lost. If tax agencies can detect suspicious activity sooner, taxpayer data can be more secure.

As the US government relies more and more on online processes to provide basic services, personal data will be more susceptible to being breached. Based on pressure from citizens and other governmental authorities, tax agencies may lead the way to taking advanced measures to protect citizens’ privacy and assets.

Featured

  • 12 Commercial Crime Sites to Do Your Research

    12 Commercial Crime Sites to Do Your Research

    Understanding crime statistics in your industry and area is crucial for making important decisions about your security budget. With so much information out there, how can you know which statistics to trust? Read Now

  • Boosting Safety and Efficiency

    Boosting Safety and Efficiency

    In alignment with the state of Mississippi’s mission of “Empowering Mississippi citizens to stay connected and engaged with their government,” Salient's CompleteView VMS is being installed throughout more than 150 state boards, commissions and agencies in order to ensure safety for thousands of constituents who access state services daily. Read Now

  • Live From GSX: Post-Show Review

    Live From GSX: Post-Show Review

    This year’s Live From GSX program was a rousing success! Again, we’d like to thank our partners, and IPVideo, for working with us and letting us broadcast their solutions to the industry. You can follow our Live From GSX 2023 page to keep up with post-show developments and announcements. And if you’re interested in working with us in 2024, please don’t hesitate to ask about our Live From programs for ISC West in March or next year’s GSX. Read Now

    • Industry Events
    • GSX
  • People Say the Funniest Things

    People Say the Funniest Things

    By all accounts, GSX version 2023 was completely successful. Apparently, there were plenty of mix-ups with the airlines and getting aircraft from the East Coast into Big D. I am all ears when I am in a gathering of people. You never know when a nugget of information might flip out. Read Now

    • Industry Events
    • GSX

Featured Cybersecurity

Webinars

New Products

  • PE80 Series

    PE80 Series by SARGENT / ED4000/PED5000 Series by Corbin Russwin

    ASSA ABLOY, a global leader in access solutions, has announced the launch of two next generation exit devices from long-standing leaders in the premium exit device market: the PE80 Series by SARGENT and the PED4000/PED5000 Series by Corbin Russwin. These new exit devices boast industry-first features that are specifically designed to provide enhanced safety, security and convenience, setting new standards for exit solutions. The SARGENT PE80 and Corbin Russwin PED4000/PED5000 Series exit devices are engineered to meet the ever-evolving needs of modern buildings. Featuring the high strength, security and durability that ASSA ABLOY is known for, the new exit devices deliver several innovative, industry-first features in addition to elegant design finishes for every opening. 3

  • EasyGate SPT and SPD

    EasyGate SPT SPD

    Security solutions do not have to be ordinary, let alone unattractive. Having renewed their best-selling speed gates, Cominfo has once again demonstrated their Art of Security philosophy in practice — and confirmed their position as an industry-leading manufacturers of premium speed gates and turnstiles. 3

  • Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

    Connect ONE®

    Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation. 3