Equifax Given Huge IRS Fraud-Prevention Contract Following Massive Security Breach

The Internal Revenue Service (IRS) has awarded Equifax a $7.25 million fraud-prevention contract following the company’s massive security breach which affected over 140 million consumers. According to Politico, “The IRS will pay Equifax $7.25 million to verify taxpayer identities and help prevent fraud under a no-bid contract issued last week.” “The credit agency will ‘verify taxpayer identity’ and ‘assist in ongoing identity verification and validations’ at the IRS, according to the award,” Politico’s reported. “The notice describes the contract as a ‘sole source order,’ meaning Equifax is the only company deemed capable of providing the service. It says the order was issued to prevent a lapse in identity checks while officials resolve a dispute over a separate contract.” In September, it was reported that Equifax had been the victim of a large cyberattack, which potentially left over 140 million consumers’ personal information vulnerable. Following the attack, Equifax blamed the attack on a single employee who failed to implement a patch. However, according to Tech Crunch, “a patch for that vulnerability had been available for months before the breach occurred.” The company faced further controversy following the discovery that Equifax’s Terms of Service included a clause in their security assistance website which barred consumers from being able to sue the company before they removed it following consumer backlash. It was also revealed that the company had been encouraging consumers to visit the wrong security website, a fake, which could have easily been used as a phishing scam and taken more information.

Wow..   Be afraid..

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