IRS Awards Equifax a $7.2 Million Fraud Prevention Contract

By:
Chris Gaetano
Published Date:
Oct 3, 2017
IRS

In an irony worthy of Sophocles himself, Politico reports that the IRS has awarded a $7.2 million fraud prevention contract to credit rating agency Equifax, which recently made headlines when it announced a massive data breach that affected potentially 44 percent of the U.S. population. The company has been contracted to verify taxpayer identities and assist in ongoing identity verification and validation at the IRS. There was no competitive bidding for the contract, as Equifax was determined by the IRS to be the only company capable of providing the service. 

The news comes on the same day that the former CEO of Equifax testified before a House subcommittee. During his testimony, he said that hackers in May were able to exploit an unpatched software flaw that the Department of Homeland Security had warned them about in March. While there had been an internal email instructing staff to fix the problem, but this was apparently not done. 

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