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2015's big hacks, attacks and security blunders
The security breaches, blunders, and disasters of 2015 tanked our trust in health insurance providers, credit agencies, the IRS, car manufacturers, connected toys for kids, and even "adult" dating sites. These stories shaped 2015, and forever changed the way we see data privacy and security. Most importantly, these painful moments in computer security affected millions, shaped government policy and validated our paranoia.
IRS promises to get a search warrant before spying on cellphones
The IRS will no longer use "Stingray" cellphone-tracking devices unless the agency receives a search warrant supported by probable cause, in accordance with the Department of Justice's Policy Guidance, IRS Commissioner John Koskinen says in a letter. The agency's use of Stingray surveillance devices went public in October, though at the time it was unclear how (and how often) the IRS used the technology. Stingray devices mimic cell towers to trick nearby phones into connecting to them, allowing the user to track locations, record calls and access text communications.
The IRS has used Stingray phone-tracking tech
This year, the Department of Homeland Security and the Department of Justice have thankfully put into place more stringent regulations on how government agencies can use "Stingray" cellphone-tracking devices. However, we're also learning more about how widespread usage of such tools was within the government: Today, The Guardian reports that the Internal Revenue Service made purchases in 2009 and 2012 of Stingray equipment from manufacturer Harris Corporation. The documents it received as part of a Freedom of Information Act request were heavily redacted but still revealed that in 2012, the IRS paid more than $65,000 to upgrade previous Stingray equipment to a newer version called the HailStorm.
AI could be the solution to catching tax cheats
The fear of AI usually revolves around the fear of an uprising and humans being attacked by our new robot overlords. Researchers at MIT and non-profit technology source Mitre have a new terrifying future for AI. Well, not that scary to most people, but something that could put a fright in the accountants of tax-cheating corporations. The researchers propose a using artificial intelligence to investigate complex tax shelters that keep companies and the rich from paying their fair share of taxes. It's like Skynet but with a really awesome calculator and algorithms.
This year's IRS breach is way bigger than the agency initially thought
Back in May, the Internal Revenue Service said thieves nabbed info for 100,000 people through its transcript website. Today the agency increased that number by an additional 200,000 folks, bringing the total number of potential cases to 334,000. Using a "Get Transcript" tool to access tax returns from previous years -- a vulnerability that the government knew about -- hackers were able to use personal details on 610,000 taxpayers to retrieve tax-related info on the over 300,000 accounts. Most likely, the culprits were looking to eventually claim refunds with the stolen goods. The IRS says it's "moving aggressively" to keep those who are affected or potentially at risk safe, and it's sending out letters to inform individuals if their information was accessed. This isn't the only tax-related incident facing the US government this year either, as 800,000 people received bad tax info through Healthcare.gov in February. [Image credit: KAREN BLEIER/AFP/Getty Images]
Pentagon shuts down Joint Chiefs' email network
The Department of Defense reportedly shut down an unclassified email system on Tuesday after detecting "suspicious activity" over the weekend, according to CNN. The network served General Martin Dempsey, chairman of the Joint Chiefs of Staff, as well as a number of civilian contractors. The Pentagon refused to release many details about the attack, even what the "suspicious activity" was; instead downplaying the hack as a run-of-the-mill cyber attack that caused minimal damage.
IRS to fight fraud and identity theft with help from tax-prep firms
The IRS has just revealed a collaboration with various tax-preparation firms and software companies such as Intuit that aims to prevent refund fraud. It will introduce new safeguards to authenticate a person's identity, including monitoring and flagging repetitive use of IPs and reviewing a device's identifying info. The IRS website will also take note of how much people spend to complete a tax return to prevent bots from submitting them and will capture metadata that can be used to investigate filings. In addition, everyone involved will regularly share (anonymous) data and fraud leads among themselves in an effort to be more effective in identifying suspicious activities.
Watchdog on recent IRS hack: We told them so
The IRS web portal is no digital Fort Knox, officials from IRS watchdog Treasury Inspector General for Tax Administration (TIGTA) told the Senate Finance Committee on Tuesday. In fact, J. Russell George, the Treasury Inspector General for Tax Administration, laid out a strong critique of the tax agency's ability to defend itself from cyber-attacks. Specifically, he cited dozens of security upgrades that had been recommended by his group -- but not implemented by the agency -- that would have reportedly made the most recent data breach "much more difficult" to pull off.
IRS blames Russia for '$50 million' hack
Remember when the IRS website was hacked and around 100,000 people had their tax data stolen? Officials are now pointing accusatory fingers in the direction of Russia, at least according to CNN. The revelation was made by Illinois Representative Peter Roskam, who is believed to have gotten the information straight from IRS chief John Koskinen. Roskam added that criminal gangs used the information to file around $50 million worth of fraudulent tax refund requests, although it's not clear if any money was handed over. It's the latest in a series of high-profile digital encounters between the US and Russia, after the latter was found to have hacked the White House and accessed the President's unclassified emails. That metallic clanking sound you can hear in the background, by the way, is that of sabers being rattled.
Thieves steal tax data for 100,000 from an IRS website
You might need to keep a closer eye than usual on your tax-related info. The Internal Revenue Service is warning that intruders stole tax data for 100,000 people between February and May by taking advantage of a flaw in the agency's transcript website. The evildoers successfully circumvented a security check that asks for static info like your Social Security number and tax filing status. The IRS is temporarily shutting down transcripts and says that its main servers are safe, but this could lead to the culprits filing for bogus tax refunds and getting victims in trouble.
800,000 people get bad tax info in latest Healthcare.gov snafu
Healthcare.gov just can't catch a break -- it's been targeted by hackers and shared personal information with marketing companies in the past six months, and now it's trying to clean up a mess for the nearly 800,000 people it just sent incorrect tax information to. The Obama administration confirmed the issue earlier this morning, and officials promised on the Healthcare.gov blog to contact affected households via phone call and email over the next few days. Needless to say, don't file your taxes yet if you signed up for health insurance using the site this past year. Better safe than sorry, right?
Why the IRS wants to be your Facebook friend
If the fear of an audit wasn't enough to scare you into being honest on your taxes, try this on for size: the IRS might be checking out your Facebook page. The good ol' Internal Revenue Service is reportedly using robots to scope out public social media accounts to catch potential tax dodgers. That means that the government can question if the "business trip" you took to Hawaii was legit based on snorkeling photos from your Instagram account or where you got all those benjamins in that YouTube video.
IRS tastes its own medicine, will pay Microsoft millions for Windows XP support
Usually, the Internal Revenue Service is the one getting paid this time of year, but Uncle Sam will be lining someone else's pockets this tax season because of its attachment to Windows XP. In case you hadn't heard, support for XP officially stopped on April 8th, meaning that Microsoft will no longer provide support or security updates for the venerable OS. However, governmental computers can't be left vulnerable, so the IRS will be paying Microsoft millions of dollars for custom support to keep their machines secure and functional. Right now, over half the agency's PCs still run XP, despite Microsoft telling the whole world that it would stop support for the OS in 2014 six years ago. The plan is to have all IRS machines running Windows 7 by the end of the year -- at which point the clock starts ticking on the transition to Windows 8. No rush, though, Microsoft has pledged to support Windows 7 through 2020. Let the governmental procrastination begin! [Image Credit: Alamy]
IRS says bitcoins are taxable property, but not currency
People love referring to Bitcoin as a "cryptocurrency," but the Internal Revenue Service looks at it a little differently. According to a new IRS statement, Bitcoin should be considered property, not currency. What does that mean for US Bitcoin aficionados? Quite a bit, actually.
Five apps to help you file your taxes (updated)
With only a few weeks before taxes are due -- the federal deadline is on April 17, and many states have followed suit -- plenty of Americans are scrambling to file before the clock ticks away. We've gone and found five apps that will help you make Tax Day, and waiting for that refund, a bit easier. TurboTax SnapTax (Free, but has in-app purchases) This app from Intuit allows those who are eligible to file with the simple 1040-EZ to do their taxes straight from the iPhone. Snap a photo of your W-2, answer the questions and hit the button to zip your return to the IRS. While the app itself is free, actually filing a return costs $24.99. TurboTax 2011 (Free, but has in-app purchases) Those who use TurboTax for their taxes can now do so via the iPad. The app itself is a free download, but like all of Intuit's products, filing the return will cost you. Those who have used TurboTax in the past will find the interface familiar. Filing returns starts at $49.99 for federal taxes and $39.99 for state. H&R Block Mobile (Free) This app from H&R Block allows you to check your Federal return status. It also allows you to create checklists for doing your taxes and estimate your refund, and it provides access to a tax help center that allows you to look up questions, define tax terms and more. And, if you throw up your hands in defeat, the app also provides directions to the closest H&R Block location. If you're a 1040EZ filer, you can use H&R Block at Home 1040EZ Tax to file for free. Receipts Pro - Expense Tracking with Reports ($4.99) Receipts Pro keeps track of all your business expenses as you make them so you're not struggling to recall them when doing your taxes. The app lets you take photos of your receipts and organize them into groups or categories. Custom fields can be used to attach tax or payment information to each receipt. An overview graph helps you keep track of spending and a reporting feature lets you print up a detailed list of expenses. IRS2Go (Free) Finally, we have the app developed by the IRS itself. Like other apps, it will allow you to check refund status. You can sign up to get tax tips emailed to you, how to contact the IRS, and you can follow the IRS Twitter feed from it. However, it does not provide access to tax code, forms or the sort of tools found in Tax Central. Still, if you feel more comfortable using the official app to check your refund status rather than Intuit or H&R Block, this app is not a bad way to go. [Kelly Hodgkins contributed to this post; updated to reflect separate apps for H&R Block]
5 iOS apps for Tax Day
With roughly a week to go before taxes are due -- the federal deadline is on April 18, and many states have followed suit -- plenty of Americans are scrambling to file before the clock ticks away. We've gone and found five apps that will help you make Tax Day, and waiting for that refund, a bit easier. TurboTax SnapTax (Free, but has in-app purchases): This app from Intuit allows those who are eligible to file with the simple 1040-EZ to do their taxes straight from the iPhone. Snap a photo of your W-2, answer the questions and hit the button to zip your return to the IRS. While the app itself is free, actually filing a return costs $19.99.
Judge rules against Hawkins personal bankruptcy, EA founder still owes millions in taxes
A reading from Forbes on the prophet Trip Hawkins: And lo, the San Francisco federal judge saw through the abusive tax shelters Hawkins used to hide millions in profits from his Electronic Arts days and declared them bad. Smiting a declaration of personal bankruptcy, the judge believed that Hawkins should give unto the government the estimated $20 million or more in federal and California state taxes he is in arrears to. The 16-page opinion by US District Judge Jeffrey S. White pointed out that Hawkins "continued to spend money extravagantly with knowledge or his tax liabilities" and that he "planned to defeat his taxes via bankruptcy and continue living the lifestyle to which he had grown accustomed." General rule: Pay your taxes. It's what did in Capone. Better rule: When the government is on your butt about tax evasion, it's best not to play it like Hawkins and purchase a $70,000 car ... especially when it's your fourth automobile in a two-driver household. [Image credit: AlanCleaver_2000]
IRS employee uses Outlook rules to intercept boss's e-mails, convicted of wiretapping
Here's an interesting question for you: if you set up a rule in Microsoft Outlook to forward messages from one account to another, and you do it without the knowledge of the owner of the account you're forwarding from, are you intercepting or merely copying mail? It may seem like a moot point, but for David Szymuszkiewicz, a former IRS worker, it's an important distinction. David was afraid of being fired after his license was suspended for drunk driving (he needed to drive to the homes of delinquent taxpayers), so he secretly set up this rule on his boss's machine to see what the world was saying about him. The rule was discovered and, wouldn't you know it, he was in trouble. The only question now: whether to charge him under the Wiretap Act for intercepting messages or the Stored Communications Act for merely copying of them. So, what was your answer to the question above? You might be tempted to say he was simply making a copy, and indeed that was Szymuszkiewicz's argument, but any Exchange admin will tell you that Outlook rules are executed on the server, not at the client, meaning those e-mails were indeed being intercepted. Szymuszkiewicz was convicted of wiretapping but seems to have avoided a harsh sentence, with 18 months probation being handed down. A light punishment for wiretapping, but a heavy one for diddling menus in Outlook.
Apple supply manager arrested for wire fraud, money laundering
Ever wonder why -- after years of secrecy -- camera-ready iPod cases began rolling out? The answer could possibly be Apple supply manager Paul Shin Devine, who was just fingered by the FBI and IRS as a fraudulent, money laundering mole. Devine was arrested Friday for allegedly receiving kickbacks from six accessory suppliers in exchange for confidential information, which apparently gave them an edge in negotiating Apple contracts. "The alleged scheme used an elaborate chain of U.S. and foreign bank accounts and one front company to receive payments," reports the San Jose Mercury News, "and code words like 'sample' were used to refer to the payments so that Apple co-workers wouldn't become suspicious." Though we're not yet sure what specific confidential information might have been passed along and we doubt the indictment will say, a separate civil suit filed by Apple claims Devine accepted over $1 million in "payments, kickbacks and bribes" over the course of several years.
The Virtual Whirl: A brief history of Second Life, 2008-2010 and beyond
This week, we cover the final installment of our summarized history of Second Life and Linden Lab (check out the first installment or the second, if you missed them). It's only possible to cover a tiny fraction of the events that took place in the space we have here, but the highlights paint an interesting picture. We'll be working our way from 2008 to June 2010, and looking at what future directions we expect from there.
