Cyber Thieves Hit the IRS—and 100,000 Taxpayers

Identity thieves hacked into an Internal Revenue Service data system earlier this year, potentially gaining access to personal financial information for at least 100,000 taxpayers.
The IRS issued a statement today saying that its online system, “Get Transcript,” was breached between February and May, the Associated Press first reported. The portal possesses information including tax returns and other taxpayer data stored by the IRS.
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The IRS’s statement said the tax thieves were able to penetrate the system because they had knowledge of 100,000 taxpayers, including dates of birth, Social Security numbers and tax filing details.
The massive hack comes as identity theft is at a record high. Earlier this year, the Treasury Inspector General for Tax Administration (TIGTA) reported that 1.6 million taxpayers were affected by identity theft in 2014 – compared to just 271,000 in 2010.
The IRS’s ability to catch fraudsters was even added to the GAO’s “High Risk List” or the list of federal programs that are most-vulnerable to waste, fraud and abuse.
Auditors attribute the increase to the uptick in electronic filing, which is more convenient for tax filers, but also easier for fraudsters to file fake returns.
TIGTA says the IRS doled out more than $5.8 billion in fraudulent refunds related to identity theft during the 2013 filing season.
The shift to electronic filing is also apparently making taxpayer information even more vulnerable according to the latest breach.
Related: IRS Struggles to Help Victims of Identity Fraud
The hack is obviously bad news for the agency, which is already struggling to address cases of identity theft as they stack up. TIGTA reported the IRS took about 278 days on average to resolve identity theft cases in 2013, despite the agency claiming that it takes about 180 days or six months to resolve issues of identity theft.
When it does complete cases, the IG found that about 10 percent of the “resolved” were riddled with errors.
The latest report comes at a tough time for the IRS, which is struggling with a recent round of budget cuts and is operating with an even greater workload while enforcing at least 40 new tax provisions under the president’s health care law.
The agency said it has temporarily suspended the online service that was the subject of the breach until the vulnerabilities are resolved.
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Corporate Sponsors Didn't Kick in Much for Women's World Cup Parade

While the country celebrates the U.S. Women’s Soccer team’s World Cup Championship with a New York City ticker tape parade, corporations have been reluctant to pony up cash to cover the $2 million celebration.
Major League Soccer, Nike, fod company Mondelez and video game giant Electronic Arts have contributed a total $450,000 toward the parade, leaving New York City to cover the difference, the New York Post reports. That includes the cost of cleanup and security.
By contrast, the 2012 parade that celebrated the New York Giants winning the Super Bowl had more than a dozen corporate sponsors.
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City officials told the Post that the dearth of sponsors reflected the short period of time in which the city pulled together plans for the parade. The team is the first women’s squad to receive a New York City ticker tape parade, although the city has honored individual women, such as Olympic athletes and Amelia Earhart.
More than 12,000 people entered a lottery for tickets to the parade, which will feature the team atop patriotic floats moving down the Canyon of Heroes in lower Manhattan as spectators throw confetti from surrounding buildings.
While companies may not have shown much interest in the parade, they are clearly interested in star Carli Lloyd. Her agent has repeatedly received more than 200 inquiries from marketers who want to work with the athlete.
That’s good news for Lloyd, who like all other National Women’s Soccer League players, is subject to a $37,800 salary cap, about one 10th of what the average male Major League Soccer player makes in a year.
How Big Is Your Screen? Minecraft Brings Its Game to Movie Theaters in the U.S.
The Minecraft sandbox just got a whole lot bigger.

This summer, one of the most popular games in the world may be coming to a movie theater near you. But you can play only if you’re between the ages of 7 and 17.
With over 100 million registered users, there is nothing virtual about Minecraft’s success. Microsoft paid $2.5 billion to purchase the game and its developer, Mojang, last year. This summer, startup Super League Gaming is giving young fans a chance to play the game in movie theaters. SLG has partnered with four major movie theater chains—Regal Entertainment Group, AMC Theatres, Cinemark Theatres and iPic Theaters—to bring the shared experience of a 100-minute Minecraft game to thousands of kids in 25 cities at more than 80 theaters.
For theater owners, it’s an attractive way to generate more revenue. They can sell more seats and they get to keep a larger percentage of the gross from league ticket sales than from movie ticket sales. With overall box office receipts in decline, theater owners are searching for new ways to fill theater seats. The summer of 2014 was the worst summer for movies since 1997, with a 15 percent decline of $3.9 billion from 2013. With the $204 billion opening of Jurassic World in June, theater owners are cautiously optimistic for 2015.
SLG president and co-founder Brett Morris told Fortune that “theaters want to be a destination for all entertainment, and there’s not a better next-gen entertainment option than gaming.” The summer games series taps into the kids who already spend hours playing Minecraft and watching Minecraft YouTube videos online.
After purchasing tickets online for $20 each, gamers will bring their own fully-charged laptops (which must be already loaded with Minecraft version 1.8 or above) to the movie theater. Once there, they can form teams and play the game in small groups on their laptops. They also can watch the entire playing field on the movie screen as teams play in real time.
For the kids, it’s a way to socialize—and strategize. Kids can be as loud as they want, compare builds, grab snacks, and move around inside the theater.
Plans for a fall league are already under way, with 150 theaters in 18 states signed up to participate. Each six-week league session costs $120, with gamers playing once a week. SLG is also going international, with gaming events in China and Canada.
Everyone else will have to wait for Minecraft, the movie, which is currently in development at Warner Bros.
Love Selfies? Now They Can Keep Your Credit Card Safe

MasterCard is appealing to America’s obsession with selfies in an effort to reduce credit card identity theft.
The credit card company is launching a new program that will allow consumers to approve online purchases with a facial scan. At the checkout page, you’ll be asked to take a picture of yourself using your phone instead of entering a password.
Currently, customers can stop hackers from using their credit card on the Web by setting up a “SecureCode,” which requires a password when shopping online. The password system was used in 3 billion transactions last year.
This fall MasterCard will launch a small pilot program involving 500 customers using fingerprints and facial scans. If the test is a success, the company plans on rolling it out publicly afterward. The company is also looking ahead to one day apply voice recognition technology.
To use the new selfie system, customers need to download the MasterCard phone app. Once you pay for something, a pop-up will appear asking for your authorization with either a fingerprint or facial recognition. Using facial recognition, customers stare at the phone, blink once — and bam! All done. The blink is a security measure so thieves can’t just hold up a photo of you. A fingerprint only requires a touch.
Passwords are easily forgotten, stolen or cracked, so the new system is a way to prove your identity using biometrics. Critics of the new system are uncomfortable that the photo or fingerprint a customer puts into his or her phone will transmit to the company’s computer servers. Cybersecurity experts worry the transfer of such information across devices is too big of a privacy risk.
MasterCard wasn’t the first company to develop a facial recognition app — Chinese shopping brand Alibaba demonstrated one in March, but had to postpone the technology’s launch because of security risks found by China’s central bank and police ministry.
Get Ready for Your 'Daily Glitch'—The NYSE, WSJ and United Were Just the Beginning

“Glitch” is clearly the word of the moment, after a series of pesky little technical problems forced United Airlines to ground flights, halted New York Stock Exchange trading and took down The Wall Street Journal website homepage all on the same day. If that wasn’t enough technical trouble, Seattle’s 911 system went down briefly. And a couple of NASA spacecraft also suffered “glitches” in recent days.
We deal routinely with glitches these days — a Wi-Fi connection goes down, an app freezes, a plug-in (usually Shockwave) stops responding, an email doesn’t load properly — which may help explain why, aside from lots of grumbling from delayed airline passengers, the reaction to Wednesday’s glitches was rather muted. The NYSE problems were reportedly caused by a “configuration issue” after a software update and United blamed its problem on “degraded network connectivity.” We see those issues every day, just not on as large a scale.
But that’s the problem.
At the risk of sounding like a high school term paper, let us note that the Merriam-Webster definition of glitch is “an unexpected and usually minor problem; especially: a minor problem with a machine or device (such as a computer).” The full definition describes it as a minor problem that causes a temporary setback.
Sure, Wednesday’s setbacks were all temporary. The Wall Street Journal site came back up quickly. Seattle’s 911 service was restored. Action on the NYSE itself was stopped for nearly four hours, but even then traders were still able to buy and sell NYSE-listed stocks on other exchanges. United grounded about 3,500 flights, which meant some people missed a wedding or a crucial business meeting. That will take time to sort out, but it will get sorted out.
In aggregate, though, the problems add up — and the word “glitch” only minimizes what can be much bigger, more serious issues..
Stock exchanges have suffered from a series of stoppage-causing glitches in recent years, pointing to the value of having trading spread across numerous exchanges. United’s tech breakdown “marked the latest in a series of airline delays and cancellations in the last few years that experts blame on massive, interconnected computer systems that lack sufficient staff and financial backing,” the Los Angeles Times reports. Just ask any of the roughly 400,000 United passengers whose travel plans were messed up if this was a little glitch. Or maybe check with the engineers who had to troubleshoot and rebuild the HealthCare.gov site after its glitch-laden launch.
It may be some relief that these latest outages weren’t the result of external attacks, but as sociologist Zeynep Tufecki, an assistant professor at the School of Information at the University of North Carolina, writes at The Message, “The big problem we face isn’t coordinated cyber-terrorism, it’s that software sucks. Software sucks for many reasons, all of which go deep, are entangled, and expensive to fix.”
These foul-ups are now mundane, and to some extent they may be inevitable as we rely more and more on complicated computer systems in every aspect of our lives. That’s the real issue, and it’s a lot bigger than a glitch.
Jeb Bush Wants Me to Do More What?

Yesterday, Republican hopeful Jeb Bush ticked off hard-working Americans everywhere when he said that in order to grow the economy, people had to work longer hours. Here’s the skinny:
What He Said: “My aspiration for the country--and I believe we can achieve it--is 4 percent growth as far as the eye can see. Which means we have to be a lot more productive. Workforce participation has to rise from its all-time modern lows. It means that people need to work longer hours and, through their productivity, gain more income for their families. That’s the only way we’re going to get out of this rut that we’re in.”
This Is All We Heard: “People need to work longer hours.” And “Let them eat cake.” Then we played Hall & Oates “Out of Touch” a few times.
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Then He Talked Some More. Later Bush clarified that his remarks really were in reference to underemployment and part-time workers. His campaign cited stark statistics of falling workforce participation, which are currently at their lowest level since October 1977. It also was a dig at Obamacare, which had previously defined the work week for a full-time employee at 30 hours, causing many employers to cap work weeks at 29 hours.
Who’s right? Well, as it turns out, both are. Workforce participation in the U.S. is at 62.6 percent. The Bureau of Labor says there are 6.5 million people in the U.S. who are working part-time because they can’t find full-time employment.
But it’s also true that many Americans are already putting in longer hours, and taking fewer and shorter vacations. A recent Time cover story called out, “Save the American Vacation” and referred to us as a “no-vacation nation.” A 2014 Gallup poll claims the average work week for many Americans who work full-time is more like 47 hours (not 40), and 21 percent report they work between 50 to 59 hours per week. Another 18 percent said they work 60 hours or more. (Only the South Koreans work harder, but we really don’t want to emulate them.)
That didn’t stop Democratic rivals from hollering back. Presidential candidate Hillary Clinton Tweeted: “Anyone who believes Americans aren’t working hard enough hasn’t met enough American workers.”
So there—for now.