IRS Loses Laptops; Your Data Exposed?

(CBS)  CBS News correspondent Peter Maer has covered the White House and executive branch agencies for more than 20 years.

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The nation's tax collector is being called to task for lax security that could compromise personal information on thousands of taxpayers.

"Hundreds of IRS laptop computers" and other devices have been lost or stolen, according to a report (.pdf) by the Treasury Department inspector general's office. Many were swiped from employees' vehicles and homes, but investigators also learned that more than a fifth of the devices were stolen from IRS offices.

"It is likely that sensitive data for a significant number of taxpayers have been unnecessarily exposed to potential identity theft" and other fraud, the report warns. "The Internal Revenue Service is not adequately protecting taxpayer data on laptop computers" and other devices.

The report also uncovered faulty encryption and password controls. The IRS annually processes more than 220 million tax returns. As any taxpayer knows, those returns include personal financial information and Social Security numbers. The IRS insists there have been no reports of identity theft linked to the missing laptops.

Investigators called for tighter security measures. The report noted the IRS has agreed to take "corrective actions."

The IRS is the latest federal agency to confront laptop security issues. Government investigators have found similar problems at other departments and offices, including the nation's top law enforcement agency, the FBI.

In February, the Justice Department's inspector general reported three or four FBI laptops are lost or stolen each month. The inspector general said it was "most troubling" that the FBI could not determine in many cases whether the lost or stolen laptops contained sensitive or classified information."

Last year, the Bush administration issued new recommendations for laptop encryption and other standards following computer security issues at a number of departments.

Earlier this year, a private group, the Cyber Security Industry Alliance, urged the government to increase efforts to improve information security. The group says that except for the Department of Veterans Affairs, "the federal government still has no requirement to notify individuals if their sensitive personal information has been compromised."


By Peter Maer

[tucano2]

Idiots - these were not misplaced or "lost" - they were sold for cash under the table-some for the machine plus a lot for YOUR personal data.
Bunch of cover-your-*** clowns...just who is it they think they are fooling? Americans are on to you George Bush...get fitted for a stiped black and white road gang suit

[hhusted]

I say we stamp out the government completely, and let's just govern ourselves. Also, keep work in America. Do not give it to foreignors, considering they can use the information against us.

[granolaboy1]

Why is anyone surprised? This is the same government that set up the H-1B Visa program that is essentially handing our technology edge to places like India, China, and Russia on a silver platter.

This is the same government that allows our banks to outsource their call centers to India. Your personal banking information is at the fingertips of foreigners now.

This is the same government that made the FDA a tool of drug companies.

Clinton, Obama? Both H-1B supporters. Take the government back from multi-national corporations: vote for Kucinich.

[lily_ayanami]

i enjoy the increasing connectivity and mobile workstations as much as the next guy, but sometimes i wonder how many of the laptops really do need to have sensitive data on them, as opposed to being on the laptop out of convenience?

[clarkssuppor]

sclaires:

It is very normal for any employee including an IRS employee to carry his laptop. I don't like bureaucracy anymore than the next guy. Nevertheless, I have had IRS auditors in my private offices working on IRS audits of taxpayers. They carry a laptop. So do many other workers (insurance agents, mortgage brokers, CPA's, lawyers, etc). We live in a mobile work environment. This problem will only get worse.

[sclaires]

I want to know just why ANY government employee needs to take a laptop home and much less leave it in a car to get stolen. There is no reason for any employee to take a laptop home since they do not work at home as it is. If a government employee has had a laptop lost or stolen, then the employee should be made to repay the cost of the laptop plus investigative costs and then FIRED. When I was working as a federal employee there was no need for me to take any of my work home with me. I was paid for 8 hours work and my work stayed on my desk when I left for the day. It was always there to be picked up and started with the next morning. It is down right senseless to think that there are that many employees who need to work at home. They can always stay late if there is something that needs to get done that day. So, I will say again, it is stupid for federal employees to take laptops home for any reason.

[gramto7]

Why would we even think that the IRS would take care of our information? They don't even accept US government issued CASH!! I had this happen to me... not something I heard from a cousin's neightbor's son's girlfriend....etc. They expected me to go buy a money order, when all I had was the exact amount needed to pay off the amount due. I was furious!

Since they are a government agency, just like VA and all the others that have managed to 'lose' Americans' information, we can expect even more of the same from more and more of them as time goes by.

[alphaa10-2009]

The laptop security problem is nation-wide-- but for only those entities which do not take security seriously enough to budget basic protections.

At the very least, encryption for laptop access is a must. Encryption ensures that even if a laptop is lost/stolen, data is not compromised. This very basic procedure, which costs little or nothing to implement, was not followed by the IRS.

This apparent lack of competent leadership is yet another "Katrina"-style fiasco from the Bush regime. The scandal betrays a stupid and slavish adherence to the Grover Norquist prescription for government-- as little as possible, or even less. The problem with that formula is it leads to abuse and imbecility at the opposite end of the spectrum-- the "Who's Minding the Store?" syndrome marking the Bush second term.

Good government is intelligent address of public necessity and convenience. Contrary to what Bush and his neocons would tell us, good government is a symbol of civilization. To do without good governance invites the chaos and incompetence which has become the hallmark of the Bush regime.

[hypnotoad72]

BTW, to the pathetic crapintosh (Mac) troll: NO platform is invulnerable. And as hackers have already started to work on, I sincerely hope that smarmy arrogance of yours gets flushed sooner rather than later.

BTW: Mac OS X is merely a souped up FreeBSD running on, you guessed it, PC hardware. If Mac is so superior, why won't they open up what is 99% born and bred on a PC in the first place?

[johnfulton]

I don't understand how these things happen. There should be security out the wazoo at facilities operated by the IRS and there should be no reason for any of their information to be on laptops. It's too easy for those things to walk off apparently.