Wednesday, June 3, 2015

2015 IRS Hack

It appears the Russians hacked us…again.  In true Soviet fashion, their government of course denies any official involvement.  The report from Congress last week is that cyberattackers acquired taxpayer information from approximately 100,000 Americans.  This time it was courtesy of the IRS’ “Get Transcript” tool (Reisinger, 2015).  Ignoring the fact that this revelation comes on the heels of other recent Russian intrusions against the White House and State Department, the most interesting part of this story isn’t the “who” but the “how.”  Employing previously acquired PII such as names, addresses, and social security numbers, hackers used a weakly defended internet based tool to make off with an estimated $50 million in tax refunds.  That’s right; we did this to ourselves…again.

The IRS has an online database of American taxpayer information called “Get Transcript.”  Hackers conducted targeted attacks against this system to the tune of 200,000 attempts in order to successfully acquire 100,000 fraudulent tax refunds.  Although the IRS claims this to be a sophisticated attack against their systems, there appears to be a number of amateurish steps cyber professionals should have picked up on.  According to Reisinger (2015), the 200,000 attempts were made from “questionable email domains with more than 100,000 of those attempts successfully clearing authentication hurdles."  This begs the question “how” did this attack succeed.  Apparently every year the Treasury Inspector General for Tax Administration audits the IRS to assess its security systems.  “As of March this year, a list of 44 upgrades suggested to the organization remained uncompleted—ten of which are now three years old. They included security patches to close loopholes that could be exploited” (Condliffe, 2015).  Shortly after the disclosure, the current Treasury Inspector General J. Russell George told Congress that “it would have been much more difficult if they had implemented all of the recommendations we made.”  Although insiders claim a lack of funds is to fault for the security lapses, testimony given before Congress seems to contradict this assertion. 

Whatever the reason for the lapse, the ultimate moral of the story is we are our own worst enemy when it comes to cybersecurity.  FISMA is a 2002 congressional requirement and yet it is still not being implemented in the federal government correctly.  It would seem that IT auditing and compliance related careers should and will be the first line of defense against ourselves…and the Russians of course.

References
Condliffe, J. (2015). IRS failed to update security systems making recent hack more likely. Gizmodo. Retrieved from http://gizmodo.com/irs-failed-to-update-security-systems-making-recent-hac-1708659493


Reisinger, D. (2015). Russian hackers behind $50 million IRS scheme, report says. CNET. Retrieved from http://www.cnet.com/news/russian-hackers-behind-50-million-irs-hack-report-says/