This message is in MIME format. The first part should be readable text, while the remaining parts are likely unreadable without MIME-aware tools. Send mail to mimeat_private for more info. --------------0783F9480594AB5286FDAD7E Content-Type: TEXT/PLAIN; CHARSET=us-ascii Content-ID: <Pine.SUN.3.96.981201153830.1494Uat_private> Forwarded From: darek milewski <darekmat_private> http://cnn.com/US/9812/01/irs.security/index.html Audit of IRS reveals problems with security measures $100 million delivered by a bicyclist December 1, 1998 Web posted at: 5:22 a.m. EST (1022 GMT) WASHINGTON (CNN) -- A new audit of the Internal Revenue Service's security operation has found potentially costly problems at the agency. IRS used bicycle couriers to transport taxpayers' checks to banks and hired employees with criminal pasts, according to the audit by the congressional General Accounting Office. At one office, a bicycle messenger was entrusted with up to $100 million in deposits every day. The GAO said a courier left a $200 million deposit unattended in a car with a window open. Investigators found that unarmed couriers driving civilian cars alone, or riding bicycles were used at four IRS service centers, to deliver tens of millions of dollars in taxpayer checks. IRS Commissioner Charles Rossotti did not challenge results of the audit released Monday but said the IRS is taking steps to remedy its security weaknesses. "We take our responsibility to protect taxpayer information very seriously," Rossotti said. "We plan to continue working with GAO to do everything possible to ensure the security of taxpayer information and payments." The GAO visited IRS service centers in Atlanta; Philadelphia; Austin, Texas; and Ogden, Utah, from April 20-23, during this year's tax filing peak. Practices at district offices in Los Angeles, northern California and northern Texas were also observed. Although the deposits did not include cash, taxpayer checks contain such private information as bank account and Social Security numbers, names and addresses and signatures. They can be "cloned," using account numbers, into fake bank accounts if stolen. "The theft of one peak season deposit could place a significant administrative burden on IRS to contact taxpayers and initiate stop payment orders on tens of thousands of checks," GAO investigators wrote. The audit did not identify any instances of such a theft. But the GAO did cite lack of adequate background checks in 12 of the 80 IRS employee thefts, or about 15 percent, investigated from January 1995 to July 1997. Those 80 thefts totaled some $5.3 million and were detailed in a previous GAO audit. In most cases, delays in receiving fingerprint results, combined with a crush of new hires during peak filing season, meant that some people were on the job before their backgrounds were thoroughly vetted by the IRS. The employees handle cash, checks and private taxpayer information. The IRS hired 20,000 seasonal employees this year to handle peak filing season, when up to 100,000 pieces of mail a day are received and processed at agency service centers. The fingerprint checks took an average of 68 days -- one took 141 days -- instead of the 21 days that had been expected. GAO also found that taxpayer checks were often stored in unrestricted areas, contrary to IRS policy, meaning unauthorized employees would have greater access to them. In one case, the documents were stored in a hallway adjacent to a fitness center where anyone could enter unchallenged. Rossotti said the agency intends to have better deposit transporting methods in place by August 1999 and other security improvements involving handling of receipts should be ready by January 1. In addition, IRS within two months intends to have a new, live fingerprint scanner at 17 sites, including the 10 service centers, that can complete FBI checks within five days, Rossotti said. Still, Sen. William Roth, chairman of the Senate Finance Committee, which oversees the IRS, expressed dismay over the audit's findings. "The IRS has a responsibility to protect taxpayers' money and to safeguard each taxpayer's personal information," said Roth, R-Del. "Unfortunately, many of the service centers have not been taking appropriate precautions." --------------0783F9480594AB5286FDAD7E-- -o- Subscribe: mail majordomoat_private with "subscribe isn". Today's ISN Sponsor: Repent Security Incorporated [www.repsec.com]
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