IRS To Review ChoicePoint Contract on Security Concerns
The Internal Revenue Service has ordered a full security review of it’s contract with the vendor ChoicePoint, Inc. ChoicePoint is a consumer data provider that suffered a severe security breach that allowed thieves to access the personal and financial information of hundreds of thousands of individuals.
ChoicePoint currently has a five-year contract with the IRS to provide consumer data. The IRS uses such data to identify and locate assets of delinquent taxpayers as part of criminal investigations. The contract is valued at $20 million dollars.
The stated purpose of the review is to make sure ChoicePoint is taking appropriate steps to protect the confidentiality of taxpayers. The IRS has reported no security issues involving ChoicePoint, but the recent security problem certainly justifies the security review. The IRS said it had no security problems during a previous five-year contract with the company.