Incident: IRS Data Breach: Massive Hack Exposing Taxpayer Information

Published Date: 2016-02-26

Postmortem Analysis
Timeline 1. The software failure incident, a hack exposing taxpayer accounts' information, happened last spring as originally reported by WIRED [40371]. 2. The article was published on 2016-02-26. 3. Therefore, the software failure incident occurred in spring of 2015.
System 1. IRS application "Get Transcript" [40371]
Responsible Organization 1. Hackers accessed taxpayer accounts through an IRS application called "Get Transcript" [40371] 2. The IRS underestimated the severity of the breach and failed to detect the extent of the compromise [40371]
Impacted Organization 1. Taxpayers - Over 700,000 people were affected by the hack on the IRS, with their personal information compromised [40371].
Software Causes 1. The software cause of the failure incident was a hack that exploited vulnerabilities in an IRS application called "Get Transcript" [40371].
Non-software Causes 1. The hack was caused by attackers gaining access to personal information such as social security numbers and dates of birth, which were used to exploit vulnerabilities in the IRS application "Get Transcript" [40371].
Impacts 1. Over 700,000 people had their taxpayer accounts' vulnerable information exposed, including social security numbers, addresses, and incomes [40371]. 2. 500,000 targeted attempts at access failed, indicating a significant number of individuals were at risk of having their information compromised [40371]. 3. Affected taxpayers were offered free Equifax identity theft protection for one year and extra scrutiny on their tax returns associated with their social security numbers [40371]. 4. The IRS underestimated the severity of the breach, with the number of affected accounts being revised upwards multiple times over the course of nearly a year [40371].
Preventions 1. Implementing stronger authentication measures such as multi-factor authentication could have prevented unauthorized access through the IRS application "Get Transcript" [40371]. 2. Regularly conducting security audits and penetration testing to identify and address vulnerabilities in the system could have helped prevent the hack [40371]. 3. Enhancing employee training on cybersecurity best practices to prevent phishing attacks and unauthorized access attempts could have mitigated the risk of breaches [40371].
Fixes 1. Implementing stronger authentication measures to prevent unauthorized access through the IRS application "Get Transcript" [40371]. 2. Conducting regular security audits and assessments to identify and address vulnerabilities in the system [40371]. 3. Enhancing monitoring and detection capabilities to quickly identify and respond to suspicious activities or unauthorized access attempts [40371].
References 1. IRS 2. WIRED 3. Equifax 4. Treasury Inspector General for Tax Administration (TIGTA)

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization (a) The software failure incident related to the IRS hack exposing taxpayer accounts' information has happened again within the same organization. The IRS initially reported the hack affecting 114,000 accounts, then revised it to 334,000, and later added another 390,000 affected accounts [40371]. This indicates a recurring issue within the IRS system. (b) There is no information in the provided article about the software failure incident happening again at multiple organizations.
Phase (Design/Operation) design, operation (a) The software failure incident related to the design phase can be seen in the IRS hack incident reported in Article 40371. The hack that exposed taxpayer accounts' vulnerable information was a result of attackers gaining unauthorized access through an IRS application called “Get Transcript.” This indicates a vulnerability in the design or development of the system that allowed for such unauthorized access [40371]. (b) The software failure incident related to the operation phase is evident in the IRS hack incident as well. The fact that the hackers used personal information already in hand to gain unauthorized access through the IRS application highlights a failure in the operation or misuse of the system. It suggests that there may have been weaknesses in the operational procedures or controls that allowed for this breach to occur [40371].
Boundary (Internal/External) within_system (a) within_system: The software failure incident related to the IRS hack exposing taxpayer accounts' information was primarily due to contributing factors that originated from within the system. The hackers gained access to entire tax returns, compromising sensitive information like social security numbers, addresses, and incomes. The breach occurred through an IRS application called "Get Transcript," indicating a vulnerability within the IRS system itself [40371]. (b) outside_system: The article does not provide specific information indicating that the software failure incident was due to contributing factors originating from outside the system.
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident in Article 40371 was primarily due to non-human actions, specifically a hack that exposed taxpayer accounts' vulnerable information. The hackers gained access to entire tax returns, compromising sensitive information such as social security numbers, addresses, and incomes. The breach occurred through an IRS application called "Get Transcript," and the hackers used personal information that was already in their possession to gain unauthorized access. The IRS had to take the application offline following the breach [40371]. (b) While the software failure incident was primarily caused by non-human actions (the hack), there were also human actions involved in the aftermath of the incident. The IRS underestimated the severity of the breach and initially reported a lower number of affected accounts. It took nearly a year for the IRS to realize the extent of the breach and revise the number of affected individuals. Additionally, the IRS mentioned that not all identified suspicious email addresses attempting to access accounts were necessarily malevolent actors; some could be family members, tax return preparers, or financial institutions using a single email address for multiple account access attempts [40371].
Dimension (Hardware/Software) software (a) The software failure incident related to hardware: - The incident involved a hack that gave attackers access to taxpayer accounts' information, including social security numbers, addresses, and incomes [40371]. - The hackers used personal information already acquired to gain unauthorized access through an IRS application called "Get Transcript" [40371]. (b) The software failure incident related to software: - The IRS application called "Get Transcript" was the entry point for the hackers to access taxpayer accounts [40371]. - The software failure was due to the vulnerability in the IRS application that allowed unauthorized access to sensitive information [40371].
Objective (Malicious/Non-malicious) malicious (a) The software failure incident reported in Article 40371 was malicious in nature. The incident involved a hack where attackers gained unauthorized access to taxpayer accounts through an IRS application called "Get Transcript." The hackers used personal information already acquired to compromise sensitive information such as social security numbers, addresses, and incomes. The breach resulted in over 700,000 affected individuals and 500,000 targeted but failed attempts at access, indicating a deliberate attempt to exploit the system for malicious purposes [40371]. (b) The software failure incident was not non-malicious as it involved intentional actions by malicious actors to exploit vulnerabilities in the system and compromise sensitive taxpayer information.
Intent (Poor/Accidental Decisions) poor_decisions, accidental_decisions (a) The software failure incident related to the IRS hack can be attributed to poor decisions made by the IRS in underestimating the severity of the breach. The article mentions that the IRS initially reported the hack affecting 114,000 accounts, then revised it to 334,000, and later added another 390,000 affected accounts, totaling over 700,000 people [40371]. This indicates a significant underestimation of the impact of the breach, reflecting poor decision-making in assessing the extent of the vulnerability. (b) The software failure incident can also be linked to accidental decisions or unintended consequences. The article mentions that not all of the identified suspicious email addresses attempting to access accounts were necessarily malevolent actors. Some of them could be family members, tax return preparers, or financial institutions using a single email address to access multiple accounts, inadvertently contributing to the vulnerability [40371]. This highlights the unintentional nature of some actions that led to the software failure incident.
Capability (Incompetence/Accidental) development_incompetence, accidental (a) The software failure incident related to development incompetence is evident in the IRS hack incident reported in Article 40371. The incident occurred due to hackers gaining unauthorized access through an IRS application called "Get Transcript." This breach exposed sensitive taxpayer information, including social security numbers, addresses, and incomes. The IRS initially underestimated the severity of the breach, as indicated by the significant increase in the number of affected accounts from the initial report of 114,000 to over 700,000 after subsequent revisions. This underestimation and the prolonged vulnerability of affected individuals highlight a lack of professional competence in assessing and addressing the security risks associated with the software application [40371]. (b) The software failure incident related to accidental factors is also present in the IRS hack incident. The hackers exploited personal information that was already in their possession to gain unauthorized access to taxpayer accounts. The breach was not immediately detected, allowing the hackers to access a large number of accounts over an extended period before the IRS took action. Additionally, the IRS mentioned that not all identified suspicious email addresses necessarily belonged to malevolent actors, suggesting that some attempts at access could have been accidental or unintentional, possibly involving family members, tax return preparers, or financial institutions using a single email address [40371].
Duration temporary The software failure incident reported in Article 40371 was temporary. The IRS application called "Get Transcript" was offline since the first indications of the breach last May, indicating a temporary disruption [40371]. The incident lasted for nearly a year before the IRS revealed the full extent of the breach, showing that the failure was not permanent but rather due to specific circumstances that were eventually addressed [40371].
Behaviour crash, omission, other (a) crash: The software failure incident in the IRS hack incident can be categorized as a crash. The system lost its state and failed to perform its intended functions, leading to unauthorized access to taxpayer accounts and compromising sensitive information [40371]. (b) omission: The software failure incident can also be linked to omission. The system omitted to perform its intended functions by allowing attackers to gain access to entire tax returns, compromising social security numbers, addresses, and incomes of over 700,000 people [40371]. (c) timing: There is no specific mention of the software failure incident being related to timing issues in the articles. (d) value: The software failure incident does not align with a failure due to the system performing its intended functions incorrectly. (e) byzantine: The software failure incident does not exhibit characteristics of a byzantine failure. (f) other: The software failure incident can be described as a failure due to underestimating the severity of the breach. The IRS underestimated the number of affected accounts, leading to a delayed response in notifying and protecting taxpayers, which can be considered as a unique behavior in this context [40371].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property, theoretical_consequence (d) property: People's material goods, money, or data was impacted due to the software failure The software failure incident at the IRS resulted in the exposure of taxpayer accounts' vulnerable information, including social security numbers, addresses, and incomes. Attackers gained access to entire tax returns, compromising sensitive personal data. The breach affected over 700,000 individuals, with 500,000 failed attempts at access. Affected taxpayers were offered free Equifax identity theft protection for one year and extra scrutiny on their tax returns. The severity of the breach was underestimated by the IRS, leaving a large number of people vulnerable for an extended period without their knowledge [40371].
Domain finance, government (a) The failed system in the incident was related to the finance industry as it involved a hack on the IRS system that exposed taxpayer accounts' vulnerable information, including social security numbers, addresses, and incomes [40371].

Sources

Back to List