Despite massive hack, Equifax wins IRS contract for fraud-detection

Between March and July of this year, the credit rating agency Equifax, was infiltrated by hackers who made off with the sensitive personal information of more than 140 million Americans. That sounds like the kind of thing that might hurt a company’s credibility when it comes to security. But Politico is now reporting that the IRS will pay Equifax $7.25 million to “verify taxpayer identities and help prevent fraud.”

A synopsis of the contract, published by the Department of the Treasury on September 30, notes that the contract was a “sole source order,” meaning the IRS didn’t shop around for competitive bids. That’s because it’s in a contract dispute with a former security provider, and doesn’t want to let consumer protections lapse. Why...

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