Capital Letters Spell Big Trouble for Tax Customers
Sunday, August 24th, 2008If you live in the area of Kingston, Washington, you need to pay attention. This is especially true if you use a company to take care of your taxes. The company that is having the most difficulty at the moment is Kingston Tax Services. They reported earlier today that one of their computers was stolen and the hard drive contained sensitive information on its clients, including names, birth dates, addresses, and social security numbers. This information also contained this same sensitive information for any dependents that would have been listed on tax records and forms over the last eight years. In all, the company is saying that a huge pool of people have just been opened up to the whims of identity thieves and that immediate action must be taken.
The owner of the company, Tim Winsor, is advising all customers to take immediate action and contact a variety of bureaus to put fraud alerts on their accounts. These bureaus include the Social Security Administration and the Credit Bureau Fraud Departments. People are advised to put fraud alerts on their credit cards and also notify banks and credit card companies of the breach and the likelihood that they have been impacted by it. One option open to people is to subscribe in an ID theft service, like Lifelock. This company monitors all three credit bureaus and holds any credit card or loan applications until they can verify if they were submitted by the person whose name appears on them. By creating this slight delay, Lifelock can prevent identity theft before it happens.
In cases like this, time is a critical factor. The quicker that thieves can move the information before people have put alerts on their accounts, the better off they are at making off with the money of other people. Despite Winsor’s plea that people start alerting bureaus “RIGHT NOW!” there is no telling how many people have already been affected. One client said that with the recognition that time was of the essence, it should not have taken six days between the theft and when people started to receive their letters alerting them to the break in. There is only limited talk at the moment about possible class action lawsuits against Kingston Tax Services and the shoddy care they gave the security systems of their computers.
The theft that resulted in this problem involved a laptop from the office which is under construction. The information was password protected, but it was not complex. There was also no encryption on the computers. Winsor believes that his stolen laptop was for sale on Craiglist within two days of the theft, although he was not able to determine this with 100% certainty because the serial numbers were blurred out on the images available on the website. Even more troubling is that the breach has resulted in the filing dates for a number of individuals being missed. This will result in fines from the IRS which Winsor has not said if he will cover them or not. This will be an ongoing story for some time.

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