Stavrinakis Calls For Hack Investigation

Critical of the governor's response to a computer breach that compromised taxpayer information, state Rep. Leon Stavrinakis (D-Charleston) called Thursday for a Legislative Audit Council review of the Department of Revenue.

Democratic leaders are also looking for increased identity theft protection for S.C. residents impacted. Exposed last month, the hack compromised Social Security numbers and other personal information of as many as 5.7 million taxpayers and 700,000 businesses.

"In short, we are dealing with, arguably, the most serious failure of South Carolina state government in my lifetime," Stravrinakis said. "Instead of answers and solutions, we've received a steady stream of misinformation, constantly changing stories and little-to-no transparency."

At a state Senate subcommittee hearing yesterday, outgoing DOR Director Jim Etter said that a dual password system would have prevented the hacker from accessing data. A dual password system is required by the IRS for agencies and costs $25,000 per year to install and maintain. It was implemented after the breach. Etter also said that he asked for $14.4 million in security upgrades earlier this year, but it was denied by the House.

Stavrinakis said the governor and her administration are trying to blame others. "This changing story falls flat on its face when the facts are analyzed," he said.

Legislators have sent a request to DOR to review the department's security policy, but were told the policy could not be provided. "Even the most general details have been denied," Stavrinakis said.

When legislators asked to see the contract the state has with Trustwave, a data security firm, the version they received was almost entirely redacted (see photo on right).

Along with other legislators, Stavrinakis called for:

• An independent and comprehensive audit of the DOR: to find out what went wrong, why it went wrong, what should be done to fix it, and who ultimately bears the responsibility.

• A tax credit for citizens and businesses to obatain their own credit protection on the open market for a period of at least five years.

Gov. Haley’s spokesperson Rob Godfrey said she is not opposed to an independent audit. "There has already been one, at the governor's request, but she has no objection to a second one," said Godfrey. "Gov. Haley looks forward to working with the General Assembly on ways to further protect and compensate affected taxpayers."

See Patch's complete coverage of the hack HERE.

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