Nightmare for Taxpayers According to an IRS Bulletin

IRS is warning taxpayers of a new surge in tax-related incidents

It is a nightmare for taxpayers according to an IRS bulletin there is a 400 percent surge in tax-related phishing and malware incidents.

This year the IRS already reported 1,026 malware and phishing incidents, compared to 254 this time last year.

SecurityAffairs: The IRS is warning taxpayers of newer forms of attacks aiming victims into disclosing credentials to third-party tax preparation service accounts.

“The Internal Revenue Service renewed a consumer alert for e-mail schemes after seeing an approximate 400 percent surge in phishing and malware incidents so far this tax season.” states the bulletin. “The emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. The phishing schemes can ask taxpayers about a wide range of topics. E-mails can seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.”

The IRS Commissioner John Koskinen used the adjective “dramatic” to describe this surge in tax-related incidents inviting taxpayers to watch out for scammers.

“This dramatic jump in these scams comes at the busiest time of tax season,” said Koskinen. “Watch out for fraudsters slipping these official-looking emails into inboxes, trying to confuse people at the very time they work on their taxes. We urge people not to click on these emails.”

Threat actors are very interested in using the tax season as a lure, in a common attack scenario victims receive an email containing links to the domain used to serve malware. In other cases, the attackers used emails with attachments that include documents embedding malicious macros. Once the victims open the document, the macro drops a malware on the victim’s machine, including dreaded ransomware like CryptoLockerTeslaCrypt and Locky.

These are the alarming statistics provided by the IRS:

  • There were 1,026 incidents reported in January, up from 254 from a year earlier.
  • The trend continued in February, nearly doubling the reported number of incidents compared to a year ago. In all, 363 incidents were reported from Feb. 1-16, compared to the 201 incidents reported for the entire month of February 2015.
  • This year’s 1,389 incidents have already topped the 2014 yearly total of 1,361, and they are halfway to matching the 2015 total of 2,748.

Recently IRS services were abused by crooks to target taxpayers, in May 2015 the Internal Revenue Service was breached by hackers that “used an online service provided by the agency” to access data for more than 100,000 taxpayers. The IRS issued an official statement on the incident and specified that the compromised system was “Get Transcript.” The Transcript service could be used by taxpayers to get a transcript online or by mail to view their tax account transactions.

In August 2015, the Internal Revenue Service disclosed a new review of its system, revealing that 334,000 taxpayers (more than three times it initially estimated) may be affected by the hack it announced in May.

A couple of weeks ago the IRS detected roughly unauthorized attempts using 464,000 unique SSNs, and 101,000 attempts allowed crooks in generating PINs.

The U.S. Internal Revenue Service confirmed that cyber criminals abused the Electronic Filing PIN application running on irs.gov that allows taxpayers to generate a PIN that they can use to file tax returns online.

Pierluigi Paganini

 

Obama Placing Legacy Above Truth in Cuba

First of 8,000 stranded Cuban migrants cross into US

MEXICO CITY (AP)— The first of 8,000 Cuban migrants recently stranded in Central America have crossed the Mexican border into the United States.

Some 180 migrants flew from Costa Rica to El Salvador, and have been making their way to the U.S., with the first reaching Laredo, Texas, on Thursday night.

“I’m a Cuban who has just acquired the American Dream,” said Daniel Caballero, one of the first to cross into Laredo, according to a Facebook posting of the sponsoring non-profit group, Cubans in Liberty.

***

 Cuban migrants are seen at an immigration facility after arriving by plane from Costa Rica to Nuevo Laredo

U.S. sees new wave of Cuban migrants

 

In Part from Panama City (AFP): The first flight left from Panama’s international airport. The foreign ministry said in a statement it would land in Juarez, a Mexican city on the US border. Other flights would follow this week.

It emphasized that the flights were a “limited” and “exceptional” measure.

They mirrored flights Costa Rica has been carrying out since January, for some 8,000 Cubans who had been stuck on its territory.

The Cubans aim to get to the United States where a Cold War-era law allows them easy entry and a fast-track to residency.

But their journey, to South America, up through Central America and then Mexico and the US border, was frustrated in November last year when Nicaragua — a Cuban ally — closed its borders to them, and Costa Rica dismantled a people-smuggling ring they had been relying on.

Costa Rica in December closed its own border to any more Cuban arrivals as it struggled to clear the migrants from its territory.

Cuban State Media: Obama Visit ‘Disproves Human Rights Violations’ by Communists

Cuba’s communist propaganda newspaper Granma has published an article claiming that President Barack Obama’s scheduled visit to Havana in March “disproves” decades of evidence that the Cuban government violates the human rights of its citizens, on a weekend in which Cuban state police arrested almost 200 dissidents for peaceful marches against communism.

Breitbart: In a column titled “Four Myths Obama’s Trip to Cuba Disproves,” the newspaper cites “Cuba violates human rights” as the top “myth” that President Obama is helping to eradicate by visiting the island. The article calls the fact of Cuba’s rampant human rights violations “the mantra of those who want to justify as a philanthropic crusade the politics of aggression begun in 1959 before the advance of a socialist Revolution in their own backyard.” The fact that Cuba violates international human rights law on a routine basis, the article continues, “permeated realpolitik previous to the December 17, 2014 announcement,” referring to the day President Obama announced a number of concessions to the Raúl Castro regime in exchange for, in Castro’s words, “nothing in return.”

Granma also claims that President Obama’s decision to endorse the legitimacy of the Castro regime with his presence dismantles the allegation that “the ultra-right in Miami, especially legislators of Cuban origin, had totally held hostage the United States’ politics towards Cuba.” Cuban state propaganda often insults ethnic Cuban voters in Miami as “ultra-right” extremists, using terms like “the Miami Mafia” in an attempt to alienate Republican-leaning voters in the region. Cuban-American voters in Miami have also been consistently mocked and derided in American left-wing media, particularly the cable news pundits associated with NBC.

While Granma is open to using President Obama’s visit to promote the lie that the Cuban government does not oppress its dissidents, it continues to condemn the United States for defending human rights internationally. In a separate column published Saturday, the propaganda outlet condemns President Obama for not using executive orders to lift trade bans on Cuba, accusing his inaction of “keeping alive politics of aggression.”

President Obama is expected to meet with dictator Raúl Castro and “other Cuban people” during his visit, though it remains unclear whether he will be present in meetings with Cuban civil society or pro-democracy activists.

Whether any of Cuba’s most prominent dissidents will be out of jail during President Obama’s visit remains to be seen. If this weekend is any indication, there is little hope that the leaders of dissident groups will be allowed to attend events involving the President. Various dissident groups, including the Patriotic Union of Cuba (UNPACU) and the Ladies in White, staged multiple events across the island this weekend. More than 170 dissidents were arrested, including dozens of Ladies in White arrested for attending Sunday Catholic Mass. An estimated 40 Ladies in White are still in custody after their prayer march in Havana.

The silent marches against the Castro regime this week were dedicated to Orlando Zapata Tamayo, a prisoner of conscience who died during a hunger strike in 2010, and the four men killed in 1996 when the Cuban government shot down a plane belonging to the pro-democracy group Brothers to the Rescue, which included one U.S. citizen.

Cuban dissidents have called President Obama’s decision to visit the island “an error” and warn that “these sorts of visits bring a lot of collateral damage” with them. They note that more than 250 pro-democracy activists were arrested in September during Pope Francis’s visit to Havana, including one man who was beaten and arrested in front of Pope Francis for saying the word “freedom” too loudly near the Pontiff. (The Pope denied having seen the event occurring before him.)

According to the NGO People in Need, President Obama’s efforts to warm up to the Castro regime have significantly deteriorated conditions for dissidents on the island. “There has been no substantial improvement in regard to human rights and individual freedoms on the island. … [The Cuban government] has adapted its repressive methods in order to make them invisible to the scrutinizing, judgmental eyes of the international community, but it has not reduced the level of pressure or control over the opposition,” the group said in a report in December.

Hearing for Nominee to Replace Scalia? Nah

LETTER: ‘this Committee will not hold hearings on any Supreme Court nominee’ until 1/20/17

Republicans on Judiciary Committee Slam Door on Any Obama Supreme Court Nominee

DailySignal: All Republican members of the Senate Judiciary Committee promised Tuesday to block any candidate nominated by President Barack Obama to fill the Supreme Court seat vacated by the death of Justice Antonin Scalia.

In an open letter to Majority Leader Mitch McConnell, the 11 Republican senators said they plan “to exercise our constitutional authority to withhold consent on any nominee to the Supreme Court submitted by this president.”

Under the leadership of Judiciary Chairman Chuck Grassley, R-Iowa, the group effectively has barred any Obama nominee to succeed Scalia from advancing to the Senate floor through the regular process.

After Scalia’s unexpected death Feb. 13, McConnell, R-Ky., and other GOP leaders quickly declared the Senate should not confirm anyone to fill the seat until after a new president takes office in January.

With the letter Tuesday, the 11 committee Republicans rallied to that position, writing:

Because our decision is based on constitutional principle and born of a necessity to protect the will of the American people, this committee will not hold hearings on any Supreme Court nominee until after our next president is sworn in on Jan. 20, 2017.

They said the current debate doesn’t present “a difficult or novel constitutional question.” As justification, they cited a statement made in 2005 by then-Majority Leader Harry Reid, D-Nev.:

“[The Constitution] says appointments shall be made with the advice and consent of the Senate. That is very different than saying every nominee receives a vote.”

Senate Democrats accuse Republican colleagues of a dereliction of their constitutional duty. Earlier Tuesday, Reid, now minority leader, called on Republicans to “do your job.”

He said: “Democrats [have] never stopped a Republican [Supreme Court] nominee from receiving a hearing and getting a vote on confirmation. Never.”

In their letter, the Republican members of the Judiciary Committee counter that there’s no modern historical precedent for the Senate to confirm a nominee during a year when the country casts ballots for the next president:

Not since 1932 has the Senate confirmed in a presidential election year a Supreme Court nominee to a vacancy arising in that year. And it is necessary to go even further back—to 1888—in order to find an election year nominee who was nominated and confirmed under divided government, as we have now.

Nine Democrats are on the Judiciary Committee, led by the ranking member, Rep. Patrick Leahy of Vermont.

Over the past 10 days, mostly while Congress was in recess, speculation mounted about a fracturing Republican conference when a few less conservative GOP senators said an Obama nominee should receive a committee hearing.

Hopes for that dimmed with the letter signed by Grassley and the 10 other Republican committee members: Orrin Hatch (Utah), Jeff Sessions (Ala.), Lindsey Graham (S.C.), John Cornyn (Texas), Mike Lee (Utah), Ted Cruz (Texas), Jeff Flake (Ariz.), David Vitter (La.), David Perdue (Ga.) and Thom Tillis (N.C.).

If Republicans ultimately are successful at blocking an Obama nominee, the Supreme Court would operate without a full bench for at least 332 days, more than 10 months.

The eight justices then would not be joined by a ninth until the Senate confirms the nominee of Obama’s successor, who takes office Jan. 20.

OPM Top Person Donna Seymour Resigns

Chaffetz Responds to Retirement of OPM CIO Donna Seymour

Oversight Committee: WASHINGTON, D.C.—This afternoon, House Oversight and Government Reform Committee Chairman Jason Chaffetz (R-UT) issued the following statement upon learning of the retirement of U.S. Office of Personnel Management (OPM) Chief Information Officer (CIO) Donna Seymour:

“Ms. Seymour’s retirement is good news and an important turning point for OPM. While I am disappointed Ms. Seymour will no longer appear before our Committee this week to answer to the American people, her retirement is necessary and long overdue. On her watch, whether through negligence or incompetence, millions of Americans lost their privacy and personal data. The national security implications of this entirely foreseeable breach are far-reaching and long-lasting. OPM now needs a qualified CIO at the helm to right the ship and restore confidence in the agency.” 

 Background: 

Chairman Chaffetz has publicly expressed the need for Ms. Seymour’s removal on the following occasions:

Chaffetz to OPM: Remove Donna Seymour (12/10/2015)

Chaffetz Responds to Nomination of Beth Cobert as OPM Director (11/10/2015)

Chaffetz Renews Call for Removal of OPM CIO Donna Seymour (08/06/2015)

Chaffetz Statement on Latest OPM Data Breach Revelation (07/09/2015)

GOP Lawmakers to President Obama: Remove OPM Director Archuleta and CIO Donna Seymour (06/26/2015)

Related:

The Breach We Could Have Avoided (09/30/2015)

Fingerprints of Additional 4.5 Million Individuals Stolen in OPM Breach, Chaffetz Responds (09/23/2015)

Chaffetz Statement on OPM Infrastructure Improvement Plan (09/14/2015)

OPM Data Breach: Part II Hearing (06/24/2015)

OPM: Data Breach Hearing (06/16/2015)

*** For reference and background on Office of Personnel Management

Second OPM Hack Revealed: Even Worse Than The First

from the the-federal-government,-ladies-and-gentlemen dept

TechDirt: Oh great. So after we learned late yesterday that the hack of all sorts of data from the federal government’s Office of Personnel Management (OPM) was likely much worse than originally believed — including leaking all Social Security numbers unencrypted — and that the so-called cybersecurity “experts” within the government weren’t even the ones who discovered the hack, things are looking even worse. That’s because, late today, it was revealed that there was likely a separate hack, also by Chinese state actors, accessing even more sensitive information:

The forms authorities believed may have been stolen en masse, known as Standard Form 86, require applicants to fill out deeply personal information about mental illnesses, drug and alcohol use, past arrests and bankruptcies. They also require the listing of contacts and relatives, potentially exposing any foreign relatives of U.S. intelligence employees to coercion. Both the applicant’s Social Security number and that of his or her cohabitant is required.

In a statement, the White House said that on June 8, investigators concluded there was “a high degree of confidence that … systems containing information related to the background investigations of current, former and prospective federal government employees, and those for whom a federal background investigation was conducted, may have been exfiltrated.”

“This tells the Chinese the identities of almost everybody who has got a United States security clearance,” said Joel Brenner, a former top U.S. counterintelligence official. “That makes it very hard for any of those people to function as an intelligence officer. The database also tells the Chinese an enormous amount of information about almost everyone with a security clearance. That’s a gold mine. It helps you approach and recruit spies.”

And yet… this is the same federal government telling us that it wants more access to everyone else’s data to “protect” us from “cybersecurity threats” — and that encryption is bad? Yikes.

Kerry: Migrants are Existential Threat, but to the GDP?

Even NASDAQ has confirmed: EU Warns on China Slowdown, Migration as Threats to Economic Growth

Davos, Economic Forum: Europe on the verge of collapse: Soros

Months After Welcoming 100,000 Refugees To The U.S. John Kerry Warns Migrants Pose An “Existential Threat” To Europe

Zerohedge: How quickly the official narrative changes.

Just several months ago, in October, we reported that the now-rattled largest European bank, Deutsche Bank, boosted its forecast for German 2016 GDP to 1.9% from 1.7% saying that “although the external and the financial environment have deteriorated we have lifted our 2016 GDP call… drivers are stronger real consumption growth due to lower oil prices/stronger EUR and the surge in immigration.”

Little did DB know that crashing oil and commodity prices would lead to existential concerns about its own viability manifesting in a record blow out in its subordinated DB CDS, a record plunge in its stock price and ever louder comparisons between Deutsche Bank and Lehman Brothers. As for the boost to German GDP from the influx of refugees, maybe DB had in mind the soaring pepper spray sales following the infamous Cologne New Year’s “celebration” events.

But even prior to that, on September 18, in an editorial piece the NYT wrote that “Europe Should See Refugees as a Boon, Not a Burden” and goalseeked its liberal conclusion as follows:

Many European leaders have described the refugees who are risking their lives to get to the Continent as a burden. But there is good reason to believe that these immigrants will contribute more to Europe economically than they will take from it.

 

Numerous studies have found that immigrants bolster growth by increasing the labor force and consumer demand. Rather than being a drain, immigrants generally pay more in taxes than they claim in government benefits. Even a large influx of immigrants does not mean fewer jobs for the existing population, since economies do not have a finite number of jobs. Immigrants often bring skills with them, and some start new businesses, creating jobs for others. The less skilled often take jobs that are hard to fill, like in child care, for example, which allows more parents to work.

The left-wing push for sympathy even prompted US Secretary of State to announce, just two days later that the United States would significantly increase the number of worldwide migrants it takes in over the next two years.

The U.S. will accept 85,000 refugees from around the world next year, up from 70,000, and that total would rise to 100,000 in 2017, Kerry said at news conference with German Foreign Minister Frank-Walter Steinmeier after they discussed the mass migration of Syrians fleeing their civil war.

This followed a prior commitment from the White House to accept 10,000 Syrian refugees over the coming year.

Those plans are likely dead and buried now, following the latest U-turn in U.S. policy, which brings us to evens from this weekend, when the same John Kerry, speaking at  the Munich Security Conference, praised German Chancellor Angela Merkel for showing “great courage in helping so many who need so much” and European communities who are taking in those fleeing the violence and “rejecting intolerance and racism” within their societies.

However it was here, that for the first time Kerry uttered a warning which until recently would have been branded as borderline xenophobic by the same abovementioned left-wing media, when Kerry warned that the mass influx of refugees and other migrants into Europe spells a “near existential threat” to the continent.

We are facing the gravest humanitarian crisis in Europe since World War II,” he said at the conference. “The United States understands the near existential nature of this threat to the politics and fabric of life in Europe,” he told the meeting as reported by The Local.

The core problem is well-known: Europe has been deeply split by how to handle the mass influx of people fleeing war-torn Syria, Iraq, Afghanistan and other countries. Germany has taken over 1.1 million refugees last year, while Italy and Greece have been overwhelmed as the main arrival points from the Middle East and Africa. The result is a collapse in Merkel’s until recently unshakable popularity and loud whispers that Merkel political career may not last too long if the refugee problem is not promptly addressed.

Sweden and Austria have also taken in large numbers, but many EU members, especially in the east, have been deeply reluctant to open their doors.

So what does Kerry believe now? Kerry said about the refugee influx: “We are not saying, ‘This is your problem, not ours’. This is our problem. And that is why we are joining now and enforcing a NATO mission to close off a key access route,” he said of an alliance naval surveillance mission off Turkey and Greece.” And we will join you in other ways to stem this tide because of the potential of its damage to the fabric of a united Europe,” he added.

Which is not to say he is incorrect: after all none other than the architect of Europe’s “open society” George Soros, now openly warns about the collapse of the EU if the refugee influx, something he himself has been advocating, is not fixed. Here is a brief excerpt of an interview between George Soros and Gregor Peter Schmitz of the German magazine WirtschaftsWoche.

Schmitz: You have been so involved in promoting the principles of open society and supporting democratic change in Eastern Europe. Why is there so much opposition and resentment toward refugees there?

 

Soros: Because the principles of an open society don’t have strong roots in that part of the world. Hungarian Prime Minister Viktor Orbán is promoting the principles of Hungarian and Christian identity. Combining national identity with religion is a powerful mix. And Orbán is not alone. The leader of the newly elected ruling party in Poland, Jaros?aw Kaczy?ski, is taking a similar approach. He is not as intelligent as Orbán, but he is a canny politician and he chose migration as the central issue of his campaign. Poland is one of the most ethnically and religiously homogeneous countries in Europe. A Muslim immigrant in Catholic Poland is the embodiment of the Other. Kaczy?ski was successful in painting him as the devil.

Soros’ solution? Money, of course. “My foundations do not engage only in advocacy; they seek to make a positive contribution on the ground. We established a foundation in Greece, Solidarity Now, in 2013. We could clearly foresee that Greece in its impoverished state would have difficulty taking care of the large number of refugees that are stuck there.”

Schmitz: Where would the money for your plan come from?

 

Soros: It would be impossible for the EU to finance this expenditure out of its current budget. It could, however, raise these funds by issuing long-term bonds using its largely untapped AAA borrowing capacity. The burden of servicing the bonds could be equitably distributed between member states that accept refugees and those that refuse to do so or impose special restrictions. Needless to say, that is where I remain at odds with Chancellor Merkel.

In other words, Soros advocates adding cultural diversity injury to even more debt in an already insolvent European continent – debt which hedge funds could trade and profit from when the time for yet another bailout comes – to fix a problem that would not have been there had Merkel not listened to the likes of Soros, and the NYT editorial board, whose only advocacy of liberal ideals was merely a placeholder to promote their own selfish agendas.

As for Kerry, we find it ironic that the person now warning about refugees posing “a near existential threat” to an entire continent, was just five months ago so very eager to welcome 100,000 Syrian refugees to the US. We wonder if his policy on accepting those same refugees with open arms has changed as of this moment… and who gets to profit this time?