Did you read this? Note: " used personal data obtained from elsewhere to access tax information". IMO the IRS was not "hacked" and I'm not even certain one could qualify this as a data breach as the data was for all intents and purposes legitimately accessed. It appears that PII is used as the gateway to the IRS' information but that data was apparently stolen or otherwise received from a source other than the IRS' computer network.
My point is not to make anyone believe that government networks are secure but in this case, I don't think that VLDI's product could have stopped this sort of attack.
The IRS simply thought it was providing a legitimate service to the taxpayer so you could retrieve your personal tax information. Just what information would one use to do that without making it overly cumbersome to the average person?
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