Eastern Iowans experience tax fraud after data breach

By  | 

MARION, Iowa (KCRG-TV9) - Customers of a Marion tax company are dealing with a stolen identity headache after a data breach.

Classic Tax in Marion learned of the breach around February and now clients are finding out if they were a part of it as they file their taxes.

The breach is affecting 20 percent of the company’s 1,200 clients.

After opening a small business, Bridget McMenomy decided to get some help with taxes. This year she learned someone else had already filed using her social security information.

“I had to call and verify my identity and from that point on they said they could stop that returned and we could file we just had to do a few different things to file her taxes this year,” McMenomy said.

Classic Tax says it has had IT people looking into the breach, but has not found how exactly it happened.

“We know that we were compromised online somehow and we have done everything we can to notify our clients that there's a possibility their information was breached we have offered a year of credit protection monitoring to them,” Classic Tax owner Cindy Shipley said.

McMenomy says the recovery process has been a little frustrating, but overall not too bad.

"It's just one of those things that just happens it's unfortunate because for us it's a lot of time and energy,” McMenomy said.

The IRS gives victims IP PIN numbers to use when filing taxes. It's a unique six-digit number used as an added safety feature. Classic Tax customers filed for the numbers and will have those numbers next year

Classic Tax says it has increased its security following the breach.