A data broker operation sold payday loan applicants’ financial information to scammers, who took in millions of dollars by debiting bank accounts and charging credit cards without authorization, the Federal Trade Commission charged Wednesday.
The data brokers bought “hundreds of thousands of consumer payday loan applications” and, instead of passing them to legitimate payday lenders, sold them to non-lending third parties, the FTC charged in a complaint. Among the companies, was Ideal Financial Solutions Inc., which bought 500,000 applications and raided the accounts for at least $7.1 million, the FTC said.
When an employer is responding to a breach of their employees’ personal information, one of the last things they may think about is whether the value of the credit monitoring or other identity protection services they make available to affected employees should be considered taxable to the employees and reported as such. In Announcement 2015-22, the Internal Revenue Service clarified that it will not consider the value of such services provided by the employer to employees to be gross income or wages to the employees. The IRS also stated it will not take the position that the employees should include the value of such services as gross income on their personal income tax returns.