IRS Hack Bigger Deal Than Retailers'

Data Clone Labs Digital Forensic Analyst Ira Victor and FBN’s Neil Cavuto on the hacking of the IRS.

It's one thing for Target (NYSE:TGT) to 'fess up that it screwed up when it comes to protecting customer data, but quite another for the Internal Revenue Service.

There's a big difference between a retailer saying your credit card might have been compromised, and the IRS saying your tax data was. Yes, according to the IRS, 100,000 Americans' tax data "was" compromised, and apparently it happened unbeknownst to the largest tax collection power on the planet.

We still don't know what on Earth got out, or whose tax info got out, or whether any of those folks hacked have found out. But what we do know is tax records tend to be bigger than credit card receipts, and in the wrong hands, much more dangerous and prone to extortion.

And keep in mind, this is what we know right now. This all happened months ago... and we're only hearing about it now.