IRS contractor gets more scrutiny in congressional report
House investigators say a federal contractor that provided identity verification services for the Internal Revenue Service overstated its capacity to perform its services
WASHINGTON (AP) — House investigators reported Thursday that a federal contractor that provided identity verification services for the Internal Revenue Service exaggerated the amount of money being lost to pandemic fraud in an apparent attempt to increase demand for its product and that it also overstated its capacity to provide services.
The investigation of ID.me, which uses facial recognition to verify identities in some cases, was launched in April after critics of the software company said it could be a target of cyberthreats and presented privacy concerns. Other advocates were critical of a private company taking on what should be a core government task of verifying people's identities to receive benefits.
The report found that in 14 states that contracted with ID.me for identity verification services — including California, Texas, and Florida — wait times for ID.me video chats reached an average of more than four hours, though the firm claimed it answered calls in far less time, potentially delaying pandemic relief funds to millions of Americans.
The report said ID.me asserted that there were significantly higher levels of pandemic fraud compared to other assessments that were based on expert analysis in an apparent effort to boost interest in its services.
