Hacker Whacks S.C. Taxpayers

15 years worth of tax returns filed by the citizens of South Carolina have fallen into the hands of a hacker.

Could the same thing happen here?

It's possible.

The good news isArkansas does not use the same software and system that has been hacked in South Carolina. The bad news isthere is no 100% hack-proof system.

Tax returns are a treasure trove of information. They include your social security number, address, phone number and possibly your checking account number or credit card number.

"There is a wealth of information obviously contained in the tax data which is just one of the reasons that we work so diligently not only from the state's standpoint but in conjunction with the IRS to ensure that our data is protected," says David Foster, Assistant Commissioner of Revenue for the state.

The South Carolina security breach is massive.

3.6 million Social Security numbers and 387,000 credit and debit card numbers were obtained in mid-September by an international hacker.

The crime wasn't detected until October 10th.

"We stay vigilant, always in our security endeavors," says Foster. "Our IT staff on top of all the new developments and we will continue to do all the proactive things that we can to protect the security of the information that we host for our taxpayers."

The could prove to be a very costly cyber-crime to the state of South Carolina as the governor is offering to pay for one year of credit-monitoring for every citizen who has filed a tax return since 1998.

Air date: October 29th, 2012