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Haley admits vulnerabilities led to hack; DOR director resigns - Live5News.com | Charleston, SC | News, Weather, Sports

Haley admits vulnerabilities led to hack; DOR director resigns

Gov. Haley addresses the media.  (Source: WIS) Gov. Haley addresses the media. (Source: WIS)
Jim Etter testifies before the Senate Finance Committee. (Source: WIS) Jim Etter testifies before the Senate Finance Committee. (Source: WIS)
COLUMBIA, SC (AP/WIS) -

Gov. Nikki Haley says a report on a massive security breach at South Carolina's tax collection agency shows the state could have done more to protect personal information for nearly 4 million taxpayers.

Haley said Tuesday that she also has accepted the resignation of Department of Revenue Director Jim Etter at the end of the year.

"Jim and I came to an understanding that we need a new set of eyes on the Department of Revenue," said Haley. "This was just the right time."

South Carolina Public Employee Benefit Authority executive director Bill Blume will head the department on an interim basis.

Before being appointed to that position in July 2012, Blume had been the director of the South Carolina Retirement Systems.

Haley says the report from computer security firm Mandiant found South Carolina made two mistakes. She says it didn't require two different ways to verify when someone was trying to get into the system to look at tax returns and it did not encrypt Social Security numbers.

The breach involved people who filed electronically. Haley says the hacker now has access to 3.3 million bank account numbers.

Copyright 2012 WIS. All rights reserved.  The Associated Press contributed to this report.

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