I can't believe I missed this. OPM fired USIS after massive hack went unreported

http://bigstory.ap.org/article/427fbd5d88f5481eab35f5a8bbc534be/security-contractor-breach-not-detected-months

WASHINGTON (AP) — A cyberattack similar to previous hacker intrusions from China penetrated computer networks for months at USIS, the government's leading security clearance contractor, before the company noticed, officials and others familiar with an FBI investigation and related official inquiries told The Associated Press.

The breach compromised the private records of at least 25,000 employees at the Homeland Security Department and cost the company hundreds of millions of dollars in lost government contracts.

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USIS reported the cyberattack to federal authorities on June 5, more than two months before acknowledging it publicly. The attack had hallmarks similar to past intrusions by Chinese hackers, according to people familiar with the investigation. Last March, hackers traced to China were reported to have penetrated computers at the Office of Personnel Management, the federal agency that oversees most background investigations of government workers and has contracted extensively with USIS

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The Office of Personnel Management and the Department of Homeland Security indefinitely halted all USIS work on background investigations in August. OPM, which paid the company $320 million for investigative and support services in 2013, later decided not to renew its background check contracts with the firm. The move prompted USIS to lay off its entire force of 2,500 investigators. A company spokesperson complained that the agency has not explained its decision. Representatives from OPM and DHS declined comment.

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The USIS spokesperson said the government approved the company's decision to keep silent about the breach. Experts said companies often withhold such information for both security and management reasons.

"Employees may not like it," Paller said, "but from a business perspective, that's what companies do."

Background: USIS conduct(ED) background checks on individuals who required security clearances within all levels of the government, from Presidential Transition to Park Police Officers and everywhere in between. Prior to 1996 the US Office of Personnel Management (USOPM or OPM) was a federal agency comprised of federal employees. Thanks to Al Gore's privitization efforts http://www.businessweek.com/news/2013-06-24/al-gore-reinventions-helped-create-usis-s-outsourced-clearances USIS was created and the former federal agents were now private employees, controlled by board members who now bid for, and won, the same government contracts that they previously conducted as a part of their duties, at a substantial monetary cost. From 1996 to 2000, little notice was taken outside of the industry when they were acquired as a subsidiary of (everyone's favorite) The Carlyle Group. After 9/11 quality was severely compromised at the expense of getting the job done on time. For if enough cases were not completed on time, they would become non-compliant with contract specs and would no longer be awarded the contract, which was the primary source of income for the firm.


USIS took massive PR hits over the past few years when it was revealed that "in 2007 an OPM contract investigator employed by USIS conducted the field work for the OPM-FIS background investigation on Aaron Alexis, who has been accused of killing twelve people at the Washington Navy Yard on Monday, September 16, 2013" http://news.yahoo.com/same-firm-checked-background-navy-yard-shooter-snowden-020849883--sector.html

Another massive PR disaster occurred "In 2011, OPM contract investigators employed by USIS conducted the field work for the OPM security clearance re-investigation on Edward Snowden, who leaked classified documents beginning on June 5, 2013. On June 18, 2013, the Subcommittee on Efficiency and Effectiveness of Federal Programs and the Federal Workforce and the Subcommittee on Financial and Contracting Oversight, both of the U.S. Senate Homeland Security and Governmental Affairs Committee, held a joint hearing.[9] Michelle B. Schmitz, the OPM assistant inspector general for investigations, testified that USIS had been under investigation since late 2011, stating that it involves a "complicated contract fraud case."[9] Patrick McFarland, the OPM inspector general, did not reveal the reason for the investigation of USIS, and said when asked about Snowden's security clearance re-investigation, "We do believe there may be some problems". http://en.wikipedia.org/wiki/USIS_%28company%29




I cannot believe that I missed these stories when they broke back in August- October of this year. If you've read much here on the topic of USIS, you've seen where I pointed out that the privitization of USIS which was purely for profit weakened our National Security at a time when we could least afford it. I am so glad to hear that they have apparently gotten their comeuppance, but I am dismayed to hear that their laxness may have lead to the exposing of records of current and former employees of OPM, DHS, and probably USIS as well. The background checks now will be done by two other private contractors where I'm sure, the same old problems will persist...all in the name of profit.