IRS puts Equifax contract on hold during security review

NEW YORK (Reuters) – The U.S. Internal Revenue Service has temporarily suspended a contract worth more than $ 7 million it recently awarded to Equifax Inc following a security issue with the beleaguered credit reporting agency’s website on Thursday.

Equifax, which disclosed last month that cyber criminals breached its systems between mid-May and late July and made off with sensitive data on 145.5 million people, said on Thursday it shut down one of its website pages after discovering that a third-party vendor was running malicious code on the page.

“The IRS notified us that they have issued a stop-work order under our Transaction Support for Identity Management contract,” an Equifax spokesperson said on Friday.

“We remain confident that we are the best party to perform the services required in this contract,” the spokesperson said. “We are engaging IRS officials to review the facts and clarify available options.”

The IRS is the first organization to say publicly that it is suspending a contract with Equifax since the credit reporting agency’s security problems came to light.

Atlanta-based Equifax said its systems were not compromised by the incident on Thursday, which involved bogus pop-up windows on the web page that could trick visitors into installing software that automatically displays advertising material.

Still, the IRS said it decided to temporarily suspended its short-term contract with Equifax for identity-proofing services.

“During this suspension, the IRS will continue its review of Equifax systems and security,” the agency said in a statement. There was no indication that any of the IRS data shared with Equifax under the contract had been compromised, it added.

The move means that the IRS will temporarily be unable to create new accounts for taxpayers using its Secure Access portal, which supports applications including online accounts and transcripts. Users who already had Secure Access accounts will not be affected, the IRS said.

IRS granted the $ 7.25 million contract to Equifax on Sept. 29, weeks after Equifax disclosed the massive data hack that drew scathing criticism from several lawmakers.

“From its initial announcement, the timing and nature of this IRS-Equifax contract raised some serious red flags … we are pleased to see the IRS suspend its contract with Equifax,” Republican Representatives Greg Walden and Robert Latta said in a joint statement on Friday.

“Our focus now remains on protecting consumers and getting answers for the 145 million Americans impacted by this massive breach,” they said.

Government contracts in areas such as healthcare, law enforcement, social services, and tax and revenue, are major sources of revenue for Equifax.

In 2016, government services made up 5 percent of Equifax’s overall $ 3.1 billion in revenue, accounting for 10 percent of its workforce solutions revenues, 3 percent of its U.S. information solutions revenues, and 7 percent of its international revenues, according to a regulatory financial filing.

Reporting by John McCrank in New York; additional reporting by Dustin Volz in Washington; Editing by Bill Rigby

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AT&T Wireless Workers Try To Bring Political Pressure To End Contract Stalemate

Negotiations have dragged on since February.

As a contract standoff between AT&T and 21,000 unionized workers in its mobile business drags into a eighth month, the employees are trying to increase political pressure on the carrier.

So far, 255 state and local politicians have sent letters to AT&T CEO Randall Stephenson backing the workers, the Communications Workers of America union says. Among the senders are six Democratic senators and numerous members of California’s delegation in the House of Representatives.

“While we are aware of the changes that have taken place in the telecommunications industry, we know that AT&T wireless workers are the driving force behind your most profitable division,” 12 members of the Arizona House of Representatives wrote to Stephenson in one recent letter. “They deserve to share in the company’s success and growth.”

Still, AT&T does not appear moved by the campaign or earlier moves by the mobile workers in 36 states and Washington, D.C., including a protest outside Apple headquarters for the debut of new iPhones last month and a short strike in May that forced many wireless stores to close for a weekend.

Although the workers have concerns about wages, health benefits, and other issues, job security and sales commission rates appear to be at the center of the dispute. To highlight the issue of call center jobs being outsourced to foreign countries, some AT&T workers traveled to the Dominican Republic in early May to meet with their counterparts there who now handle AT&T customer service calls.

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AT&T said on Friday that it has been in touch with the letter writers and plans to continue to bargain with the workers, whose contract expired in February, to reach a “fair” agreement . “We regularly communicate with our stakeholders regarding labor issues and bargaining, and we’ve done so where we’ve received any letters from legislators,” an AT&T spokesman said.

The CWA says AT&T won’t negotiate over job security at call centers and retail stores where many of the employees work. “AT&T has increased its profits by cutting workers’ commissions, refused to bargain over job security even as it cut hundreds of call center jobs this year alone, and increasingly moved to low-wage contractors for its retail and call center operations,” Dennis Trainor, vice president for CWA district 1, said in a statement. “That’s not how America’s largest telecom should be acting.”

AT&T t has a long history of labor peace, though the May strike interrupted a run of more than four years without a walkout. The company says it has reached 32 agreements covering some 145,000 workers since the beginning of 2015. The strike in May, which also included 17,000 workers in AT&T’s telecom business, followed last year’s bitter, seven week strike at Verizon vz .

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