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Haley admits hacking errors; revenue chief resigns

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

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

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.