Loftis and Sheheen Join Forces to Create Fund for Hack Victims

In a press conference at the Statehouse on Tuesday, Treasurer Curtis Loftis and Sen. Vincent Sheheen (D-Kershaw) announced the need to establish a special fund that would compensate victims of the Department of Revenue’s cybersecurity breach last September.

Loftis and Sheheen made the announcement as the House begins deliberations over the budget. The measure they called for would require an amendment to the existing budget bill.

In order to be reimbursed from the fund, a South Carolina taxpayer would have to submit a claim to the Treasurer’s office and proof that a financial loss occurred as a result of the breach.

More than six million people may have been affected by the hack. Read Patch's coverage of it HERE.

Last month, Sheheen proposed a bill in the Senate that would allow citizens to deduct expenses associated with protecting their credit from their tax return. It was approved unanimously and awaits debate in the House.

The state has already spent millions as a result of the unprecedented breach. More than $20 million was spent this year for credit monitoring and $25 million has been proposed for next year.

When asked about the proposal Rob Godfrey, spokesman for Gov. Haley told Patch, "Governor Haley is pleased to continue to work with members of the General Assembly to improve our cyber security protection.”

Sheheen has already announced that he will challenge Haley for governor in 2014 and Loftis was long rumored to be a potential challenger to Haley in a Republican primary before opting to pursue another term as Treasurer.

Both Loftis and Sheheen say they put partisanship aside in their effort.

“I work in a bi-partisan way and try to reach across the aisle in the Senate,” Sheheen said. “I think it’s natural to work with the Treasurer, who is the guardian of the people’s money. If he weren’t on board it would be difficult.”

Sheheen said he has been working with Loftis’ office for about a month on the creation of a taxpayer protection fund.

Keep up with all of Patch's coverage of South Carolina politics by following us on Facebook HERE and Twitter HERE.