Photo from Shutterstock Shutterstock.com

Following a security debacle that cost South Carolina more than $14 million, Department of Revenue Director Jim Etter will resign at the end of the year, Gov. Nikki Haley announced on Nov. 20.

Gov. Haley said that Etter's resignation doesn't mean that he is to blame. “Jim and I came to an understanding,” she said. “We need a new set of eyes at the Department of Revenue.” Etter will be replaced by Bill Blume, executive director of the state’s Public Employee Benefit Authority. A replacement for Blume has not yet been announced.

Haley also said during a press conference that there were two vulnerabilities that led to the breach: There was no dual verification to get into the system and the Social Security data was not encrypted.

"I think when you combine the fact that we have 1970 equipment with the fact that we were IRS compliant was a cocktail for an attack," she said during the press conference. "I say that because the IRS does not believe you have to encrypt social security numbers. Having said that, should we have done more? Yes, we should have done more than we did; we should have done above and beyond, which is why we're going to encrypt all those Social Security numbers, that has already started, but I have also sent a letter to the IRS and told them we have to change these regulations."