Stop! Thief! Online Identity Theft

How Your Identity is Being Stolen

If you've had your identity stolen, you know the problems it can cause. Even a simple unauthorized use of a credit or debit card can cost you hours of frustration, sometimes tying up needed funds. The U.S. Department of Justice says about 18 million people per year are victims of at least some form of identity theft. While many of these thefts are conducted on a massive scale, others are much more targeted.

We may imagine that these hackers are sophisticated technological wonder kids or that they originate from Nigeria, but often, the story is much closer to home and individualized. In some cases, it's not all that complicated. In a recent highly publicized case, hackers obtained confidential data through a server using a default "admin" username and password that was never changed.

Stopping identity theft takes understanding how thieves are getting your information from you.

Data Theft from Large Companies

This is the most publicized area of identity theft because it affects so many people and is out of our control. Data breaches have occurred at companies ranging from retail stores to the recent breach at a major credit reporting agency. To conduct commerce today, we must be connected digitally, and these consumer-oriented companies need to verify identities. This means our personal information is stored on massive servers that are available to authorized employees and management, potentially to their technical contractors, and, of course, hackers.

Skimmers

If you've ever used a credit or debit card at a fuel pump, grocery store, retail store, ATM or elsewhere, you may have been susceptible to a card skimmer. These skimmers or "card readers" commonly fit over the original card strip or insert without impairing the transaction. The skimmers read the data from your card's magnetic strip and either store them to be retrieved by the thieves or digitally send them to a nearby device. In some cases, cameras are attached to or near them to see the PIN you have entered. Some skimmers use pads that fit over the original keypad of the device to gain your pin.

While credit card chips are designed to limit this theft, many chipped cards still contain a strip to make them versatile enough to use in non-chipped machines. While skimmers may be challenging to detect, inspect any credit card machine closely before use and attempt to move the cardholder to see if it is the original. Cover one hand with the other when entering your PIN, and make sure no one is looking over your shoulder.

Phishing

Phishing is one of the original forms of identity theft in the digital age, although today, it is more sophisticated than ever. Phishing usually involves the thief sending out many bulk or spam emails, "phishing" for a bite. These emails may urge you to update your personal information and direct you to a fake website where you are encouraged to input your personal information voluntarily. These faux websites may even include the company name in the URL and are often designed to mimic a company's original website closely. Phishing tactics may also claim you have an inheritance, won a contest or offer some other financial incentive to get your personal information.

Vishing

Vishing is essentially voice phishing using the telephone. The caller often poses as a bank or credit card company representative and uses suspected identity theft as the purpose of the call. They will ask you to verify your personal information. Instead, call your bank or credit card directly and ask if your data has been compromised.

Social Media and Internet Searches

There is already much data about you available on the internet without adding to the problem voluntarily on social media. Many users commonly display their birth dates, emails, places of work, education, work experience, and even phone numbers and addresses online. They can easily pose as "friends" to get more information. If you use social media, be careful of what data you make available and ensure that only invited friends can access your profile.

Handing Your Credit Card to Someone Else

When you hand your credit card to a server at a restaurant, a clerk at a hotel, or even let a family member borrow it, you increase the odds of identity theft. The front and back can be quickly and discretely photographed, videoed or copied for unauthorized use. New cards can be created from the data on your magnetic strip; all it takes is a simple card reader that can be plugged into any computer.

Trash

If you don't have a paper shredder, get one and use it. Many identity thefts come from your trash that contains personal mail and account data from banks, credit cards, and even tax forms. A credit card statement alone contains a wealth of information that can lead to problems when combined with just a few more pieces of information. Pre-approved credit card offers are a must-shred item.

Regular, Old Fashioned, Theft

When you realize how much personal information is in your wallet, cellphone, and even your car's glove compartment, you will take better steps to protect it. Protecting your cash and credit cards isn't enough today. Not when thieves will find your personal information just as, if not more, valuable. Always know where your phone, wallet, and personal information are located.

Conclusion

Being careful about identity theft is not paranoia. It is prudent. Be cautious about how and where you share your data, including cell phone calls in public places. Ensure you only share information on websites with a secure Hypertext Transfer Protocol Secure (HTTPS) address that designates your information to be encrypted. If you conduct e-commerce on a website, ensure you protect your customer's information safely with encryption. Be cautious and minimize your risk of identity theft.

What Is Two Factor Authentication (2FA)

What Is Two Factor Authentication (2FA), And How Does It Benefit Companies?

Identity theft, hacking, and phishing attacks are all on the rise and cost individuals and businesses billions each year. A successful hacking attack typically costs the businesses that are its victims more than money. There is the additional expense, more challenging to quantify, of a damaged reputation as customers lose confidence in the company's ability to keep their data private and secure.

The Impact of Hacking Attacks on Business

According to a recent study by Lloyd’s of London, global hacking attacks cost businesses more than $400 billion each year. Those costs are multiplied by the expensive measures companies take to ensure the security of their data. For example, companies spend more than $75 billion each year on cybersecurity.

Small Businesses Are Not Safe From Hacking 

Until recently, those attacks were targeted primarily against multi-national corporations, but increasingly, cybercriminals are going after small businesses.  In 2013, 44% of small businesses reported at least one hacking attack, according to the National Small Business Association.  While large corporations can absorb the losses associated with a hacking or phishing attack, for small businesses, such attacks can be devastating regarding financial losses and damage to their reputation.

Identity Theft Affects Millions and Is Increasing Every Year

Cybercrimes affect not only businesses. According to the US Bureau of Justice, more than 17 million individuals were victims of identity theft in 2014, mainly through the hacking of their credit or debit card accounts. According to Business Insider, identity theft cost individuals almost $25 billion in 2013, $10 billion more than property theft.

The increase in recent years of hacking attacks on businesses and identity theft aimed at individuals has caused many companies to wonder if they can do anything to protect their data. Fortunately, there is a way for businesses to protect the privacy of their customers and the security of their personal information.

What Is Two Factor Authentication (2FA)?

Two-factor authentication, the latest advancement in information security systems, makes it more difficult for thieves to access customer data. Most security systems require customers to verify their identity by providing a password and User ID.

Two-factor authentication provides an added layer of security by requiring system users to enter additional information that only the user has, such as something only the user knows, like a PIN or answer to a security question; something they have in their possession, like a mobile phone or ID card; or a physical characteristic, like their fingerprint or voice.

Experts Agree:  Two Factor Authentication Protects Data Better

Following the 2013 hacking attack on the Saudi oil giant Saudi Aramco on Twitter. Experts agreed that it was time for Twitter to join other social media sites like Google in implementing two-factor authentication.  In an article with the title, “Following breaches, experts call for two-factor authentication on Twitter,” Chester Wisniewski, a senior security adviser for the security firm Sophos, wrote:

“It is high time Twitter implement something to augment account security. Two-factor authentication would be a great option for protecting high-profile brands, celebrities and those who simply want that extra layer of security for their online identity.”

The Benefits of Two-Factor Authentication

Two-factor authentication is relatively inexpensive to implement and offers several important benefits to help businesses protect the security of their data. Here are 4 of the most important benefits of two-factor authentication:

Improved security:  passwords and user ID numbers are relatively easy for cyber thieves to access.  Many people, for example, are afraid of forgetting their passwords and writing them down in one or more places thieves can find.  Two-factor authentication makes it more difficult for thieves to steal customer data with features such as one-time passwords (OTPs), suitable for only one login, information only the user has, or personal characteristics like fingerprints, which thieves can’t duplicate.

Increased worker productivity: Because two-factor authentication makes data more secure, companies are more confident about permitting their employees to work remotely. According to the Harvard Business Review, when the Chinese travel website Ctrip allowed its employees to work remotely from home, their productivity increased on average by more than 13%, and the company saved almost $2,000 per employee while also improving employee retention.

Reduced operating costs:  two factor authentication makes businesses more efficient and reduces operating costs.  For example, because there are fewer password resets, customers don’t need to call help desks as frequently.  In addition, companies spend less time contacting customers about suspicious activity on their accounts.  Finally, companies spend less money on expensive fraud review systems.

Customer satisfaction: Customers are naturally attracted to businesses that are better able to secure their data. When they see that a business requires additional security information, they feel protected and feel more positively about that business for ensuring their information is secure. Those positive feelings add to customer trust and boost customer retention.

Conclusion

Companies that fail to protect their customers' personal information lose money and reputation. For smaller businesses, those losses can be catastrophic. Fortunately, forward-thinking web hosting providers have developed innovative approaches to helping businesses with their data and privacy concerns. 

Founded in 2006, OrangeWebsite is a recognized industry leader in providing safe and secure web hosting services. Our two-factor authentication service includes a special one-time passcode sent to users through SMS, which users submit to ensure a secure login. The annual fee is just €94.

If you would like to know more about how we can make your website safer and more secure or about our two-factor authentication services, contact us today.