Banking

What’s New With The Target Security Breach?

March 7, 2014 by Sherry Tingley

The biggest known corporate breach in U.S. history was perpetrated on Target in November, 2013. Hundreds of stories have been written about it in the news, on blogs and magazines. That comes as no surprise considering the current number of customers affected reaches upwards of 100 million.

The looming question in consumers minds remains. Who is responsible for the Target credit and debit card breach? Brian Krebs, and American journalist and investigative reporter who runs a computer security website has identified a likely suspect – Andrew Hodrievski of Odessa, Ukraine. Attempts to contact the suspect proved futile, but Krebs was able to email an associate of Hodrievski. After exchanging emails with the associate, Krebs Security was offered $10,000 not to publish the incriminating information. Hodrievski has not been arrested or questioned.

How Did They Do It?

The who question may have been answered, but the how question is still somewhat of a mystery to the public. Investigators have determined that the hackers were able to breach Target’s security through a third party vendor. Fazio Mechanical Service provided heating and air conditioning for the stores. After hacking into Fazio’s computer they gained the vendor’s username and password into Target. The hackers then used the same username and password to hack into the point of sale information where all customer information is stored.

Hackers then uploaded software to retrieve customer data for them. They tested the software on a handful of registers. Within two days they had access to a majority of Target’s cash registers and point of sale information. Thus the fraud began. Once they had customer data they sold the data on underground internet sites. The value of this data has gone down significantly as banks have purchased the same data, disabled cards and reissued new ones.

Investigators think the vulnerability was caused by the lack of two factor authentication for remote access, which is required by PCI Data Security Standards. PCI Standards help merchants to secure all Point Of Sale transactions. Apparently Target used one network for most of their data while they should have been two different networks. Isolating 3rd party remote access for vendors and customer data would have added another security measure needed and possibly helped prevent this type of security breach.

Latest News

Beth M. Jacob, chief information officer and executive vice president for Target’s technology services resigned from her position on Wednesday, March 5, 2013, just one week after Target posted their 4th quarter losses of $1.5 billion dollars compared to the previous year’s figures. More encouraging news in this case would have been that the criminal behind the attack was arrested.

Consumer Protection

For consumers who are now worried about their accounts being drained by complete strangers there is no magic bullet. The best thing to do at this point is to learn how to set up automatic alerts from your bank to your cell phone any time a transaction on your account occurs. You can then call the bank immediately when you discover any unauthorized transaction and prevent further loss.

CPSA Sets Standards For The Check Printing Industry

February 27, 2014 by Twila Van Leer

Although paying by check is not as common as it once was, it’s a financial practice that is likely to have long-term value in the economic scheme of things, according to the Check Payment Systems Association. And their prime role is to promote and protect what is referred to as the “paper-based” payment system.

The non-profit organization has been involved since 1952 in assuring that using personal checks and business checks will remain a viable option for individuals and businesses. It is dedicated to the integrity, security and convenience of checks. It has been at the forefront of developing safeguards that are built right into the checks you use. Its advice has been incorporated into check-printing practices for ValueChecks.net main check printing partners.

Preventing Check Fraud

One of CPSA’s most valuable contributions has been in developing strategies that thwart criminals bent on check fraud. In 1994 the association created a set of guidelines intended to prevent the production of counterfeit checks. The guidelines are voluntary, but have been applied by the majority of check-printing companies in North America. Would-be counterfeiters have been significantly stymied in attempting to use computer scanners, laser printers or photocopiers to produce fake checks.

Key to the effort is the Padlock Icon, touted as CPSA’s greatest contribution to the fight against check fraud. The small symbol appears on the front and back of personal and business checks that were designed with at least three safety features. Those who routinely accept checks recognize the Padlock as evidence that the checks are protected by production safety steps. Only CPSA can legally grant the right to use of the Padlock on checks. The association’s website lists authorized users, such as those check companies who print checks for Valuechecks.net.

CPSA partners with the American National Standards Institute to study issues surrounding the use of checks. It also does research to assist members with development of products and services. It’s influence is recognized and respected in Washington D.C. as federal government agencies consider these issues. Lawmakers whose business is to protect citizens make use of the information generated by CPSA researchers.

Beneficiaries of the efforts being made by such organizations are those at the end of the chain — the individuals and companies that continue to make writing checks their standard for doing business.

10 Tips To Break Bad Banking Habits

February 17, 2014 by Sherry Tingley

You may be losing money every month because you aren’t aware that some of your basic banking habits can be pricey. Some common mistakes that people keep making come to the attention of banking analysts and are shared with you in this guide to keeping more of your money in your pocket.

Tip #1 – Stay Current With Your Account Fees

You may have opened your bank account 20 years ago when there were no fees charged to you. Take the time to talk to your bank and ask them what fees they can charge your particular type of account. It may be time to change the type of account you currently have.

One woman was getting charged $27 a month and went into the bank to complain. Her account was designed to encourage savings and would charge a $1 per transaction fee each time she made a withdrawal or processed a transaction. Setting up a different type of account would save her $324 a year.

Tip #2 – List Dates Of Your Automatic Withdrawals

Nothing is as frustrating as checking your online balance, thinking you have money to spend and then not realizing that an automatic withdrawal is pending. Forgetting about the pending withdrawals can be draining your bank account.

Go online and download a month’s worth of activity. Filter out all the automatic withdrawal transactions and figure out exactly what dates the amounts are deducted. Keep the information in a spreadsheet or print it out and carry it with you.

Tip #3 – Discover The Location Of Approved ATM’s

When you withdraw money from ATM’s that are not associated with your bank, you can get charged fees in varying amounts. The fees might not be big, but they could easily put you into an overdrawn status. Now those fees can be large and will make you cringe.

Find the ATM’s that are near your work, where you dine out and near where you shop and use them. One customer had $50 worth of ATM fees in a month. When asked why he couldn’t find approved ATM’s his response was that he knew where they were, he just couldn’t be bothered with walking across the street. Walking across the street could potentially save him $600 a year.

Tip #4 – Save Loose Change

It may be annoying to carry loose change, but having a strategy to deal with it can really add up to some decent money. When you get home from work or shopping, just toss the loose change in a large jar. When the jar gets full, bring it into the bank and use their coin machine to count it and return you with paper currency. You’ll be surprised how much is really in that jar. Take care of the cents and the dollars will take care of you.

Tip #5 – Check Online Accounts Daily

Face it. Some people don’t even do this monthly. One customer went into her bank and was very upset. She had no money in her account. Upon investigation, it was discovered that she had a joint account with an ex-partner and she had never had his name removed from the account. For five years the partner had been stealing from her account in small increments. It was only when he decided to take it all that she even noticed.

Tip #6 – Reduce The Number Of Accounts

Some of us get creative with our savings or checking accounts, opening too many to even remember what they are for. Balancing and tracking all that information is very time consuming and for most people too much of a hassle to handle.

Then there are those people who are flattered when they get a sales pitch to open a new credit card. They think it is cool that someone else says they have great credit so they open another account. Having too many credit cards provides you with too many temptations.

Limit the number of accounts you have. Trim down the number of your credit cards to make them easier to manage. Trim down the number of checking and savings accounts if tracking and managing them becomes too easy to make costly mistakes.

Tip # 7 – Distinguish Between Wants and Needs

The difference between what we think we need and what we actually need, can be enormous. Overspending can lead us to overdrawn account fees, excessive credit card use and a feeling of being out of control.

Advertisers are relentless when they pitch us so we really have to be aware of our own needs. Designer clothes, handbags, eating out, multiple Ipads and cell phones may have their appeal, but they can’t be classified as needs. Spend money on your needs first.

Tip # 8 – Maintain Minimum Balances

If your bank requires you to have at least $300 in your account, find out what fees they can charge if you drop below that amount. If you have believe you are entitled to spend money if you see it in your account, take a new approach. Deposit the minimum balance and in your record keeping system don’t add that amount into your perceived balance. That way the money will always be there. Just leave it alone.

Tip #9 – Check Your Excess Withdrawal Fees

Some accounts will penalize you for withdrawing money. They are designed to encourage you to save and can charge per transaction. Ignoring the terms of the account incurs more expense than you will ever earn on the interest.

Tip – #10 – Set Up Mobile Alerts

Some banks will let you set up text alerts that go directly to your mobile phone. You can text in requests to see your account balances, account activity, make transfers and find ATM locations near you.

Alerts can also be set up to send you a text under specific conditions that you choose. Remind yourself when your balance falls below a threshold or learn when a deposit has been made.

Use technology to make your life simpler, avoid bank fees and live a happier life.

What bad habits do you want to break?

Name The Faces Of Wall Street Journal’s Facebook Image

January 4, 2014 by Sherry Tingley

Celebrities

The popular Facebook page by Wall Street Journal shows this beautiful illustration as their cover photo. With 1,837,732 likes and 56,329 people talking, Wall Street Journal excels at Social Media. The well read newspaper captures customers’ attention as well as meaningfully engaging them in conversations on Facebook.

Who Are They?

For the challenge of the day, see how many people you can identify and why you think they made it to the cover of WSJ’s Facebook page?

For a little help –

Mark Zuckerberg
Hillary Clinton
Ben S. Bernanke
Oprah Winfrey
Warren Buffet
Janet Yellen
Calvin Broadus – Snoop Dogg
Serina Williams
Marissa Mayer
Barrack Obama
Queen Elizabeth
Chris Christie

Will Bitcoins Hit The Mainstream In The US?

November 19, 2013 by Twila Van Leer

Depends on whom you ask. The faithful believe Bitcoins will eventually meld into the mix of worldwide financial options and become a valid — and better — way of transacting business. On the other side of the scale are those who expect the phenomenon to burst like a bubble. In between the extremes are millions around the world who simply don’t know what the approach to virtual money means.

Launched in 2009, the Bitcoins approach has become central to ongoing debate about the feasibility of the use of virtual money that has no central control and seemingly tenuous parameters. Created by anonymous programmers, it seems at bottom to lack the substance you’d expect of a medium that is finding some acceptance in worldwide commerce.

Opinions about Bitcoins range from “speculative mania” to predictions that the initial consternations will be resolved and that Bitcoins will one day become as commonly used as the credit cards that decorate the pockets of people around the globe. Optimists say it will ultimately lower payment processing and make transactions more secure. Financial experts are lining up with conferences, seminars and other forums for looking more closely into what virtual money means and whether it has a place in today’s financial array.

Even as the debate heats up, the concept shows a huge amount of growth. The value of a single Bitcoins topped $700 today recently and the overall network’s worth was hovering around $7 billion.

Part of the problem is that early early experience with Bitcoins shows that it has stepped beyond ordinary purchases and payments and moved into the illegal areas of drugs, weapons and child pornography.

In October, federal authorities arrested principals of an online market that told clientele that they could use Bitcoins to purchase drugs and other illegal products. Silk Road, one of the Web’s biggest purveyors of drugs, phony documents and other illegal items, also was shut down. Bitcoins appealed to Silk Road’s clientele because of the lack of any oversight. The potential for money laundering and other criminal uses has raised the antennae of some regulators and they are making moves that would inevitably, it seems, create some oversight over time.

Some businesses that have considered accepting Bitcoins in payment for products have backed off, even though they see value in the option, while they wait to see how the control issues are going to play out. One of the attractions, from their viewpoint, would be a lowering of payment processing costs. Retailers who pay 2 to 3 percent of the value of a sale when a credit card is used to make the transaction have been looking for options and some see Bitcoins as a possible solution.

One of the hazards of using the new Bitcoins is the wild fluctuation in value. Although a boon to currency speculators, that causes headaches for ordinary consumers. So far, it has attracted the interest of a relatively few merchants who will accept bitcoin in payment for their wares. According to a New York Times article on the phenomenon, these include such diverse interests as a winery in British Columbia, an online dating site and a Seattle lunch truck that specializes in grilled cheese sandwiches.

Beyond its own specifics, Bitcoins has focused the financial spotlight on fundamental issues that surround the potential use of virtual money. With an increasing proportion of the world’s business being conducted via computer, they are questions that need to be answered. It may make a difference in whether you will soon find your “wallet” filled with virtual cash. Stay tuned.