Of all the massive hacks of recent years, the Equifax hack may be the worst. Some 145 million persons had their personal information stolen. Even though other hacks may involve larger numbers (the Yahoo hack may have victimized 3 billion--yes, billion--accounts), Equifax had the crown jewels: Social Security numbers, birth dates, home addresses and phone numbers, and some credit card account numbers and drivers license numbers. Bad guys can use this information to open phony credit card and other loan accounts in your name, steal your tax refund, grab your Social Security check and get prescription drugs in your name (which could interfere with your ability to get medications and maybe even implicate you in police investigations).
What to do? The best thing is to freeze your credit accounts. These freezes, called security freezes, prevent new creditors and other persons from getting access to your credit information unless you specifically authorize it. It doesn't stop existing creditors and their collection agents, or the government from getting access. But it puts a substantial barrier in the way of fraudsters. It's not perfect--the bad guys might still try to use your stolen personal information to snare your tax refund or your Social Security benefits, or snag some opiods in your name. But a credit freeze is a lot better than the alternatives. Forget about credit monitoring and fraud alerts--they aren't great protection. And a credit lock isn't as good as a credit freeze. Credit freezes give you legal protection under state law, while a credit lock is just a contract with the credit reporting agency that may be difficult to enforce. Credit locks may also cost you more in fees (which is one reason the credit reporting agencies might want to sell you a credit lock).
Credit freezes can be a little inconvenient, because you have to lift them any time you want to apply for credit. But that is a lot less bother than the aggravation of cleaning up your credit after the bad guys have impersonated you (a process that can take months or years).
One more reason to freeze your credit is to make the idiots (the ones that got hacked) change things. The credit reporting agencies and banks and other lenders don't like freezes. They interfere with business and revenue flow. The credit reporting agencies and lenders have a harder time making money if a lot of people freeze their accounts. And that is the point. The current system using Social Security numbers as universal identification numbers has just been blown up by the Equifax hack. For all practical purposes, you have to assume that your Social Security number is publicly available. You have no privacy any more. You're not safe, and your finances are not safe. The SSN system of personal identification is now completely kaput.
Make 'em change. Freeze your credit and take profit opportunities away from the credit reporting agencies, and the banks and other lenders. Faced with a business downturn, these massive institutions will lead the way to change. With the potential loss of who knows how many millions of dollars of profit, they will implement posthaste new and improved systems of personal identification. Either that, or their senior executives' stock options will belly flop. And that they won't allow. So freeze your credit. It might be the best thing you can do right now for your financial privacy.
Showing posts with label personal information. Show all posts
Showing posts with label personal information. Show all posts
Monday, October 9, 2017
Sunday, June 16, 2013
How to Improve NSA Surveillance
Despite the uproar, there's little chance of changing the scope and extent of NSA surveillance of Americans. No politician wants to be blamed if there's another Boston Marathon-type bombing. So they'll hide behind the usual gridlock and do nothing.
That being the case, we might as well make the most of NSA's surveillance. After all, it's being done on the taxpayer's dime, and taxpayers ought to get their money's worth. Here are some ways NSA can make 'round the clock surveillance a better experience for all of us.
Package Delivery. Since NSA knows where you are at all times, it could run a great delivery service. Let's say you're on the road and forgot to bring your cellphone recharger. An NSA courier could be dispatched with a new recharger in a flash. And they'd want to make this delivery. After all, it's harder to keep track of you if your cell phone battery is dead.
And if you're traveling with a small child and need is a package of disposable diapers and some wipes, NSA could deliver them for a modest fee, even to the highway rest stop where you discovered what you forgot to pack. This would not only please many a distressed parental taxpayer, it would also give NSA a stream of fee revenue that could supplement its multi-billion dollar budget.
Chatline. There are many lonely people, and NSA may be among the few that care to listen in on their phone calls. Perhaps NSA could operate chatlines, to help the lonely find companionship. Maybe NSA will get lucky and a frustrated terrorist will unburden himself on a chatline, confessing to having fantasies about pressure cookers.
Dating Service. If you're single, NSA already knows how bad your personal life is. They know everything about you--and everyone else. Since they know so much, they might as well operate a dating service. With all that they know, they should be able to find the perfect match for you in only three nanoseconds of processing time on their massive supercomputers.
Grocery Shopping. NSA could doing your grocery shopping and bill your bank account, all without you having to do more than tell them your grocery list. You can pick up the phone and say what you need. No need to dial because NSA's monitors will pick up your request anyway, and they can send one of their personnel to the supermarket. Billing your bank account will be a breeze, since they already know the number and track everything that goes on in it. Indeed, there's no reason for NSA to stop with groceries. It could keep you well-stocked with beer and wine, pick up and return your dry cleaning, and arrange for pizza to be delivered in time for dinner. You'd have to pay fees for these services, but think of the convenience.
Concierge Services. There's more. NSA could offer the full range of concierge services. They could get you movie tickets, make dinner reservations, call cabs, send personnel out to be your personal shopper, and so on. They already monitor your credit card and banking activity, so they know what movies you see, where you have dinner, and what your personal shopping consists of. Might as well make the situation a win-win by offering citizens some conveniences now available mostly to the 1%.
Rebranding NSA. NSA has an image problem. It's portrayed by its detractors as an intrusive ogre that laughs derisively while steam rolling over civil liberties. A common strategy in the business world for such a problem is to rebrand oneself. NSA could leverage its massive knowledge of every intimate detail of your life by offering services like those described above, and change its name to, say, NSA Deluxe Lifestyle Services. After all, nothing pleases citizens more than seeing government work for them.
That being the case, we might as well make the most of NSA's surveillance. After all, it's being done on the taxpayer's dime, and taxpayers ought to get their money's worth. Here are some ways NSA can make 'round the clock surveillance a better experience for all of us.
Package Delivery. Since NSA knows where you are at all times, it could run a great delivery service. Let's say you're on the road and forgot to bring your cellphone recharger. An NSA courier could be dispatched with a new recharger in a flash. And they'd want to make this delivery. After all, it's harder to keep track of you if your cell phone battery is dead.
And if you're traveling with a small child and need is a package of disposable diapers and some wipes, NSA could deliver them for a modest fee, even to the highway rest stop where you discovered what you forgot to pack. This would not only please many a distressed parental taxpayer, it would also give NSA a stream of fee revenue that could supplement its multi-billion dollar budget.
Chatline. There are many lonely people, and NSA may be among the few that care to listen in on their phone calls. Perhaps NSA could operate chatlines, to help the lonely find companionship. Maybe NSA will get lucky and a frustrated terrorist will unburden himself on a chatline, confessing to having fantasies about pressure cookers.
Dating Service. If you're single, NSA already knows how bad your personal life is. They know everything about you--and everyone else. Since they know so much, they might as well operate a dating service. With all that they know, they should be able to find the perfect match for you in only three nanoseconds of processing time on their massive supercomputers.
Grocery Shopping. NSA could doing your grocery shopping and bill your bank account, all without you having to do more than tell them your grocery list. You can pick up the phone and say what you need. No need to dial because NSA's monitors will pick up your request anyway, and they can send one of their personnel to the supermarket. Billing your bank account will be a breeze, since they already know the number and track everything that goes on in it. Indeed, there's no reason for NSA to stop with groceries. It could keep you well-stocked with beer and wine, pick up and return your dry cleaning, and arrange for pizza to be delivered in time for dinner. You'd have to pay fees for these services, but think of the convenience.
Concierge Services. There's more. NSA could offer the full range of concierge services. They could get you movie tickets, make dinner reservations, call cabs, send personnel out to be your personal shopper, and so on. They already monitor your credit card and banking activity, so they know what movies you see, where you have dinner, and what your personal shopping consists of. Might as well make the situation a win-win by offering citizens some conveniences now available mostly to the 1%.
Rebranding NSA. NSA has an image problem. It's portrayed by its detractors as an intrusive ogre that laughs derisively while steam rolling over civil liberties. A common strategy in the business world for such a problem is to rebrand oneself. NSA could leverage its massive knowledge of every intimate detail of your life by offering services like those described above, and change its name to, say, NSA Deluxe Lifestyle Services. After all, nothing pleases citizens more than seeing government work for them.
Monday, January 17, 2011
A Key to Facebook's Valuation
Recent press reports indicate that Facebook may go public in a year or so. Its recently reported private placement deal with Goldman Sachs supposedly put a $50 billion valuation on Facebook. Many think this is an optimistic number. Conventional measures of value are hard to apply to Facebook because it doesn't publicly disclose its finances. Uncertainties about its business model add to the problem. One wild card is the continued evolution of online privacy policies.
In many respects, online privacy is an oxymoron. Every day brings news of yet more security breakdowns and thefts of personal information. There doesn't seem to be a website that can't be hacked into, one way or another.
But online crime isn't the most important factor affecting online privacy. The commercialization of the Internet is far more significant. Businesses that want to sell your personal information will do much more to reduce online privacy than pimply kids eating junk food in front of computer screens.
Banks are starting to place targeted ads in your online statements. If your bank account shows, say, several recent debit card charges for fast food breakfasts, you may be offered a discount on your next Egg McMuffin. Some bank customers may like the idea of getting a discount while they review their account activity. Others will be creeped out by the idea that the most confidential financial information they have is being mined for the further profitability of purveyors of salt, sugar and fat. Many customers would be outraged at the possibility that insurance companies might pay to know about their slovenly eating habits and charge them higher life, health or disability insurance premiums. Actual insurance company access to your bank account hasn't been reported in the news, but don't think insurers--and the websites that are collecting your personal information--aren't pondering the possibility.
Banks have a lot of ways to make money, yet they are trying to profit from selling your personal information. Think of the pressures on Facebook, which has far fewer potential revenue streams than a bank. The most valuable thing Facebook has is the personal information it gathers about its members. If it can't find a way to monetize that data, its future could be difficult.
The FTC is proposing guidelines about online privacy. Members of Congress are getting interested in the issue and may offer legislation. One way or another, the law in this area will evolve and soon. When it does, Facebook's stock market value could rise or fall, depending on what rules are imposed. Indeed, since the monetization of personal information is likely to be Facebook's biggest potential revenue stream, online privacy laws could be crucial to determining the company's valuation.
In many respects, online privacy is an oxymoron. Every day brings news of yet more security breakdowns and thefts of personal information. There doesn't seem to be a website that can't be hacked into, one way or another.
But online crime isn't the most important factor affecting online privacy. The commercialization of the Internet is far more significant. Businesses that want to sell your personal information will do much more to reduce online privacy than pimply kids eating junk food in front of computer screens.
Banks are starting to place targeted ads in your online statements. If your bank account shows, say, several recent debit card charges for fast food breakfasts, you may be offered a discount on your next Egg McMuffin. Some bank customers may like the idea of getting a discount while they review their account activity. Others will be creeped out by the idea that the most confidential financial information they have is being mined for the further profitability of purveyors of salt, sugar and fat. Many customers would be outraged at the possibility that insurance companies might pay to know about their slovenly eating habits and charge them higher life, health or disability insurance premiums. Actual insurance company access to your bank account hasn't been reported in the news, but don't think insurers--and the websites that are collecting your personal information--aren't pondering the possibility.
Banks have a lot of ways to make money, yet they are trying to profit from selling your personal information. Think of the pressures on Facebook, which has far fewer potential revenue streams than a bank. The most valuable thing Facebook has is the personal information it gathers about its members. If it can't find a way to monetize that data, its future could be difficult.
The FTC is proposing guidelines about online privacy. Members of Congress are getting interested in the issue and may offer legislation. One way or another, the law in this area will evolve and soon. When it does, Facebook's stock market value could rise or fall, depending on what rules are imposed. Indeed, since the monetization of personal information is likely to be Facebook's biggest potential revenue stream, online privacy laws could be crucial to determining the company's valuation.
Monday, May 28, 2007
How to Spot a Crook
When someone approaches you about making an investment, you have to consider whether you're dealing with a dishonest person. You know the stereotype of a crook: shifty eyes, nervous snicker, sweaty hands, weak handshake, won’t look you in the eye. You’ve seen it in cartoons and movies. You’ve even met some people like this. But were they truly dishonest? Or were they just insecure?
Was every charming, engaging, and witty person you ever met truthful? Let’s disregard the jerks that didn’t call you the next morning. How about the person who promised you a job or promotion that you didn’t get?
You can’t tell by appearances if a person is honest. The annals of law enforcement agencies and financial regulators are filled with the names of charming, engaging people who turned out to be thoroughly crooked. Indeed, many of the most outrageous fraudsters are exactly the sort of person you’d like to have a drink with. The fact that they were so engaging and likeable is precisely why they were such successful con artists.
That’s why you have to be very careful about whom you entrust with your money. All investing involves giving your money to someone else. You can’t earn interest, dividends or capital gains if you stuff cash into a mattress. The money has to be given to someone else who uses or invests it, and pays you from the earnings they make.
Deal with people and institutions that are familiar. People who are known in the community and need to stay in good standing with their neighbors are more likely to be scrupulous. Look for organizations—whether national or local—that have good reputations. While there’s no guarantee that a person or organization known to you won’t be crooked, you’re taking a bigger risk when dealing with unknowns.
Never give personal information to anyone who calls you out of the blue or sends you an unsolicited e-mail. Be wary of anyone who contacts you, claims to be from the government or from your bank, and asks you to confirm personal information, either by e-mail or on the phone. Legitimate inquiries from the government or your bank won’t come in this manner. If someone contacts you and says you’ve won a prize, don’t pay money to collect the prize. Legitimate prizes won’t require you to pay money.
Invest in an asset, not a person (even if you like the person). Don’t invest in something just because a friend, neighbor, or acquaintance recommends it. Ask yourself whether the asset makes sense for your financial goals. You’ll get a lot of information about why the investment is a good idea. Research it yourself, and make sure you understand how things can go wrong. When you understand the risks as well as the rewards, you’ll be able to make a sound decision.
Celebrity News: If you’ve read enough already about Lindsay Lohan, don’t click on this link. http://www.wtop.com/?nid=114&sid=642554.
Was every charming, engaging, and witty person you ever met truthful? Let’s disregard the jerks that didn’t call you the next morning. How about the person who promised you a job or promotion that you didn’t get?
You can’t tell by appearances if a person is honest. The annals of law enforcement agencies and financial regulators are filled with the names of charming, engaging people who turned out to be thoroughly crooked. Indeed, many of the most outrageous fraudsters are exactly the sort of person you’d like to have a drink with. The fact that they were so engaging and likeable is precisely why they were such successful con artists.
That’s why you have to be very careful about whom you entrust with your money. All investing involves giving your money to someone else. You can’t earn interest, dividends or capital gains if you stuff cash into a mattress. The money has to be given to someone else who uses or invests it, and pays you from the earnings they make.
Deal with people and institutions that are familiar. People who are known in the community and need to stay in good standing with their neighbors are more likely to be scrupulous. Look for organizations—whether national or local—that have good reputations. While there’s no guarantee that a person or organization known to you won’t be crooked, you’re taking a bigger risk when dealing with unknowns.
Never give personal information to anyone who calls you out of the blue or sends you an unsolicited e-mail. Be wary of anyone who contacts you, claims to be from the government or from your bank, and asks you to confirm personal information, either by e-mail or on the phone. Legitimate inquiries from the government or your bank won’t come in this manner. If someone contacts you and says you’ve won a prize, don’t pay money to collect the prize. Legitimate prizes won’t require you to pay money.
Invest in an asset, not a person (even if you like the person). Don’t invest in something just because a friend, neighbor, or acquaintance recommends it. Ask yourself whether the asset makes sense for your financial goals. You’ll get a lot of information about why the investment is a good idea. Research it yourself, and make sure you understand how things can go wrong. When you understand the risks as well as the rewards, you’ll be able to make a sound decision.
Celebrity News: If you’ve read enough already about Lindsay Lohan, don’t click on this link. http://www.wtop.com/?nid=114&sid=642554.
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