Businesses often make social engineering (or fraud) training boring! And that’s bad for your bottom line, because no one ends up remembering how to protect your organization against threats like data theft, corporate espionage or social networking exposure.

Too often, fraud and social engineering workshops cover just the concepts that define fraud rather than the feelings that signal it’s actually in process at the moment. The key to training your executives, employees and even customers on fraud is to let them experience what it feels like to be conned. In other words, they need to actually be socially engineered (manipulated into giving away their own private information) several times throughout the training so that they begin to reflexively sense fraud as it is happening. Like learning to throw a ball, there is no substitute for doing it for yourself. Fraud detection is similar; it takes actually doing it (or having it done to you) to fully understand the warning signs. Anything less will leave your audience yawning and uneducated.

This social engineering video was recorded at a fraud training I did recently for the Department of Defense, and it demonstrates how fun it can be to train someone on detecting fraud, and how profitable. As silly as it might seem, the skills necessary to detect fraud can be taught in very entertaining and engaging ways. After watching the video, take a minute to understand the basic skills your employees and executives will need to Stop Fraud:

During a recent 60 Minutes interview, I was asked off camera to name the Achilles’ heel of an entire country’s data security perspective; what exactly were the country’s greatest weaknesses. The country happened to be New Zealand, a forward-thinking nation smart enough to take preventative steps to avoid the identity theft problems we face in the States. The question was revealing, as was the metaphor they applied to the discussion.

Achilles, an ancient Greek superhero — half human, half god — was in the business of war. His only human quality (and therefore his only exploitable weakness) was his heel, which when pierced by a Trojan arrow brought Achilles to the ground, defeated. From this Greek myth, the Achilles’ Heel has come to symbolize a deadly weakness in spite of overall strength; a weakness that can potentially lead to downfall. As I formulated my thoughts in regard to New Zealand, I realized that the same weaknesses are almost universal — applying equally well to nations, corporations and individuals.

As a parent you are often worried about what your kids are being exposed to on the Internet. Apparently so are Facebook and the PTA. They have teamed up to teach parents and children about responsible Internet use. They plan to cover cyber-bullying, internet safety and security and “citizenship online,” according to a news release.

“Nothing is more important to us than the well-being of the people, especially the many teenagers, who use Facebook,” said Sheryl Sandberg, Facebook’s chief operating officer.

Facebook is the number one social media site with over 500 million users and a minimum age requirement of 13. Even that requirement can be easily fudged because Facebook has no way of verifying a user’s age besides asking for their birth date when they register. Parents are having trouble deciding whether to let their children join Facebook prematurely and what they should be cautious of if they do so.

Learn more on Protecting Your Children Online.

It is important to be educated when dealing with any form of social media or social networking website. Social networking is immensely powerful and is here for the long run, but we must learn to harness and control it. You should know the ins and outs, pros and cons, risks and rewards to using these online tools. Because teens and children don’t necessarily have the life experiences to recognize the risks, parents must educate themselves and pass that knowledge on with open and honest discussions on Facebook and Online Safety.

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There is no final word on how to use Facebook safely. Here’s why: social networking and the web change too quickly. The social network you use today is not the same one you will use tomorrow or next month. The privacy settings, functionality, connectability and features are constantly evolving, which means that almost no one has a handle on every aspect of this topic. Those who tell you that they have the final answer are probably selling you something you shouldn’t buy.

This Survival Guide is an evolving document that I started writing for my young daughters and my employees, and is an attempt to give you a snapshot of some of the safety and privacy issues as they exist right now. Social networking, texting, instant messaging, video messaging, blogging – these are all amazing tools that our kids and employees use natively, as part of their everyday lives. In fact, they probably understand social networking better than most adults and executives. But they don’t necessarily have the life experiences to recognize the risks. I’d like to make their online vigilance and discretion just as native, so that they learn to protect the personal information they put on the web before it becomes a problem. Social networking is immensely powerful and is here for the long run, but we must learn to harness and control it.

A few months ago, Google got caught sniffing unencrypted wireless transmissions as its Street View photography vehicles drove around neighborhoods and businesses. It had been “accidentally” listening in on transmissions for more than 3 years – potentially viewing what websites you visit, reading your emails, and browsing the documents you edit and save in the cloud.

Public opinion blames Google, because Google is big and rich and and scarily omnipotent in the world of information domination. It’s fashionable to blame Google. What Google did was, to me, unethical, and they should eliminate both the collection practice and their archive of sniffed data.

But the greater responsibility lies with the businesses and homes that plugged in a wireless network and did nothing to protect it. Don’t tell me that you don’t know better. When you beam unencrypted data outside of your building, it’s no different than putting unshredded trash on your curb – YOU NO LONGER OWN IT. In fact, when you take no steps to protect the data that flies out of your airwaves and into the public domain, you really have no claim against someone taking it. It’s like finding a $100 bill on an abandoned sidewalk – you can claim it or the next lucky person will. Tom Bradley of PC World agrees:

How long has it been since you wore a white belt in your area of expertise?

I just had the singular honor of delivering an identity theft speech for the Federal Trade Commission in Washington, D.C. In case you don’t understand the humorous irony, let me explain.

The FTC is the arm of the U.S. Government that is responsible for educating you and me about our rights as consumer, including how to fight identity theft. In other words, they are the original identity theft experts! Those of us who are professional identity theft speakers turn to the FTC for information, guidance and materials.

So why did they pay my fee to talk about a subject they know so much about?

Perspective.

Let me use a Taekwondo metaphor to explain what I mean. In many martial arts programs, one level before achieving your black belt, the Master teacher asks the candidate to again wear their white belt to signify that the student is returning to the state of a beginner. The ritual is a symbolic reminder that we only grow and evolve when we are humble enough to admit how much we don’t know. It is related to the Zen principle of viewing life through the eyes of an ever-learning child.

Technology is not the root cause of identity theft, data breach or cyber crime.

We are.

Too often, technology is our scapegoat, providing a convenient excuse to sit apathetically in our corner offices, unwilling to put our money where our profits are. Unwilling, in this case, to even gaze over at the enormous profit-sucking sound that is mass data theft. The deeper cause of this crisis festers in the boardrooms of corporate America. Like an overflowing river, poor privacy leadership flows inexorably downhill from the CEO, until at last, it undermines the very banks that contain it.

The identity theft and data breach bottom line?

I’d like to thank the Department of Defense and Grand Forks Air Force Base for bringing me in as the identity theft financial speaker for their Financial Readiness Challenge Campaign today in North Dakota.

During my speech, I promised to give you easy-to-complete action steps to protect your identity against theft, as well as that of your loved ones. I’d like to deliver on that promise by directing you to a full page article I’ve written specifically for you: John Sileo’s Military Identity Theft Protection Kit. If you have additional suggestions for protecting military IDs that I haven’t covered in this article, please include your comments at the bottom of the post. With your input, this conversation should contribute to the financial stability of our armed forces – which is vital, because, as you are aware, financial readiness is mission readiness.

For those of you who asked to purchase a copy of my book, Stolen Lives, you can do so at www.ThinkLikeASpy.com. Be sure you choose the Speaking Engagement Shipping option in your shopping cart as it will give you free shipping.

Here are answers to several additional questions that were asked after my speech: