WiFi Security Flaw in Smartphones Threatens Your Wallet

Recent information available in Britain has shown that popular hotspots can be easily mimicked by thieves, which leaves consumers vulnerable to identity theft.

Tests conducted showed that security experts were able to obtain usernames, passwords and messages from phones using WiFi in public places. The tests all used volunteers so that no actual breach occurred. In cases where the iphone 4 was targeted, the information could be taken and stored without the user even knowing.

This issue is a huge problem for the UK’s nearly 5 million BT hotspots located in train stations, coffee shops, hotels, and airports. While the smartphone service providers have knows about these WiFI security flaws for some time, they have still not done anything about it.

Using inexpensive communication equipment and free software that you can download from the internet, thieves can set up bogus hotspots to start sniffing your personal information. Once you have established a connection with one of these impersonators, whether on a phone or laptop, they can start decrypting your sensitive data.

While this is a huge issue,  identity theft experts have found that a bigger problem is when these fake WiFi hotspots ask you to pay for the service and then gain access to your credit card number. Thieves state that once they have your personal logins and your credit card number, they can do almost anything, including buying gifts, purchasing gift cards for any amount, wire transferring funds to themselves, in addition to other methods for turning your privacy into profits.

iPhone Location Tracking Leads to Privacy Lawsuit

Apple has been hit with a lawsuit in Florida alleging the company is violating iPhone user’s privacy and committing computer fraud. The case came in response to news that the iPhone maintains a time stamped location log, and that data is also stored on user’s computers.

The lawsuit was filed in Federal court in Tampa Florida on April 25 by two customers who claimed Apple was tracking iPhone owner’s movements without consent, according to Bloomberg.

The case was filed after word that the iPhone and iPad with 3G support maintains an unencrypted log file showing where users are based on cell tower triangulation. That file is transferred to user’s computers during the sync process with iTunes and is maintained as part of the device’s backup file collection.

Location logging has been active in the iPhone and 3G iPad since the release of iOS 4 last June, which means some users have nearly a year’s worth of data stored away. Apple is denying that they are actively tracking user locations.

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Award-winning author and identity theft keynote speaker John Sileo trains executives and employees to respect and protect the data that makes their company profitable. His clients included the Department of Defense, Homeland Security, FDIC, Pfizer, Blue Cross and organizations of all sizes. Contact him directly on 800.258.8076 or watch him deliver an Identity Theft Speech.

Comprehensive Opt Out List for Marketing Databases

Major data breaches like the recent Epsilon Breach occur frequently, even if you don’t hear about all of them. With all the publicity surrounding this particular breach, people have been asking how to remove themselves from some of those marketing lists that are frequently compromised.

Opting our of marketing databases is one way to lower your risk of becoming a data breach victim.

So, how do I get out of marketing data bases?

Most databases allow you to opt out of having them share and sell your information, you just need to find out how.  Many sites make it tricky to get this done, but most sites that are selling or harvesting your information allow you to do so one way or another.

The Privacy Rights Clearing House lists 135 marketing data brokers who are selling your private information, and tells you whether or not they have opt-out policies. If they do, you have to go to the brokers’ websites and suppress your name yourself. Most of the sites have hard-to-find opt out pages, but you can generally track them down by visiting the Privacy Policy which frequently appears as a link in small print at the bottom of the home page.

Stock Plummets as Epsilon Breach Rears Ugly Head

When will corporations learn? I received 6 data breach emails yesterday because of the Epsilon’s lack of security.

Have you been inundated with more spam and phishing emails recently? If so, it may be due to one of the largest email and data breaches in Internet history. Epsilon is one of the world’s largest providers of marketing-email services and they handle more than 40 billion emails annually and more than 2,200 global brands.

Epsilon issued the following statement: “On March 30th, an incident was detected where a subset of Epsilon clients’ customer data were exposed by an unauthorized entry into Epsilon’s email system. The information that was obtained was limited to email addresses and/or customer names only.”

The following companies have already sent out warnings (like those below) to their companies: Best Buy, Capital One, JPMorgan, Citibank, Kroger, Barclays Bank of Delware, Visa, American Express, US Bank, TiVo Inc. and Walgreen Co, Robert Half, Kraft, Home Shopping Network, QFC, Marriott Rewards, Ritz-Carlton Rewards, Ameriprise Financial, LL Bean Visa Card, Brookstone, Dillons, the College Board, McKinsey & Company, New York & Company, Disney Vacations, Staples, TIAA-CREF, Verizon, Borders, Smith Brands, Abe Books, Lacoste.

Identity Theft is #1 Consumer Complaint 11th Year in a Row

According to the Federal Trade Commission, Identity Theft still tops the annual list of consumer complaints. The list was released last Tuesday and Identity Theft was #1 for the 11th year in a row with more than 250,000 complaints. Identity theft accounts for 19% of all consumer complaints received by the FTC last year.

Why is this such a lingering, time-tested problem? Because most people, most businesses, read about it being such a terrible problem, and then go off an do little about it. Corporations fail to train their employees on personal identity theft, and that lack of skill and prevention framework seeps into the workplace. This, in turn, leads to the loss of more data, customer records, employee files and intellectual capital.

The report also states that the Miami-Ft. Lauderdale, Fla. area ranks #1 in the nation for identity theft complaints per capita. Number 2 on that list is Brownsville, Texas followed by Dunn, N.C.

The 10 top consumer complaints nationally in 2010 were:

  1. Identity theft
  2. Debt collection
  3. Internet services
  4. Prizes, sweepstakes and lotteries
  5. Shop-at-home and catalog sales
  6. Impostor scams
  7. Internet auctions
  8. Foreign money, counterfeit check scams
  9. Telephone and mobile services
  10. Credit cards

Entire Town in Colorado Has Identity Stolen

In a town with a population of about 3,000 people it seems that almost all the citizens of Bennett, Colorado have had their identity stolen. The scheme was simple and it was easy to fall victim. Identity thieves apparently used skimmers to extract credit and debit card numbers from individuals. Skimmer scams can happen when the criminal installs a “skimming” device over the card slot of an ATM, debit or credit card reader. The skimmer then reads the magnetic strip as the user unknowingly passes their card through it.

In the case of Bennett, Colorado it is believed that this was done at a local King Soopers gas pump. The skimmer is gone now and authorities are on the hunt for the thief.  King Soopers has denied that any of the fraudulent activity happened at their gas pumps and authorities have also said that they knew this was a crime spree for the past few weeks. In the meantime, many of the victims who used debit cards are without those funds because its the same as using cash. The average amount stolen was around $700 and more people are coming forward every day.

There are many ways you can make sure that you don’t become a skimmer victim.

Tired of Being Tracked by Websites? Do Not Track is Here.

In response to the growing demands for more privacy on the internet, Mozilla implements a Do Not Track option in Firefox 4.

The most recent version of Mozilla Firefox, which was rolled out this February, offers users the option to opt-out of website tracking. Once enabled, the user’s preference to not be tracked is automatically sent to the website. That doesn’t mean that the website has to do anything about it, but there will probably be a bit of a stink about those sites that don’t respect user’s privacy preferences (it would be the equivalent of someone making a sales call to you after you join the Do Not Call list). Unfortunately, most users will never know which websites are participating in the opt-out Do Not Track function.

Learn more about Firefox’s Do Not Track Technology and about the Big Brother issues posed by companies tracking your every move on the internet.

In my opinion, beginning to solve the surfer privacy issues at the browser level is the right direction to take. It is the most universal gate through which all surfers pass – no one visits a website without touching a browser. If consumers get behind the technology now and let the companies they do business with know that they expect them to honor Firefox’s Do Not Track technology, there will be no option but to acquiesce.

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