Proposed fixes tend to concentrate on the first issue--making personal data harder to steal--whereas the real problem is the second.
If we're ever going to manage the risks and effects of electronic impersonation, we must concentrate on preventing and detecting fraudulent transactions. Fraudulent transactions have nothing to do with the legitimate account holders. Criminals impersonate legitimate users to financial institutions.
That means that any solution can't involve the account holders. That leaves only one reasonable answer: financial institutions need to be liable for the cost of fraudulent transactions.
They need to be liable for sending erroneous information to credit bureaus based on fraudulent transactions. They should not be able to demand that the user must keep his password secure or his machine virus-free. They should not be able to require the user to monitor his accounts for fraudulent activity, or his credit reports for fraudulently obtained credit cards. Those aren't reasonable requirements for most users. The bank must be responsible, regardless of what the user does. If you think this won't work, look at credit cards.
They're not hurting for business; and they're not drowning in fraud either.
They've developed and fielded an array of security technologies designed to detect and prevent fraudulent transactions. They've pushed most of the actual costs onto the merchants. And almost no security centers around are trying to authenticate the cardholder.
That's an important lesson. Identity theft solutions focus much too much on authenticating the person. Whether it's two-factor authentication--ID cards, biometrics, or whatever--there's a widespread myth that authenticating the person is the way to prevent these crimes.
But once you understand that the problem is fraudulent transactions, you quickly realize that authenticating the transaction, not the person, is the way to proceed. Again, think about credit cards. Store clerks barely verify signatures when people use cards. People can use credit cards to buy things by mail, phone or Internet, where no one verifies the signature or even that you have possession of the card. Even worse, no credit card company mandates secure storage requirements for credit cards.
They don't demand that cardholders secure their wallets in any particular way. Credit card companies simply don't worry about verifying the cardholder or putting requirements on what he does. They concentrate on verifying the transaction.
This same sort of thinking needs to be applied to other areas where criminals use impersonation to commit fraud. I don't know what the final solutions will look like, but I do know that once financial institutions are liable for losses due to these types of fraud, they will find solutions. Maybe there will be a daily withdrawal limit, like there is on ATMs.
Maybe large transactions will be delayed for a period of time, or will require a call-back from the bank or brokerage company.
Maybe people will no longer be able to open a credit card account by simply filling in a bunch of information on a form. Likely the solution will be a combination of solutions that reduces fraudulent transactions to a manageable level, but we'll never know until the financial institutions have the financial incentive to put them in place.
prisma2.prod.leadereq.ai/3913-hombres-solteros-extranjeros.php Right now, the economic incentives result in financial institutions that are so eager to allow transactions--new credit cards, cash transfers, whatever--that they're not paying enough attention to fraudulent transactions. They've pushed the costs for fraud onto the merchants. But if they're liable for losses and damages to legitimate users, they'll pay more attention. And they'll mitigate the risks. Security technologies can work wonders in preventing identity theft, once the economic incentives to apply them are there. By focusing on the fraudulent use of personal data, I do not mean to minimize the harm caused by other misuse of third-party data and violations of privacy.
Secure your mail. Empty you mailbox quickly, lock it or get a P. Never mail outgoing bill payments and checks from home. Mail them from the post office or another secure location. Safeguard your Social Security number.
Never carry your card with you, or any other card that may have your number, like a health insurance card. Never leave ATM, credit card or gas station receipts behind.
Never let your credit card out of your sight. Worried about credit card skimming? Whenever anyone contacts you asking for private identity or financial information, make no response other than to find out who they are, what company they represent and the reason for the call. If you think the request is legitimate, contact the company yourself and confirm what you were told before revealing any of your personal data. In addition to the national Do-Not-Call registry , you can also cut down on junk mail and opt out of credit card solicitations.