Posts Tagged: capital one


19
Mar 14

Are Credit Monitoring Services Worth It?

In the wake of one data breach after another, millions of Americans each year are offered credit monitoring services that promise to shield them from identity thieves. Although these services can help true victims step out from beneath the shadow of ID theft, the sad truth is that most services offer little in the way of real preventative protection against the fastest-growing crime in America.

Experian 'protection' offered for Target victims.

Experian ‘protection’ offered for Target victims.

Having purchased credit monitoring/protection services for the past 24 months — and having been the target of multiple identity theft attempts — I feel somewhat qualified to share my experience with readers. The biggest takeaway for me has been that although these services may alert you when someone opens or attempts to open a new line of credit in your name, most will do little — if anything — to block that activity. My take: If you’re being offered free monitoring, it probably can’t hurt to sign up, but you shouldn’t expect the service to stop identity thieves from ruining your credit.

Avivah Litan, a fraud analyst at Gartner Inc., said offering credit monitoring has become the de facto public response for companies that experience a data breach, whether or not that breach resulted in the loss of personal information that could lead to actual identity theft (as opposed to mere credit card fraud).

“These are basically PR vehicles for most of the breached companies who offer credit report monitoring to potentially compromised consumers,” Litan said. “Breached companies such as Target like to offer it as a good PR move even though it does absolutely nothing to compensate for the fact that a criminal stole credit card mag stripe account data. My advice for consumers has been – sure get it for free from one of the companies where your data has been compromised (and surely these days there is at least one).  But don’t expect it to help much – by the time you get the alert, it’s too late, the damage has been done.  It just shortens the time to detection so you may have a slightly improved chance of cleaning up the damage faster.  And you can get your credit reports three times a year from the government website for free which is almost just as good so why pay for it ever?”

FRAUD ALERT BREAKDOWN

Normally, I place fraud alerts on my credit file every 90 days, as allowed by law. This step is supposed to require potential creditors to contact you and obtain your permission before opening new lines of credit in your name. You merely need to file a fraud alert (also called a “security alert”) with one of the credit bureaus (Equifax, Experian or Trans Union). Whichever one you file with is required by law to alert the other two bureaus as well.

Most consumers don’t know this (few consumers know the names of the three main credit bureaus), but there is actually a fourth credit bureau that you should alert: Innovis. This bureau follows the same rules as the big three, and you may file a fraud alert with them at this link.

Fraud alerts last 90 days, and you can renew them as often as you like (a recurring calendar entry can help with this task); consumers who can demonstrate that they are victims or are likely to be victims of identity theft can apply for a long-term fraud alert that lasts up to 7 years (a police report and other documentation may be required).

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14
Nov 11

Title Firm Sues Bank Over $207k Cyberheist

A title insurance firm in Virginia is suing its bank after an eight-day cyber heist involving more than $2 million in thefts and more than $200,000 in losses last year. In an unusual twist, at least some of the Eastern European thieves involved in the attack have already been convicted and imprisoned for their roles in the crime.

Sometime before June 2010, crooks infected computers of Vienna, Va. based Global Title Services with the ZeuS Trojan, giving them direct access to the company’s network and online banking passwords at then-Chevy Chase Bank (now Capital One). On June 1, 2010, the thieves made their move, and began sending a series of unauthorized wire transfers to money mules, individuals who were hired to help launder the funds and relay them to crooks overseas.

The first three wires totaled more than $200,000. When Global Title’s owner Priya Aurora went to log in to her company’s accounts 15 minutes prior to the first fraudulent transfers went out, she found the account was locked: The site said the account was overdue for security updates.

When Aurora visited the bank local Chase branch to get assistance, she was told she needed to deal with the bank’s back office customer service. Between June 2 and June 8, the thieves would send out 15 more wires totaling nearly $1.8 million. The bank ultimately was able to reverse all but the first three fraudulent wires on June 1.

Capital One declined to comment for this story, citing the ongoing litigation.

Global Title is suing Capital One, alleging the bank failed to act in good faith and failed to implement commercially reasonable security procedures for its online banking clients. The lawsuit notes that at the time of the breach, Capital One’s online banking system used single-factor authentication; it allowed commercial clients to log in and to transfer millions of dollars using nothing more than a username and password.

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4
Apr 11

Epsilon Breach Raises Specter of Spear Phishing

Security experts are warning consumers to be especially alert for targeted email scams in the coming weeks and months, following a breach at a major email marketing firm that exposed names and email addresses for customers of some of the nation’s largest banks and corporate brand names.

Late last week, Irving, Texas based Epsilon issued a brief statement warning that hackers had stolen customer email addresses and names belonging to a “subset of its clients.” Epsilon didn’t name the clients that had customer data lost in the breach; that information would come trickling out over the weekend, as dozens of major corporations began warning customers to be wary of unsolicited email scams that may impersonate their brands as a result.

Among Epsilon’s clients affected are three of the top ten U.S. banks – JP Morgan Chase, Citibank and U.S. Bank — as well as Barclays Bank and Capital One. More than two dozen other brands have alerted customers to data lost in the Epsilon breach (a list of companies known to have been impacted is at the bottom of this post).

Rod Rasmussen, chief technology officer at Internet Identity and the industry liaison for the Anti-Phishing Working Group, believes that the Epsilon breach will lead to an increase in “spear phishing” attacks, those that take advantage of known trust relationships between corporations and customers by crafting personalized messages that address recipients by name, thereby increasing the apparent authenticity of the email.

“I think this is going to make a big difference in spear phishing, where you may not be targeting an individual, but you know that that person has a bank account with US Bank and recently stayed at Disney,” Rasmussen said. “You now can automate spam based on things people have actually done, so your missive that they need to log into your phishing site is much more affective. You can also correlate across your data to see all the services someone is using, phish them for a user/password on something innocuous, and then re-use the same password for the bank they use, since there’s such rampant password re-use out there.”

Crooks used very similar spear phishing methods to steal customer contact information from dozens of email marketing firms late last year, as KrebsOnSecurity.com first reported in detail. In the wake of that assault, data spills at other email marketing firms like SilverPop have prompted disclosures from clients such as TripAdvisor and Play.com.

Neil Schwartzman, executive director of the Coalition Against Unsolicited Commercial Email (CAUCE) and a former executive at email service provider ReturnPath, said his organization plans to release a document later today spelling out security measures that providers should be taking, such as encrypting customer data.

“There are best practices that the major of the industry should have implemented a year ago, but never did, and it’s just disgusting and reprehensible that they haven’t done this stuff yet,” Schwartzman said. “I’ve talked to people in other industrial sectors who said if my external auditors found out we were treating customer data this way, we’d be in serious trouble.”

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8
Mar 10

Victim Asks Capital One, ‘Who’s in Your Wallet?’

In December, I wrote about how a Louisiana electronics testing firm was suing its bank, Capital One, to recover the losses after cyber thieves broke in and stole nearly $100,000. It looks like another small firm in that state that was similarly victimized by organized crooks also is suing Capital One to recover their losses.

Joseph Mier

Joseph Mier and Associates Inc., a real estate appraisal company based in Hammond, L.a., lost more than $27,000 last year when five four unauthorized automated clearing house (ACH) withdrawals were made from its accounts and sent to individuals around the United States.

“I immediately contacted the bank, and for about a week dealt with them to correct the error,” Owner Joseph Mier said. “Finally, they said, ‘From what we can see, whoever did this used your credentials, but nobody breached our system and we’re not responsible.’ I told them maybe they should change their slogan to, “Who’s in your wallet?'”

A spokesperson for Capital One said the company does not comment on pending litigation.

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