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The Threat From ‘Security Fatigue’

There is no mistaking that, by now, most consumers have at least a passing awareness of cyber threats.

Two other things also are true: too many people fail to take simple steps to stay safer online; and individuals who become a victim of identity theft, in whatever form, tend to be baffled about what to do about it.

A new survey by the nonprofit Identity Theft Resource Center reinforces these notions. ITRC surveyed 317 people who used the organization’s services in 2017 and had experienced identity theft. The study was sponsored by CyberScout, which also sponsors ThirdCertainty. A few highlights:

  • Nearly half (48%) of data breach victims were confused about what to do.
  • Only 56% took advantage of identity theft protection services offered after a breach.
  • Some 61% declined identity theft services because of lack of understanding or confusion.
  • Some 32% didn’t know where to turn for help in event of a financial loss because of identify theft.

Keep your guard up

These psychological shock waves, no doubt, are coming into play yet again for 143 million consumers who lost sensitive information in the Equifax breach. The ITRC findings suggest that many Equifax victims are likely to be frightened, confused and frustrated — to the point of acquiescence. That’s because the digital lives we lead come with risks no one foresaw at the start of this century. And the reality is that consumers need to be constantly vigilant about their digital life. However, cyber attacks have become so ubiquitous that they’ve become white noise for many people.

See also: Quest for Reliable Cyber Security  

The ITRC study is the second major report showing this to be true. Last fall, a majority of computer users polled by the National Institute of Standards and Technology said they experienced “security fatigue” that often correlates to risky computing behavior they engage in at work and in their personal lives.

The NIST report defines “security fatigue” as a weariness or reluctance to deal with computer security. As one of the study’s research subjects said about computer security, “I don’t pay any attention to those things anymore. … People get weary from being bombarded by ‘watch out for this or watch out for that.’”

Cognitive psychologist, Brian Stanton, who co-wrote the NIST study, observed that “security fatigue … has implications in the workplace and in peoples’ everyday life. It is critical because so many people bank online, and since health care and other valuable information is being moved to the internet.”

Make no mistake, identity theft is a huge and growing problem. Some 41 million Americans have already had their identity stolen — and 50 million reported being aware of someone else who was victimized, according to a Bankrate.com survey.

Attacks are multiplying

With sensitive personal data for the clear majority of Americans circulating in the cyber underground, it should come as no surprise that identity fraud is on a rising curve. Between January 2016 and June 2016, identity theft accounted for 64% of all data breaches, according to Breach Level Index. One reason for the rise was a huge jump in internet fraud. Card not present (CNP) fraud leaped by 40% in 2016, while point of sale (POS) fraud remained unchanged.

It’s not just weak passwords and individual errors that are fueling the rise in online fraud. Organizations we all trust with our personal information are being attacked every single day. The massive breach of financial and personal history data for 143 million people from credit bureau Equifax is just the latest example.

Over the past four years, there have been a steady drumbeat of major data breaches: Target, Home Depot, Kmart, Staples, Sony, Yahoo, Anthem, the U.S. Office of Personnel Management and the Republican National Committee, just to name a few. The hundreds of millions of records stolen never perish; they will continue in circulation in the cyber underground, available for sale and/or to be used in the next innovative fraud campaign.

Be safe, not sorry

Protecting yourself online doesn’t have to be difficult or complicated. Here are seven ways to better protect your privacy and your identity today:

  • Freeze your credit rating at the big three rating agencies so scammers can’t use your identity to take out loans or credit cards
  • Add a website grader to your browser to avoid malware
  • Enroll in ID theft coverage with your bank, insurer or employer —it could be free or surprisingly inexpensive
  • Get and use a password vault so you can create and use hard-to-guess passwords
  • Be knowledgeable about common cyber scams
  • Add a verbal password to your bank account login and set up text alerts to unusual activity
  • Come up with a consistent way to decide whether it’s safe to click on something.

There is a bigger implication of losing sensitive information as an individual: it almost certainly will have a negative ripple effect on your family, friends and colleagues. There is a burden on consumers to be more active about cybersecurity, just as there is a burden on companies to make it easier for individuals to do so.

See also: Cybersecurity: Firms Are Just Sloppy  

NIST researcher Stanton describes it this way: “If people can’t use security, they are not going to, and then we and our nation won’t be secure.”

Melanie Grano contributed to this story.

How a GOP Congress Could Fix Obamacare

Republicans are primed to take over Congress. A new FiveThirtyEight.com projection gives the GOP a 60% chance of winning the Senate this fall. And, according to RealClearPolitics, there’s virtually no chance Democrats will take the House.

If the GOP succeeds, public displeasure with Obamacare may be why. A recent poll from Bankrate.com found that more than two-thirds of voters say that Obamacare will play a role in how they vote in the coming election. Nearly half said it would influence them “in a major way.”

Of course, the next Congress has little hope of repealing Obamacare outright. The president would just issue a veto. Overriding it — though technically possible — would be difficult with an intransigent Democrat minority.

A GOP majority should instead focus on incremental reforms with bipartisan support — like tax cuts, regulatory reforms and repeal of some of Obamacare’s most unpopular mandates. That’s the most effective way for lawmakers to move our health care system toward one that puts markets and patients at its center.

Step one? Repeal Obamacare’s medical-device tax. This 2.3% excise charge on all device sales is expected to collect $29 billion over the next decade, according to government data.

Device firms are compensating by cutting jobs. Stryker, for instance, has cut 5% of its workforce — about 1,000 people. Zimmer Holdings has chopped 450 jobs. In total, Obamacare’s device tax could kill 43,000 jobs, according to Diana Furchtgott-Roth, an economist at the Hudson Institute.

Getting rid of the tax is a no-brainer. In March 2013, 79 senators — including 34 Democrats — approved a non-binding resolution calling for its repeal. It’s time to make that vote binding.

Second, a GOP-controlled Congress should strengthen health savings accounts. These financial vehicles allow patients to stow away money tax-free for medical expenses. HSAs are typically coupled with high-deductible health insurance. Patients bear the cost of routine care, and coverage kicks in when needed, like in the event of a medical emergency.

HSAs give patients a financial incentive to avoid unnecessary medical expenses. Converting someone to HSA-based insurance drops her annual health expenses by an average of 17%.

This year, 17.4 million people are enrolled in HSA-eligible plans — a nearly 14% increase over 2013. Among large employers, 36% now offer HSA/high-deductible plans, up from 14% five years ago.

Annual HSA contributions are currently capped at $3,350 for an individual and $6,550 for a family. Congress should raise them to $6,250 and $12,500, respectively. And patients with HSA coverage through the exchanges should be eligible for a one-time, $1,000 refundable tax credit to be deposited directly into their account.

Third, the new Congress should reform medical malpractice. Frivolous lawsuits and the threat of baseless litigation are increasing health costs and degrading quality of care.

Excessive malpractice suits drive “defensive” medicine, in which doctors order unnecessary procedures and tests simply to shield against accusations of negligence. This practice costs the country an estimated $210 billion every year, according to PricewaterhouseCoopers. Injecting common sense into the medical tort system would bring down that bill.

Earlier this year, the House Energy and Commerce Committee passed a bill that restricted lawsuits against doctors by, among other things, limiting non-economic damage judgments to $250,000. It was effectively ignored once it moved out of committee. Republicans should dust it off and pass it.

Finally, the GOP should repeal Obamacare’s employer mandate, which slaps midsize and large companies with a fine if they don’t provide sufficiently “robust” health coverage to full-time employees.

The mandate is destroying jobs. Employers are holding off on hiring and ratcheting back workers’ hours to avoid additional insurance costs. A Gallup poll found that 85% of businesses are not looking to hire. Nearly half cited rising healthcare costs.

There’s ample political support for repealing the employer mandate. The administration has already unilaterally — and maybe illegally — delayed its implementation. Several prominent backers have openly called for repeal.

All of these reform ideas are imminently actionable. They could find broad bipartisan backing and avoid a veto. Most importantly, they would move U.S. healthcare closer to a consumer-driven system, with patients empowered to control their own spending and market forces pushing costs down.