The Smartcard Alliance has released an in-depth report called “Medical Identity Theft in Healthcare.”

While identity theft is a global issue that garners much media attention, most do not realize that medical identity theft is a serious and growing threat. Many authorities consider medical identity theft one of the fastest growing crimes in America. With the digital age of healthcare upon us, the risks are expected to increase as electronic medical records become more prevalent and the exchange of this data over expanding networks becomes more pervasive. Heightened concern over personal data security and privacy highlight the importance of having secure electronic medical identities.

According to a recent Ponemon Institute study, nearly 1.5 million Americans have been victims of medical identity theft with an estimated total cost of $28.6 billion–or approximately $20,000 per victim. [1] Further evidence of the significance of the medical fraud problem is the allocation of $1.7 billion for fraud detection in the 2011 U.S. Health and Human Services Department budget. [2] In 2009, 68 reported healthcare data breaches in the U.S. put over 11.3 million patient records at risk of exposure.

Patients whose medical identities are stolen face serious lingering effects. Fraudulent healthcare events can leave erroneous data in medical records. This erroneous information–like information about tests, diagnoses and procedures–can greatly affect future healthcare and insurance coverage and costs. Patients are often unaware of medical identity theft until a curious bill or a surprising line of questioning by a doctor exposes the issue. Then, the burden of proof is often with the patient and it can be difficult to get the patient’s legitimate medical records cleaned up. The consequences can also be life threatening and can lead to serious medical errors and fatalities.

Identity theft prevention services generally will not protect you from medical identity theft. However, if your information is out there on the Net and being scanned constantly by the identity theft protection service, then your risk is lowered. Furthermore, I’m all about layers of protection. If your identity is protected from new account fraud via credit monitoring or credit freezes then the thief may use another identity that has less restrictions.

1. Get a credit freeze and follow the steps for your particular state. This is an absolutely necessary tool to secure your credit. In most cases, it prevents new accounts from being opened in your name. This makes your Social Security number useless to a potential identity thief.

2. Invest in Intelius identity theft protection and prevention. Not all forms of identity theft can be prevented, but identity theft protection services can dramatically reduce your risk. (Disclosures)

Robert Siciliano Identity Theft Speaker discussing Medical Identity Theft on the CBS Early Show

Most people are smart enough to NOT give out a social security number on Facebook. However between what you say, your family, friends and colleagues say and post, your profile is becoming more complete every minute. Even your mom or wife posts her name as “First Maiden Last” because she saw someone else do it and it made sense to allow her old friends/flames to find her.

But today with all this personal information readily available there are now rumblings from academia that they have cracked the code and have assembled technologies to decipher all this information and turn it into hard decipherable data that leads to opening new accounts in your name.

The New York Times reports “computer scientists and policy experts say that such seemingly innocuous bits of self-revelation can increasingly be collected and reassembled by computers to help create a picture of a person’s identity, sometimes down to the Social Security number. So far, this type of powerful data mining, which relies on sophisticated statistical correlations, is mostly in the realm of university researchers, not identity thieves and marketers.”

SearchSecurity.com reports that researchers at Carnegie Mellon University have developed a reliable method to predict Social Security numbers using information from social networking sites, data brokers, voter registration lists, online white pages and the publicly available Social Security Administration’s Death Master File.

Originally, the first three numbers on a Social Security card represented the state in which a person had initially applied for their card. Numbers started in the northeast and moved westward. This meant that people on the east coast had the lowest numbers and those on the west coast had the highest. Before 1986, people were rarely assigned a Social Security number until age 14 or so, since the numbers were used for income tracking purposes.

From this point on I’d suggest locking down social media profiles in a way that they are not publicly accessible. Prevent anyone (except those very close to you) from seeing and reading everything about your daily activities, who you associate with and all the names and contact information of all your friends and family.

Robert Siciliano personal security expert to Home Security Source discussing cracking the code and wireless security on Fox Boston.

The Wall Street Journal reports under the potentially controversial plan still taking shape in the Senate, all legal U.S. workers, including citizens and immigrants, would be issued an ID card with embedded information, such as fingerprints, to tie the card to the worker.

There are too many forms of identification floating around right now that lack standards and overall security. The Social Security card is currently our national identification card that’s not supposed to be used for identification. From a NY Times article from 1998 it states: WASHINGTON— FOR many years, Social Security cards carried an admonition that they were to be used ”for Social Security and tax purposes — not for identification.” That assurance rings hollow today. Congress has authorized so many uses of the nine-digit number, and Americans use it for so many unauthorized purposes, that it has just about become a national identifier. Today your social is connected to everything.

Security Management reports that all workers and mariners attempting to access secure maritime and port areas nationwide will have to flash a government-approved Transportation Worker Identification Credential (TWIC), which includes a biometric identification card before entry. HSPD-12, or Homeland Security Presidential Directive 12, set universal identification standards for federal employees and contractors, streamlining access to buildings and computer networks. Then there is old and new versions of the passport, as many as 200 forms of ID circulating from state to state, plus another 14,000 birth certificates and 49 versions of the Social Security card.

Government has tried hard to create identification that will once and for all standardize the process under the REAL ID Act which is most likely going to be squashed under Homeland Security Secretary Janet Napolitano who is proposing the repeal of the Real ID Act.

“A person familiar with the legislative planning said the biometric data would likely be either fingerprints or a scan of the veins in the top of the hand. It would be required of all workers, including teenagers, but would be phased in, with current workers needing to obtain the card only when they next changed jobs, the person said.”

Many oppose biometrics and New Hampshire has even proposed legislation against it. My money is on biometrics creeping into our lives in the form of a national ID. Like it or not biometrics are coming.

Meanwhile, until there is assigned accountability, which means nobody can pose as you and work as you and open new accounts as you, protect your identity.

Get a credit freeze and follow the steps for your particular state. This is an absolutely necessary tool to secure your credit. In most cases, it prevents new accounts from being opened in your name. This makes your Social Security number useless to a potential identity thief.

Invest in anti-virus and keep it auto-updated and check out my spyware killer IDTheftSecurty HERE

With your iPhone get my book as an App or go to my website and get my FREE ebook on how to protect yourself from the bad guy.

Invest in Intelius identity theft protection and prevention. Not all forms of identity theft can be prevented, but identity theft protection services can dramatically reduce your risk. (Disclosures)

Robert Siciliano Identity Theft Speaker discussing Social Security numbers on Fox News

Keyless Access: Door locks that require a pincode make it easier to access without fumbling for keys. Many keyless locks are smart and can be set to allow contractors limited one time PIN access.

Remote Control Alarms: For a few extra bucks you can add remote controls to an alarm system that allow you to activate or deactivate from the driveway or online.

Robot Cameras: New and very expensive robotic camera equipped technologies will roam your property taking full day and night video.

Remote Monitoring: Having someone monitor a video surveillance system 24/7/365 is close to having feet on the ground. These same systems come equipped with speakers used to yell at the trespassers.

Bullet Proof: If you’re especially concerned about flying bullets then installing bullet proof glass, doors and shoring up your walls with bullet proof steal is a must.

Panic or Safe Rooms: A safe room provides a space where you can survive a tornado, hurricane or home invasion with little or no injury. Residents can hide out in a relatively bullet proof, well stocked room equipped with wireless communications and wait for law enforcement to show up.

16 or 32 Camera Surveillance System: Once you go beyond 8 cameras prices start to rise. However 16 or even 32 cameras will provide you with a bird’s eye view of every single nook and cranny of your home extending into your neighborhood.

Robert Siciliano personal security expert to Home Security Source discussing Self Defense on Fox Boston

“Lola” the furriest of all beasts is all bark, love and very territorial. When anyone walks within 100 yards of the property she’s barking. If the door bell rings or someone knocks on the door forget it. All mayhem breaks out. If I or anyone enters through a door and she is even a little surprised she goes nuts.

In the event a bad guy was to walk through my door my feeling is he’d end up “sausage.” A dog is another home alarm system. It’s an extra video security system too. They often see and hear what you can’t day and night. Whenever my dog starts barking the first thing I do is check the video surveillance system monitor to see what she’s cracking about.

In the Boston area, it is reported that a German Shepherd thwarted a home invasion.

The key to getting a protection dog is to understand what a protection dog is and isn’t. First and foremost a protection dog doesn’t mean that the dog is a non stop-snarling-growling-aggressive-ready to pounce-rabid animal. Most protection dogs are relatively sublime, but aware. They respond to the call of duty when they sense a reason to.

A real protection dog is one that is trained for such a purpose. Certain breeds are more trainable and often go through a technique called “schutzhund”. German Shepherds, Malinois and Dobermans are breeds that come to mind. Generally, these dogs have what’s called “prey drive.” Prey drive is the instinctive behavior of a carnivore to pursue and capture prey.

Without prey drive the dog doesn’t have much motivation to do much, never mind put themselves in harms way.

My neighbors have these 2 little “Toto” dogs that think they are 125lbs Rottweilers. And frankly, I don’t get to close to them because they act the part too. They snarl and hiss and bark when their “Mom” walks them and they have razor sharp teeth. It’s not the size of the dog in the fight; it’s the size of the fight in the dog.

Ultimately you want a dog that is safe around you and children. Just as important the dog needs to be safe around strangers too. The dog needs to be sensitive to who or what is good, and when there is a threat. A dog that bites for no reason isn’t a protection dog; it’s a lawsuit and a burden.

Do your research to determine what’s best for you and your family. No matter what dog you get, show them respect and they will watch your back.

Robert Siciliano personal security expert to Home Security Source discussing Home Security on Fox Boston

Skimming data off of debit and credit cards has been happening at ATMs, gas pumps and electronic funds transfer point of sale terminals for quite some time.

When criminals plant skimming devices, they have to physically attach a skimming device that fits over the face of the ATM’s card slot. Then they install a small camera that shoots video of your pinpad which extracts user PIN codes. The camera is often housed inside of a brochure holder or little box that may have a mirror glued to its face. The mirror is made to loom like a security feature preventing shoulder surfing.

Once the criminals attach the devices they have to wait it out for someone to then use the ATM or gas pump before they can remove the device and download the data. It is in the best interest of the criminal to leave the skimmer on the machine for as long as possible to skim as many cards as possible. Because every time the skimmer is removed and replaced it becomes another opportunity for the thief to get caught or for something to go wrong.

In Utah a group of criminals one-upped other ATM scammers by installing Bluetooth enabled skimming devices that broadcast the skimmed data to a nearby storage devise, probably a laptop. Bluetooth’s range can be just a few feet to as much as a city block. So the criminals had to be in a car nearby.

What made these devices even more sophisticated is they skim the card data and grab the PIN code via the all-in-one combo skimmer and PIN pad device affixed to the face of the pump that allowed the financial transaction to occur.

This entire process allows the criminal to steal “data-on-demand” and immediately turn it into cash. Further, it provides the criminal with the freedom to decide whether or not they want to retrieve the skimming device thereby lessening their chances of being caught.

You can’t protect yourself from this kind of skimmer by covering your pin due to the fact that the device is the pinpad. So if you use a device like this you are screwed. Ultimately, you must pay close attention to your statements. Also, pay close attention to details, and look for anything that seems out of place. Refute unauthorized transactions within 60 days. Check with your bank to determine what their timeframe is to refute unauthorized withdrawals. In some cases it can be as early as a week.

Protect your identity.

1. Get a credit freeze and follow the steps for your particular state. This is an absolutely necessary tool to secure your credit. In most cases, it prevents new accounts from being opened in your name. This makes your Social Security number useless to a potential identity thief.

2. Invest in anti-virus and keep it auto-updated and check out my spyware killer IDTheftSecurty HERE

3. Get my book as an iPhone App or go to my website and get my FREE ebook on how to protect yourself from the bad guy.

4. Invest in Intelius identity theft protection and prevention. Not all forms of identity theft can be prevented, but identity theft protection services can dramatically reduce your risk. (Disclosures)

Robert Siciliano Identity Theft Speaker discussing Pay-at-the-Pump skimming on Fox News.

Dan Yost Chief Technology Officer of MyLaptopGPS brought attention to the Ponemon Institute, with sponsorship from PGP, has released their “Fifth Annual U.S. Cost of Data Breach Study.” As usual, the report is a treasure trove of great data (just like most people’s laptops are).

The average cost per breached data record rose $2 in 2009, to $204. That’s actually not too bad. The average cost of a breach was $6.75 million, compared to $6.65 million in 2008.

PC World has a good article to summarize, and thanks to lyger at DataLossDB for the pointer.

Not very many businesses are taking serious note of the fact that, on average, they have $6.75 million laptops walking around out there. For those who are, our hats are off.

Here’s an interesting excerpt:

“Overall, 42% of all cases in the Ponemon data-breach study involved third-party mistakes and flubs. In addition, more than 82% of the cases in the Ponemon study were organizations that had more than one data breach in 2009 involving the loss or theft of more than 1,000 records containing personal information. At about 40% of the companies that participated in the study, the chief information security officer (CISO) was in charge of managing the response related to the data breach.”

And how about the maximum data breach cost in the study? $31 million.

That’s a rather expensive laptop, and probably worth a few dollars to protect instead. (Note: the breach may actually have been the result of something other than a lost/stolen laptop, such as a network break-in).

The least expensive breach? $750,000. That beats $31 million, but $750k is still a pretty penny to pay, compared to protection.

Many thanks to Ponemon and PGP for another excellent study.

Protect your identity.

1. Get a credit freeze. Click on the preceding link and follow the steps for your particular state. This is an absolutely necessary tool to secure your credit. In most cases, it prevents new accounts from being opened in your name. This makes your Social Security number useless to a potential identity thief.

2. Invest in anti-virus and keep it auto-updated and check out my spyware killer IDTheftSecurty HERE

3. Go to my website and get my FREE ebook on how to protect yourself from the bad guy.

4. Invest in Intelius identity theft protection and prevention. Not all forms of identity theft can be prevented, but identity theft protection services can dramatically reduce your risk. (Disclosures)

Robert Siciliano Identity Theft Speaker discussing laptop security on The Today Show

Chip and PIN is the name of a government-backed initiative in the United Kingdom to implement the EMV standard for secure payments.

There have been rumblings from Europe over the past year about American based credit cards that solely rely on the magnetic strip not being accepted in the future due to security issues. Australia recently stated they were getting rid of all magnetic strip based cards and going Chip and PIN within the next few years.

Meanwhile ZDNet reports “Researchers at Cambridge University have found a fundamental flaw in the EMV — Europay, MasterCard, Visa — protocol that underlies chip-and-PIN validation for debit and credit cards. As a consequence, a device can be created to modify and intercept communications between a card and a point-of-sale terminal, and fool the terminal into accepting that a PIN verification has succeeded.

“Chip and PIN is fundamentally broken,” Professor Ross Anderson of Cambridge University told ZDNet UK. “Banks and merchants rely on the words ‘Verified by PIN’ on receipts, but they don’t mean anything.”

This new research has shown that a PIN still needs to be entered, but any PIN code would be accepted. That’s not good. The researchers who cracked the code stated that the ability for the badguy to do this in the future is probable due to the fact that the attack itself is “elementary”. That’s got to warm the cockles of organized crime.

The US has not adopted CHIP and PIN and many argue it is due to the costs involved. With 213 million cardholders and 1.2 billion credit cards in the U.S., there’s no shortage of opportunity for carders to maintain their current pace. However, an investment in a flawed technology isn’t wise.

You can’t protect yourself from these types of scams. However, by paying attention to your statements and refuting any unauthorized transactions within 60 days, you can recover your losses. When using any POS or ATM, pay close attention to details, and look for anything that seems out of place. If your card gets stuck in the machine or you notice anything odd about the appearance of the machine, such as wires, or error messages, don’t use it.

Protect your identity.

1. Get a credit freeze. Click on the preceding link and follow the steps for your particular state. This is an absolutely necessary tool to secure your credit. In most cases, it prevents new accounts from being opened in your name. This makes your Social Security number useless to a potential identity thief.

2. Invest in anti-virus and keep it auto-updated and check out my spyware killer IDTheftSecurty HERE

3. Go to my website and get my FREE ebook on how to protect yourself from the bad guy.

4. Invest in Intelius identity theft protection and prevention. Not all forms of identity theft can be prevented, but identity theft protection services can dramatically reduce your risk. (Disclosures)

Robert Siciliano Identity Theft Speaker discussing ATM skimming on NBC Boston

The sheer volume of potential targets coupled with the vast amounts of money to be made has captured the attention of the global criminal hacking community.

Enterprise networks are becoming hardened and they are still vulnerable. Some are being penetrated directly while others are accessed through 3^rd parities such as their clients or end users. Unprotected networks are being sniffed out and data breaches continue.

The organizations that track these breaches are bored, frustrated, hate the industry and offer no good news. Innovation isn’t happening fast enough and new laws and regulations aren’t effective in solving the problems.

PCI and all those who fall under its requirements are chasing their tail. Infighting continues and rumblings of lawsuits against PCI persist.

Law enforcement is getting better at investigating and catching the badguy, but there are far more of them then there are of us.

Between the TJX breach and the Heartland hack there were as many as 224 million credit and debit card numbers hacked. The criminals penetrated the networks “in broad daylight” so to speak, which means they didn’t have much trouble getting in. The hacks may have occurred via unsecured wireless networks, SQL injections or via social engineering though a phishing email with infected links.

While IT security professionals and white-hat hackers are fighting the battle with newer, better, faster, more robust technologies to keep the bad-guy out, the bad guy still gets in via the path of least resistance, which may be human error, laziness or a zero-day attack consisting of something we’ve never seen before. Often it is the former.

New stories keep coming out depicting small businesses losing hundreds of thousands of dollars via online banking hacks and the banks filing suit so they don’t have to pay it back.

I just spoke to 60 bankers at a conference in Las Vegas. Many of them professed to learning a lot. . No offense here, but I am of the belief that nothing I say should be in any way “new information” to anyone in the banking industry.

As we move closer to mobile banking and a dozen new ways to process credit cards we create new opportunity for the criminals and we haven’t tightened up existing vulnerabilities yet.

We are fragmented and all over the place with an incredible array of interdependent technologies that are set up with convenience in mind and security second.

Somebody please tell me to shut up.

Protect your identity.

1. Get a credit freeze. Click on the preceding link and follow the steps for your particular state. This is an absolutely necessary tool to secure your credit. In most cases, it prevents new accounts from being opened in your name. This makes your Social Security number useless to a potential identity thief.

2. Invest in anti-virus and keep it auto-updated and check out my spyware killer IDTheftSecurty HERE

3. Go to my website and get my FREE ebook on how to protect yourself from the bad guy.

4. Invest in Intelius identity theft protection and prevention. Not all forms of identity theft can be prevented, but identity theft protection services can dramatically reduce your risk. (Disclosures)

Robert Siciliano Identity Theft Speaker discussing ATM skimming on ExtraTV

Financial institutions have the most to lose and the most to gain by improving security education of their clients and employees.

A while back I appeared on a local TV show talking about phishing. Amazingly, still, not everyone knows what phishing is. A good friend saw the show and was shocked by what she learned….about her bank.

She received a phishing email and didn’t know what it was. The email asked her to update her account. It was confusing so she called her bank. She spent 20 minutes on the phone with a bank rep discussing her account and the bank could find no record of the communication or any issues with her account. At the conclusion of the call the bank rep said, “I don’t know why you received this email, your account information is in order.” Click.

That night she saw my phishing clip and wondered why the bank never mentioned a single word about phishing. Her bank failed her. They failed to educate her and therefore failed to protect her. She is no longer a client of that bank.

The mindset of financial institutions needs to change drastically when it comes to educating their clients about identity theft and security issues. Old school “sweep it under the rug” don’t discuss it because it will scare people school of thought is dead. People want, need and require information to protect themselves.

The game has changed. People are concerned for their personal security and are hungry to learn. The fact that you or anyone reads this blog is a testament to society as a whole wants to learn. Soccer moms are now security moms. I’ve seen major industry players in the anti-virus space catering to these mommy bloggers and others because they understand the public is hungry for this. Banks, well, not so much.

Engage the public and they will respect you and want to do further business with you.

Linda McGlasson, Managing Editor at BankInfoSecurity.com interviewed me for a segment on this issue. Listen to the Podcast here It requires a login but its worth your time.

Protect your identity.

1. Get a credit freeze. Click on the preceding link and follow the steps for your particular state. This is an absolutely necessary tool to secure your credit. In most cases, it prevents new accounts from being opened in your name. This makes your Social Security number useless to a potential identity thief.

2. Invest in anti-virus and keep it auto-updated and check out my spyware killer IDTheftSecurty HERE

3. Go to my website and get my FREE ebook on how to protect yourself from the bad guy.

4. Invest in Intelius identity theft protection and prevention. Not all forms of identity theft can be prevented, but identity theft protection services can dramatically reduce your risk. (Disclosures)

Robert Siciliano Identity Theft Speaker discussing the lack of security in online banking on CBS Boston