Privacy Protection Strategies to Help Secure Your Client’s ... · junk mail each year – 44% of that is never opened Shred all documents, mail, cards, etc. prior to putting in

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0289936-00001-00 Ed. 03/2016

Privacy Protection Strategies to Help Secure Your Client’s Financial Future

Reid Coyne, Sales Technology Enablement – Prudential Annuities

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For Financial Professional/CPA/Attorney Use Only. Not For Use With The Public.

[REQUIRED SLIDE FOR MERRILL LYNCH EVENTS ONLY] Bank of America Corporation (“Bank of America”) is a financial holding company that, through its subsidiaries and affiliated companies, provides banking and investment products and other financial services .

Merrill Lynch makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a registered broker-dealer and member SIPC, and other subsidiaries of Bank of America Corporation (BofA Corp). Merrill Lynch Life Agency is a licensed insurance agency and a wholly owned subsidiary of BofA Corp. Investment products offered through MLPF&S and insurance and annuity products offered through Merrill Lynch Life Agency Inc.:

Are Not FDIC Insured May Lose Value Are Not Bank Guaranteed

Are Not Insured by Any Federal Government Agency Are Not Deposits Are Not a Condi@on to Any

Banking Service or Ac@vity

The views and opinions expressed in this presentation are not necessarily those of Bank of America Corporation; Merrill Lynch, Pierce, Fenner & Smith Incorporated; or any affiliates. Nothing discussed or suggested in these materials should be construed as permission to supersede or circumvent any Bank of America, Merrill Lynch, Pierce, Fenner & Smith Incorporated policies, procedures, rules, and guidelines.

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  Introduction

  Deter

  Detect

  Defend

  Summary

Agenda

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The Internet & Investing Online

  80% of investors conduct transactions online

  Research is the primary focus

•  53% use financial calculators

•  19% review social security

•  14% review life insurance

•  11% review college savings

  35% of investors use email as their primary form of communication with their financial advisor

88% of Americans are online

Source: http://www.prnewswire.com/news-releases/most-investors-use-the-internet-for-financial-research-tools-and-transactions-however-two-thirds-prefer-to-interact-with-advisors-in-person-300011050.html as of January 30, 2015 Source: Internet World Stats- http://www.internetworldstats.com/stats.htm as of November 30, 2015

3.3 billion people worldwide

use the internet today

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2010-2014 Data Breaches by Type Gov’t/Military, Financial and Retail Sectors

Worlds Biggest Data Breaches

Type of Data Breach Total Records Lost

accidentally published 11,272,253

hacked 384,196,083

inside job 25,103,000

lost / stolen computer 5,101,432

lost / stolen media 6,734,000

poor security 1,643,000

Grand Total 434,049,768

3%

88%

6%

1% 2% 0%

accidentally published

hacked

inside job

lost / stolen computer

lost / stolen media

poor security

Source: http://www.informationisbeautiful.net/visualizations/worlds-biggest-data-breaches-hacks/ as of February 7. 2016

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ID Theft: The deliberate use of someone else's identity, usually as a method to gain a financial advantage or obtain credit and other benefits in the other person's name.

Identity Theft – it’s not going away

Source: http://www.creditcards.com/credit-card-news/credit-card-security-id-theft-fraud-statistics-1276.php http://www.statisticbrain.com/identity-theft-fraud-statistics/ as of January 30, 2015 http://www.nasdaq.com/article/credit-card-fraud-and-id-theft-statistics-cm52038811, as of September 16, 2015

Affecting the lives of over 12 million

Americans annually

U.S. financial losses of $16 billion

in 2014

Average loss per incident - $5,130

18% of American adults who spent

time online said they had personal

information stolen

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Deter Identity Thieves by taking the following precautions:

  Shred financial documents before discarding them

  Protect your Social Security number

  Don’t give out personal information unless you are sure who you’re dealing with

  Don’t use obvious passwords

  Keep information secure

Step 1 – DETER

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  The average American receives 41 pounds of junk mail each year – 44% of that is never opened

  Shred all documents, mail, cards, etc. prior to putting in the trash

  Leverage online statements and paperless options

  Go to www.optoutprescreen.com to reduce preapproved credit card offers

DETER – Reduce Your Paper Trail

Source : https://www.41pounds.org/impact/ & http://about.usps.com/who-we-are/postal-facts/decade-of-facts-and-figures.htm as of January 27, 2016

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Take these out:   Social Security Card

  Blank Checks (Check books)

  Expired Cards

  Receipts

  Passwords & Pins

  Spare Keys

  Excess Cash

DETER – Carry only what you need

Block RFID Scanners!

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Data Backup   iCloud, Dropbox, GoogleDrive

  Local storage: external hard drive, CD/DVDs

Digital Records:   Properly remove data from any device

before selling or donating – smartphones, tablets, laptops, desktops, printers, copiers, etc.

  Various software tools and methods of permanently removing data

•  Overwrite, erase, degauss, etc.

  Physically destroy the drive

DETER – Data Backup & Disposal

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Your password is your first line of defense

Use multiple passwords, and smart techniques:

  Minimum 8 characters

  Use multiple character types

  Phrasing – “Ilovemy2dogs!”

  Use Encrypted Password Storage applications

  Avoid using same password

DETER – Passwords

Don’t Use These Rank Password

1 123456

2 password

3 12345678

4 qwerty

5 12345

6 123456789

7 football

8 1234

Source: https://www.teamsid.com/worst-passwords-2015/ as of January 27, 2016

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DETER – WiFi Public & Private

WiFi – Public Networks   Know the network your logging into

  Limit use of unsecure networks

  Limit access to sensitive information

WiFi – Private Networks   Secure your network

  Use WEP, WPA, or WPA2

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“Malware”   Short for “malicious software,” includes things like worms, Trojans, spyware, adware, and

other programs

AntiVirus Software   Virus scanners remove viruses from programs, documents and e-mail messages and

prevent new infections

  McAfee VirusScan, Norton AntiVirus and Spybot are popular programs

  Run updates regularly

Firewalls   Prevent unauthorized access to or from a computer or network

  Can be implemented in both hardware and software, or a combination of both

  ZoneAlarm and McAfee Personal Firewall are a few popular software firewalls

DETER – Beware of Malware

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Social Media, think before you post….   Full name (particularly your middle name)

  Date of birth (often required)

  Home Address

  Relationship status

  School locations and graduation dates

  Pet names

  Other affiliations, interests and hobbies

DETER – Web Data Presence

Source: http://www.eonetwork.org/octane-magazine/special-features/social-media-networks-facilitate-identity-theft-fraud as of February 1, 2016

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Be Alert – Be Proactive   Mail or bills that don’t arrive

  Denials of credit for no reason

  Google yourself

  Inspect financial statements for charges you didn’t make

Get your Credit Report   By law, everyone is entitled to one free credit report a year

DETECT – Suspicious Activity

Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA 30348-5281

www.AnnualCreditReport.com 877-322-8228

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  Skimming, card-not-present, lost or stolen cards, etc.

  The U.S. is responsible for 47% of the world’s card fraud

  About 31.8 million U.S. consumers had their credit cards breached in 2014

  Card-not-present transactions expected to grow from $9 billion in 2013 to nearly $19 billion in 2018

  New EMV card merchant compliance as of October 2015

DETECT – Credit Card Fraud

Source : http://www.economist.com/news/finance-and-economics/21596547-why-america-has-such-high-rate-payment-card-fraud-skimming-top & www.fbi.gov as of January 30, 2015

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Watch out for skimming and suspicious instances:

  Keep your eyes on your card

  Report lost cards immediately

  Review your statements and receipts

  When entering your PIN, block the keypad with your other hand

  Limit your cards being scanned out of sight

  Monitor all your accounts regularly for fraudulent transactions

DETECT – Card Fraud Tips

Source: www.fbi.gov as of February 8, 2016

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Phishing   Phishing is a criminal activity

using social engineering techniques

  Some of the most targeted companies are the IRS, online banks, auction sites and online pay sites

  Delivered to victims via email and mock websites

DETECT – Email Fraud

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Phishing

DETECT – Email Tips

FACTS DON’Ts   Phishing is random   Never click on links in emails that you

believe look suspicious or you weren't expecting

  No reputable company will never ask you to email them your personal information, such as passwords or credit card numbers

  Never send sensitive information via email – unless it's encrypted, it's not secure

  Forward emails to [email protected], [email protected] or [email protected]

  Turn off the preview pane in your email program

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Web Encryption Basics   Check for security signs when accessing sensitive websites

  Check website privacy notice or policy – HTTPS, SSL/TLS, BIT Level, etc.

  Always use URLs that you know versus hyperlinks

  Always logout when done on secure sites

DETECT – Website Security

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The most comment form of identity theft reported to the FTC in 2014

  Identity Thieves use stolen information to file returns

  IRS paid $5.2 billion in fraudulent returns in 2014, estimated to hit $21 billion in 2016

DETECT – Tax Return Fraud

Source: https://www.ftc.gov/news-events/press-releases/2015/01/tax-id-theft-tops-ftc-complaints-2014-irs-imposter-complaints http://www.forbes.com/sites/robertwood/2015/02/12/turbotax-fraud-may-impact-federal-returns-too-fbi-investigating/#10e5da6e31c6 http://www.cnbc.com/2015/02/11/

How to avoid:   File your returns early

  Know your Tax Preparer

  Know that the IRS will not call you about unpaid taxes

  Notify the IRS immediately if you suspect Tax Fraud

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  Place a “Fraud Alert” on credit reports

  Close accounts that have been tampered with or opened fraudulently

  File a police report

  Contact the Federal Trade Commission

www.IDTHEFT.gov www.FTC.gov/idtheft

  Explore ID Theft Protection Service (LifeLock, TripleAlert, etc.)

DEFEND – Protect Yourself when Problems Occur

Equifax: 800-525-6285 Experian: 888-397-3742 TransUnion: 800-680-7289

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Summary

DETER identity thieves by safeguarding your personal information

DETECT suspicious activity by routinely monitoring your financial accounts and billing statements

DEFEND against identity theft as soon as you suspect a problem

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Questions

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© 2016. Prudential Annuities, Prudential, the Prudential logo, the Rock symbol, are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

The Prudential Insurance Company of America, Newark, NJ. This proprietary Continuing Education course was prepared for Prudential Annuities for the education of Financial Professional, CPAs and Attorneys. It is not intended to provide, nor should be relied on for, accounting, legal, or tax advice. Any unauthorized distribution, use, or copying of any part of this course is strictly prohibited.

Disclosures

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Privacy Protection Strategies to Help Secure Your Client’s ... · junk mail each year – 44% of that is never opened Shred all documents, mail, cards, etc. prior to putting in