Protecting Yourself From Future Data Breaches

Last month Home Depot confirmed its computer systems had been targeted in a recent data breach, and up to 60 million customers credit card information and PIN numbers were stolen. While you can't prevent cyber attacks on retailers, there are definitely some steps you can take to minimize your risk should a data breach occur.  

• Consider a new way to pay. Third party payment methods are much safer than swiping your debit card in the store. Third party services like these have your credit card information stored and do not give the retailer your payment information when you make a purchase. However, many retailers do not yet accept third party services so store valued cards or phone apps are another good choice as your credit card information is not exposed. 

• If you do choose to swipe your card in the store, it is safer to process the purchase as credit rather than debit. When you process a payment as debit you must enter your PIN into the key pad which then saves your PIN into the retailers data base. Hackers can do more damage with PIN numbers - like creating a second copy of your debit card and withdrawing money directly from your account. 

• Regularly check your credit card statements. By checking your credit card statements regularly, your chances of catching suspicious activity as it happens increases and you will suffer less damages. Thieves often make purchases in small amounts and then later begin to make larger ones.

• When the Home Depot data breach occurred many people reported receiving emails from Home Depot offering free credit monitoring. These emails were distributed by scammers looking to gain access to unsuspecting recipients personal information. If you receive an email making claims like this you are better off ignoring it. If the email looks credible you should only move forward after going straight to the source to confirm its credibility. 

Seven Scams that Target Small Businesses

Being vigilant against fraud is not only important for a company’s bottom line, it also strengthens customer trust in the business. 

Every year the BBB receives thousands of complaints from small business owners who fell for an invoicing scam or were misled into paying for products and services they didn't want. Scammers aren't always trying to steal money from a business; sometimes they are after a company’s financial or customer data and will use many kinds of high and low-tech methods for getting it.

Here are seven scams that commonly target small businesses:

1. Directory Scams – A perennial problem that has plagued businesses for decades involves deceptive sales for directories. Commonly the scammer will call the business claiming they just want to update the company’s entry in an online directory or the scammer might lie about being with the Yellow Pages. The business is later billed hundreds of dollars for listing services they didn't agree to or for ads which they thought would be in the Yellow Pages.
2. Office Supply Scams – Some scammers prey on small business owners hoping that they won’t notice a bill for office supplies like toner or paper which the company never ordered.  Every year BBB receives thousands of complaints from small business owners who were deceived by office supply companies and billed for products they didn’t want.
3. Overpayment Scams – Be extremely cautious if a customer overpays using a check or credit card and then asks you to wire the extra money back to them or to a third party. Overpayment scams target any number of different companies including catering businesses, manufacturers, wholesalers and even sellers on sites like eBay, Craigslist and Etsy.
4. Data Breaches – No matter how vigilant your company is a data breach can still happen. Whether it’s the result of hackers, negligence or a disgruntled employee, a data breach can have a severe impact on the level of trust customers have in your business. You can learn how to defend your company from a data breach for free with BBB’s Data Security – Made Simpler at www.bbb.org/data-security.
5. Vanity Awards – While it’s flattering to be recognized for your hard work, some awards are just money-making schemes and have no actual merit. If you are approached about receiving a business or leadership award, research the opportunity carefully and be wary if you’re asked to pay money.
6. Stolen Identity – Scammers will often pretend to be a legitimate company for the purposes of ripping off consumers. When it comes to stolen identity, the company doesn’t necessarily lose money, but their reputation is potentially tarnished as angry customers who were ripped off by the scammers think the real company is responsible.
7. Phishing E-mails – Some phishing e-mails specifically target small business owners with the goal of hacking into their computer or network. Common examples include e-mails pretending to be from the IRS claiming the company is being audited or phony e-mails from the BBB saying the company has received a complaint.  If you receive a suspicious e-mail from a government agency or the BBB, don’t click on any links or open any attachments. Contact the agency or the BBB directly to confirm the legitimacy of the e-mail.

What other scams have you heard of?

What are 4 Things a Small Business Should be Doing for Data Security?

1. If you don't need it, don't collect it...and don't store it. If you have it and don't need it any more, destroy it — responsibly.
2. Restrict and limit access — by everyone — to sensitive data.  Use locks on doors and file cabinets.  Limit employee access to data to those that need it to do their jobs.  Take precautions when mailing records.  Encrypt sensitive electronic information inevery site it is stored — on computers, on laptops, on PDAs, iPhones and iPods, on USB drives (sometimes called "thumb" drives").  Transmit data over the Internet using secure connections (SSL technology).
3. Use effective passwords...and issue a unique password to every employee.  Never use the default password that comes from another product or service provider.  Never use obvious passwords, such as your name, business name, family member's name, "12345," "ABCDE," "password," or your user name. Change passwords every 45-60 days.
4. Block potential intruders.  Protect your IT systems from viruses and spyware by using antivirus protection and firewalls.  Make sure these protections are up-to-date.

Protecting Data – Does Your Business Know What to Do?

In times of escalating privacy and data breaches, customers expect every business — large or small — that collects their sensitive personal information will protect it. BBB advises business owners to proactively address customer anxiety and take steps to both prevent and prepare for a security breach.

Last year, more than 125 million people were affected by data loss incidents.  Consumers need assurances that they can trust the companies they do business with to secure their data.

In the wake of a security breach, it’s important to take action quickly. Small and large businesses alike need to be able to readily determine the nature and scope of the data incident, and take all appropriate steps to contain and stop the attack.

BBB recommends the 2012 Data Protection and Breach Readiness Guide, which reflects input from a wide range of stakeholders, including interviews with companies that have experienced breach and data loss incidents, and industry and breach analysis experts. 

For more data security advice you can trust, visit www.bbb.org/data-security, and for a complete OTA guide, visit https://otalliance.org/breach.html.