tonight I’d like to talk to you about identity theft hackers financial crime
identity theft hackers financial crime
identity theft hackers financial crime intrigue and the Internet of Things
intrigue and the Internet of Things
intrigue and the Internet of Things sounds exciting doesn’t it what is but
sounds exciting doesn’t it what is but
sounds exciting doesn’t it what is but maybe not for the reasons that you’re
maybe not for the reasons that you’re
maybe not for the reasons that you’re thinking right now you see I’ve been a
thinking right now you see I’ve been a
thinking right now you see I’ve been a victim of data breaches and identity
victim of data breaches and identity
victim of data breaches and identity theft and while it has been pretty
theft and while it has been pretty
theft and while it has been pretty exciting I have to say it’s been for all
exciting I have to say it’s been for all
exciting I have to say it’s been for all the wrong reasons about a year ago my
the wrong reasons about a year ago my
the wrong reasons about a year ago my personal information was stolen from a
personal information was stolen from a
personal information was stolen from a company that I do business with in fact
company that I do business with in fact
company that I do business with in fact more than one and what started out as a
more than one and what started out as a
more than one and what started out as a hassle having to get new credit cards
hassle having to get new credit cards
hassle having to get new credit cards set up new bill pay change my recurring
set up new bill pay change my recurring
set up new bill pay change my recurring payments quickly got worse as the
payments quickly got worse as the
payments quickly got worse as the realization set in that the criminals
realization set in that the criminals
realization set in that the criminals had much more information about me first
had much more information about me first
had much more information about me first a new account was opened with a bank
a new account was opened with a bank
a new account was opened with a bank that I don’t do business with I know
that I don’t do business with I know
that I don’t do business with I know this because i received a welcome
this because i received a welcome
this because i received a welcome package in the mail about this new
package in the mail about this new
package in the mail about this new account clearly the criminals were still
account clearly the criminals were still
account clearly the criminals were still learning how to do their business so in
learning how to do their business so in
learning how to do their business so in a situation like this happens I took all
a situation like this happens I took all
a situation like this happens I took all of the right steps that you should take
of the right steps that you should take
of the right steps that you should take when that happens I called the company
when that happens I called the company
when that happens I called the company and I told them the account had been
and I told them the account had been
and I told them the account had been open fraudulently and I closed it I
open fraudulently and I closed it I
open fraudulently and I closed it I place fraud flags on all three credit
place fraud flags on all three credit
place fraud flags on all three credit bureaus I filed a police report I filed
bureaus I filed a police report I filed
bureaus I filed a police report I filed a complaint with the FTC I changed all
a complaint with the FTC I changed all
a complaint with the FTC I changed all my account names and passwords on my
my account names and passwords on my
my account names and passwords on my accounts because I didn’t know what
accounts because I didn’t know what
accounts because I didn’t know what other information the criminals had on
other information the criminals had on
other information the criminals had on me and even taking all of those steps
me and even taking all of those steps
me and even taking all of those steps not long after they were back and this
not long after they were back and this
not long after they were back and this time they were able to gain access to
time they were able to gain access to
time they were able to gain access to one of my financial accounts and commit
one of my financial accounts and commit
one of my financial accounts and commit financial fraud and the story continues
financial fraud and the story continues
financial fraud and the story continues but let’s look at some data on the
but let’s look at some data on the
but let’s look at some data on the subject in 2015 data loss org reported
subject in 2015 data loss org reported
subject in 2015 data loss org reported that over 700 million records of
that over 700 million records of
that over 700 million records of information had been compromised just
information had been compromised just
information had been compromised just the year earlier the FBI reported that
the year earlier the FBI reported that
the year earlier the FBI reported that over 500 million records of information
over 500 million records of information
over 500 million records of information had been compromised that’s a nearly
had been compromised that’s a nearly
had been compromised that’s a nearly fifty percent increase in one year
fifty percent increase in one year
fifty percent increase in one year alone now let me put that number in
alone now let me put that number in
alone now let me put that number in perspective if we assume there are about
perspective if we assume there are about
perspective if we assume there are about 250 million adults in the United States
250 million adults in the United States
250 million adults in the United States today then that means that five records
today then that means that five records
today then that means that five records of data have been compromised for every
of data have been compromised for every
of data have been compromised for every adult in this venue tonight welcome to
adult in this venue tonight welcome to
adult in this venue tonight welcome to my club now when the data that’s
my club now when the data that’s
my club now when the data that’s compromised as a user ID and password
compromised as a user ID and password
compromised as a user ID and password things get a little more challenging
things get a little more challenging
things get a little more challenging data loss reported that thirty-eight
data loss reported that thirty-eight
data loss reported that thirty-eight percent of the time and all that data
percent of the time and all that data
percent of the time and all that data that was compromised the data that was
that was compromised the data that was
that was compromised the data that was compromised was a user ID and password
compromised was a user ID and password
compromised was a user ID and password houston we have a problem that’s
houston we have a problem that’s
houston we have a problem that’s especially true because a survey done by
especially true because a survey done by
especially true because a survey done by CSI d showed that 61 percent of
CSI d showed that 61 percent of
CSI d showed that 61 percent of respondents admitted to reusing their
respondents admitted to reusing their
respondents admitted to reusing their user ID and password across multiple
user ID and password across multiple
user ID and password across multiple websites they’re using the same security
websites they’re using the same security
websites they’re using the same security credentials everywhere they do business
credentials everywhere they do business
credentials everywhere they do business now I’m normally a fan of reduce reuse
now I’m normally a fan of reduce reuse
now I’m normally a fan of reduce reuse and recycle but in the case of passwords
and recycle but in the case of passwords
and recycle but in the case of passwords I have to say don’t do that identity
I have to say don’t do that identity
I have to say don’t do that identity theft is even more impactful the
theft is even more impactful the
theft is even more impactful the criminals are out to get the keys to our
criminals are out to get the keys to our
criminals are out to get the keys to our identity our social security number once
identity our social security number once
identity our social security number once they have our social security number and
they have our social security number and
they have our social security number and other personal information they’re able
other personal information they’re able
other personal information they’re able to commit financial fraud open accounts
to commit financial fraud open accounts
to commit financial fraud open accounts ruin our credit and more in 2014 17
ruin our credit and more in 2014 17
ruin our credit and more in 2014 17 million consumers were victims of
million consumers were victims of
million consumers were victims of financial fraud just like me it turns
financial fraud just like me it turns
financial fraud just like me it turns out what kind of fraud do they come in
out what kind of fraud do they come in
out what kind of fraud do they come in well they sell the data to others that
well they sell the data to others that
well they sell the data to others that want to commit financial fraud so one
want to commit financial fraud so one
want to commit financial fraud so one piece of the business which is really
piece of the business which is really
piece of the business which is really big is getting the data and the other
big is getting the data and the other
big is getting the data and the other piece of the business is selling the
piece of the business is selling the
piece of the business is selling the data to the folks that want to commit
data to the folks that want to commit
data to the folks that want to commit financial fraud here’s a terrifying
financial fraud here’s a terrifying
financial fraud here’s a terrifying example in 338,000 cases last year the
example in 338,000 cases last year the
example in 338,000 cases last year the IRS reported that individuals had their
IRS reported that individuals had their
IRS reported that individuals had their entire tax record compromised from the
entire tax record compromised from the
entire tax record compromised from the IRS service get transcript they probably
IRS service get transcript they probably
IRS service get transcript they probably see where this is going but back to my
see where this is going but back to my
see where this is going but back to my story so on a cold spring day in
story so on a cold spring day in
story so on a cold spring day in Minnesota
Minnesota
Minnesota ie a couple of weeks ago I got a call
ie a couple of weeks ago I got a call
ie a couple of weeks ago I got a call from my tax preparer telling me that my
from my tax preparer telling me that my
from my tax preparer telling me that my tax returns had been rejected by the IRS
tax returns had been rejected by the IRS
tax returns had been rejected by the IRS because someone had already filed tax
because someone had already filed tax
because someone had already filed tax returns on my account great so now I’m
returns on my account great so now I’m
returns on my account great so now I’m also a victim of tax fraud he went on to
also a victim of tax fraud he went on to
also a victim of tax fraud he went on to explain that this is actually pretty
explain that this is actually pretty
explain that this is actually pretty common and that they have a process in
common and that they have a process in
common and that they have a process in place to deal with it and that I
place to deal with it and that I
place to deal with it and that I shouldn’t worry not worry are you
shouldn’t worry not worry are you
shouldn’t worry not worry are you kidding me it’s 2016 and we rely on the
kidding me it’s 2016 and we rely on the
kidding me it’s 2016 and we rely on the internet almost exclusively to shop find
internet almost exclusively to shop find
internet almost exclusively to shop find a cool restaurant socialize with our
a cool restaurant socialize with our
a cool restaurant socialize with our friends get concert tickets submit our
friends get concert tickets submit our
friends get concert tickets submit our papers for review and yet it’s 2016 and
papers for review and yet it’s 2016 and
papers for review and yet it’s 2016 and we still rely on the same security
we still rely on the same security
we still rely on the same security technology that was around when the
technology that was around when the
technology that was around when the internet was invented predominantly the
internet was invented predominantly the
internet was invented predominantly the user ID and the password there has to be
user ID and the password there has to be
user ID and the password there has to be a better way our digital footprints are
a better way our digital footprints are
a better way our digital footprints are about to get a lot bigger with the
about to get a lot bigger with the
about to get a lot bigger with the Internet of Things or smart devices what
Internet of Things or smart devices what
Internet of Things or smart devices what do I mean by that well imagine a smart
do I mean by that well imagine a smart
do I mean by that well imagine a smart refrigerator that is able to keep track
refrigerator that is able to keep track
refrigerator that is able to keep track of your supplies and reorder them and
of your supplies and reorder them and
of your supplies and reorder them and have them delivered when you run low or
have them delivered when you run low or
have them delivered when you run low or maybe the fitness tracker that you might
maybe the fitness tracker that you might
maybe the fitness tracker that you might be wearing tonight keeping track of your
be wearing tonight keeping track of your
be wearing tonight keeping track of your steps and counting your calories
steps and counting your calories
steps and counting your calories consumed or a smart energy meter that’s
consumed or a smart energy meter that’s
consumed or a smart energy meter that’s helping you manage your energy
helping you manage your energy
helping you manage your energy consumption more effectively these all
consumption more effectively these all
consumption more effectively these all fall under the umbrella of Internet of
fall under the umbrella of Internet of
fall under the umbrella of Internet of Things or smart devices and they’re
Things or smart devices and they’re
Things or smart devices and they’re expected to grow exponentially under the
expected to grow exponentially under the
expected to grow exponentially under the current model all of these things have
current model all of these things have
current model all of these things have some element of our personal information
some element of our personal information
some element of our personal information in them why does your thermostat need to
in them why does your thermostat need to
in them why does your thermostat need to know your name and address so that’s a
know your name and address so that’s a
know your name and address so that’s a real issue and as the threat increases
real issue and as the threat increases
real issue and as the threat increases as the number of places that our data is
as the number of places that our data is
as the number of places that our data is stored and so this is a real problem
stored and so this is a real problem
stored and so this is a real problem that needs to be solved as a chief
that needs to be solved as a chief
that needs to be solved as a chief innovation officer I have the privilege
innovation officer I have the privilege
innovation officer I have the privilege of leading a team of visionaries that
of leading a team of visionaries that
of leading a team of visionaries that imagine what might be they think about
imagine what might be they think about
imagine what might be they think about the art of the possible they study
the art of the possible they study
the art of the possible they study emerging to
emerging to
emerging to technologies and trends and they imagine
technologies and trends and they imagine
technologies and trends and they imagine how we might simplify our customers
how we might simplify our customers
how we might simplify our customers lives in building products and services
lives in building products and services
lives in building products and services data privacy and security are critically
data privacy and security are critically
data privacy and security are critically important for a bank so that should make
important for a bank so that should make
important for a bank so that should make a lot of sense right so when we think
a lot of sense right so when we think
a lot of sense right so when we think about this we’re trying to think about
about this we’re trying to think about
about this we’re trying to think about how could we help solve this problem in
how could we help solve this problem in
how could we help solve this problem in the digital era how could we create a
the digital era how could we create a
the digital era how could we create a digital identity and help manage digital
digital identity and help manage digital
digital identity and help manage digital identities for our customers and for
identities for our customers and for
identities for our customers and for others let me explain what I mean it’s
others let me explain what I mean it’s
others let me explain what I mean it’s pretty unusual for someone to ask you
pretty unusual for someone to ask you
pretty unusual for someone to ask you for this to open a social media account
for this to open a social media account
for this to open a social media account you may not know this but financial
you may not know this but financial
you may not know this but financial institutions by law have to verify the
institutions by law have to verify the
institutions by law have to verify the identity of people that do business with
identity of people that do business with
identity of people that do business with us so we have to make sure that the
us so we have to make sure that the
us so we have to make sure that the person is who they purport to be and
person is who they purport to be and
person is who they purport to be and there are regulations and laws in place
there are regulations and laws in place
there are regulations and laws in place that that ensure that but you don’t need
that that ensure that but you don’t need
that that ensure that but you don’t need to have one of those to open a social
to have one of those to open a social
to have one of those to open a social media account yet how do you know that
media account yet how do you know that
media account yet how do you know that the person you’re interacting with on
the person you’re interacting with on
the person you’re interacting with on social media is actually who you think
social media is actually who you think
social media is actually who you think they are you don’t and I’m not
they are you don’t and I’m not
they are you don’t and I’m not necessarily going to solve that problem
necessarily going to solve that problem
necessarily going to solve that problem tonight but the solution I’m proposing
tonight but the solution I’m proposing
tonight but the solution I’m proposing in the framework could solve that
in the framework could solve that
in the framework could solve that problem into the future now let me offer
problem into the future now let me offer
problem into the future now let me offer a couple of suggestions and catch you up
a couple of suggestions and catch you up
a couple of suggestions and catch you up a little bit on what’s happening in the
a little bit on what’s happening in the
a little bit on what’s happening in the industry more broadly first of all
industry more broadly first of all
industry more broadly first of all you’re probably familiar with the advent
you’re probably familiar with the advent
you’re probably familiar with the advent of mobile payments and I’ve heard about
of mobile payments and I’ve heard about
of mobile payments and I’ve heard about or maybe using Apple pay Samsung pay
or maybe using Apple pay Samsung pay
or maybe using Apple pay Samsung pay Android pay and the like what you may
Android pay and the like what you may
Android pay and the like what you may not know is that the payment credentials
not know is that the payment credentials
not know is that the payment credentials that are stored on that mobile device
that are stored on that mobile device
that are stored on that mobile device are actually what we call tokenized so
are actually what we call tokenized so
are actually what we call tokenized so the account number that’s on that device
the account number that’s on that device
the account number that’s on that device is different than the number that’s on
is different than the number that’s on
is different than the number that’s on the plastic that might be in your wallet
the plastic that might be in your wallet
the plastic that might be in your wallet or in your purse it’s also bound to the
or in your purse it’s also bound to the
or in your purse it’s also bound to the mobile device which means that when it’s
mobile device which means that when it’s
mobile device which means that when it’s used for a transaction if it came from
used for a transaction if it came from
used for a transaction if it came from anything other than the mobile device we
anything other than the mobile device we
anything other than the mobile device we know that it’s fraud the risk of theft
know that it’s fraud the risk of theft
know that it’s fraud the risk of theft has been greatly reduced as a result
has been greatly reduced as a result
has been greatly reduced as a result there’s some other important work
there’s some other important work
there’s some other important work happening in the digital identity space
happening in the digital identity space
happening in the digital identity space under a white house initiative called
under a white house initiative called
under a white house initiative called the national strategies for trusted
the national strategies for trusted
the national strategies for trusted identities in cyberspace or n stick it’s
identities in cyberspace or n stick it’s
identities in cyberspace or n stick it’s quite a mouthful
quite a mouthful
quite a mouthful under that initiative the government and
under that initiative the government and
under that initiative the government and enterprise are collaborating to try to
enterprise are collaborating to try to
enterprise are collaborating to try to solve this problem and develop digital
solve this problem and develop digital
solve this problem and develop digital identity ecosystems and both of these
identity ecosystems and both of these
identity ecosystems and both of these are important steps in the right
are important steps in the right
are important steps in the right direction but they won’t completely
direction but they won’t completely
direction but they won’t completely solve the identity problem and the
solve the identity problem and the
solve the identity problem and the reason is because it isn’t clear who can
reason is because it isn’t clear who can
reason is because it isn’t clear who can create a digital identity and and vouch
create a digital identity and and vouch
create a digital identity and and vouch for you and me say that we are who we
for you and me say that we are who we
for you and me say that we are who we say they are and so what I’m proposing
say they are and so what I’m proposing
say they are and so what I’m proposing is that financial institutions because
is that financial institutions because
is that financial institutions because of their obligations and knowing their
of their obligations and knowing their
of their obligations and knowing their customers are uniquely positioned to be
customers are uniquely positioned to be
customers are uniquely positioned to be able to do something like that in a
able to do something like that in a
able to do something like that in a digital ecosystem but you actually have
digital ecosystem but you actually have
digital ecosystem but you actually have to have an entire ecosystem so what do I
to have an entire ecosystem so what do I
to have an entire ecosystem so what do I mean you need a system that has broad
mean you need a system that has broad
mean you need a system that has broad reach and is widely accessible across a
reach and is widely accessible across a
reach and is widely accessible across a number of platforms and services we need
number of platforms and services we need
number of platforms and services we need to leverage existing technologies and
to leverage existing technologies and
to leverage existing technologies and expertise if we hope to do this anytime
expertise if we hope to do this anytime
expertise if we hope to do this anytime soon we need to enable support for
soon we need to enable support for
soon we need to enable support for anonymous ensued 0 anonymous use what do
anonymous ensued 0 anonymous use what do
anonymous ensued 0 anonymous use what do I mean if you wanted to participate in
I mean if you wanted to participate in
I mean if you wanted to participate in social media or comment on a news
social media or comment on a news
social media or comment on a news article or discuss things in a chat
article or discuss things in a chat
article or discuss things in a chat forum you shouldn’t have to put your
forum you shouldn’t have to put your
forum you shouldn’t have to put your personal information at risk in order to
personal information at risk in order to
personal information at risk in order to do so if it isn’t legally required but
do so if it isn’t legally required but
do so if it isn’t legally required but yet at the same time the companies that
yet at the same time the companies that
yet at the same time the companies that provide those services need to be able
provide those services need to be able
provide those services need to be able to comply with federal laws like child
to comply with federal laws like child
to comply with federal laws like child data protection laws so they might need
data protection laws so they might need
data protection laws so they might need to be able to verify your age but they
to be able to verify your age but they
to be able to verify your age but they may not need to know your name and
may not need to know your name and
may not need to know your name and birthday we also need transparency of
birthday we also need transparency of
birthday we also need transparency of data collection I mentioned the Internet
data collection I mentioned the Internet
data collection I mentioned the Internet of Things and our data being everywhere
of Things and our data being everywhere
of Things and our data being everywhere our data is everywhere and you probably
our data is everywhere and you probably
our data is everywhere and you probably don’t even know it so we need to
don’t even know it so we need to
don’t even know it so we need to understand before data is collected that
understand before data is collected that
understand before data is collected that it’s being collected and why a system
it’s being collected and why a system
it’s being collected and why a system such as this needs to be robust highly
such as this needs to be robust highly
such as this needs to be robust highly secure have backup and recovery oh and
secure have backup and recovery oh and
secure have backup and recovery oh and while we’re at it it needs to be
while we’re at it it needs to be
while we’re at it it needs to be cost-effective to now how might a system
cost-effective to now how might a system
cost-effective to now how might a system like this work let’s use a made-up
like this work let’s use a made-up
like this work let’s use a made-up company name voter voter is a hot new
company name voter voter is a hot new
company name voter voter is a hot new video streaming service that has the
video streaming service that has the
video streaming service that has the latest and greatest
latest and greatest
latest and greatest 10th faster than everybody else and so
10th faster than everybody else and so
10th faster than everybody else and so you want to sign up under the current
you want to sign up under the current
you want to sign up under the current model you’d go to voter and you would
model you’d go to voter and you would
model you’d go to voter and you would register and you would provide your name
register and you would provide your name
register and you would provide your name and your address and your birthdate your
and your address and your birthdate your
and your address and your birthdate your phone number and your credit card and
phone number and your credit card and
phone number and your credit card and your expiration date your security code
your expiration date your security code
your expiration date your security code and more and then you would trust voter
and more and then you would trust voter
and more and then you would trust voter to keep that information safe it’s
to keep that information safe it’s
to keep that information safe it’s worked out pretty well for me so far
worked out pretty well for me so far
worked out pretty well for me so far under the future model you would go to
under the future model you would go to
under the future model you would go to voter and you would use your digital
voter and you would use your digital
voter and you would use your digital identity key that’s been securely stored
identity key that’s been securely stored
identity key that’s been securely stored for example on your mobile device you
for example on your mobile device you
for example on your mobile device you would authenticate the voter via your
would authenticate the voter via your
would authenticate the voter via your bank and all voter would know is one a
bank and all voter would know is one a
bank and all voter would know is one a bank has vouched for you about verified
bank has vouched for you about verified
bank has vouched for you about verified your identity to that you’re over 18
your identity to that you’re over 18
your identity to that you’re over 18 years of old but not of age but not your
years of old but not of age but not your
years of old but not of age but not your birth date the region of the world
birth date the region of the world
birth date the region of the world you’re coming from so they can comply
you’re coming from so they can comply
you’re coming from so they can comply with licensing and copyright laws and a
with licensing and copyright laws and a
with licensing and copyright laws and a tokenized version of your payment
tokenized version of your payment
tokenized version of your payment credentials only for good for use on the
credentials only for good for use on the
credentials only for good for use on the voter site so you can see in this
voter site so you can see in this
voter site so you can see in this example none of the data is useful to
example none of the data is useful to
example none of the data is useful to the criminals the risk of theft has been
the criminals the risk of theft has been
the criminals the risk of theft has been virtually eliminated now let’s talk
virtually eliminated now let’s talk
virtually eliminated now let’s talk about the IRS example in the case of the
about the IRS example in the case of the
about the IRS example in the case of the IRS they already have your data they
IRS they already have your data they
IRS they already have your data they just need to be able to decide whether
just need to be able to decide whether
just need to be able to decide whether or not you’re the one that should get
or not you’re the one that should get
or not you’re the one that should get access to it and so similarly you could
access to it and so similarly you could
access to it and so similarly you could use a solution like that only for the
use a solution like that only for the
use a solution like that only for the verification step in order to be able to
verification step in order to be able to
verification step in order to be able to get granted access to accounts a
solution like this is not science
solution like this is not science fiction in fact our friends to the north
fiction in fact our friends to the north
fiction in fact our friends to the north and Canada have been using a solution
and Canada have been using a solution
and Canada have been using a solution like this to grant access to their tax
like this to grant access to their tax
like this to grant access to their tax information by authenticating to the
information by authenticating to the
information by authenticating to the financial institutions in Canada a
financial institutions in Canada a
financial institutions in Canada a secure digital future is in our site but
secure digital future is in our site but
secure digital future is in our site but we can’t do it alone it requires broad
we can’t do it alone it requires broad
we can’t do it alone it requires broad collaboration with federal and state
collaboration with federal and state
collaboration with federal and state government financial institutions
government financial institutions
government financial institutions throughout the US education business
throughout the US education business
throughout the US education business community and more I hope that someday
community and more I hope that someday
community and more I hope that someday identity theft is a thing of the past
identity theft is a thing of the past
identity theft is a thing of the past and we can sleep a little bit better
and we can sleep a little bit better
and we can sleep a little bit better knowing that our information is secure I
knowing that our information is secure I
knowing that our information is secure I know I sure will thank you
know I sure will thank you
know I sure will thank you you
”
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