Following the recent disclosure of a data breach at JP Morgan, experts offer security tips for consumers:
Enter Lamar Bailey, director of security research and development:
“Details about the theft of checking and savings account information connected with this breach are still vague at this point, but this is a much larger problem for customers than credit card breaches.
With correct account information criminals can initiate wire transfers that completely clean out accounts; the bad news is that wire transfer consumer protection is not as favorable for consumers as credit card protections. For example, financial institutions can take up to 90 days to investigate and rule on wire transfer disputes.
Hackers can also use account information to print blank checks and use them at brick and mortar retail locations using any legitimate check printing software. Consumers can disallow wire transfers from their accounts but the only way to protect against fraudulent checks it to change your account number. And, even if you take this step some financial institutions will still process ‘old’ checks during a grace period.
All consumers should setup alerts (emails, text messages, etc.) for checking, savings, and credit accounts to alert them of transactions so that they can respond quickly to any fraudulent activity on their accounts.”
Enter Craig Young, security researcher:
“Traditional checking accounts are perhaps the weakest link in the American banking system. Consumer need to use far more caution when paying by check or storing images of checks because the routing (ABA) and account numbers are all a thief needs to start stealing money. Web checks make these problems even worse because then thieves don’t even need to print fake checks or venture to a store in person.”