Credit and Safety – The Emerging Chinese Threat

According to Slate Magazine and the financial times, Chinese hackers have breached White House computers and there is speculation that this was a Chinese government sponsored event. Individuals or groups with enough skill, time and resources to crack government systems are a definite threat to the average person.

There is nothing stopping these hackers from writing a program that compromises your financial account or obtains personal information off of you handheld device or home computer. And there is true financial motivation with little or no legal consequence. Good luck extraditing someone from China to prosecute.

Your Defense

Encryption on your laptop or desktop system along with strong passwords, anti-virus and personal firewall systems are a good start. If you do not have these basic areas covered then you need to look into solutions to protect your information.

Its also important to note that a Chinese Hacker or any hacker cannot remotely extract information from a piece of paper in a safe or file cabinet. You do have the option to “go analog” and focus on the old-school method of information storage and protection.

5 Safety Steps

1. Strong passwords – Use the longest and strongest passwords for key and important information such as bank accounts, social security numbers, taxes and other personal financial information. You know its a good password if you cant remember it and you need to write it down and place it in the safe or file cabinet.
2. Internet Access – The most secure computer systems in the world are the ones that have no network or internet access of any kind. While this may not be a possibility for you or your family it is important to consider where you are storing information and how easily it can be accessed remotely.
3. Computer Protection – Don't leave the front door open. make sure that you have anti-virus, a firewall and strong passwords for your computer systems. Security is no longer optional. If you need help with securing your systems seek out a local professional.
4. Email Use – Email is probably to worst place to store or transmit personal information. Do not use email to send any personal information such as social security numbers, bank account, passwords, home addresses or any type of potentially sensitive information.
5. Identity Protection – Your identity is a rather easy thing to steal with the right types of personal information. Make sure that you are checking your credit on a regular basis and consider purchasing services like LifeLock.

Chinese Hackers – Your Stolen Identity and Credit Cards

China is quickly emerging as not only a financial superpower but an internet superpower as well. The China Internet Network Information Center (CINIC) releases a report every six months on Chinese internet development. According to the report released June 2008, China has surpassed the number of internet users found in the United States with a quarter of a billion Chinese on the internet.

As you might imagine, a large number of the Chinese internet users are younger (30% +) and in many cases well educated individuals. Apparently a growing number of these young internet aficionados are turning toward the dark arts of the internet or “Black Hat” hacking techniques that  have plagued internet businesses and corporations for years. This is something that isn’t terribly uncommon in the United States but our government and local law enforcement agencies have the ability to hunt and capture these fool hardy individuals.

Why You Should be Concerned

Hacking and the threat of hackers is not a new issue but what is different about China is that they aren't exactly an extradition friendly country nor are they an ally of the United States. What does that mean to you and to US Corporations? The FBI reports that, for the first time ever, revenues from cybercrime have exceeded drug trafficking [1].This means we are a free target and the Chinese government is unlikely to care if a 16 year old steals 20,000 US credit cards. Although he would probably disappear rather quickly if he were caught spreading anti-government propaganda via the internet.

Your Protection

A certain amount of responsibility remains with the US government and local law enforcement. However, we all tend to lock the front door when we leave our home or in some cases we purchase an alarm system. What can you do ? Well, keeping a close eye on your credit is a good preventative step and utilizing identify theft protection services such as Life-lock can really provide significant protection. I would also recommend quality anti-virus software for your computer, a software firewall (built-in on XP and Vista) and enabling windows updates on your computer which can reduce the risk of virus infection or attack. Also avoid opening email attachments, even from friends, unless you know EXACTLY what it is and ensure that you are expecting to receive it.

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