Why Children Are Now Prime Targets for Identity Theft
Synthetic identity theft frequently involves the use of stolen Social Security Numbers combined with fabricated personal information, which is used to trigger the creation of a "synthetic" credit file. This file is then nurtured and grown over time, generating a slim but positive credit history, which is then leveraged in a "bust out" to obtain credit, max it out, and never repay. For a criminal set on committing synthetic identity fraud, the key is finding SSNs associated with very young children or others with non-existent credit files. This became a little easier for thieves when the Social Security Administration in 2011 switched systems. The absence of any history is a clean slate on which the synthetic identity can be built. [The Hill]
Why Credit Card Debt Can Be Bad for Your Health
Outstanding card debt has now hit its highest point ever, surpassing $1 trillion in 2017. Yet 86% of Americans who have or had credit card debt said they regret it. The main regrets are because it took a long time to pay off, resulting in hefty interest expenses and causing unnecessary stress. Nearly 2 in 5 consumers who have had debt on their credit card said it affected their general happiness. One-third said it negatively affected their standard of living, and 1 in 5 said it negatively impacted their health. [CNBC]
Equifax Breach Worse Than Previously Disclosed
Equifax revealed their 2017 breach may have exposed even more information than previously disclosed. In September, credit reporting agency Equifax announced that the personal information of 145.5 million consumers had been stolen. Information included names, Social Security numbers, birth dates, addresses, and possibly the numbers on their credit card and driver's license. Last week, the company said a forensic investigation determined that tax identification numbers, email addresses and phone numbers may also have been stolen, as well as credit card expiration dates and the issuing state of drivers' licenses. [LowCards.com]
Lydia Raises $16.1 Million to Become the PayPal of Mobile Payments
Lydia isn't the first startup that wants to replace PayPal. But it's clear that the company is slowly becoming mainstream in France. The company first focused on Venmo-like peer-to-peer payments but is now branching out to other transactions. Lydia grabs new users thanks to free and instant transactions to pay back your friends. And now, the company is letting you use your Lydia account to pay in store, online and more. [Tech Crunch]
Data Breach Fatigue Requires Better Response Planning
Data breaches have reached record levels and are expected to rise. They seem to be a common occurrence. While companies look to protect themselves from both an actual attack and the potentially devastating cost of remediation and notification, consumers are just trying to make sense of a seemingly endless flood of notification letters. Perhaps unsurprisingly, one of the ways that consumers are reacting is by turning a blind eye to the whole issue. This is referred to as data breach fatigue, and it is on the rise among consumers. [CSO]
The Inventor of Prepaid Debit Cards Is Going Mobile
Steve Streit, the founder and CEO of Green Dot, the country’s largest prepaid card, could see in 2012 that banking was moving to mobile. He also knew that his company couldn't get there in time. Streit decided to acquire the failing location-based dating app Loopt for $43 million-not for its technology but for its talent. Loopt's co-founder and CEO, Sam Altman, stayed on for a time to lead Green Dot's mobile development program. Streit's gamble paid off last year when he announced that Green Dot would power Apple's new person-to-person payments offering, Apple Pay Cash. [Bloomberg]
How the CFPB Plans to Scale Back Its Regulatory Mission
The acting director of the CFPB outlined a less aggressive regulatory mission for the watchdog agency, saying it will enforce consumer protections but not go beyond its mandate under the Dodd-Frank law. The new direction is a sharp departure from the aggressive regulatory stance taken by the CFPB's first director, Richard Cordray. Under his watch, the agency targeted a number of financial services companies it felt were misleading or cheating consumers, often resulting in fines and other punitive measures. [Consumer Reports]
In Launch Of 'Start Something Priceless,' Mastercard Works To Further Brand's Cultural Relevance
Mastercard unveiled the evolution of its two decades-old "Priceless" brand platform: "Start Something Priceless." It's a move that acknowledges societal changes and the reality that today's increasingly younger consumers want to both work for and engage with brands and businesses with a distinguishable core purpose, companies that stand for more than just making money. One goal is to move the company's brand from storytelling and story-making to "story-inspiring." It’s a call for people to "wake up and do something good. [Forbes]
Coinbase Doesn't Accept Credit Cards As A Payment Method Any Longer
Coinbase, the cryptocurrency startup, announced it disabled the ability for customers to add new credit cards as a payment method for those in the United States. Debit cards are unaffected by this change. This was prompted by the realization that it can't ensure customers that they will have a successful experience purchasing cryptocurrency via credit card. In recent weeks credit card companies have said they are banning the use of their cards to purchase digital tokens. [PYMNTS]
Visa Hawks Its Wares at PyeongChang 2018 Olympic Winter Games
Visa once again is using the Olympic stage to showcase emerging payments technology as the official payment service provider for the event. Visa late last year announced a partnership with Lotte Card, the financial arm of South Korean-based retailer Lotte Department Store, to produce and make new prepaid payment wearables consumers could buy to use at Olympic venues. Visa's wearables initiative at the PyeongChang Games continued to illustrate how the card networks have acted more like technology companies than ever before as the payments industry continues to evolve. [Mobile Payments Today]
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