The Security Intelligence in The Financial Services

Security intelligence is the data related to safeguarding an organization from any outside and inside threats along with the processes, and policies developed to accumulate and evaluate the information.
It can also be referred to as the actual collection, standardization, and analysis of the data created by users, applications, and structures that influence the IT security and risk position of a business.
On a daily basis, information flows in organizations for the senior management to make smart decisions. The various stakeholders (employees, customers, contractors) are interfaced through various technologies.
However, the technological infrastructure can also result in serious security issues. The probable areas of intrusion are unlimited. Security experts and business leaders are trying to find an answer to the question - Is it feasible to have a robust security in an increasingly interfaced environment?
Though the answer is yes, it needs a radical transformation in processes and practices encompassing the financial services sector. The focus is not only on IT. Robust security facilitates a positive customer experience.
Cybercrime and Profitability
Financial institutions are at great risk since they are perceived to be an easy target for cybercriminals. According to a survey by IBM, "Financial markets, insurance, computer and professional services together account for over 40% of all security incidents worldwide."
The losses, pertaining to cybercrime in other sectors could be due to industrial intelligence and fraud related to intellectual property, but in banking, online fraud is a possibility.
Any fraud related to the intellectual property and industrial intelligence could lead to reduced shareholder value, shut down of the business and net financial losses. These are the issues impacting the global financial sector, not only because the main reasons are not identified or the disruption to the customer is immediate, but also because they can result in a significant loss of money.
As per Andrew Haldane, Financial Stability Director at the Bank of England, "Cyber-risk has become a more pressing concern than economic depression and the Eurozone crisis, as it is a rapidly rising area of risk with potentially systemic implications".
Comprehending the seriousness of the security risk is only a beginning. Financial institutions must establish an in-depth security intelligence strategy that would enable the financial institutions to have an insight into the perceived threats.
Financial institutions leverage top-notch analytics to get an understanding of:

• The types of attacks that are occurring.
• The probable source of the attacks.
• The technology used by the cyber criminals.
• Weak spots that could be exploited in the future.

Michael Davison, Banking and Financial Markets, IBM, stated," There's not another single issue that unites the interests of so many people at senior levels of banks. It unites technology, the CFO, security and compliance functions. But cybersecurity is also mission critical for people running lines of business and who are running P&Ls. So quite rightly it sits on the Board agenda. But there's still work to do to educate Boards about the urgency of an effective response to the rapidly changing environment."
Financial institutions must implement the following practices to get the balance between the required innovation and the related risk:
Establish a risk-conscious culture

• An organizational transformation with an emphasis on zero tolerance towards a security failure must be established.
• An initiative encompassing the organizational hierarchy to execute smart analytics and automated response competencies is needed to identify and resolve issues.

Safeguard the Working Environment
The functions in distinct devices must be examined by a centralized authority and the wide array of information in an institution must be categorized, tagged with its risk profile and circulated to the concerned personnel.
Security Design
The greatest problem with the IT systems and the unnecessary costs is from executing services initially and looking at security afterwards. Security has to be a part of the application from the first phase of design.
Ensure A Safe Environment
If the system is secure, security personnel can monitor every program that's functioning; ensure it is ongoing and operating at optimal level.
Manage the Network
Organizations that route approved data through controlled entry points will be in a better position to identify and separate the malware.
Cloud Based Security
To prosper in a cloud scenario, organizations should possess the technology to operate in a secluded environment and track probable issues.
Involve Vendors
An organization's security strategy must also involve its vendors and efforts must be made to establish the best practices among the vendors.
Financial firms have been a major target for malware attacks. Several aspects are impacting the financial sector. The direct connection between the breach of several personally identifiable information (PII) to the profitability has not been lost on the global financial stakeholders. This has led to the implementation of several global security projects.
A hazardous type of malware for online financial transactions is "Man-in-the-Browser" intrusions. It happens when a malicious program affects an internet browser. The program adjusts activities conducted by the user and in some instances, can initiate actions independently. It could lead to online stealing.
Financial institutions that can transform radically at a fundamental level, the way they function would be safeguarded.
The aim of enterprise security could initially emphasis on IT structures, it must be extended from the technology personnel & their systems to each individual within the organization, and all the stakeholders conducting business with it.
Financial firms must comprehend the data that they have, which must be made available to the system, where they can compare and develop a real understanding of the actual threats and contingencies that may compromise the business.

Article Source: http://EzineArticles.com/9456919

The Folly of Money and the Ungodliness of Nations

Leaders who purport to be doing the work of the people are instead lining their own pockets and achieving status that suits their ego. This is the way of the world and democracy feeds into it. After my reincarnation and with knowledge of the extreme corruption and the depth of misconceptions that make the world the realm of 666 astounds me. The inability of people to test things is a source of amazement and the reason they are successful.
With the Australian elections now over and a hug parliament likely the recriminations of politicians against their opposition is horrendous. Instead of blaming their poor governing kills the Prime Minister targeted the campaign of the other parties and nominated the facts they produced as lies.
The elections in the USA are shaping up to be similar in their character with the blame game already taking aim. While money is at the heart of the world's problems it is also the target of these politicians. Who is the best financial manager and who can create wealth for the people seems to be high on the list of many voter's priorities.
What they are missing, however, is that money is an invention and highly manipulated by economists who learn the skills through tertiary education courses. Spiritual power, on the other hand, is not learned but something we are born with. That means that the Spirit is the only guide and everything that happens occurs on its watch.
In the Old Testament prophecies there is no room for money and it is never mentioned because it was the work of Constantine, the Emperor who established the economy. In Revelation 13:13-18 he is described as the one who established the Catholic Church and who invented Jesus Christ. He stole the old term for 'spirit', which is 'Jesus' and gave it to his image, which is why it has power.
He forced everyone to worship his new god and he reinstated Mary, the Mother God of Babylon, as the Mother of God and the chief God over the world. It is the sun and the symbol that sits over all religions is the sun-star of Islam. It is from Babylon that they came about and Constantine has the number 666 (Revelation 13:18).
Because people are besotted with money and dream of an eternal life in the sky they cannot see or perceive their folly. The facts are everyone who has lived is back in bodies at this time (Isaiah 26:19) and reincarnation proves that heaven and hell are myths. There is only one real God and that is the Spirit of the universe (Isaiah 45:4-8) and it is now judging the world and removing the evil from it.
The Internet is the Mountain of God promised for the last days (Micah 4:1) and it is spreading the truth over the world. Everyone has access to it and God is speaking to them (Jeremiah 25:31,33) and explaining the controversy it has with the nations. Only the spiritual have the power to listen and learn from it as the rest will absorb the lies and stick with them.

Article Source: http://EzineArticles.com/9461875

Do Financial Services Agents & Brokers Need Wakeup Advice?

Agents in the financial services sector play a crucial role in sustaining the business. Financial services encompass broad sub verticals like - banking, insurance, and investment funds companies where their crucial role like building relationships and getting business volumes cannot be underestimated.
Personalized sales are the approach set by agents and brokers for decades. They carry a lot of information on products, markets, and prices. But after the IoT, big data and analytics came to the center stage, it became imperative for agents and brokers to stay relevant. The mobile customers supported by mobile workforce of businesses are posing existential threats to agents and brokers. Many may wonder - is this the end of the road for brokers and agents?
Financial services honchos may consider eliminating the role of agents attracting new prospects with reduced premium or discounts. But wait a bit more before you send the execution order as they have the firepower still. It is into this area focused study is required.
Can Agents Stay Relevant?
Now the question before us is, are agents and brokers relevant? First of all they have time tested relationship with a large number of accounts whom they assiduously nurtured. Today, the brokers themselves are mobile and know the IT tools to nurture their audience. With the help of IT apps on their mobile they go for client acquisition faster. In this process, they:
• Contact their prospects and educate them about the products.
• Provide valuable pieces of advice on most feasible product for them.
• Evaluate the performance of securities.
• Build relationship after gaining an understanding on every aspect of customer relationships.
We are coming to the important aspect. Today technology obsolescence is making the role of agents irrelevant. To some extent it is true if the mobile customers make a total shift from agents and have direct interaction with the company. But the question is how feasible is that idea. We all know in our busy schedules, giving priority be it paying premium or buying stocks may not be appealing to all with a few exceptions. The reason behind this is people are not that self motivated and agents step into this gap with their relationship nurturing skills.
In areas like spending money people are little scary as well as slow decision makers. This cannot be construed as weakness but in fact it is wisdom as sensible ones do lot of research and thinking before they take the plunge. What does this mean for the financial services sector? Financial sector services may be enthusiastic about IT tools which helps the customers to take informed decisions. But what is the exact scenario? People will do all research with the tools on mobile but many will be unlikely to take the final purchase decision because there is a need for a resource person to give relevant and contextual information on products and services. This should be followed by the ability to close the deal once the curiosity level is raised to the highest. Who can replace agents or brokers who had been doing this for decades?
So, now the readers might have understood the value of agents in clinching the deal. Getting business is not an ordinary deal. It requires a lot of effort, constant follow up on clients to arrive at a decision. Just SMS alerts won't do the trick. Having said this, let us consider how the agents can be used creatively with technology in this era of technology disruption. We also need to consider how agents can be empowered with technology and how.
Agents Can Be on Survival Mode with IT Tools
To survive in today's volatile markets, what is most needed is actionable information. Agents who are working overtime in building relationships and closing deals definitely require latest IT tools, to be specific BI, big data and analytics tools to take key decisions. In the case of insurance, BI tools can help the agents and brokers to derive key insights on customers and understand their inclination to offer customized products or solutions. BI dashboards will help them to manage relationships effectively. So is the case with banking and investment companies who hire third parties for business development.
Application of analytics comes in different areas like content analytics, context analytics and business analytics. In content analytics unstructured data like call center logs, sensor data, audio, video data can be analyzed to track trends, customer responses, etc. In context analytics data is analyzed to understand the context which is vital to take context based decisions. In business analytics patterns, behaviors or trends are discovered through statistical analysis. Last but not least is predictive analytics where application of techniques like statistical analysis, regression analysis, correlation analysis, cluster analysis, social media analytics etc., are applied for new product development.
Agents are catalysts in information gathering as they move with people and trigger discussions on products and services. Because of this stronger reason, one cannot conclude that agents are on their way out in the disruptive technology era. But at the same time agents should take recourse to IT for their survival as well as the survival of financial services businesses. Let time tell the rest.

Article Source: http://EzineArticles.com/9463544

Notional Cash Pooling

Basel III, projected to come into effect before 2019, would have huge inferences on the notional cash pooling business, making it very difficult for banks to offer this service profitably. This is likely to make certain banks reassess the business. They would most likely either reprice their offering or exit from the business.
Notional cash pooling enables firms to oversee finances for the group from a specific account, offering corporate treasurers an appropriate, combined view of accounts that could be spread across several associated organizations, in various jurisdictions and currencies.
It is not permitted in the US. However, it is prominent in Europe and Asia as an effective method for huge multinational firms to manage their balance sheets at a group level. It permits the firms to balance their liabilities, including those of their affiliates against their assets.
At the same time, by ensuring the increased transparency that is required to protect the financial system, Basel III has created a requirement for banks to report all the assets and liabilities of their clients distinctly.
This would not have substantial inferences for physical cash pooling. However, as far as notional cash pooling is concerned, where there has been no physical transfer of funds between currencies, it places an additional burden on firms with extremely increased disclosures of their liabilities.
Where currencies are managed distinctly, but as a portion of a specific master account, the liabilities related with every currency position would have to be disclosed, and have an equity capital distribution set against them, usually ranging from 11% to 13%.
As far as banks providing notional cash pooling to clients are concerned (though they are comparatively few), this would most likely have implications for leverage as well as liquidity coverage ratios. The number of firms using this service is also comparatively modest, but the ones that do are among the banks' main clients.
Notional cash pooling for such clients could have a substantial impact on a bank's balance sheet. In several instances, the impact on leverage and the LCR would weaken the case for providing the service to distinct clients. It would mean that some banks could pull out of the business.
On the other hand, the regulation does not transform the fundamental requirement for firms to effectively manage their balance sheets.
Notional cash pooling would still be engaging for clients with extensive businesses, where the treasurer would like to have a holistic assessment of group finances. It ensures the firm need not manage FX positions in the market, which could be a substantial cost in itself.
It also eliminates the requirement for inter-company loans and provides the group treasurer much more control over cash inflows and cash outflows within the group.
It also offers significant operational flexibility. Cash pooling permits firms to function in new jurisdictions without establishing relationships with regional banks to deliver local currency.
Notional cash pooling is all about effectiveness: where a huge and varied group could require several treasurers globally, it allows the function to be efficiently centralized in a particular place, managed by a distinct treasurer.
Certain banks may exit the business since it would be difficult to earn a profit from it, continued demand ensures that the product itself would survive. Firms must be ready for an interruption. However, they should not be discouraged if their early discussions with banks do not proceed the way they wanted.
According to Arnaud Pichon, international desk supervisor at Société Générale, "The nature of the product means that while a client's business might have a significantly detrimental impact on one bank's balance sheet, it might have a much smaller impact, or even a positive impact, for another bank."
For e.g., a bank that has a significant amount of USF, but little GBP on its balance sheet could turn down a client having most of the cash in USD, but accept a client having most of the cash in GBP. A bank with reverse exposures could take the opposite view. Therefore, treasurers must communicate with as many banks as possible, to identify the bank with the best plan.
Cash management has usually been a complex business, and firms have tended to stay with their providers if they are satisfied with the service being offered. Shifting providers require substantial effort, so several firms would certainly prefer to maintain their existing relationships.
Despite this, firms must use the next two years to review their existing arrangements and determine whether they are viable. Even if their business is attractive to their bank at present, any transformation of conditions, such as a large acquisition, could greatly transform the feasibility of that relationship.
According to experts, at present, firms engaged in notional cash pooling require a backup plan. They must seek clarification from their banks whether the service would be repriced or terminated because often it would be one of the two.
Banks have been known to exit from the business in the past, indicating how disruptive this could be for their clients. Firms should not wait to receive information that the terms of service must change. Instead, they should be identifying a provider who is willing to offer the service at the best price.
The use of notional pooling is expected to increase in the future. It would provide firms with a better understanding of their financial position and therefore, they would be able to manage their money more efficiently.

Article Source: http://EzineArticles.com/9472144

The Financial Business Model: 5 Keys to Long-Term Success

Why do so many businesses fail to make profits and achieve their financial goals? The answer is simple because many business owners simply ignore one or more of the 5 keys to financial success. Many businesses are making sales but are not profitable. Learn how to fortify your business model and set your company up for success. Developing a financial business model provides a clear picture of your company's financial history as well as your company's financial future. Working from a financial business model will help to prepare your company to make better decisions for the company in the future. And analyzing your finances on a regular basis will provide you with the financial success you are seeking to achieve. Get ready to gain more flexibility and financial freedom in your company with the keys to success.
Key #1) Don't Go It Alone
Mismanagement of finances is not reserved for start-up companies but for all businesses. Many business owners are able to produce and sell their products and services but are not able to manage their finances. If you are not able to determine where you have been you will not know where you are going. Accountants and bookkeepers are able to assist your company with establishing a financial foundation and making predictions surrounding your financial future.
Key #2) Review Historical Data
By developing a financial history of your company's finances provides you with valuable lessons for the present that will guide you into a more profitable future. Reviewing financial history helps you to know what to do and what not to do in your business. Compiling historical financial data can help your bookkeeper or accountant to assess the reasons for your success or failure.
Key #3) Project Sales and Costs
Once you have completed the second key it will set you on the trajectory to be able to project the sales and costs. Projecting sales and costs without historical data can be challenging but not impossible. Projections for your company are not a process that begins at the start-up phase, it is an on-going process to help determine areas of growth and change. Costs are always easier to project than sales. However, sales should not be your main focus but rather on the company being profitable!
Key #4) Develop Financial Statements
Financial statements are the framework for the accounting cycle. In other words, the income statement, the balance sheet, and the statement of cash flows provide a picture of how well your company is doing financially. Financial statements structure all financial data in a manner that is easy to understand and should be prepared with accuracy. These statements assist you with assessing financial performance and determining key business decisions.
Key #5) Assess and Implementation of Changes
This is the final piece in the financial business model. Once all of the first four keys have been established you will be able to assess your company's financial position and implement changes where it is necessary to ensure financial growth and success. Tying it all together the financial statements will reflect your company's historic information and decisions can be made about the future from that data.
The financial business model provides clear information to assist you in making sound financial decisions that can promote long-term success. Applying these five keys to your business will set your company on the path to achieving your goals and turning profits!

Article Source: http://EzineArticles.com/9469967

The Future of Financial Services

The ease of making financial transactions and financial services in general, had first been revolutionised when telegraph companies introduced wire transfers. But with the coming of new age financial services like Bitcoin and Ripple, it is the time we address the question of what the future holds for the financial services of the world.
Traditional Wire Transfers
Let us begin by first taking a look at how things have been going on for these past 150 years since wire transfers were first introduced. Transferring funds using a wire transfer method via a bank is not a single step process but a multi-step process. It is like this:

• The sender approaches his or her bank and orders the transfer of funds to an account. Unique codes like BIC and IBAN codes are provided to the bank by the sender so that the bank knows exactly where the funds need to be transferred.


• The sender's bank contacts the receiver's bank by sending a message through a security system, such as Fedwire or SWIFT, signalling it that a transfer needs to be made. The receiver's bank receives this message, which includes settlement instructions as well, and then asks the sender's bank to transfer the amount specified in the message.


• The sender's bank now transfers the amount. This is not done in one go but bit by bit, so it can take anywhere from a few hours to a couple of days for the entire sum to be transferred.


• To make the transfer, the two banks must have a reciprocal account with one another. If that is not the case, the transfer is made through a correspondent bank that holds such an account.

As one can see, this form of transfer relies overly on a mediator, takes more time than it should, and can prove to be costly as the banks charge some fee for their service. Distributed currencies like Bitcoin provide a viable alternative to this process.
Decentralized Currencies
What sets services like Bitcoin apart from traditional services is that they do not rely on a central mediator but rather operate using cryptographic protocols. The process is therefore faster, simpler, and much more efficient. The system is quite transparent to both end users as well while traditional systems are susceptible to fraud due to the complex process involved.
However, there is a downside to this too. With services like Bitcoin, it is simple to trace a transaction back to each unit value's creation.
Solution? A Common Ground
More and more people are opting for services like Bitcoin and peer-to-peer mobile transfers, where a network operator could help users transfer funds by simply sending an SMS. Although these are indeed more efficient, they are a long way from global acceptance because there are many who still do not have bank accounts, plus there is the issue of limited user identification in such services.
What would be ideal for everyone is if banks could tap into the potential of decentralized currencies and overlap the source code of services like Ripple on their existing system to form a hybrid of the two. It would kill two birds with one stone as:

1. Decentralized currency systems provide more efficient transfers


2. Bank systems ensure only registered users access the service, taking away the possibility of foul play.

Conclusion
The world has come a long way since the last time an indigenous financial service system was introduced. There is definitely a crying need to improve this traditional service and decentralized currencies like Bitcoin have shown them the way.

Article Source: http://EzineArticles.com/9476438

What Services Of The Best Banks To Look For Before You Open A Business Account

As of now, there are numerous services company owners need to opt for in order to make their business better and their ventures easier. With these solutions, business owners can also increase their profits. These third-party services can also provide you with wonderful benefits which can help your company achieve your goals. So, in order to accomplish financial tasks companies need, it is ideal to partner with the best banks and open a business account.
Surely, there are numerous banks that offer reliable services for their clients. However, you can distinguish which bank is best if you want to open a business account by knowing the benefits it can provide. Below are some of the features you need to look for.
Help you improve your businesses' financial status
One of the benefits of opening a business account in reliable banks is you can easily improve your business' financial status. This is essential to entice companies to partner or to work with you. Unfortunately, not having sufficient finances can affect your chances. By opening a business account, banks can help you attain the documentation and finances you need which can help improve your reputation.
Banks that make use of difference financing services
The next benefit of opening business accounts is you can make use of difference financing services. Surely, business owners may encounter numerous problems most especially financial issues. Therefore, business owners need to find ways to ensure that their finances will not be affected. By working with banks, company owners can properly choose a financial service which can match their company needs.
Allow you to keep your business consistent
Another feature of opening a business account is you can keep your business consistent. For instance, paying bills and receiving payments are some of the most common tasks business owners need to do in order to have consistent business flow. Sadly, these tasks can sometimes be stressful since you need to make sure that your personal and business accounts are separated to help you audit your expenses efficiently.
Offer effective supply chain solutions
Lastly, opening a business account can also help you obtain supply chain solutions. Supply chain solutions are important since these are specially designed to help you optimize your working capital, reduce your expenses, and have better visibility and control over receivables. With this, you can enhance business performance.

Article Source: http://EzineArticles.com/9483098

A Quick Introduction To Behavioural Economics

The study of human behaviour, which has traditionally come under the umbrella of psychology, would seem to have little relationship with economics.
But, as we learn more about how the brain works through the dual disciplines of neuroscience and psychology, there is an increasing marriage with the field of economics, in order to better understand how people make financial decisions.
This has evolved considerably in recent years and is an emergent field that deserves a little introduction and explanation.
The traditional view of economics and financial decision-making
It is sometimes forgotten in economics that the field is meant to be about the behaviour of people when making financial decisions.
The traditional economist's view is that the world is populated by unemotional, logical, decision makers, who always think rationally in drawing their conclusions. This view is underpinned by the understanding that human behaviour displays three key traits: unbounded rationality, unbounded willpower, and unbounded selfishness.
This has always flown in the face of the findings of cognitive and social psychologists, who questioned these assumptions as far back as the 1950s.
With the rise of behavioural neuroscience since the 1980s (especially Kahneman's work) providing more insight into the workings of the brain, we are now more sure than ever about the role that emotion and bias plays in all decision-making: from simple day-to-day decisions like which dress to wear, through to larger decisions that may affect many people.
Overconfidence and optimism are two examples of behavioural traits that may lead to sub-optimal financial decision-making, and divert from the traditional model used. People have also been shown to make poor decisions, even when they know it's not for the best, due to a lack of self-control.
So this is where behavioural economics has been able to step in and modify many of the beliefs of the traditional economic views.
What is behavioural economics - and how can it help?
Behavioral economics and behavioral finance study the effects of psychological, social, cognitive, and emotional factors on economic decisions.
This may apply to individuals or institutions, and involves looking at the consequences for market prices, dividends, and resource allocation.
Of the three traits of human behaviour included in the traditional model outlined above, unbounded rationality has received special focus, with new understandings in the field resulting from neuroscience.
Understanding better how people arrive at financial decisions can help in many areas: from personal finance to organisations shaping products and trying to get more customer sign-ups; and from the vagaries of stock market trading through to governments and how they formulate financial legislation.
Perhaps behavioural economics can, in future, help people to make better decisions to safeguard their financial futures; it may even have helped if more attention had been paid to it in the lead up to the Global Financial Crisis in 2008.

Article Source: http://EzineArticles.com/9467426

Is Your Money Really Yours? Hackers at Work!

Information is both beautiful and deadly! Today, the online marketplace runs on analytics and data but in the wrong hands, it could turn into the worst of disasters. According to a new study, cybercriminals are costing more than $575 billion every year and this could include your financial data! As the world is speeding into a world of internet and our future infrastructure depending on virtual intelligence, we are more in the risk of exposing our personal information. Cyber terrorists and hacktivists have become regular topics of discussion and the breaches they have been able to make are worth getting concerned of. It's not just that our bank accounts are at risk but hackers could create a global crisis. We have already seen the power when hackers reveal how all of Manhattan's traffic signals can be turned green or a US military drone be rerouted for an unidentified target!
Online crimes are estimated to be about 0.8% of the world's total GDP and this isn't a small number. In January 2016, hackers stole approximately $54.5 million from FACC's (US Aerospace manufacturer) accounts. Given that such a large corporation was compromised, you can never be sure enough if your bank account is safe enough. The crisis becomes more serious when James Lewis from the CSIS says that "We don't catch most cybercriminals and we don't catch the most successful ones. So far, there has been impunity for these hackers".
So, in what ways can the hacker rob you?
The case of frequent flyer miles
In December, 2015, more than 10,000 American users were hacked and cybercriminals were able to book free flights and other upgrades using the stolen perks! The hackers accessed the login information of users (frequent flyers) and flew several miles for free. While these customers got back their free miles in due time, the event reasons why we should be changing our login information (passwords) more frequently.
Even your health insurance!
Today, when medical costs are on the rise and we are depending on fast food for our daily living, it's medical insurance that's kept as a backup plan! However, you can be surprised that even this insurance can be hacked and you are actually paying the premiums for someone else. These identity thieves will obtain all medical benefits you have paid for and you will not know unless you are actually in need for emergency attention.
You can be apprehended for the crime you didn't commit
In the worst case scenario, you could be getting a surprise visit from the police and be arrested for a crime you didn't commit! While, these cases have been rare, identity thieves always have the option of making you the face of a crime. All of it is by using your personal details from different online sources. The lawyers will cost you a wholesome!
Chat override
Cases have happened in the past when hackers override a company's chat dashboard and talk and make business with your clients and customers. In February 2015, HipChat announced that hackers stole encrypted passwords and other user details for 2% of their customers. After the event, several chat platforms switched to a two-factor authentication apart from asking their users to change their passwords frequently. Though, it doesn't make your credentials completely immune to hacks, it does minimize the risks.
Your tax refunds
Generally, you would have filed your returns by 15th of April but the IRS won't be checking it until late in June-July. This gives hackers a lot of window to steal your social security number and name and file a fake tax return and get the refund on their accounts. When you notice that your return application has been rejected, the money would be long gone.
Credit cards in your name
The most feared act of identity theft is when someone else is issued a credit card in your name. Using your bank login details, social security and email, criminals will be happily running debts in your name until your credit reaches it limit. It is therefore necessary that you review your credit reports more frequently and report transactions that you don't recognize.
Social hacks
Most of us will not think twice when a friend in needs asks for some emergency money. However, there have been cases when you have actually transferred the money to a stranger's account after he has hacked your friend's social account and asked help via the chat box. Referred to as "social engineering", these scammers will ride on your reputation and trick you into sending money.
Your data at ransom
This is among the scariest of scams that has been running on the internet. Hackers will be using a "Ransomware virus" and encrypt all your files on your personal PC. You won't be able to retrieve these files until you transfer a substantial amount to the hacker's account! Well, in this age of information, you don't have a choice.
The key to maximum security lies in the basics. Change your passwords, keep your antivirus software updated, don't visit suspicious links, don't store confidential details on your email or phone and double-check whenever you are dealing with your financial details on the internet.
In 2015, half of all American citizens had their personal information (including banking details) exposed to cybercriminals. The internet was built for openness, speed but not for complete security. As we keep on adding more and more services to make our life more convenient, we are easily becoming the target for hackers. That being said, we don hint about switching back to the traditional means of doing transactions. Breaches have become regular and there is no way to completely avoid them. However, you can make things harder for the criminals and hope that they choose an easier alternative to earn money - someone else's account! It is necessary that we begin to fully understand the scope of the problem and treat hacking as a nuisance. The thieves at the other end are smart. You need to be smarter.

Article Source: http://EzineArticles.com/9487928

The Case for Making Invoice Factoring the First Choice in Business Financing

In the United States, Invoice Factoring is often perceived as the "financing option of last resort." In this article I make the case that Invoice Factoring should be the first option for a growing business. Debt and Equity Financing are options for different circumstances.
Two Key Inflection Points in the Business Life Cycle
Inflection Point One: A New Business. When a business is less than three years old, options for capital access are limited. Debt financing sources look for historical revenue numbers that show the capacity to service the debt. A new business doesn't have that history. That makes the risk on debt financing very high and greatly limits the number of debt financing sources available.
As for equity financing, Equity Investment dollars almost always come for a piece of the pie. The younger, less proven the company, the higher the percentage of equity that may need to be sold away. The business owner must decide how much of his or her company (and therefore control) they are willing to give up.
Invoice Factoring, on the other hand, is an asset based transaction. It is literally the sale of a financial instrument. That instrument is a business asset called an invoice. When you sell an asset you are not borrowing money. Therefore you are not going into debt. The invoice is simply sold at a discount off the face value. That discount is generally between 2% and 3% of the revenue represented by the invoice. In other words, if you sell $1,000,000 in invoices the cost of money is 2% to 3%. If you sell $10,000,000 in invoices the cost of money is still 2% to 3%.
If the business owner were to choose Invoice Factoring first, he/she would be able to grow the company to a stable point. That would make accessing bank financing much easier. And it would provide greater negotiating power when discussing equity financing.
Inflection Point Two: Rapid Growth. When a mature business reaches a point of rapid growth its expenses can outpace its revenue. That's because customer remittance for the product and/or service comes later than things like payroll and supplier payments must take place. This is a time when a company's financial statements can show negative numbers.
Debt financing sources are extremely hesitant to lend money when a business is showing red ink. The risk is deemed too high.
Equity financing sources see a company under a lot of stress. They recognize the owner may be willing to give up additional equity in order to get the needed funds.
Neither of these situations benefits the business owner. Invoice Factoring would provide much easier access to capital.
There are three primary underwriting criteria for Invoice Factoring.

1. The business must have a product and/or service that can be delivered and for which an invoice can be generated. (Pre-revenue companies have no Accounts Receivable and therefore nothing that can be factored.)


2. The company's product and/or service must be sold to another business entity or to a government agency.


3. The entity to which the product and/or service is sold must have decent commercial credit. I.e., they a) must have a history of paying invoices in a timely manner and b) cannot be in default and/or on the brink of bankruptcy.

Summary
Invoice Factoring avoids the negative consequences of debt financing and equity financing for both young and rapidly growing businesses. It represents an immediate solution to a temporary problem and can, when properly utilized, rapidly bring the business owner to the point of accessing debt or equity financing on his or her terms.
That's a much more comfortable place to be.

Article Source: http://EzineArticles.com/9501112