Earlier this year, the White House introduced a plan called the National Strategy for Trusted Identities in Cyberspace. Kenneth C. Wisnefski, founder and CEO of WebiMax the leader in search engine marketing and ecommerce, announced that the plan may have some “significant disadvantages” and further states “I caution this will open the door to more devastating methods of identity theft”.
The plan was first introduced by President Obama in April 2011 and aims to create an enhanced online identity and bolster confidence in e-commerce amongst Americans. It calls for a single authentication system that can be used for significant transactions placed online, including Social Security, I.R.S. services, banking, and even buying a home. The Identity Theft Resource Center (ITRC) indicated that through the first 6 months of 2011, there were 130 significant breaches, revealing over 9.5 million personal records.
“The new plan proposed by Washington has the right idea, however, the product may increase the extent of fraud committed against others”, states Wisnefski, an expert in internet security. “Essentially creating a master key to your online identity can have extensive ramifications if the single key is lost”.
Wisnefski was recently interviewed on FOX News discussing new Pentagon Cyberwar Guidelines. The video can be found here (courtesy of FOX news).
ITRC states that hacking is the leading cause of identity theft. They also disclose that half of all 2011 data breaches are against businesses, versus government, medical, and financial services.
“Since a security breach through the use of hacking is the leading cause of identity theft, the White House should instead propose a plan to enhance the encryption of secure documents and unique log-in credentials that consumers use online”, furthers Wisnefski. “The majority of stolen personal information comes from a lack of encryption that skilled hackers can easily navigate through. What we need is an increase in protective barriers around the perimeter of our systems in addition to the strength of our keys within the system”.
There are considerations, however that the plan does not correct for, including negligence and carelessness when consumers leave a checkbook or a cell phone in a public area, including restaurants. Instances like those can only be corrected with enhanced awareness by consumers.
“At WebiMax, we’ve seen a substantial increase in the amount of companies that implement an ecommerce component to their website, as it means your company is open for business 24/7/365. In addition to strengthening the perimeters around our online systems, educating consumers as to the dangers and effects of online identity fraud can be two important remedies that are being overlooked. If a consumer loses his master key to his online identity, as outlined by the proposed plan, the thief can have access to the bigger picture”, concludes Wisnefski.