This post comes from Bob Sullivan at partner site Credit.com.
If 2014 was the year of the credit card hack, what will 2015 be? Here’s an early look at some candidates, the scams, hacks and hiccups that could trip up the most consumers this year.
1. Hacked kitchen appliances and the Internet of Things
Even as our cellphones get bigger, technology will shrink throughout 2015 and the coming years, shrink into the background, that is. You’ve probably heard a lot of noise about the Internet of Things recently, but this year it will likely find its way out of trade shows and into your home.
Unlike the huge, ultra-conspicuous “phablet” your geeky friend carries around, Net-connected gadgets are likely to be invisible. They will hide inside a normal-looking thermostat, a camera, even in a slow cooker. (Yes, a slow cooker.) And collectively, they are creating a new threat consumers should heed this year.
“Internet of Things attacks move from proof-of-concept to mainstream risks,” warns security firm Sophos. Hacking an Internet-connected Crock-Pot slow-cooking a stew sounds like child’s play, but hacking home security cameras is scary business. Last year, a website hosted in Russia posted links to 73,000 cams that were broadcasting content openly to the Internet. The Associated Press spotted children playing at home, baby cribs and a whole bunch of other spooky scenes.
“Security conferences have been filled with demonstrations of these issues, but as yet it has not translated into widespread interest from cybercriminals. We expect you will see more serious examples outside the proof-of-concept playpen of security researchers soon,” Sophos said.
2. Mobile payment attacks
Thanks to a lot of Apple Pay marketing and Starbucks’ continued real-world success with its payment app, consumers will get used to paying for things by waving their phones. It’s easy to argue that doing so is safer than whipping out a credit card, but widespread adoption of mobile pay will create new attack vectors for criminals.
While most of the attention has been focused on James-Bond-like threats, such as stealing wireless communication between phone and merchant terminal, criminals will find easier ways to make their money. For example, rogue payment apps will be easy to create. Consumers tricked into downloading them will be tricked out of their money, too.
3. Student loan desperation
The student loan crisis shows no signs of going away, and the fraudsters won’t either. Just recently, federal regulators have begun turning their attention to firms that offer false hope to former students desperate to lower their monthly student loan payments. With more than $1 trillion in outstanding debt, expect plenty more where that came from.
Why? Debt relief actually is possible. Consolidations can be legitimate. Banks are beginning to offer rate reductions. There are real income-based repayment programs. Mix a grain of truth and desperate consumers, and you have a recipe for victims.