The ‘Real’ Peak Complacency, by John Rubino

Perhaps people should worry more about cyber-risk than financial risk. From John Rubino at dollarcollapse.com:

Stocks are at record highs while volatility is at a record low. Which is another way of saying that investors aren’t as worried as they probably should be about the coming year.

That’s okay. Price corrections (with their attendant volatility spikes) are normal and natural ways for markets to teach overconfident investors a little humility. Think of them as the financial word’s forest fires, clearing out the underbrush of misconception, malinvestment, and hubris.

But there’s another area of Peak Complacency that is neither natural nor benign. And that’s cyberspace. Americans – and Europeans and Japanese – have moved most of their financial lives online just as hackers and other cyber-enemies get the upper hand. Recently:

  • Credit rating agency Equifax – apparently through its own incompetence – allowed hackers to access and presumably copy and sell “sensitive personal information” of 146 million Americans.
  • Online portal Yahoo upped the number of accounts that were hacked in 2013 to – get this — 3 billion.
  • The National Security Agency admitted that its state-of-the-art hacking tools were stolen by hackers and are now available for sale on the dark web.
  • The Federal Deposit Insurance Corporation (FDIC) suffered more than 50 data breachesbetween January 2015 and December 2016, exposing “personally identifiable information (PII) of U.S. citizens.”
  • The U.S. Securities and Exchange Commission EDGAR database of corporate documents was hacked, leading to illegal insider trading that the SEC is still trying to unravel.

And then there’s bitcoin, where online exchanges are being hacked with apparent impunity and zero recourse for victims:

Cryptocurrencies: How hackers and fraudsters are causing chaos in the world of digital financial transactions

(Independent) – There have been at least three dozen heists of cryptocurrency exchanges since 2011 and more than 980,000 bitcoins stolen, worth about $4 billion.Dan Wasyluk discovered the hard way that trading cryptocurrencies such as bitcoin happens in an online Wild West where sheriffs are largely absent.

Mr Wasyluk and his colleagues raised bitcoins for a new tech venture and lodged them in escrow at a company running a cryptocurrency exchange called Moolah. Just months later the exchange collapsed; the man behind it is now awaiting trial in Britain on fraud and money-laundering charges. He has pleaded not guilty.

Mr Wasyluk’s project lost 750 bitcoins, currently worth about $3m, and he believes he stands little chance of recovering any money.

To continue reading: The ‘Real’ Peak Complacency

 

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