Capital One breach: A reason to reduce one's exposure to multiple accounts | Credit card reward programs | Discussion forum

I receive significant benefits from having accounts at multiple financial institutions. Those benefits overshadow the increased likelihood and cost of cleaning up after a data breach at one of the financial institutions.

It is similar with using road transportation. The benefits of travel by car or bus outweigh the increased likelihood and cost of being in a traffic accident.

And it's not just Desjardins and CapitalOne. There was Peoples a few years back, Equifax, and some others I can't specifically remember.

I don't know any good solution. I do try to keep the number of institutions I deal with to a minimum, but until CDIC increases its limits and the federal government establishes a good protocol to protect us when these incidents happen,
I hesitate to ask the government to do this, remembering the colossal
failure with the ability of the government to pay its employees properly due to the failure of the Phoenix system, but there is no other body that can assume this responsibility.

Such incidents will continue to happen. Over time, it will be hard for anyone to avoid them. That's why we need a protocol as to what we can do and what those in authority will do to protect us from exploitation.
I suggest that, where possible, to try to maintain a personal relationship with a bricks and mortar branch staff person. At least there will be one person in the industry who can verify your identity because they know you. The loss of the interpersonal experience in banking creates a big risk in itself.
Accordingly, I visit my Meridian person a couple of times a year probably. I have no hope of being recognized at the two Big Bank branches I have patronized for over 30 years, but soeone at Meridian does know me after only 3 years.
Some people on this forum have scoffed at the need for bricks and mortar but this is an example of why it could matter. When I go into Meridian, they don't ask to see my ID every time. They don't have to because they know who I am.
This situation might be an argument to keep most of one's money in one MB CU, I suppose. Unlimited insurance could mean unlimited deposits.

I'd like to know more about the quality of the protections that the various FIs have in place. But I don't know how to find out or assess it. I think this should be more available. Perhaps we need higher standards as a requirement? We certainly should have some tools to evaluate it just as we do for solvency. Regulatory authorities are very keen on the financial aspects of viability, but what do they do about the security aspects? I don't know.

Another thought: would you be better off with smaller institutions on the theory that they have fewer employees and thus fewer opportunities for rogue operators? It won't prevent outside hackers, but the latter may be more interested in the larger institutions anyway.

This might be a warning though to credit card churners. Is the extra risk really worth the $100-300 you night get out of it. It's a more difficult decision with banking because the impact of excluding a FI is much greater on the bottom line.

Though I don't share Loonie's faith in gov't or other "regulatory authorities" (they're as likely to be infiltrated by embedded bad guys or staffed by corrupt and/or incompetent people, as anyone else), the suggestion to make a personal connection at your local branch is a solid one.

The media focuses on rogue employees but I'm guessing organized and disorganized crime, "terrorist" sponsors, foreign nations that are our enemies, etc are embedding legions of folks in all our institutions, including the regulatory authorities, for their own nefarious purposes. We pride ourselves on being a fee and open society, so not much you can do except be prudent as you can in your personal affairs, hope it hits your neighbour and not you, and certainly no point in worrying.

Update to hack.

https://www.cnn.com/2019/07/29/business/capital-one-data-breach/index.html

Kidd said
Vatox, i thought we lost you. That you'd taken your bar of gold, canned food, pocket knife and run to the hills waiting for our doomsday to end. Did you run out of canned food?

Welcome back.  

Lol. I came back because I didn’t want to miss watching the apocalypse unfold!

Edit: no TV or internet up in the hills.

I had a Capital One credit card from Costco that I cancelled a few months ago, so I didn't even get a letter or email, but I would have had my SIN and other information exposed. That's even worse. I hear there's two class action lawsuits starting up, one in Ontario and one in Vancouver.

Loonie said
The Ontario class action is being taken up by Diamond and Diamond. I don't know who is doing the Vancouver one.
Diamond has had some run-ins with the legal profession.

https://www.thestar.com/news/investigations/2018/08/17/law-society-triggers-hearing-into-diamond-diamonds-marketing-client-referrals.html

https://www.thestar.com/news/investigations/2018/03/29/jeremy-diamond-appeals-professional-misconduct-finding-to-law-society-tribunal.html  

I'm not from Ontario, but even I've heard of Diamond and Diamond's less than stellar legal reputation. Kind of reminds me of a sort of "low rent" version of Siskinds LLP (another serial class action lawsuit filer), also based in, where else, London, Ontario. (What is with London, Ontario, being the centre of class action law firms and marketing company focus groups/trial ad compaigns? 😉 )

I suspect, since the perpetrator, Paige Thompson, of Seattle, Washington, admitted to not having released the data, Capital One's monetary liability will be comparably small. If the settlement is larger than $50 million, I will be surprised. As well, it can be argued that her employer, cloud storage provider Amazon Web Services LLC, a unit of Amazon.com, Inc., arguably has more to lose and more liability in this. They could be the bigger target anyway. Certainly bigger pockets.

Cheers,
Doug

CostCo Canada must be wishing they'd never left Amex for Capital One MC.

Yes, if one cancels in February after the annual rebate coupon arrives with the January statement.

From the GREAT REWARDS & BENEFITS booklet:

• Upon account closing, you will lose any remaining cash back.
…

• A rebate coupon is only issued to the accountholder; authorized users on the account do not receive rebate coupons.

• To be eligible for a rebate coupon, your account must be open and in good standing at the time your rebate is calculated. In good standing means not past due, over the credit limit, fraudulent, restricted or part of a consumer credit counselling program or bankruptcy.
…