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Saturday
Sep242016

What Consumers Need to Know About the Yahoo Security Breach 

iStock/Thinkstock(NEW YORK) --   Yahoo announced on Thursday that it believes information associated with at least 500 million user accounts was stolen by a "state-sponsored actor" at the end of 2014.

Cyber security experts believe that this was the largest-known breach of user accounts. Russian hackers are suspected as being behind the breach.

More users were reportedly impacted in this one incident than all of last year, according to the 2016 Internet Security Threat Report produced by security company Symantec.

Since the announcement of the breach, two lawsuits have been filed against the company, both in California, alleging that it was negligent in securing users’ personal information.

 What was taken?


The stolen information could include names, email addresses, dates of birth, telephone numbers, password information and possibly the question-answer combinations for security questions, which are often used to reset passwords, said Yahoo in a statement.

However, Yahoo said that the passwords that were compromised were hashed, a way of encrypting data.

The stolen information did not include unprotected passwords, payment card data or bank account information, according to Yahoo.

"Unfortunately there is information being stolen everyday and this is not a unique event, but it's adding to the long list of compromises that have been out there,” said Jeff Greene, director of government affairs for North America at Symantec.

What are the risks?

Hackers may attempt to log directly into a Yahoo account, but they could also use the information to try to get into someone’s other accounts, according security experts.

“If your primary email address is compromised, so much of you the rest of your digital life flows from that,” said Morgan Reed, executive director of ACT, which represents app and tech companies.

When it comes to stolen passwords, the "good news" is that the passwords were encrypted, said Reed.

The bad news is that the one entity that has the resources to break encryption is a state actor, he added.

Criminals can also come out of the woodwork to use this as an opportunity to take advantage of consumers, said Greene. People may receive bogus emails to reset accounts and click on links.

"It's like after a storm, there will be all these fake requests for money," said Greene.

There is also a future risk. The data may be stored and used for an attack down the road. The hackers themselves may not even know the potential of the information yet.

"There's the short game, the immediate compromise, and there's the long game," he said.

What can you do?


Change your password. Yahoo recommends "that users who haven't changed their passwords since 2014 do so," the company said in its statement. Cyber security experts say this is the necessary first step.

Security experts also recommend signing up for "two-factor authentication," make sure passwords are complex and unique, and make all software is up-to-date and patched.

Use different passwords on different accounts, according to cyber experts that spoke with ABC News.

“Far too many Americans use the same password for different services,” said Reed.

However, a new Consumer Reports report, which compiled 66 expert tips, found that it's better to keep the same password and be "password loyal," unless there is a breach.

Be aware of unusual activity. Look for unusual friend requests, requests to reset a password and anything out of the ordinary.

"If you do all of these things, you are going to stop the vast majority of the attacks,” said Greene.

Copyright © 2016, ABC Radio. All rights reserved.

Friday
Sep232016

'Shark Tank' Investors Share Tips for Success

ABC News(NEW YORK) --  Listen up, potential "Shark Tank" contestants: The investors have some tips on what it takes to be successful in business.

Chris Sacca, Robert Herjavec, Kevin O'Leary, Lori Greiner, Barbara Corcoran, and Mark Cuban spoke to ABC News about what traits a good entrepreneur must have.

A few common themes? It's important to be persistent and hard-working.

 "You're going to have to spend 110 percent of your time focusing on your business," O'Leary said. "So I tell everybody that comes in here, regardless of whether they've got a big or small business, 'Are you ready to sacrifice? Are you ready to do what it takes? Because if you don't want to do it, there's somebody else who's ready to kick your heinie and run you right over.'"

Cuban, who added, "I work my a-- off," added that preparation is key. To make sure he understands every facet of his businesses, as well as what's around the corner, the investor said that he reads hours every single day.

"I'm competitive," he said. "To me, business is the ultimate sport and I want to stay ahead of everybody else!"

For more tips, watch the video below.

Copyright © 2016, ABC Radio. All rights reserved.

Friday
Sep232016

US Stocks Close Lower Friday, But Finish Week Higher

iStock/Thinkstock(NEW YORK) -- Wall Street closed lower on Friday with stocks dragged down by energy shares.  Stocks did end the week higher though, kept lifted from Wednesday's decision by the Federal Reserve to keep short-term interest rates unchanged.

The Dow dropped 131.01 (-0.71 percent) to finish at 18,261.45.

The Nasdaq lost 33.78 (-0.63 percent) to close at 5,305.75, while the S&P 500 finished at 2,164.69, down 12.49 (-0.57 percent) from its open.

Crude oil fell more than 1 percent with prices hitting almost $45 a barrel.

Copyright © 2016, ABC Radio. All rights reserved.

Friday
Sep232016

Senators Slam Wells Fargo over Arbitration Agreements in Letter

SAUL LOEB/AFP/Getty Images(NEW YORK) -- In a letter shared with ABC News, six senators have slammed Wells Fargo bank for its use of forced arbitration clauses in its customer account agreements, which the senators say enabled the company to keep its accounts scandal out of the public eye and the courts for years, and asked embattled CEO John Stumpf to provide information so that they can “better understand the situation at Wells Fargo” and "prevent similar fraudulent practices in the future."

Arbitration, mandated in some if not all basic agreements that customers sign when they open accounts at the bank, "helps hide fraudulent schemes such as the sham accounts at Wells Fargo from the justice system, from the news media, and from the public eye," the senators wrote.

The senators also wrote, “These clauses eliminate consumers’ ability to bring a claim in open court or to band together in a class action, before any dispute has arisen. Forced arbitration clauses deny access to the courts even when consumers are seeking to enforce their rights under fundamental state and federal laws.”

"Arbitration proceedings are kept secret, so that other customers are deprived of the knowledge that their experiences might be part of a more widespread problem," according to the six senators.

The letter was written by Patrick Leahy (D-VT), Sherrod Brown (D-OH), Dick Durbin (D-IL), Al Franken (D-MN), Richard Blumenthal (D-CT) and Elizabeth Warren (D-MA).

"It is particularly unacceptable that forced arbitration clauses in contracts for real customer accounts were used to deny customers access to the court system to challenge Wells Fargo’s creation of sham accounts," the group wrote. "We have serious concerns that your forced arbitration policies thrust consumers into a system with little transparency or oversight."

The letter is the latest in a series of headaches for the company, which faces allegations from regulators that employees opened or applied for accounts without customers' knowledge or permission.

On Thursday, a group of senators, some of whom also signed Friday’s letter, asked the Department of Labor to open an investigation into Wells Fargo's employment practices, and on Tuesday, Stumpf appeared before the Senate Banking Committee, facing blistering questions over the accounts scandal.

Separately on Thursday, Stumpf resigned from his position on the Federal Advisory Council, the San Francisco Federal Reserve Bank told ABC News. The council generally meets with the Federal Reserve four times a year to advise it on banking and economic issues.

In a consent decree between the bank and the Consumer Financial Protection Bureau, the bank has not admitted to or denied any wrongdoing.

Arbitration clauses are common in many contracts that consumers sign regularly, attorney David I. Greenberger, an employment law expert at the Bailey Duquette firm in New York City, told ABC News. In many cases, they can benefit consumers by allowing parties to settle disputes more quickly and cheaply than if they go through a sometimes long and drawn-out court battle.

Increasingly, however, concerns have grown that they can be used to keep details out of the public eye, since arbitration proceedings are typically not made public.

"The original purpose, from my view ... was that it would allow for a faster, more efficient and more expedient process for the parties to resolve their dispute,” Greenberger said.

"It has changed over time and I think you can now, in some forms, question whether it’s faster...or [more] expedient," Greenberger told ABC News. "It’s become a way in which disputes can be kept private and kept from being aggregated in the class context."

ABC News has reached out to Wells Fargo for comment, but did not immediately hear back.

Copyright © 2016, ABC Radio. All rights reserved.

Friday
Sep232016

Mansion Behind Phrase 'Keeping up with the Joneses' Sells for $120K

Maltz Auctions(NEW YORK) -- Have you ever used the expression “keeping up with the Joneses” when trying to one-up someone fancy? Well, now you can learn who the real Joneses are thanks to a real estate auction.

The now dilapidated mansion that is believed to be the inspiration for the phrase just sold at auction for $120,000. It was built in the 1850s in Rhinebeck, New York, as a summer getaway for New York City socialite Elizabeth Schermerhorn Jones.

The 7,690-square-foot home, called Wyndclyffe Castle, was so elegant and over the top it prompted neighbors to build even bigger houses in an effort to “keep up with the Joneses.” It boasted nine bedrooms, five bathrooms and four fireplaces.

“When Elizabeth passed away in 1876, Wyndclyffe was sold to a family who maintained the house into the 1920s, but the succession of owners that occupied the mansion through the Great Depression struggled to keep up with the repairs it required,” a press release from Maltz Auctions, the auctioneers who sold the mansion, reads.

“The house remained a private residence until 1936, and was finally abandoned sometime after 1950. By the 1970s, the house had already been abandoned for decades. At this point, the property was purchased and subdivided, which pared down the grounds of the estate from 80 acres to 2.5 acres,” it adds.

Now that the property has been purchased again, the auctioneers hope it is “an opportunity for someone who loves a challenge to bring a historic property back to its former glory.”

Copyright © 2016, ABC Radio. All rights reserved.

Friday
Sep232016

Atlantic City Beachgoers Talk About Trump’s Legacy as a Casino Owner

ABC News(ATLANTIC CITY) — Atlantic City may be talked about more on the campaign trail than on reality shows. But, Donald Trump and Hillary Clinton have different narratives about Trump’s legacy on the boardwalk.

In a speech earlier this summer, Clinton used the backdrop of Trump’s failed casino, Trump Plaza, for a speech slamming the GOP nominee for "shameful" mismanagement.

And, in another speech in Detroit, she joked, "How can anybody lose money running a casino?"

After Trump Plaza opened in 1984, Trump eventually filed four business bankruptcies related to his casino holdings in Atlantic City. He filed for bankruptcy on the Taj Mahal in 1991, Trump Castle Associates in 1992, Trump Hotel Casino Resorts in 2004 and Trump Entertainment Resorts in 2009.

But Trump contended in previous debates that he never personally went bankrupt and tweeted, "I made a lot of money in Atlantic City and left 7 years ago, great timing (as all know). Pols made big mistakes, now many bankruptcies."

While the politicians dispute Trump’s impact on Atlantic City, ABC News asked locals and voters who were visiting the area for their views on both candidates.

Copyright © 2016, ABC Radio. All rights reserved.

Friday
Sep232016

Marriott Completes Starwood Merger, Making World’s Largest Hotel Company

Justin Sullivan/Getty Images(BETHESDA, Md.) — Marriott has just closed a deal to acquire Starwood Hotels & Resorts, creating the largest hotel company in the world.

Marriott announced the completion of the merger Friday in a statement that said the Starwood & Marriott loyalty programs would be linked, with the new company operating or franchising “more than 5,700 properties and 1.1 million rooms” across 30 brands in over 110 countries. For now, the Wall Street Journal reports, loyalty members of the two companies — 85 million in all — will be able to transfer points between the two programs, but three Marriott points will only match one Starwood point.

“Marriott will draw upon the very best each program offers and we can’t wait to show the loyal members of these programs the power and benefits of Marriott and Starwood coming together,” Stephanie Linnartz, Marriott Executive Vice President and Global Chief Commercial Officer, said.

The merger more than doubles Marriott’s distribution in Asia, the Middle East and Africa combined, the company said.

Copyright © 2016, ABC Radio. All rights reserved.

Thursday
Sep222016

US Stocks Extend Gains as Nasdaq Hits Record

iStock/Thinkstock(NEW YORK) -- Wall Street extended gains for a third day Thursday as the Nasdaq rallied to hit a record high following Wednesday's decision by the Federal Reserve to keep short-term interest rates unchanged.

The Dow gained 98.76 (+0.54 percent) to finish at 18,392.46.

The Nasdaq jumped 44.34 (+0.84 percent) to close at 5,339.52, while the S&P 500 finished at 2,177.18, up 14.06 (+0.65 percent) from its open.

Crude oil climbed nearly 2 percent with prices hitting above $46 a barrel.

Copyright © 2016, ABC Radio. All rights reserved.

Thursday
Sep222016

Senators Ask Labor Department to Investigate Wells Fargo Over Accounts Scandal

Raymond Boyd/Getty Images(NEW YORK) --  A group of Senate Democrats have asked the U.S. Department of Labor to open an investigation into whether Wells Fargo violated the Fair Labor Standards Act (FLSA).

Wells Fargo and the DOL did not have any immediate comment on the letter, which follows a hearing on Capitol Hill this week that saw bank CEO John Stumpf face blistering questions from senators over a scandal involving allegations from regulators that employees opened accounts without customers' knowledge or permission.

 The FLSA establishes standards for wage, overtime, youth employment and record-keeping for both the private and public sector, according to the DOL's website. Among other stipulations, the FLSA mandates that non-exempt employees receive overtime pay equal to 1.5 times his or her regular rate, if the employee works more than 40 hours per week.

Describing Wells Fargo's opening or attempted opening of the accounts as "fraud," the senators wrote in a letter to Labor Secretary Tom Perez and DOL Administrator David Weil that "the suggestion last week by Chief Executive John Stumpf that '[t]here was no incentive to do bad things' at Wells Fargo -- a company that fired 5,300 employees over five years due to improper selling but made little effort to change its policies -- does not appear to be grounded in reality."

The reason for that, the senators claimed, citing media reports, is that "dozens of former and current Wells Fargo employees have come forward to describe the lengths they went to in order to meet the bank's aggressive sales quotas," and, "When quotas weren't met, employees faced threats of termination; mandated hours of unpaid overtime; harassment; and other forms of retaliation."

On Sept. 13, the bank said that it would end its sales goals program effective Jan. 1, 2017.

In response to the senators' request to the DOL, Wells Fargo spokeswoman Jennifer G. Dunn told ABC News today that "our team members are our greatest asset."

"We strive to make every one of them feel valued, rewarded and recognized and we pride ourselves on creating a positive environment for our team members, including market competitive compensation, career-development opportunities, a broad array of benefits, and a strong offering of work-life programs," Dunn added.

Sens. Elizabeth Warren, D-Mass., Sherrod Brown, D-Ohio, Jack Reed, D-R.I., Robert Menendez, D-N.J., Bernie Sanders, I-Vt., Jeff Merkley, D-Ore., Kirsten Gillibrand, D-N.Y., and Mazie Hirono, D-Hawaii, sent the letter two days after many of them grilled Stumpf for nearly three hours in a Senate Banking Committee hearing on Capitol Hill.

Copyright © 2016, ABC Radio. All rights reserved.

Thursday
Sep222016

Yahoo Confirms Breach, Says At Least 500 Million Accounts Affected

Photo by Justin Sullivan/Getty Images(NEW YORK) -- In a statement released on Thursday, Yahoo confirmed that some user account information was stolen in late 2014.

The company says that information potentially including names, email addresses, telephone numbers, dates of birth, hashed passwords, and in some cases either encrypted or unencrypted security questions could have been stolen. Yahoo says the breach likely affected at least 500 million user accounts.

The company suspects that a state-sponsored actor was responsible for the hack. It says it will notify those users it believes were affected, and ask them to change their passwords and adopt different methods of account verification.

Yahoo also invalidated unencrypted security questions and answers to prevent their use for accessing accounts.

The company says it is working with law enforcement officials in response to the breach, and will recommend that users also change passwords and security questions and answers for any accounts that share the same or similar information with their Yahoo account.

"An increasingly connected world has come with increasingly sophisticated threats," Yahoo's statement says. "Industry, government and users are constantly in the crosshairs of adversaries. Through strategic proactive detection initiatives and active response to unauthorized access of accounts, Yahoo will continue to strive to stay ahead of these ever-evolving online threats and to keep our users and our platforms secure."

Copyright © 2016, ABC Radio. All rights reserved.







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