Author: Service2Client

Securing Your Identity: The Role of Decentralized Identity Systems in Data Breach Prevention

How to Securing Your IdentityData breaches have been on the rise as cybercriminals keep coming up with new ways to steal user-sensitive information. Just in the second quarter of 2023, 110.8 million user accounts were breached. Of these accounts, 49.8 million were from the United States, accounting for 45 percent of the global figure. However, amid the rising threats, a revolutionary concept known as decentralized identity systems has created a solution to reduce data breach cases.

Data Breaches and the Current State of Identity Management

A data breach happens when unauthorized individuals or entities gain access to sensitive information, often for malicious purposes. These breaches can happen to anyone, from individuals to large corporations, and they come with severe consequences that could include financial losses, reputation damage, and identity theft.

The current identity systems are centralized and have inherent vulnerabilities and limitations. These centralized identity systems involve a central authority, such as a government agency or a corporation, storing and managing individuals’ personal information. This means that if a hacker breaches the central authority’s security, he or she gains access to a vast amount of sensitive data.

Furthermore, since the centralized systems often collect extensive personal information, the practice raises concerns about data privacy. The entities storing user data predominantly control and monetize it, which has led to discomfort and distrust among users.

The centralized systems also create a fragmented user experience. This is because different platforms, such as social media, online retailers, news websites, etc., require users to create accounts. Users then must juggle multiple usernames, passwords, and data formats, complicating the digital experience. Businesses also incur high costs associated with ensuring secure systems, the latest infrastructure, and compliance.

How Decentralized Identity Systems Can Help Prevent Data Breaches

Decentralized identity systems are an alternative to centralized identity management. These systems put individuals in control of their own digital identities. The decentralized identity systems are enabled by technologies such as Web3, a concept based on a trust framework for identity management. Web3 evolution has led to decentralized identifiers, and this allows for secure management of user data and authentication through blockchain wallets.

Using blockchain technology ensures the security and immutability of identity data. Once information is added to the blockchain, it cannot be altered or deleted without the user’s consent.

However, they allow users to have control over their identity information. Users choose what data to share and with whom, enhancing privacy and security. There is no need for third parties to verify user identity.

Since users store data on their devices or a location they choose, it eliminates single points of failure. Instead of a centralized authority, identity data is distributed across a decentralized network of nodes. Additionally, these systems use advanced cryptographic keys, allowing only the user to access their data.

Decentralized identity systems are already making an impact in various industries, such as healthcare, financial services, and government services. The security benefits of decentralized identity include:

  • Enhanced Security

Decentralized identity systems offer robust security measures. With data stored on a blockchain, it becomes exceedingly difficult for hackers to breach the system. Even if one node is compromised, the decentralized nature of the network ensures that other nodes maintain the integrity of the data.

  • Privacy Control

Users regain control over their personal information. They decide what data to share and retain the ability to revoke access at any time. This puts an end to excessive data collection by corporations and governments.

  • Reduced Identity Theft and Fraud

Decentralized identity systems make it incredibly challenging for fraudsters to impersonate individuals or access their data. This significantly reduces the risk of identity theft and related fraudulent activities.

  • New Economic Models
    Decentralized identity models can create new economic models where consumers are awarded when they choose to share their data with service providers.

While decentralized identity systems offer promising solutions, they are not without challenges. The widespread adoption of decentralized identity systems presents scalability challenges. Another challenge is usability, as complexity can deter individuals and businesses from embracing this technology. The need for a regulatory framework is another challenge, as it is necessary to address factors related to legal and compliance.

Conclusion

Decentralized identity systems offer hope in an age where data breaches are a constant threat. These systems can revolutionize how users secure their digital identities by putting control back into individuals’ hands. While challenges exist, the benefits of enhanced security, privacy control, and reduced fraud make decentralized identity systems a promising solution in the ongoing battle against data breaches.

Sanctioning Terrorist Activities by Iran, Accelerating Disaster Assistance and Expanding Healthcare Opportunities for Native Americans

HR 589, HR 3152, S 1528, S 70, S 460, S 1271MAHSA Act (HR 589) – The Mahsa Amini Human Rights and Security Accountability (MAHSA) Act is a bipartisan bill that was introduced on Jan. 27 by Rep. Jim Banks (R-IN). The purpose of this bill is to impose sanctions on the leaders of Iran for supporting human rights abuses and terrorism. The sanctions block both property and visas owned by certain foreign individuals and entities affiliated with Iran. The bill passed in the House on Sept. 12 and currently resides in the Senate.

Fight CRIME Act (HR 3152) – This bipartisan bill was introduced by Rep. Michael McCaul (R-TX) on May 9. It imposes visa- and property-blocking sanctions specific to Iran’s missile-related activities, including acquiring, developing, transporting, or deploying missiles or related items, such as drone technologies. These sanctions also may be imposed on adult family members of people directly involved, as well as foreign individuals and entities that engage in transactions and knowingly provide support for the Missile Technology Control Regime (MTCR). This legislation was passed in the House on Sept.12 and is under consideration in the Senate.

Disaster Assistance Simplification Act (S 1528) – This bipartisan bill aims to facilitate streamlined information sharing among federal disaster assistance agencies, accelerate life-saving assistance to disaster survivors, and expedite the ability for communities to recover from disasters, as well as other purposes. The legislation was introduced by Sen. Gary Peters (D-MI) on May 10 and was passed in the Senate on July 27. It is presently under review in the House.

Tribal Trust Land Homeownership Act of 2023 (S 70) – Introduced by Sen. John Thune (R-SD) on Jan. 25, this bill mandates that the Bureau of Indian Affairs expedite processing and completion of residential and business mortgage applications within certain deadlines (e.g., provide approval or disapproval within 20 or 30 days, depending on the type of application). The bipartisan bill passed in the Senate on July 18 and is currently under consideration in the House.

Urban Indian Health Confer Act (S 460) – This Act, introduced by Sen. Tina Smith (D-MN) on Feb. 15, passed in the Senate on July 18 and is currently in the House. Its purpose is to expand the requirements of the Indian Health Service (IHS) on matters relating to both American Indians and Alaskan Natives. At present, the IHS is required to confer only with urban Indian organizations. However, this new bill would mandate that the U.S. Department of Health and Human Services (HHS) ensure that the IHS and other agencies consult on matters related to the Indian Health Care Improvement Act, as well as other healthcare provisions for Native Americans. The Act passed in the Senate on July 26 and has been forwarded to the House.

FEND Off Fentanyl Act (S 1271) – The objective of this bill is to impose sanctions on individuals, cartels and transnational criminal organizations involved in trafficking illicit fentanyl and related products. The legislation was introduced by Sen. Tim Scott (R-SC) on April 25 and was assigned to the committee for review on June 21. This bipartisan bill is co-sponsored by 32 Republicans, 32 Democrats and two Independents. It has a high probability of being passed by both houses and enacted by the president.

IRS Announces End of Unannounced Taxpayer Visits (Mostly)

IRS Announces End of Unannounced Taxpayer VisitsYou wake up in the middle of the night. Heart racing, drenched in sweat, and breathing heavily. Thankfully, it was just a nightmare when the IRS showed up at your doorstep unannounced. Recently, however, this was the reality for some taxpayers – and not just a bad dream. The IRS just publicized a significant shift in policy, effectively ending the vast majority of surprise taxpayer visits. The change comes in an effort to create safer conditions for IRS officers as well as ease public concerns.

Who’s Knocking at My Door?

In order to understand the change in policy, you’ll need to understand the three categories of IRS employees that typically interact with taxpayers: Revenue Officers, Revenue Agents, and Special Agents.

IRS Revenue Agents are tax return auditors. They don’t typically show up unannounced.

IRS Revenue Officers, of which there are approximately 2,300, have duties that include paying visits to taxpayers to collect back taxes and tax returns not filed. They are not auditors but instead focus on collection efforts, including issuing liens and levies. Revenue Officers are the main category of IRS employees impacted by the policy change.

Special Agents deal with criminal matters and are part of one of the largest law enforcement agencies in the United States. The change in policy does not impact Special Agents.

Safety

Why the shift to (mostly) eliminating surprise visits from IRS Revenue Officers? Safety is cited as the main concern. Unannounced visits to taxpayers, whether at home or their business, can be risky. Historically, IRS Revenue Officers faced contentious and sometimes dangerous conditions during their unannounced visits.

Taxpayer Confusion

There is also a growing number of scam artists pretending to be IRS agents or officers. As a result, taxpayers are increasingly wary of unannounced visits, and this causes confusion for both the taxpayer and law enforcement.

The difficulty in distinguishing between IRS representatives and fakes has caused concern for taxpayers already on guard for scam artists. The IRS believes that maintaining trust among the public will go a long way to maintaining the legitimacy of the organization.

Appointment Letters In Lieu of Visits

In place of these previously unannounced visits, the IRS will contact taxpayers through a 725-B letter, more colloquially known as an appointment letter.

An appointment letter will facilitate scheduling in-person meetings, with the opportunity for the taxpayer to prepare any information and documentation beforehand, allowing for quicker resolution of cases. These meetings occur at a pre-determined time, date, and place.

Limited Visits Will Still Occur

The policy change does not completely eliminate unannounced visits by the IRS. In “extremely limited situations,” such as serving summonses and subpoenas and the seizure of assets, unannounced visits will still occur. To give some perspective, these types of visits will account for only a few hundred per year compared to the tens of thousands of unannounced visits under the old policy.

Conclusion

Unannounced IRS visits are (almost) a thing of the past. They will be carried out only in rare, necessary cases, with most Revenue Officer visits being pre-scheduled. This should ease taxpayer anxiety and make case resolution more efficient.

How to Identify and Avoid Cash Flow Pitfalls

Cash Flow Pitfalls, Cash Flow problemsLooking at expenses for one’s business is essential to reduce cash flow issues. For example, it would show if there’s too much money leaving the business or what type of scenario the business might face if there’s an unexpected and large expense that guts the business’ cash position. Tracking expenses on a monthly basis is one way to determine a company’s financial health.  

Estimating sales by starting with last year’s month-by-month figures is one way to start. Looking at credit and cash sales from a business’ monthly income statements provides historical reference. Examining both fixed and variable past expenses, specifically, is a good starting point. However, it’s important when projecting future sales and reasonable increases to remember that the business could be impacted negatively by a new competitor or positively if one goes out of business.

Determining when payment will be received is a good way to project cash flow. If it’s cash, then it’s instant and no further calculation is necessary. However, if payment is conducted by invoices, credit lines, etc., businesses are encouraged to perform the Days Sales Outstanding (DSO) calculation. This calculates, on average, how long customers take to pay outstanding invoices.

DSO = (Monthly accounts receivables/Total sales) x Days in the month

This is a good way to measure how long customers actually take to pay invoices versus what terms are specified in contracts or invoices.

Another consideration is to look at fixed and variable expenses. While fixed expenses are just that, fixed, it’s important to monitor variable expenses because they can fluctuate. One example is inflation, which can increase the cost of input materials, salaries, overhead, etc. Depending on the volume of production or sales, electricity, commission, or similar costs can also vary.

Once this information is gathered, the current month’s projected cash flow can be calculated.

The formula is as follows: (Last month’s cash balance + Current month’s projected receipts) – Projected expenses.

Preventing Bad Debt from Happening Before Collections is Necessary

According to SCORE, there are many things a business can do to reduce the likelihood of customer debt default and increase cash flow. Businesses can check the creditworthiness of both individual and commercial clients before offering credit to determine the likelihood of defaulting. 

Similarly, if Net 30 is the standard timeframe to pay an invoice, offering a 5 percent discount if it’s paid within seven days is one way to encourage prompt payment. Businesses that get a deposit when signing the contract or before beginning work will generate a more consistent cash flow.

Operating Cash Flow Ratio Example

This looks at how easily a company can satisfy current liabilities from its cash flows that are produced from the business operations. If there’s negative cash from operations, a business might be relying too heavily on financing or selling assets to run its operations. If earnings are steady, but cash flow from operations is falling, this is a negative indication of a company’s health. It’s calculated as follows:

(Operating Cash Flow/Current Liabilities) = ($15 billion/$45 billion) = 0.33

Businesses with an operating cash flow ratio greater than 1 have produced more cash in an operating period than is necessary to satisfy current liabilities. Businesses that have a reading less than 1 did not produce enough cash to satisfy current liabilities. However, further investigation is required to ensure that it’s not taking some of its excess cash to reinvest in projects with the potential to create future rewards.

While there’s no way to predict future cash flow trends, making projections can help businesses compare actual results to projects and adjust their plans more efficiently.

Sources

https://www.score.org/resource/article/10-ways-improve-collections-and-cash-flow

Widow/er Social Security Benefits

Widower Social Security BenefitsA widow or widower is eligible for a survivor’s benefit from Social Security even if they never worked – as long as the deceased spouse qualified for benefits based on his or her own income record. Also, note that surviving spouses must have been married to their most current spouse for at least the nine months prior to their passing or for 10 years if the couple was divorced.

When Can You Claim?

A widow/er may apply for benefits once she turns age 60, age 50 if she qualifies as disabled or if she is responsible for the care of a child under age 16 (or a mentally or physically disabled child aged 16 or older). However, if the widow/er applies for a surviving spouse’s benefit starting at age 60/50, that benefit will be permanently reduced from the maximum amount available if she were to wait until her own full retirement age.

What Is Full Retirement Age for the Widow/er?

For anyone born from 1945 to 1955, their full retirement age (FRA) is 66. If born between 1955 and 1959, FRA increases by two months each year from age 66 to 67. FRA is age 67 for anyone born in 1960 or later.

How Much Can You Get?

First and foremost, all Social Security beneficiaries receive the highest benefit for which they qualify. Therefore, if a surviving spouse would receive a higher benefit from her own record of earnings than that of the deceased spouse, then that’s the amount she will receive.

If the deceased was receiving Social Security disability benefits when he passed, the survivor benefit is based on the deceased’s disability benefit.

Normally, the spousal benefit equals half the benefit of the higher-earning spouse. However, the surviving spouse’s benefit equals 100 percent of what the deceased worker would have received, including any delayed retirement credits he earned by postponing benefits to age 70.

The minimum surviving spouse benefit at age 60 is 71.5 percent of the available amount. This represents a permanent loss of 28.5 percent of the benefit available at FRA. The widow/er benefit is reduced for each month shy of his or her own FRA, so the closer they get to FRA before applying, the higher the benefit. The amount freezes once they begin drawing benefits, although it will increase incrementally based on cost-of-living adjustments.

The maximum benefit a widow/er may receive is 100 percent of what the deceased spouse would receive if he was still alive. However, that amount may already be reduced. For example, if the deceased began drawing benefits at age 62 instead of waiting until FRA, then that is the maximum benefit the widow/er is eligible for. If she begins drawing early before her own FRA, that benefit will be reduced further.

Ideally, the deceased will not have started receiving Social Security before his death. In this scenario, even if he died in his 50s, his maximum benefit is what he would have received at FRA. Now it’s up to the widow/er to time her survivor benefit – she can wait until her own FRA or take a permanently reduced benefit.

Delay Strategy

One strategy a widow/er may want to consider is to begin her own benefit at age 62, even if it is less than what she would draw as a survivor. Then, she can delay drawing the survivor benefit until it grows higher – ideally, the highest benefit at her FRA.

If the widow/er does not have her own benefit from earnings or can’t live on that amount alone, she may want to withdraw income from other sources, such as retirement savings or an annuity. While that may reduce her overall net worth, it’s important to remember that the Social Security benefit continues for life, so it may be worthwhile to get the highest benefit possible. Other accounts, such as an IRA or 401(k), will stop paying out income once they are depleted.

If the widow/er has a stronger earnings record, another option is to begin drawing the survivor’s benefit early and delay taking her own benefit until FRA or age 70, to receive a higher benefit for life based on her own record. Once she applies for her own benefit, the payout will increase to a higher amount.

Seek Professional Advice

Knowing when to begin drawing a widow/ers benefit can be challenging. The best option is usually based on factors such as other income resources and even the widow’s health. If in poor health and not expected to live many years, it may be wise to begin the survivor’s benefit as soon as possible. Otherwise, it’s probably better to wait and get a higher payout for as long as she lives.

Another thing to keep in mind is that if the widow/er doesn’t know the deceased spouse’s FRA benefit at the time of death, she is not likely to find out until age 60. The Social Security shuts down the deceased’s account at death and won’t reveal the benefit until the widow/er is of qualifying age to begin receiving it. It’s always a good idea for both spouses to check (and share with each other) their accrued benefits each year so that they have accurate numbers to plan with in case one spouse passes away.