Tag Archives: First National Bank of Omaha

Cybersecurity

May 16, 2018 by
Photography by Bill Sitzmann

It was a Black Friday story that had nothing to do with holiday bargains. In 2013, cyber criminals hacked into Target Corp.’s customer database and stole as many as 40 million credit card numbers. Customer names, credit and debit card numbers, expiration dates, and CVV codes were reportedly compromised, presumably so hackers could use the data to make new cards. 

Customers everywhere were affected.

Leaders at Minnesota-based Target were horrified and embarrassed as the hack made international news. Amid criticism that the company should have done more to protect consumers—and an investigation launched by authorities in Nebraska and nearly every other state—Target later implemented a $5 million cybersecurity coalition charged with preventing such breeches from happening again. The total cost of the cyberattack on Target reached as high as $300 million, according to news reports. That included class action lawsuit settlements and money paid to credit card companies, banks, and credit unions.

While the damage was done, the retailer wasn’t alone. The financial loss from cybercrimes surpassed $1.3 billion in 2016, according to the FBI’s Internet Crime Complaint Center. There were nearly 300,000 complaints to the agency that year from businesses of all sizes.

Such cybercrimes have put companies everywhere on high alert—and looking at what cybersecurity measures they have in place. 

That includes businesses in Omaha. 

“We have to ask, ‘How do we endure security of information, customer privacy, systems compliance, the website, power stations, and landfill?’” says Joshua Mauk, the Omaha Public Power District director of security, whose job includes cybersecurity. “Our job is to implement a security program that helps us achieve all of those objectives across all of the district.” 

“Cybersecurity” sounds like a buzzword, but it’s a real concern among companies and law enforcement officials. The FBI says cybercrimes are becoming “more commonplace, more dangerous, and more sophisticated.” The agency reports that hackers target companies like Target for data and trade secrets, universities for research, and consumers for money and identity theft.

Along with being a monetary hassle, work is often disrupted or stopped altogether at companies, hospitals, even 911 centers. The hackers range from disgruntled or thrill-seeking computer geeks to international terrorists and spies looking for money to fund their operations. Even a small attack is a potential threat to national security. 

Some attacks target hardware and software, such as malware. Others are online fraud and phishing schemes, while yet others are considered “sexploitation,” according to Interpol. 

FBI officials say they have begun partnering with companies and organizations around the country as part of its cyber division’s efforts to boost cybersecurity nationwide. 

OPPD is one of them. The utility is working with the FBI and the Department of Homeland Security to try and prevent cybercrimes at the utility. If hackers took down OPPD’s system, then every single customer—or 820,000 people—could, theoretically, lose power indefinitely.

Mauk declined to specify OPPD’s cyber security program, citing security reasons. Other companies, including First National Bank of Omaha, declined to comment due to safety concerns. 

“There have been a number of utilities around the world that have been targeted,” Mauk says. “The biggest risk to us is someone coming in and taking down the entire system. The FBI and Homeland Security let us know about new risks, new threats, and we use that information to ensure we are adjusting those concerns to our cybersecurity program.” 

Omaha police acknowledge that while cybercrimes tend to fall under federal jurisdiction, they would investigate a cybercrime that occurred in the city. But most of the time, cyber attacks are conducted by people located in other states or countries—not local hackers. 

Police say some companies may experience a cyberattack, but neglect to report it to law enforcement due to the idea that it might harm their image or reputation. 

The Nebraska Attorney General’s Office has a cybercrimes division aimed at protecting Nebraskans from technology crimes through education and, in some cases, legal action. 

Take the Target data breach. Last year, Attorney General Doug Peterson announced that Nebraska had joined 46 other states and the District of Columbia to reach an $18.5 million settlement against the retail giant stemming from the incident. The state received $199,382 as its share. 

Peterson had said it was the largest multi-state data breach settlement to date. 

In October, Peterson’s office released a statement promoting cybersecurity in the workplace: 

“As recent major cybersecurity incidents have shown, cybercriminals often rely on human error—like failing to install software patches, clicking on malicious links, and creating easy-to-guess passwords—to gain access to systems and information. Every member of an organization—from senior leadership to the newest employees—is responsible for keeping information and systems secure. The chain is only as strong as its weakest link. That’s why strong cybersecurity practices are so important.”

Authorities and security experts worry, though, that cybercrimes will continue and even increase as advances in technology are made. Officials and corporate security teams understand they have to stay two steps ahead, always. 

“This is definitely something we are investing in, from a people, processes, and technology standpoint,” Mauk says. “We will have additional layers of security to always protect the corporate side, critical infrastructure, and plants.” 


Visit the attorney general’s webpage, ago.nebraska.gov, for more information on cybersecurity.

This article was printed in the June/July 2018 edition of B2B. 

Joshua Mauk

Prep for College Now

October 28, 2013 by

With college tuition seeing double-digit hikes and student loan debt at an all-time high, affording college is a big concern for many parents and students. But there are plenty of options that can make higher education reasonable for people at all income levels—grants, scholarships, financial aid, or just a good savings account. It’s all in the planning. Here are a few tips from four local financial pros.

“Certainly, the amount they should save depends on each [person’s] financial situation, but I tell them to put aside something. Start out with a regular savings account and build from there.” —Beverly Hobbs

Start Saving ASAP

Beverly Hobbs, LPL Financial Advisor with SAC FCU Wealth Management located at SAC Federal Credit Union, says parents should ideally begin saving for their child’s college education when they’re born. “With college as expensive as it is and costs rising…the earlier, the better,” Hobbs says. “Certainly, the amount they should save depends on each [person’s] financial situation, but I tell them to put aside something. Start out with a regular savings account and build from there.”

“The key here is consistency,” adds Crissy Hayes, vice president of operations at SAC FCU. “Take what discretionary income you have and budget to pay yourself first, then pay your kids second.” Scheduling automatic checking account withdrawals or payroll deductions to make regular deposits to a college fund—a “set it and forget it” system—is highly recommended.

“…all earnings in the investment are tax-deffered and remain tax-free when funds are withdrawn for higher-education expenses.” —Deborah Goodkin

Consider Investing in a 529 College Savings Plan

Deborah Goodkin, managing director of college savings plans for First National Bank of Omaha, says 529 College Savings Plans are among the best tools for parents to save for their children’s education. Plans, of which there are more than 90 available nationally, are issued by individual states. Nebraska offers four 529 plans, commonly referred to as NEST (Nebraska Education Savings Trust) plans.

NEST plans offer three big advantages, Goodkin says. “First, all earnings in the investment are tax-deferred and remain tax-free when funds are withdrawn for higher-education expenses. Second, for those who pay Nebraska state income tax, up to $5,000 of NEST contributions are deductible in computing one’s state income tax, and that amount will rise to $10,000 as of Jan. 1, 2014. Third, for those who are not savvy investors, 529 plans offer an easy way to invest and offer flexibility to move funds from more aggressive to less aggressive investments as the child ages, much like an IRA with a target retirement date does. Most plans have no minimum monthly investment, and as much as $360,000 total can be saved in any single NEST plan.”

Community colleges, technical and culinary schools, four-year colleges, and even universities abroad all qualify under 529 plan guidelines. Covered college expenses include tuition, books, fees, computers (when required for coursework), and room and board. “Virtually everything except transportation to and from school is included,” Goodkin adds.

In addition, 529 plans allow grandparents and others to make deposits as well, and the funds are transferable to other family members seeking higher education if the plan beneficiary does not use them.

Goodkin warns there are penalties on earnings when funds are withdrawn for unqualified expenses. And like any investment, there are always financial risks to consider. “But NEST plans have some of the highest plan ratings in the country, based on their earnings performance, their ease of use with online management tools and customer service, and the plans’ history of giving back to the community.”

Nonetheless, Hobbs advises parents to sit down with an expert before making any investment decisions. “Prior to investing in a 529 plan or making any investment, you want to talk with a financial advisor and tax advisor to assess your individual needs, your goals, and your risk tolerance. There are so many options, restrictions, and regulations, you want to make sure you get all your bases covered.”

“Too many parents make the mistake of thinking their kids will get full college scholarships—either academic or athletic—and they’re ill-prepared when they don’t.” —Goodkin

Look to Scholarships for Help (But Don’t Depend on Them Entirely)

“Too many parents make the mistake of thinking their kids will get full college scholarships—either academic or athletic—and they’re ill-prepared when they don’t,” Goodkin says. “What they don’t realize is that federal scholarship income guidelines are too low for many to quality. In addition, more people today are in need of financial assistance, so more are applying for scholarships. There’s just less out there.”

That’s not to say there aren’t scholarships to be found, many of which can be researched and applied for online. A comprehensive list of college scholarships, application tips and more can be found at www.scholarships.com. Students don’t need to wait until their junior or senior high school years to begin the scholarship hunt, Goodkin adds. Hundreds of smaller scholarships are awarded each year to elementary and high school students who enter essay contests, music competitions, and so on.

A high school guidance counselor can also be a great resource for learning about small scholarships offered in one’s community (think VFW, local charities, the Chamber of Commerce, etc.) or school system.

“Make sure to find out from the school what their priority deadline for FAFSA forms is [for financial aid for the following fall], as they vary.” —Paula Kohles

Seek Financial Aid

If scholarships and college savings just aren’t enough to cover your expenses, then seeking student financial aid is your next step. “Begin by completing your FAFSA [Free Application for Federal Student Aid] form well in advance and submitting to your college’s financial aid department to see if you qualify for federal grants or other aid,” suggests Hobbs.

Paula Kohles, associate director of financial aid at Creighton University, says FAFSA forms are typically filled out online these days and sent electronically to a school’s financial aid department. The beginning of a student’s second semester of their senior high school year is suggested as a good time to apply. “Make sure to find out from the school what their priority deadline for FAFSA forms is [for financial aid for the following fall], as they vary. Creighton’s is April 1st, but other schools’ deadlines are even earlier.”

Once received, the school will evaluate a student’s financial situation and send them an award notification letter spelling out their aid eligibility, Kohles says. Federally subsidized Stafford Loans and Perkins Loans, which offer college students reduced interest rate loans and special repayment options, as well as Pell Grants (which don’t need to be repaid), are some of the options students may qualify for.

“We also look at their eligibility for campus-based SEOGs (Supplemental Education Opportunity Grants) and work-study programs, as well as unsubsidized loan programs,” Hobbs adds. “There are a lot of aid options out there.”

The final takeaway? College preparation requires sound financial planning and good ol’ resourcefulness. But if you fall short, there is help available. Now get to it!

Beverly Hobbs is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC.