Today there is an unprecedented amount of your personal data being collected, without your knowledge or approval. Centralization of personal data without proper security measures for personal privacy, is leading to identity theft made easy.

The below information relates to a global problem but uses the UK for a lot of the examples as they are the leader in personal data collection.

"Identity theft happens in the U.S. every 79 seconds". The full article is here.

"Financial services industry is more concerned about the risk to reputation from identity theft than any actual monetary loss" "Many saw ID theft as a business opportunity" The full article is here.

There are countless corporations that sell your private personal information without your consent. Here are some online examples detailed personal, email lists, email & personal, phone numbers.

For a fee a 3rd party can aquire more of your personal information then you might believe possible. Here is an example site.

In the UK "Tesco is quietly building a profile of you, along with every individual in the country - a map of personality, travel habits, shopping preferences and even how charitable and eco-friendly you are. " The full article is here.

"Say you walk into a store and grab a U-Scan Shopper-equipped cart. Your store loyalty card can help the device recall your shopping history and remind you, as you stroll by the dairy case, that you might need eggs. After all, you last bought them here two weeks ago." The full article is here.

All personal electronic communications are recorded and analyzed for “undesirable content” on a global scale. There are countless systems globally. The oldest and largest system is over half a century old. The full article is here.

Other US government Internet monitoring systems can be found here.

In the UK there are over 4 million surveillance cameras, approximately 1 for every 14 people. The full article is here.

In the U.S. "The Super Bowl by many has come to be known as the Snooper Bowl". The full article is here.

"It knows your face, your body temperature, your behaviour and can strip you bare without removing your clothes. And the next generation of surveillance technology is coming to an airport near you." The full article is here

In Tokyo "Your face could soon become just another 'bar code'" The full article is here.

"New German e-passports thwarted by people smiling" The full article is here

In the UK “Everybody will have to have an eye or fingerprint scan at the post office or local council office so that their "biometric" information can be stored on a microchip embedded in the card and on the national identity register.” The full article is here.

In the UK vehicles are location tracked by satellite and as well the license plates will contain tracking devices for automatic billing of toll fees etc. The full article is here.

In the UK “The Government is selling the names and home addresses of motorists on its drivers' database to convicted criminals” The full article is here.

New cell phones and Black Berry's are constantly location tracked using satellites . "Your cell phone becomes a personal tracker" The full article is here.

Satellite tracking implants "used to track movements of human host" The full article is here

Most consumer goods have embedded tracking devices and can be tracked after they are purchased. See RFID information here.

"The market for RFID tags is growing explosively, projected to reach $10 billion annually within the decade." The full article is here.

VeriChip is the first FDA approved human-implantable RFID microchip. The full article is here . Their parent company is Applied Digital Solutions. ADSX stock report is here.

By 2005 "VeriChip had sold about 7,000 of the devices; about 1,000 of those have been inserted in humans" The full article is here.

"U.S. to implant homeless people with RFID tags". The full article is here.

Currency has built in tracking devices The full article is here.

Virus's can attack RFID tracking devices, then can be cloned or modified. The full article is here.

"Why are RFID cards and tags dangerous and insecure ?" The full article is here.

"A popular radio-frequency ID system that is used to deter car thefts and as a convenience device for the purchase of gasoline can be defeated with low-cost technology" The full article is here.

IBM's patented tracking system. “The exact identity of the person or certain characteristics about the person can be determined. This information is used to monitor the movement of the person through the store or other areas” Here is their patent.

"Gillette has been caught hiding tiny RFID surveillance chips in the packaging of its shaving products. These tiny, high tech spy tags are being used to trigger photo taking of unsuspecting customers." The full article is here.

Targeted unique ads will be presented to each individual based on their maximum available credit, net worth, and spending habits on all known media. This has been done on the Internet for years and will soon be implemented on your TV, satellite radio and publicly placed monitors.

Hackers and organized crime infect computers attached to the Internet with almost undetectable trojan's and use social engineering tricks to gain access to personal information.

Countless corporations such as Microsoft, Sony, AT&T and Tivo have been caught gathering personal information without their customers consent.

Canada leads in electronic cards to replace cash. Mondex and Dexit are 2 examples.

Corporations provide personal information to governments in violation of human rights The full article is here.

Conclusion

The below three quotes sums up the problems of invasion of privacy and identity theft.

"Big Brother is watching you."
George Orwell 1949 The book "1984" is here His biography is here.

"Where justice is denied, where poverty is enforced, where ignorance prevails, and where any one class is made to feel that society is in an organized conspiracy to oppress, rob, and degrade them, neither persons nor property will be safe."
Frederick Douglass 1886 His biography is here.

"Everything that is really great and inspiring is created by the individual who can labor in freedom."
Albert Einstein 1950 His biography is here.

So your boss wants to give you a new cell phone or a Black Berry paid for by the company. You can use it for limited personal use as well as business. Sounds good doesn't it. You know what they say about things that are too good to be true.
Some of the new Motorolla, Nextel and Black Berry mobiles have built in GPS which stays on 24/7. The older cell phones only had a 911 GPS service which the user had to activate in case of emergency. There are a number of new services available for minute by minute tracking of these phones globally as well as such things as your highway speeds, time spent in each location etc.

So you don't care that the boss has given you a personal tracking device and has all your phone records and how much time you take for lunch and where. You should care, as others may be able to easily obtain this data as well.

GPS tracking services could fuel the fire of identity theft.

These public tracking services are new and the fact that identity theft occurs 70% of the time within companies by their employees should concern you. Imagine a thief being able to login to a website from anywhere and gather your exact whereabouts information over long periods of time. They will easily be able to find out your home address, when you are not at home, and on vacation. They will know what ATM's and banks you use, where and when. They will know more about your habits then you do yourself.

Remember it is illegal for your employer to use GPS tracking unless you are made aware of the fact and you give your permission. Ask your employer if you are being tracked, it is your right to know. On some cell phones the GPS portion can be turned off but it could be easily be turned back on remotely.

Here are some quotes from the Black Berry site

"“The GPS-enabled BlackBerry offers new avenues for visibility into the ‘when’ and the ‘where’ of field worker activities,” "

"will give companies the ability to track the time, location and activities of their mobile employees through the GPS-enabled BlackBerry solution. With WorkTrack Field Supervisor and BlackBerry, foremen will be able to clock employees’ in and out of shifts, jobs and breaks as per their mapped location. "

Here are some quotes from Sprint

"See where people are. In real time."
"find your employee's current location "

Websites Providing GPS Tracking Services

MapquestFindMe
"People finder. See the current location of family, friends and co-workers"

Accutracking
"Your cell phone becomes a personal tracker."

A Real Possibility In the Not Too Distant Future

Along with the "Black Box" already installed in your car, the day will soon be here where GPS will be added to it, with 24/7 tracking permanently archived in cyberspace. This will use the same technology as the cell phone tracking.

One day you are speeding down the highway (Of course you were taking your pregnant wife to the hospital) . You thought you were lucky and avoided a ticket. You were wrong. Automatically you will be sent a speeding ticket in the mail. And yes all the satellite pictures, maps, time and dates are archived as proof. This was all done automatically by computers with no human intervention. After a public outcry regarding privacy issues, they may add a multilingual voice, warning you to slow down when you reach a certain speed or you will be ticketed. What about the continuing collection and archival of all your location data ? This will be dismissed as only data collection to serve you better for analysing and improving traffic flow conditions. Guess who pays for this new innovation ? It will no doubt be a hidden cost in the price of your new car. And yes it will be a criminal offense to disable your Black Box.

If someone comes to your door asking for a charitable donation, ask for a pamphlet first then get them to come back later, when you have had time to check them out. Do not let them inside your home. If they do not want to come back or have someone else contact you, then something is wrong. If you do decide to donate after you checked them out, call the their number and make arrangements. Just because someone has an ID around their neck do not assume its real and they represent a legal charitable organization.

Partial reprint from City.Vancover.ca

"Fake Charities"

If someone calls you at your home, or shows up at your door claiming to represent a charity ask them for their charity registration number, which every charity in Canada has. Ask for a pamphlet and if you are interested in donating money, take the time to call Canada Customs and Revenue Agency at 1-800-267-2384 to make sure that the charity is in good standing. If you do wish to donate money, look up charities that support causes that you believe in.

Middle East & Russia = 67% of the World's Natural Gas Reserves

The following article reprinted from TheHinduBusinessLine.com

Four investment pitfalls and jackpots to match
D. Murali

"The overall market will offer poor returns," and, dangerously, "some segments will suffer devastating losses."

Stephen Leeb's recent book The Coming Economic Collapse was featured in the E-Dimension column last week (`Oily skid is just dangerously around the corner,' Business Line, April 8).
You may fret that exploration for newer oil sources, costly wars and fuel taxes aren't areas where lesser mortals have much say. Yet, you can pay attention to making money even if oil were to soar beyond $200 per barrel, with Leeb's help. For, as chapter 13 declares, `Your personal choice: Insane wealth or pitiful poverty.'

As individuals we can take steps to safeguard our financial situation during hard times, assures the author. "Certain types of investments will benefit tremendously from inflation and produce phenomenal returns. The small percentage of investors who adjust their portfolio now to favour these investments — while reducing exposure to the most vulnerable sectors — are likely to become insanely wealthy."

The next 10 years will be very much similar to the 1970s, predicts Leeb. Those were the days when making money was difficult, in the face of runaway prices and failing investments. The first pitfall is cash, because inflation will erode the value of money. Including what you hold in savings bank, where interest rate is lower than inflation rate.

Next pitfall is bond, because as inflation rises, bond price falls. "The trick to remember about bonds is that price and yield are like two ends of teeter-totter." Thus, when you want to sell your bond, "the purchaser will want compensation for the increase in inflation." A tip from the author is TIPS (Treasury Inflation-Protected Securities), as the one bond worth holding. Is there something similar closer home?

Biggest trap!
Third pitfall is stocks, `the biggest and most dangerous trap.' How? "Because of the tremendous gain stocks made during the 1990s, most people have come to regard the stock market as the best, or possibly the only, investment vehicle. Most investors today put too much faith and money into a diversified portfolio of stocks." Resist such groupthink, exhorts the author. Pray, why? When inflation rages on, "Only certain segments of the stock market will do well." On the contrary, "the overall market will offer poor returns." And dangerously, "some segments will suffer devastating losses."

The author's first recommendation for the near future, therefore, is to forget about diversifying among all sectors. "Stay away from index funds, large-cap funds, and any other vehicle that mirrors the broad market. They will only bring you closer to the poorhouse."

Vulnerable US stocks today, according to the author are Avon (cosmetics), Kellogg (food), and Wal-Mart (retail). More vulnerable are airlines and chemical producers "whose revenues and profits are inversely related to energy prices."

Pitfall # 4 is small-cap.. Leeb reasons that small companies can't grow their earnings rapidly unless they access the world's fastest-growing consumer markets of Chindia (that is, China and India). Looks like Indian companies may end up fighting only with the multinational giants, because the smaller-cap companies of the developed countries may continue to depend on their own mature and slower-growing economies.

Gold, oil and real-estate
There are four investment jackpots that the book mentions, to help you make money in the coming collapse. These are: Gold and gold shares; oil and oil shares; real-estate; and Chindia. "Gold is the quintessential inflation hedge," explains the author. `Golden opportunity' is the promise of acceleration in the yellow metal's bull phase. "Increasingly, financial advisers will recommend that their clients put 5 per cent to 10 per cent of their savings into inflation hedges, such as gold and other precious metals. That buying pressure will force the price of gold higher rapidly."

Since at the peak of gold prices, in 1980, "all the gold in the world both above and below ground (approximately 200,000 tonnes) was worth about $5.5 trillion, equivalent to around five times the value of S&P 500 at that time," Leeb calculates that today's value of gold should be $2,800 "to be on par with its value to stocks in 1980." Far below the 25-year high of $604 an ounce that gold touched on Tuesday!

The final chapter in the book is on `the next hot investment sector'. Hey, what's that?

Not only should the government pay for any legal fees but the widow should be compensated for pain and suffering. The Land Registry office, the lawyers, and the Bank involved should all be held legally and financially accountable. Isn't it time for government legislation to aid law abiding citizens in identity theft recovery rather then let them fend for themselves, at their own expense.

"It could potentially cost her (the widow) up to $35,000 in legal fees"

The below reprinted article insinuates this is a rare isolated incident, when in fact mortgage fraud in Canada is rising exponentially ($300 million in 2001 alone).

Reprinted article from the Toronto Star

MPP calls for fraud check
Cordiano demands system review
Widow lost home in mortgage scam
Apr. 14, 2006. 01:00 AM

HAROLD LEVY AND ROBERT BENZIE
STAFF REPORTERS

An Ontario cabinet minister has reacted angrily to a Toronto Star story about a North York widow who lost her home to identity thieves.
"No one should have to face this horrible situation," said Joseph Cordiano, minister of economic development and trade.
Susan Lawrence is facing possible eviction from the house she has lived in for 30 years because the swindlers had defaulted on a $300,000 mortgage they had placed on the property before vanishing from sight.
Cordiano, who is Lawrence's MPP in York South-Weston, said it was unfair for such innocent crime victims to have to spend tens of thousands of dollars to get recourse from the government.
Lawrence has reportedly been advised that it could potentially cost her up to $35,000 in legal fees to seek compensation for the loss of her home from the Ontario government Land Titles Assurance Fund.
Cordiano wants a review "of the entire system" and says he has been calling his colleagues to see what the government can do.
Government Services Minister Gerry Phillips said the province is aware of Lawrence's plight.
"We're watching (the case) very carefully. Part of it is still before the courts so we're watching that. We are looking at our legislation to determine whether there's any changes we should make in it," said Phillips.
"Land title fraud is actually a relatively rare thing. Out of ... 1.5 million transactions a year, we get fewer than 10 of land title fraud charges," he said, adding the government has a "real estate fraud task force" of realtors, lawyers and others in the industry that meets periodically to discuss such cases.

The below reprinted article is a very simplistic look at identity theft problems.
I do however agree whole heartily with the statement "Two key reasons for the burgeoning rate of identity theft are ignorance and apathy" Ignorance is only a lack of knowledge, easily cureable. Apathy on the other hand is a very serious problem.
If "up to 70 percent of identity theft occurs within companies" then what about the other 30%.

Tips that are not mentioned, some of them for obvious reasons.

• Block all Internet access to the majority of the employees especially those working with sensitive data, reqardless of their security clearance.


• Only allow Internet access to those who need it, then only to specific sites.


• Optional public computers in public view for Internet access, not in anyway connected to the internal office computers or printers. These computers should be keylogged and under video surveillance.


• Use a browser such as FireFox which is less prone to security risks.


• Consider using a different workstation operating system such as Linux or MacOs which are impervious to most of todays viruses and trojans.


• Only provide internal and or external email accounts to employees who need it. Enforce strict office policies reqarding the use of corporate email for personal use.


• Hire qualified system administrators who are versed in proactive security measures.


• Workstations must be locked down which can only run certified office software with no access to CDroms, floppies and USB ports.


• Computer updates and patches must be applied minimum monthly or sooner as the situation arises.


• Use only fax and printers that keep permanent records internally.


• Have a yearly computer network security and risk assessment audit done by a qualified 3rd party. Have any reported issues resolved quickly.


• Do a daily random workstation forensic analysis (this can be done with automated software when a user logs in) .


• Only if absolutely necessary provide certain employees with locked down office laptops for "work at home" situations that can only access work through a secure remote access tunnel with no other access to the Internet.


• Do daily off site storage of backups of the servers saved for a minimum of 3 years.


• Re passwords: We are password burdened and tend to write them down. A simple password in conjunction with biometrics such as thumb, facial and retina scans is much more secure and now relatively inexpensive to implement.

The follow article is reprinted from Microsoft

Identity Theft: Now It's Your Problem
By Judith M. Collins, Ph.D.

Identity theft has become a corporate challenge, but you can protect your data and your business. Identity theft is growing, and with the increasing potential for serious consequences, business executives need to have this threat on their radar screens.

Bear in mind that a single person rarely perpetrates identity theft. Our research shows that about 60 percent of identity thieves operate in rings. A single person may steal the information, but the data is then distributed to others.

What's more, identity theft is seldom a single incident. The theft itself is the first crime, but the fraudulent use of the identity may take place again and again before the crime is discovered.

Here’s another reason to pay more attention to identity theft. If you assume that identity theft won't make your customers think twice about doing business with you, consider this: One of the first questions victims ask when they contact us is whether they should change banks or credit-card companies or retailers. (We tell them no.)

As the number of consumers who do business electronically continues to grow, we hear more people say that they no longer shop or bank online because they're afraid of having their identity stolen.

What to Do
Forget about the notion that there's nothing you can do about identity theft. By taking a few practical steps, you can go a long way toward circumventing this pernicious crime.

Two key reasons for the burgeoning rate of identity theft are ignorance and apathy. We hear about high-tech tricks such as phishing and low-tech approaches such as dumpster diving and assume that most identity theft occurs one consumer at a time. But our research shows that up to 70 percent of identity theft occurs within companies.

What's more, we're engaging in business practices that vastly increase the risk of insiders stealing identities. As we conduct a greater portion of our business electronically and outsource potentially millions of jobs to other countries, we become increasingly vulnerable to misuse of sensitive information.

The solution is twofold. It’s not enough to invest in the appropriate level of IT security. It takes a combination of technology and procedures to prevent identity theft by dishonest employees or vendors—the most likely perpetrators. Even when the crime is committed by outside hackers, it's usually in collaboration with insiders.

It’s important to develop and implement policies that will result in safe business practices and an honest corporate culture.

That starts with recruitment. Many perpetrators of identity theft are temps who take jobs specifically for the purpose of stealing data.

Here’s a typical case: Several years ago, a leading carmaker hired a temporary worker in an entry-level data-management position. On the last day of her assignment, she printed the names of numerous company executives—along with their addresses, Social Security numbers and salaries—and took them with her.

Sometimes a background check isn’t enough. A few years ago, a major financial services provider contracted with a risk management firm to vet a job candidate who would handle sensitive information, including the investment accounts of millions of employees. Two months later, the employee stole thousands of names and other information. Afterward, the company learned that in 2002 she had been convicted of embezzlement—even though she had passed a background check.

Such workers may have even passed a criminal-record check. Many companies check backgrounds by culling records in known states of residence. But identity thieves tend to move around a lot. What's more, data brokers often don't update their information. I have checked the names of known perpetrators against criminal records databases, and they have come up clean, too.

Tip List
There are other strategies to prevent identity theft within an organization. Here is a list of tips based on identity-theft incidents we’ve investigated:

• Employees with sensitive data on their machines should lock their computers before leaving their desks
  
• Move printers to inner offices and away from corridors
  
• Move fax machines to inner offices
  
• Retrieve faxes when received
  
• Employees should make sure documents are shredded before leaving the shedder
  
• Lock filing cabinets
  
• Do not leave sensitive identification information, such as Social Security numbers, in voicemails
  
• Change passwords often
  

Although thorough background checks and other measures are expensive and long term, the cost of preventing identity theft is far less than the cost of recovering from it. And a strong anti-identity-theft program will empower customers as well as employees.

Therefore, identity protection needs to become part of your budgeting process and integral to how you do business. That's because identity theft is a crime whose impact can be felt far into your organization's future.

The average consumer is aware of identity theft but really has no idea of the true scope of the problem. Its time for corporations and financial institutions to stand back and look at the problem as a whole and fix it at its core, as well as take responsibility for the problems.

Present day computer operating systems and the Internet were never designed with individual privacy and security in mind. Tracking individuals to profile and market unwanted goods and services has ended up in easily accessible personal information. This has resulted in unprecedented identity theft problems.

So why will it be hard to turn this serious trend around ?
In the last four years countless new IT security companies have sprung up. It is not in their better interest to fix problems permanently . Quick fixes and patches guarantee continuous income. It has become a very lucrative business. Companies like Microsoft are more interested in selling "new innovative software" by quickly putting them to market, then fixing the security problems much later.
Credit cards have become the "Holy Grail" of profit for financial institutions . Even with record profits they are reluctant to spend the necessary money on anti identity thief measures. To make matters even worse, they are reluctant to publicly report major identity theft problems when they occur.
These issues can be directly related to the identity theft crisis.

E-Commerce and Government online has become a good idea gone bad.

Should corporations and financial institutions be made directly and legally responsible for consumers identity theft problems ?

Will it take class action suits to make a change ?

Is it time for Government legislation ?

Government legislation is slow, expensive and usually takes a too much too late approach.

Its time for financial institutions and corporations to step up to the plate and resolve the under lying issues of identity theft before Governments are forced to intervene.

Proactive not reactive "penny wise pound foolish" measures need to be implemented.

The long term financial health of the globe depends on it.

Payment trends in Australia

The following aritcle is reprinted from ItWorldCanada.com

Fear, mistrust pose threat to e-commerce

Organizations strive to rebuild Internet confidence
By: Mari-Len De GuzmanComputer World Canada (03 Mar 2006)

An emerging threat is looming over the Internet, and the most up-to-date anti-virus or firewall protection may not be able to prevent it from affecting online businesses and causing millions of dollars in lost revenue.

The problem is the diminishing confidence among Internet users in online transactions, as several surveys have shown in recent months. Mistrust in the way companies are handling customers’ online information is driving down e-commerce activities.
According to a North American study by Forrester Research, concern about online phishing threats has caused 14 per cent of customers to stop using online banking or bill payments, and 20 per cent have not enrolled in online banking or bill payments at all.
More than one in ten Canadians say they have been victimized by identity theft, according to a survey by Leger Marketing for Fusepoint Managed Services and Sun Microsystems of Canada.

A whopping 83 per cent of online customers are concerned about the privacy of personal information stored in online databases. And over half of Canadian businesses surveyed agree, saying their confidential and private data are at risk of an attack.

A similar trend has been seen south of the border, as 79 per cent of U.S. consumers fear their personal information is being sold to a third party, reported Forrester in a 2005 survey commissioned by the Business Software Alliance.

Another study released by the research firm in January also revealed that 50 per cent of American consumers surveyed mistrust financial firms’ handling of their personal information, and 94 per cent say the risks of providing personal information online are outweighing the benefits.

This is a new challenge that’s been brought on by increasing Internet connectivity of machines and devices, said Peter Cullen, chief privacy strategist, Microsoft Corp. in Redmond, Wash.
“Today we’re waging a different war [because] information is no longer safe,” he said, adding that the issue of online information security is building up “a lot of fear and mistrust” among online customers.

An FBI study revealed Internet crimes cost businesses US$67 billion last year, said Cullen, making the problem a “direct bottom-line issue” for businesses.
The good news, however, is that the industry has started to recognize this threat and is fighting back. “Through public and private partnerships, [the industry is working to] help close the trust gap,” said Cullen. Leading financial firms, which are among the biggest targets for information theft, have started implementing plans and programs to reassure their customers and win back their trust, according to Forrester analysts Jonathan Penn and Penny Gillespie in a research paper titled, Keeping Financial Transactions Online.

Travelling abroad in Europe and want to use ATM cash withdrawal machines ?
Is it safe ? No not really. You are at much higher risk then you might think.
Not to mention the fact that withdrawing $20 using a TD Bank debit card can cost you as much as $8 (effective May 1 2006). That is effectively 40% ATM convenience fees on your own money.

Skimming devices has been found in ATM machines around the world.
Try not to use ATM's in corner stores or gas stations. Make sure the ATM's are situated at well known banks. Check your bank balance as soon as you return home.

The following aritcle is reprinted from FinExtra.com

Lloyds TSB cracks down on ATM fraud with anti-skimming device
UK banking group Lloyds TSB is attaching anti-skimming devices to its cash machines across the country in a bid to cut ATM fraud.

Research commissioned by the bank and conducted by TNS shows that three quarters of UK adults (76%) are concerned about withdrawing money from cash machines in case fraudsters copy their card details. Around the same number - 77% - say they would feel more confident using a cash machine if it was fitted with an anti-skimming device.
Skimming involves fraudsters attaching a fake card reader to an ATM which records the data stored on the magnetic stripe of a credit or debit card. At the same time they record customers entering PINs using pinhole cameras. The stolen data is then used to make counterfeit cards, which can be used to empty customer accounts at ATMs.
As skimming only works with mag-stripe cards, the roll out of chip and PIN was meant to eradicate cash machine fraud in the UK. The introduction of the technology helped cut ATM fraud by 12% in 2005, but losses from the crime still totalled £65.8 million, according to figures from Apacs.
Lloyds TSB says the new devices will protect those consumers without chip and PIN cards, including foreign visitors to the UK, as well as customers with damaged chip cards which, in some cases, can revert to working via the magnetic strip.
Matthew Timms, Internet and ATM director, Lloyds TSB, says: "We are doing everything we can to ensure that our cash machines are safe to use but we also need customers' help and we urge people to be vigilant when using cash machines and report anything suspicious."
Barclays Bank has also rolled out anti-skimming devices across its cash machine network in the UK and limited daily withdrawals from ATMs in a bid to cut fraud levels.

So you use your credit card to buy products online.
You buy from reputable sites with all the necessary security in place.
Are you secure in the knowledge your credit card info is safe ?

When 3rd party sweat shops with under paid, under trained, and over worked employees are dealing with your credit card info, what do you think can happen ?
The article below is far too common place.

Millions of credit cards numbers have been ripped off and sold on the Interent. Banks usually do not publically report this unless the information is leaked to the public. Check your credit card statements carefully each month. Report lost or stolen cards immediately. Get the credit card numbers changed every 6 months minimum, especially if you use it a lot to make Internet purchases. Make sure your credit card is insured for Internet purchases. Credit card fraud and identity theft is on an exponential rise.

The following aritcle is reprinted from FinacialExpress.com

Infotech
Why credit card fraud on Net is an issue
BAYA AGARWAL
Posted online: Saturday, April 08, 2006 at 1028 hours IST
Updated: Saturday, April 08, 2006 at 1619 hours IST

MUMBAI, APRIL 8: Psychologically profiling employees before hiring them. Disallowing electronic gadgets into the office. Risk management training. And increased security.
These are just a few of the suggestions that experts say call centres could adopt to minimise credit card fraud in the BPO industry.

"Misuse of the customer’s information has prompted us to tighten security standards on the customer’s personal details," said Rahul Singh, managing director and CEO of e-serve International, a Citibank company that takes calls from Citibank customers in the US, UK and Australia. "Also, it’s becoming important to impart proper training to employees and prevent misconduct."
On Friday, The Indian Express reported how a former call centre employee scammed the website makemytrip.com by filching the site’s identification numbers and booked tickets using credit card details of people he had dealt with in his Intelnet job.
A 2006 nationwide survey by management consultancy firm KPMG Forensic says that the BPO industry has witnessed a large number of high-profile and well-planned frauds where employee misconduct was the sole reason.

"E-transaction is the most fraudulent transaction and is tough to discover when a customer’s card is misused," admitted Bank of Baroda Assistant Vice-President Jyoti Jain. "So, proper risk management training should be given to bank employees."
Giving tips, she said, "As everything is available on the Internet, it’s advisable for the customer to keep changing his credit card PIN number after concealing his details in a call centre."
Terming online fraud as a global problem, Sunil Mehta, vice-president of Nasscom—the IT and BPO industry’s lobby body—emphasised on employee screening and background checks during recruitment.

"We have to address this issue in terms of technological tools like ensuring there are proper firewalls, phone call recorders etc," he said. "In terms of prevention tools, call centres must make sure that the employee is not allowed to carry any hard disk, paper, pen, electronic gadgets and not be allowed access to the Internet."
People should be aware about the hazards of the Internet, said Harvinder Kaur, assistant commissioner of police (Cyber Crime Cell). "The number of cases are increasing because the criminal thinks that by cheating somebody on the Net, he can easily escape," she said. "Rather, it’s easiest to trace a criminal in cyber crime."
Past Frauds

Last year, in a $350,000-fraud, three employees of Mphasis BFL’s Pune-based BPO were arrested on charges of stealing the passwords and logins of foreign clients and transferring money to their personal accounts.
In January, 2006, two BPO staffers were arrested by the Mumbai police for allegedly modifying credit profiles in US-based Transunion’s server—outsourcing client of Intelnet—and transferring money to their personal accounts.

How safe is your Bank debit card ? Think again.
The below article gives a serious lack of consumer confidence.
Check your online bank statements daily if you do not want any surprises.
Report any strange activity in your bank statement immediately.


The following article is reprinted from PCWorld.com

Arrests Made in Debit Card Fraud Case

Fraud forced reissue of millions of debit cards nationwide.

Jaikumar Vijayan, Computerworld
Thursday, March 30, 2006

The U.S. Secret Service confirmed that it has made several arrests in connection with a recent wave of debit card fraud that forced several banks and credit unions to reissue millions of cards over the past few months.

The arrests were part of a broader undercover Secret Service investigation known as "Operation Rolling Stone" that has so far resulted in the arrests of 21 people on charges related to online identity theft as well as credit and debit card fraud.

Seven of the arrests occurred in California, Florida, Illinois, New York, Pennsylvania, and Washington, according to Secret Service spokesperson Jonathan Cherry.

"Previous arrests occurred in a number of locations nationwide, with one arrest in the United Kingdom," he said.

Millions of Debit Cards Reissued
According to Cherry, some of the 21 people arrested so far are linked to the recent debit card fraud wave, but he did not say how many.

"Rolling Stone is an active operation and in its initial stages [is] targeted at online criminal enterprises that threaten our financial infrastructure," Cherry said.

The arrests come amid a wave of debit card fraud resulting from a security breach involving a still undisclosed U.S. retailer or retailers. The fraud resulting from the breach has so far forced many major banks, including Bank of America, Wells Fargo Bank, and Washington Mutual Bank--as well as numerous credit unions around the country--to block transactions and reissue over 1 million cards.

Many of the compromised debit cards were being used fraudulently in several countries, including Romania, Russia, Spain, and the United Kingdom.

How safe is my debit card. The simple answer is its not safe at all.
Debit card and credit card fraud as well as identity theft is on an exponential rise.

The following article is reprinted from FindLaw.com

Debit Card Debacles:
Why Consumers Need to Worry About the Recent, Massive Wave of Debit Card Fraud,And What Legal and Technological Protections Can Prevent Future Harm
By ANITA RAMASASTRY ----

Wednesday, Mar. 29, 2006

Over the past month, as many as 600,000 debit cards may have been compromised in a wave of large scale security breaches. Debit card security problems had been growing: From 2001 to 2003, the number of compromised U.S. debit cards tracked by Fair Isaac for its financial-institution clients doubled; by 2005, that number exceeded 60,000. But this month's developments represented a new level of massive fraud.
Despite protection via personal identification numbers (PINs) - once heralded as a great security feature - the accounts linked to the cards were still looted. (PINs, of course, are needed to make ATM withdrawals and point-of-sale purchases at retailers such as grocery stores.)

In this column, I will discuss how this happened, how it can be prevented from happening in the future.
How Did This Happen?
The current wave of fraud was first detected in early March, when reports of suspicious account activity at major banks such as Citibank, Washington Mutual, Wells Fargo and Bank of America began to appear. Reportedly, debit cards linked with those U.S. accounts was being used to withdraw cash in Canada, Russia and the U.K. - cleaning out accounts without the cardholders' knowledge. This means that thieves were able to create forged duplicate cards; using a PIN without a card, of course, does no good.

How did the thieves get consumer information in the first place? Reports indicate that the problem probably stemmed from a security breach at a major office supply retailer - one that reportedly (and perhaps unwittingly) uses cash register software that stores customer PINs.
This was not supposed to happen: It is against MasterCard and Visa rules for merchants to retain sensitive debit card information, such as mag-stripe data (the information on the back stripe of the card) or PIN numbers. Indeed, merchants who store such information can be fined by the companies, by agreement - for they may have made customers sitting ducks for fraud.
In connection with the recent wave of fraud, two versions of cash-register software made by Fujitsu Transaction Solutions are now under scrutiny -- according to a warning Visa issued to the companies that process card transactions for some of the nation's largest retailers.
Assuming the software did store the PINs, the thieves still would have had to access the system - through a hack, or through interception while the transactions were being processed. In either case, the thieves likely would have had to obtain an encryption key (though another hack or an inside job).

And even once the thieves had captured the PINs, they would also need mag stripe data to be able to forge the cards. Such data can be copied via a practice known as "skimming": installing copying software at ATM machines or point-of-sale terminals. (In the recent round of fraud, experts suspect the skimming occurred at point-of-sale terminals.)
What Legal Protections Are Needed When Debit Card Fraud Occurs?

Typically, consumers are fully protected when they suffer losses as a result of the unauthorized use of their debit cards or debit card numbers. Of course, the discovery of the theft is stressful and annoying - and other transactions may be interrupted once the account is cleaned out. But in the end, at least, consumers typically get their money back, along with a new card. For instance, MasterCard- and Visa-branded debit cards will likely carry a $0 or $50 liability policy.
Still, legal protections could be improved - in case some companies' policies might diverge from those of Mastercard and Visa. Currently, credit card holders get more legal protection than debit card holders when it comes to fraud.

For example, initial liability for loss with a credit card or a debit card begins at $50, under federal law. But a credit cardholder's liability for unauthorized use is capped at $50 - period. By contrast, with debit cards, the loss can rise to $500, 2 days after a cardholder learns of the fraud, and then can be potentially unlimited, if a cardholder does not read his or her bank statement and report errors within 60 days of being sent a statement. (Indeed, with electronic statements now available, a company might argue that a consumer has 60 days from the date of the first unauthorized transaction to make a report, or risk potentially unlimited liability.)
It's possible legislators left debit card holders exposed because they reasoned that the only way their accounts could be cleaned out is if they were careless with their PINs. But the recent massive wave of fraud - which affected consumers who'd done nothing but type their PIN in as required - shows that the assumption that the card holder is negligent is incorrect.
Are Technological Fixes Needed Too? And Should They Be Mandated By Law?

One answer to the fraud issue may be better technology. And there is a more secure debit card technology, currently available to consumers in Europe - "chip and PIN cards." These cards feature an embedded chip that stores information such as a PIN. It is currently not possible to duplicate such a chip.

Experts argue, however, that given the huge U.S. debit card network (much larger than Europe's), it would be too burdensome for retailers to have to switch to new types of technology to validate debit card transactions. Still, it's possible debit card issuers will force the switch - or even that Congress and/or federal regulators could mandate (or at least recommend) it.

The finger pointing begins. Over $100,000 from the Bank of Canada clients was ripped off using identity thief (supposedly an inside job). The Bank of Canada was aware of this in December last year and only now is this information being leaked to the press. Over time I am sure we will find out this is a much larger problem then reported yesterday. The 2 quotes from the article below should make people realize that the way financial transactions are done today are really insecure and that too many people have easy access to your private information.

" If the nation's central bank isn't safe, what is? "

" One in four Canadian are expected to be victimized by identity theft over the next two years "

The following aritcle is reprinted from Toronto Star

CSB accounts breached: RCMP

Cyber-theft limited to 16 accountsApr. 8, 2006. 08:48

AMTONY WONG

BUSINESS REPORTER

Are your Canada Savings Bonds safe?

That's the question millions of owners of the government-backed securities might be asking themselves today.
The bonds are a favourite with conservative investors who see them as reliable and safe. But yesterday, the Bank of Canada reported a security breach in its Canada Savings Bond Payroll Savings Program accounts.

The Royal Canadian Mounted Police said two arrests had been made, with others possible after an alleged identity theft fraud saw about $100,000 taken electronically from accounts.
In addition to the fraudulent redemption of the bonds, the information was also used to apply for credit cards and cellular phone accounts. A total of 16 accounts were affected, said the bank.
While the fraud alleged wasn't massive the notion of criminals breaking into the Bank of Canada-backed program is nevertheless a chilly thought. After all, if the nation's central bank isn't safe, what is?

"We are dealing with a highly reputable company with safeguards, and yet someone managed to get in there," said RCMP Sgt. Monique Beauchamp in an interview.
According to Ken Smith, a director with PPL Legal Care of Canada Corp., which hosts identity theft seminars, one in four Canadian are expected to be victimized by identity theft over the next two years.

"In the case of Canada Savings Bonds you see an example of why no one is safe. If someone really wants it, they can get literally anything."

In the case of Canada Savings Bonds, the alleged criminal activity was an inside job.
Last December, the bank was made aware of problems with some of its accounts by its third-party supplier, EDS Canada Inc. The company handles back-office processing for the Canada Savings Bond program. The bank and EDS subsequently informed the RCMP that criminal activity might be involved, said the bank.

"We want to reassure Canada Savings Bonds customers that we are taking every precaution to make sure everything is secure," said Dale Fleck, chief of the bank's debt administration office.
Fleck said he was confident the privacy breach was limited to the 16 accounts. The owners of the accounts have been reimbursed, said the bank. However, Fleck noted that this was "the first time" a breach of this nature had occurred with the bonds.

James Toccacelli, a spokesperson for EDS, said those arrested were believed to be temporary EDS employees. The two employees, who have not yet been charged, had been working for EDS for a short time. EDS typically hires extra workers during the busy season for CSB sales.
He stressed that the two employees had passed an initial security and background check.
"We take this very seriously, but this is also an example of a process that works," said Toccacelli. "The activity was detected early in the cycle and we took steps to protect the system."

I found this article at the Independant Mortgage Brokers Association of Ontario forum.
The below knowledge should scare any home owner in Ontario.

The big joke is on IMBA's forum. Someone has anonymously posted many bogus coments to this article. The "comments" are actually links to the a number of websites which makes money on click through advertising. So much for IMBA's security. Obviously who ever maintains their website has not checked the forum for at least a month. Anyone could post anything including rude and crude stuff freely and anonymously. There is no mandatory user registration or moderator approval in place at all. You would think they make enough money to pay a competent webmaster to maintain their site. They actually do have some interesting mortgage information on their main site. After reading this and the article below you have to wonder about corporate and government incompetence especially when the 2 major expenses everyone has is your mortgage and tax payments.


The following aritcle is reprinted from the Toronto Star, April 7, 2005

Mortgage scam probed

Law society investigation involves hundreds of complaints

Questions raised about security of privatized registry system

STUART LAIDLAW
BUSINESS REPORTER

The Law Society of Upper Canada is investigating 72 Ontario lawyers as part of a probe into mortgage fraud that raises alarming questions about the security of the province's partially privatized land registry system.

In the report presented at the society's recent convocation, the law society says fraudsters have been able to use the province's electronic land registry system, Teranet Land Information Services Inc., to alter records including changing ownership of properties to themselves. The fraud artists then use the documents to obtain mortgages. They may even make a few mortgage payments before running off with the rest of the cash. The fraud isn't discovered until the homeowner receives a mortgage bill or tries to sell the property and finds that there's a lien on it.

The report says mortgage fraud has ballooned to about $300 million a year and become easier with the "depersonalization" of banking due to a move away from face-to-face contact between borrowers and lenders due to the growth of Internet and telephone banking.

"Changing technologies and lenders' business strategies have made it possible for people to make online applications that do not require anyone to witness key signatures," the report says.

The law society did not make clear in a recent report whether it believes the lawyers were simply duped by others or whether they were actively involved in what it calls a growing threat. "Currently the law society is investigating allegations of mortgage fraud made against 72 lawyers," the 23-page report says. The investigations involve reviewing an average of 75 property transactions per lawyer, the report says, adding the inquiries are complicated and costly.

A spokesperson for the law society was not available for comment. The report does not specify whether police are involved in the investigation.

Increased competition among lenders has made it possible for borrowers to shop around for the best deal, making it more likely that they can find a lender willing to give them a mortgage, while the heated-up real estate market pressures lenders to make faster loan approvals.

The report says the lawyers may be "unwitting" participants in the fraud, having been called into the transaction too late to catch a fraud that took place early in the deal.

In one scenario outlined in the report, a fraudster gains access to the Teranet system using a lost or stolen diskette meant to give lawyers and other real estate industry professionals access to land registry records, and changes title on a property to his or her name even paying the required fees and taxes.

"Now the fraudster has title to someone else's home," the report says.
From there, the fraudster can get a mortgage using Teranet to fraudulently discharge any outstanding mortgages to make the loan approval go more smoothly, if necessary.

Bonnie Foster, vice president corporate communications for Teranet Inc., said the company worked with the law society to set up the registry system and has strict procedures in place to ensure the credibility of those granted access to the system. Teranet is a public-private corporation with the province owning 40 per cent and Teranet Inc., a private Toronto company, owning the rest.

"I was a little surprised at that report," she said.
Foster said anyone gaining access to the system needs to enter a pass code, in addition to using a diskette, to alter documents.

"It's just like your bank card. You need your card and your PIN" or personal identification number, she said.
She had no figures on how many diskettes have been lost or stolen but said any such disks are supposed to be reported to Teranet so they can be cancelled.

Foster said any registered user of a diskette who allows the disk to be used by co-workers or others has breached the security of the system.
The report says fraudsters will often ask for mortgages for less than half the assessed value of a house, betting that lenders will not take as close a look at relatively smaller loans.

"Only a cursory appraisal will be done, if any at all," the report says.
When a fraud is being perpetrated, a lawyer will likely only be called in toward the end of the transaction to facilitate the transfer of money from the lender to the borrower, the report says.
But because the lawyer will be presented with credible documentation, it is difficult to distinguish fraudulent deals from legitimate ones, the report says.
"The unwitting lawyer, in the meantime, will be investigated," the report says.

"In fact, 15 per cent of the $10 million Professional Regulation budget was allocated solely to investigating and prosecuting mortgage fraud in both 2003 and 2004," the report says.

The law society has also set up a special mortgage fraud investigation team, and allocated another $1 million to fight fraud this year. That price tag is expected to grow in coming years, the report says.

In 1999 and 2000, the value of mortgage fraud in Canada was estimated to be between $73 million and $75 million. By 2001, it had quadrupled to about $300 million, the report says.

Fuelling the boom in mortgage fraud has been the advent of Internet and telephone banking, which makes it possible to negotiate and finalize a mortgage without the borrower and the lender ever meeting face to face, including the electronic transfer of title documents, the report says.

The law society is calling other industry players to help stamp out mortgage fraud.

1. How to get the best mortgage for short term, long term or hedging your bets.
2. Simplifying the cost of mortgage penalties especially interest differential and how to force the bank to disclose these penalties.
3. The new 30, 50 year, interest only for life mortgages.
4. How to ask the right questions before getting a mortgage. Banks are negotiable.
5. What kind of credit card(s) to get and the upsides (although few) and the potential devistating downsides of destroying your credit rating.
6. The good the bad and the ugly with lines of credit.
7. The good the bad and the ugly with RSP's.
8. The downside of having a savings account.

Canadian Prime and Mortgage Interest Rates 2004 to 2006

US Prime Loan Interest Rate
Past Trend, Present Value & Future Projection

Average US credit card interest rate

US Versus CDN Taxes
US Distribution of Net Worth, 1998

10% of the population has almost 60% of the US wealth