WEAK SECURITY DRIVES UP DATA THEFTWeak security drives up data theftPosted Jul 5, 2005 PT
Weak security drives up data theft

Collectively, nearly 50 million accounts have been exposed to the possibility of identity fraud since the beginning of the year, and some analysts think the boom in data collection has created a marketplace of valuable information stored on computers in thousands of places, many with weak security. To learn more on this topic, be sure to also read the related article, The Top Ten Technologies: #8 Computer / Human Interface Systems.

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Original news summary: (http://msnbc.msn.com/id/8309720/)

Another day it's hackers gaining access to private information on 120,000 alumni at Boston College.
Then, last Friday, comes word that 40 million credit card numbers fell prey to computer criminals.
Security experts, law enforcement officials and privacy advocates agree that while computer crime is on the rise, it is hardly new.
After data broker ChoicePoint Inc. reported in February that it was infiltrated by identity thieves posing as legitimate customers, the company received a second black eye when reports surfaced that it did not notify consumers about a previous breach, before California's law took effect.
"The current fiascos in cyber-security have been occurring for the past 10 years," said Tom Kellermann, who recently left his position as senior data risk management specialist for the World Bank.
In addition to using stolen data for credit card or other financial fraud, a thriving black market for the stolen data itself exists online, run in large part from Eastern Europe.
With more and more people getting high-speed Internet connections, and participating in online commerce and banking, the targets of opportunity for criminals only grow.
"They are making money on fraudulent transactions," said Brian Mortensen, head of a New Jersey company that sells telecommunications equipment.
'Very difficult to stay on top of it' But many firms argue that while data protection is a top priority, such measures could make online commerce too inconvenient for consumers without adding appreciably to security.
"It's very, very difficult to stay on top of it," Thomas said.
Thomas F. Holt Jr., an attorney who represents companies involved in breach cases, said he expects things to change when large class-action suits begin to get filed against firms for improperly protecting information.