Management Consultant

By Frank Lee

Banks, credit card companies, utility companies, financial institutions, e-Bay, and PayPal all proclaim their information technology (IT) systems are secure.  Therefore, the consumer should be confident to give his or her Social Security number, date of birth, credit card numbers, and bank account numbers without hesitation or deliberation.  Billions of dollars are transferred from consumers to businesses without the former thinking about their vulnerability to identity theft; spyware installations; denial-of-service shakedowns; Trojans and botnets¹; computer fraud; and credit card fraud.  More often than not, one does not ask if one’s Social Security number, credit card, or bank account numbers are secure while conducting commerce over the Internet. 

Millions of dollars have been stolen from companies or their subcontractors via the Internet.  Most companies endeavor to keep this knowledge from the general public so that the companies labor cost will remain low and business will continue as usual.  As you may know, it is economically advantageous for you to transact business over the Internet rather than conduct business with a person over the phone or in-person.  Many companies assume that any financial losses that are incurred would be acceptable.  Thus, it is hoped that in the long term any loses will not equal the long-term cost of labor.  As we all know, businesses are concerned about labor cost above all other cost.  For example, thousands of jobs are being transferred overseas to increase shareholder wealth.

Below I have inserted a link to e-Week.com, which will give the reader behind the scenes information that is withheld from the general public.  To go to the link, do the following:  while connected to the Internet, Ctrl+click.

                        http://www.eweek.com/article2/0,1895,1947884,00.asp

I think some businesses may be suffering from cognitive dissonance.  If one looks at what some businesses purport to the public, then look at those businesses IT security concerns, one could come to the same conclusion.  On the other hand, one may conclude the businesses are withholding pertinent information.

When your personal information and money are at risk, one should not delude one’s self that businesses and financial institutions always practice fiduciary responsibility.  If one could be sure that due diligence is practiced by all financial institutions and their subcontractors, one would not have to worry about one’s transactions over the Internet.  After you have read the e-Week.com article, you may become risk averse and disabuse yourself of the notion that business is conducted over the Internet in a secure manner.  The e-Week.com article should be in the public domain.

To protect your money and personal data, I recommend taking the following precautions:  (1) Do not give your Social Security number willy-nilly over the Internet.  Only the Social Security Administration and the IRS have the right to your Social Security number.  If you are an older person, look at your original Social Security card.  It reads as follows:  NOT FOR IDENTIFICATION.  Once a criminal has your Social Security number and bank account number, your identity can be stolen and your bank accounts can be wiped out in seconds.  (2) Limit your purchases on the Internet to trusted sites.