Data Breach Blahhhh!

I just got done reading my latest article regarding data breaches.

http://www.smartmoney.com/spending/budgeting/dingbat-data-leaks/

In this article, like many others, the author discusses how data is lost, that most breaches are accidental in nature, and the fact that 50% of laptops that are misplaced have personal identifying data.

This focus on data breaches and better protections is doing little or nothing to reduce the rapid increase in identity theft. In fact - it is diverting our focus from what is the much more important issue "What can I do with the data".

If we add up all the breaches and data losses, I would imagine each of our individual ID's are out there in cyber land many times over. That is not the issue - the issue is what can I do with the data.

For example - If I simply need to present that data to open a new credit card account and they open - then this is the problem. If I can use the data to create a fictitous Driver's License which then is used in a routine traffic stop, then this is the problem. If I can use someone's data to receive medical service in the victim's name, then this is the problem.

The point is - the data is out there. While it is good practice to do all we can to secure data, it is not going to address the problem. We need to be spending our time, energies and monies on developing secure systems that do not allow someone with a print out of your personal data to take you to the cleaners.

A.E>>>

Too Busy To Save Money

This economic crisis becomes more of a circus each and every day. It wasn't too many days ago that Wells Fargo, Chase, and US Bank were being lauded for avoiding the crash that had hit others such as Countrywide, WAMU, etc...

Flash forward a few short months, and they are now in similar spots, cutting dividends and reporting record losses. It tends to make you wonder what other rocks that have yet to be turned over. It is getting downright scary.

Given that ID insight sells primarily to financial services companies, I am routinely asked how this recession is impacting us. Until very shortly - my response was pretty similar. What we offer is a way for banks to save money - so we hadn't seen much of a negtive impact.

However - as of late we have seen that begin to change. Normally - when you walk in the door and tell someone that they can save them significant amounts of money - they are interested - as they should be. Increasingly - however, we are hearing more banks explain that even though they are interested that they cannot afford the time to save money. We are finding many (more every day) banks that simply are looking to keep the doors open.

When we stop making sound, rational business decisions - that's when you realize that this is some really scary stuff.

A.E>>>