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Smackdown Time On Data Breaches

In This Issue:
1. Editor's Note: Smackdown Time On Data Breaches
2. Today's Top Story
    - To Keep Consumer Trust, Try Tokens And Smart Cards
    - Related Stories:
    - ID Fraud Losses Drop By $6.4 Billion
    - Feds Get Straight D's For Information Security
    - Open Source Projects Team On Identity Management Milestone
3. Breaking News
    - As Hiring Soars In India, Good Managers Are Hard To Find
    - Microsoft Word-OpenOffice Translator Hits The Launchpad
    - Mystery Deepens As Coast Guard Ends Search For Microsoft's Jim Gray
    - Dell Hit With Shareholder Lawsuit
    - Apple Patents Point To iPhone Lockdown
    - Digg Dims List Of Leading Lights To Curtail Corruption
    - Feds Divided On Protecting Patient Data
    - The Big Super Bowl Online Bet: Will You Be Paid If You Win?
    - Siemens In Crosshairs Of U.S. Justice Department
    - Opening Up: Banks Expand Customer Reach With Online Account Opening
    - The NYSE Focuses On Improving Data Integrity
    - 2007 Claims Opportunities: Predictive Analytics To The Rescue
4. In Depth: Vista Problems Multiply
    - Bad Activation Keys Plague Windows Vista Family Discounts
    - Windows Vista May Corrupt iPod Music Players, Apple Says
    - Home Editions Of Windows Vista Won't Run On Mac Or Linux Virtual Machines
    - Microsoft's OneCare Fails Vista AV Tests
5. Voice Of Authority
    - How Long Does It Take To Catch A Computer Virus?
6. White Papers
    - Stopping The Insider Threat With Network Access Control
7. Get More Out Of InformationWeek
8. Manage Your Newsletter Subscription

Quote of the day:
"Distributed file systems are a cruel hoax." -- Zalman Stern, former ITC hacker deity


1. Editor's Note: Smackdown Time On Data Breaches

Is the tide beginning to turn on data security breaches? If so, IT can expect to catch the brunt of any backlash, at least internally, if not externally.

Consider the case of TJX's "incident," as the company is fond of calling it, announced Jan. 17. Up until now, consumer outrage and legislative posturing aside, the fallout from security breaches involving identity theft or the loss of customers' and employees' personal data has been minimal. A few days of bad press, a year of credit monitoring, a budget spike as security is bolstered, some cranky customers, and maybe, just maybe, a fine from Visa and MasterCard. But that was pretty much it, except for two high-profile explosions of market frustrations, which culminated in the public pillorying of the Veterans Affairs Department and data aggregator ChoicePoint (which was also the recipient of the FTC's largest fine ever -- $15 million.)

All in all, nothing to lose sleep over. But this most recent publicized data theft is different. It's different in terms of the scope, the criminal investigation, and, most importantly, the reactions from the public, partner, and political spheres. And none of this bodes well for future targets of data breaches.

It's one thing to blow off consumers, but it's a lot harder to ignore the very real legal and financial burdens imposed upon business partners of companies victimized by data breaches. The ripple effect from these incidents can be costly and wide, as the TJX saga is making very clear. Consequently, its business partners are starting to fight back. Those complaints are helping spur action from credit card issuers and at least the threat of action from lawmakers.

Which means the writing is on the wall for IT and the businesses it serves. So consider the TJX "incident" to be a screaming wake-up call: The world will no longer look the other way. Hopefully, this will scare some businesses straight. But if you are in IT, don't wait for the business side to come to its senses. There is a host of things you can do to get the ball rolling, to protect your career, your business, and your customers. You can find more evidence that the tide is turning, and some suggestions for where to start in terms of securing your defenses, by going to my blog entry for this commentary, where I also would welcome your tips, complaints, or suggestions on how best to combat this issue and who should be held responsible when breaches happen.

Patricia Keefe
pkeefe@cmp.com
www.informationweek.com


2. Today's Top Story

To Keep Consumer Trust, Try Tokens And Smart Cards
Customers turn their backs on Internet banking if they perceive that identity theft and other types of online fraud are a threat, analysts suggest.

Related Stories:

ID Fraud Losses Drop By $6.4 Billion
Estimated losses fell by around 12%, from $55.7 billion in 2005 to $49.3 billion in 2006.

Feds Get Straight D's For Information Security
The Cyber Security Industry Alliance issues its recommendations for improving information security for consumers, industry, and the government.

Open Source Projects Team On Identity Management Milestone
At this week's RSA Conference, the Eclipse Higgins project and Novell-backed Bandit project will demonstrate a reference integration with Microsoft's Windows CardSpace identity management system.


3. Breaking News

As Hiring Soars In India, Good Managers Are Hard To Find
Tech vendors plan to hire tens of thousands of employees in India in early 2007. But lack of leadership is forcing some to put staffers on the fast track to management and recruit U.S. talent.

Microsoft Word-OpenOffice Translator Hits The Launchpad
The OpenXML Translator is available through SourceForge.net, a repository for software and information on a variety of open source projects.

Mystery Deepens As Coast Guard Ends Search For Microsoft's Jim Gray
The Coast Guard has called off its five-day search for database expert James Gray, missing since sailing solo out of San Francisco on Jan. 28.

Dell Hit With Shareholder Lawsuit
Investors allege Dell's relationship with Intel contributed to financial mismanagement that artificially inflated the computer maker's stock price.

Apple Patents Point To iPhone Lockdown
If implemented, the technology could extend Apple's control over the iPod and iPhone ecosystem in ways both positive and negative for consumers.

Digg Dims List Of Leading Lights To Curtail Corruption
Kevin Rose responds to thwart attempts to manipulate the social networking site.

Feds Divided On Protecting Patient Data
A new GAO study is critical of U.S. Health and Human Services' lack of a clearly defined strategy to bring all data privacy efforts together.

The Big Super Bowl Online Bet: Will You Be Paid If You Win?
The U.S. government's crackdown on Internet gambling could force a delay of your game.

Siemens In Crosshairs Of U.S. Justice Department
Siemens has conceded that, in addition to the German police, the U.S. Department of Justice is investigating the company in connection with the "black money" scandal.

Opening Up: Banks Expand Customer Reach With Online Account Opening
Online account opening is becoming a cost-saving must-have for financial institutions.

The NYSE Focuses On Improving Data Integrity
The NYSE Group adopts a "defense-in-depth" strategy to secure sensitive data and comply with Sarbanes-Oxley.

2007 Claims Opportunities: Predictive Analytics To The Rescue
In 2007 it will be imperative for carriers to establish claims data management initiatives so they can undertake predictive projects.

All Our Latest News


----- The latest research, polls, and tools -----

What's On Tap?
What's in store for you and your organization in 2007? Learn what your peers have planned in InformationWeek Research's Outlook For 2007 research.

CIO Agenda: IT Culture
How does your company evaluate technology investments and adopt new technology? Learn what more than 150 CIOs and VPs said about their companies' IT culture in this recent InformationWeek Research report, CIO Agenda: IT Culture.

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You're going mobile—and so is InformationWeek. Our breaking news headlines are now available in WAP format for mobile phone subscribers. See our mobile headlines page and submit your subscription request at any InformationWeek page, under the "IW On The Go" logo.

-----------------------------------------


4. In Depth: Vista Problems Multiply

Bad Activation Keys Plague Windows Vista Family Discounts
Users attempting to install copies of the Home Premium edition purchased through the discount program got error messages indicating that the registration keys they received from Microsoft are invalid.

Windows Vista May Corrupt iPod Music Players, Apple Says
Upgrading to Vista may result in the inability to play songs purchased from the online iTunes store; other problems "may corrupt your iPod," Apple warns.

Home Editions Of Windows Vista Won't Run On Mac Or Linux Virtual Machines
The end-user license agreements specifically forbid users from booting the software "within a virtual (or otherwise emulated) hardware system," Microsoft says.

Microsoft's OneCare Fails Vista AV Tests
F-Secure's Anti-Virus for Vista 2007, Grisoft's AVG, Sophos Anti-Virus, and Symantec's AntiVirus managed to catch all VB100 bugs.


5. Voice Of Authority

How Long Does It Take To Catch A Computer Virus?
Would you believe only 8 seconds?


6. White Papers

Stopping The Insider Threat With Network Access Control
This paper describes how effective network access control provides enterprises with increased security from insider threats and greater regulatory compliance—and improves the overall health and security of today's complex network infrastructures.


7. Get More Out Of InformationWeek

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