OnDeckTech July 05 Newsletter
Before we get to the newsletter, which this month *attempts* to stay relevant while covering Shark attack and identity theft, let me share our news that OnDeckTech is currently the featured consultant on Apple’s Consultants website: http://consultants.apple.com , you can skip directly to our Spotlight here: http://consultants.apple.com/profiles/ondecktech .
Shark-bite and Identity theft..? Back up for a moment!
I bet you have heard about the recent shark attacks, and about the theft of 200,000 records from Atlanta-based Card Solutions Systems Inc..
What is the relationship? Neither are relatively significant pieces of news for most people, however, they are both very present in our minds, resonating deeply so that when we read or view another piece of news about them, it is as if we summoned the information from our own primordial terror, mysterious nightmares, sea monsters.
Both the shark attacks and electronic identity theft inspire in many people the fear of the unknown, a paralyzing fear that keeps us close to home, to what we know, that closes us off from learning new things, or changing our habits. So some people do not take trips to the ocean and go hiking instead, and others continue not to use the internet, or limit their use, perhaps do not provide credit card information online. This fear keeps us in our own tracks, guilty and relieved that it is not happening to us, although can you imagine..?
For many of us these attacks by man and beast are enough to change our habits outright. I know people who are scared to go into the ocean. I bet you do, too. And I know people who are scared to use the internet for e-commerce, even though the potential consequences of fraud are not as severe as those of shark.
The possible results of shark bite seem obvious. Yikes! But what about online fraud? According to research by the Federal Trade Commission, the median amount lost by people defrauded in 2004 was about $200. This seems like a small amount of money next to a limb, or a life. But what are the chances of getting defrauded online, given only an average attention to online security?
Internet-related complaints accounted for losses of over $265 million, while total online transactions were about $150 billion in 2004, meaning your chance of being defrauded, assuming you are no more careful than the average person, would have been about 1 in 566.
Most victims lost about $200, with only about 10% of people losing more than $2,000. The most common fraud is credit card fraud, accounting for as much as a third of all fraud. To my knowledge, thankfully credit card companies do not make you responsible for illegitimate usage.
Links to the FTCs very useful website follow this article, where the Commission explains how to minimize your risk (you cannot eliminate it), recommends checking your credit report periodically for signs someone else is using your identity, and provides a checklist for what to do if you discover you are the victim of identity theft.
And then you must ask yourself if a 1 in 566 chance per year of losing $200 enough to prevent your using the internet for e-commerce? That is like asking if it is worth 34 cents to have the convenience of the internet available to you. It is hard to imagine anyone in the United States who cannot get more than 34 cents of net benefit from using the internet in any given year. For most of us, it is irrational not to use the internet for e-commerce.
As for shark attack, given that more than 130 million people use the beaches around the United States each year, and there are typically fewer than 40 shark attacks, your chance of being bitten by a shark is .00000003, or about a third of a percent, of a percent, of a percent, or one in 3 million, two hundred and fifty thousand (3,250,000). That is a pretty small number. We all know shark attack is about as likely as being struck by lightning, but many of us still laugh in the rain as we avoid the sea. For most of us, it is irrational not to swim in the sea.
What are the chances of you losing data? A study in 2001 found that 1 in 4 people have lost data due to power outages, hackers or viruses, and other studies show that as many as 31% of computer users have experienced total data loss at one time another. Studies suggest that the most common causes of data loss are hardware failure and human error, together accounting for as much as 90% of data loss. Given research also suggests that 6% of personal computers fail in any given year, I estimate that at least 10%, or 1 in 10 computer users, lose data every year. For most of us, it is irrational not to back up your data regularly.
In fact, I estimate that you are about 550 times more likely to lose your data in a given year than be a victim of online fraud that would cost you as much as data recovery, given that the cost of recovering a modest hard drive is $2,000, not even including the value of your time.
And shark attack? You are about 5,742 times more likely to be a victim of online fraud than be bitten by a shark in a given year, assuming you are both an average internet user and beach visitor (our lakes do not count). And you are 325,000 times more likely to lose data this year than you are to be bitten by a shark.
So which topic deserves more of your attention? Take a moment and back up your hard drive. If you have a 10% probability of losing all your data, and the cost of losing your data is about $2,000, then any expense under $200 is a good deal. An external hard drive and back-up software can be purchased for well-under $200 these days, and if losing your data could cost you more than a few thousand dollars, please hire a consultant and make certain everything is done right the first time, automated correctly.
Happy Independence Day!
PS: fatalities typically count for fewer than 5% of shark attacks, so you are 6.5 million times more likely to lose data this year than be killed by a shark.
Research Data (followed by links)
In 2004, the FTC, received over 635,000 consumer fraud and identity theft complaints. Consumers reported losses from fraud of more than $547 million. Internet-related complaints accounted for 53% of all reported fraud complaints, with monetary losses of over $265 million and a median loss of $214.
- Some 57% of fraud complaints where the company’s method of initial contact was reported
indicate internet solicitations - electronic mail 35% and web 22%. 80% of all fraud complaints
reported the method of initial contact. This is consistent with last year’s report. - The major metropolitan areas with the highest per capita rates of consumer fraud reported are the
Washington DC area; San Jose-Sunnyvale-Santa Clara, CA; and Las Vegas-Paradise, NV
Identity Theft
Credit card fraud (28%) was the most common form of reported identity theft followed by phone
or utilities fraud (19%), bank fraud (18%), and employment fraud (13%). Other significant
categories of identity theft reported by victims were government documents/benefits fraud and
loan fraud.
U.S. businesses lose over $12 billion per year because of data loss.
Hardware or system failure accounts for 78% of all data loss.
Human error accounts for 11% of all data loss.
Software corruption account for 7% of all data loss.
Natural disasters account for only 1% of all data loss.
More vital data is being stored in smaller spaces.
Instant access to electronic data has become more crucial in day-to-day business.
Disaster prevention and recovery plans are often overlooked or outdated.
Backup tools and techniques are not 100% reliable.
93% of companies that lost their data center for 10 days or more due
to a disaster filed for bankruptcy within one year of the disaster.
50% of businesses that found themselves without data management for this same time period filed for bankruptcy immediately. (Source:
National Archives & Records Administration in Washington)
File corruption and data loss are becoming much more common,
although loss of productivity continues to be the major cost
associated with a virus disaster.
(Source: 7th Annual ICSA Lab’s Virus Prevalence Survey, March 2002)
91% of Broadband Users Have Spyware Lurking on Home Computers
97% of Broadband Parents Do Not Use Parental Controls
67% of Users Do Not Have Properly and Securely Configured Firewalls
62% Do Not Regularly Update Anti-Virus Software
Despite Vulnerabilities, 86% Keep Sensitive Information on Home Computer
Links:
Federal Trade Commission educational site is very useful: http://www.ftc.gov/privacy/privacyinitiatives/promises_educ.html
If you are a victim of fraud, you may file a complaint here: http://www.consumer.gov/ idtheft
Shark attack statistics can be found at the Florida Museum of Natural History website: http://www.flmnh.ufl.edu/fish/Sharks/Statistics/statistics.htm
Data loss statistics:
http://www.iomega.com/about/prreleases/2001/viruses_hackers_power
Digital Marketing Services Internet Security Study
http://www.staysafeonline.info/press/Security_Report_8.02.pdf
US.Data loss statistics
