In his 1970 book
Future Shock, futurist author Alvin Toffler espoused the idea that someday, when almost everyone would be using credit cards instead of cash, muggers and robbers would likely prey on poor people constrained to paper currency.
What Toffler failed to envision was the PC and ubiquitous networked computing. How could he have foreseen ATMs on street corners, PayPal, on-line banking, and credit card scanners at virtually every retail establishment, restaurant, and gas pump? Toffler thought he hit the nail on the head when he claimed it would be safer to carry plastic than a wad of cash.
Is it safer? In February of last year, discount stores TJ Maxx and Marshall's reported that customer information from some 46 million credit cards and debit cards was stolen from its computers over an 18 month period. Apparently hackers intercepted wireless transfers of customer information at two Marshall's stores in Miami, which was an entry point that culminated in break-ins at the company's main databases.
More recently, a breach at the East Coast supermarket chain of Hannaford Bros. resulted in the exposure of more than four million credit cards issued by more than 70 banks. The breach affected 165 stores in the Northeast, more than 100 in Florida, and a smaller number of independent grocery stores. Customer information was stolen during a housekeeping process that involved the company's central encrypted authorization system and credit card processors. The Hannaford breach resulted in 1800 documented cases of credit card fraud.
Auto parts retailer Advance Auto Parts was also hit a few weeks ago. The company sent letters to as many as 56,000 customers, saying a network intrusion was responsible for breaches at fourteen stores in Georgia, Ohio, Louisiana, Tennessee, Mississippi, Indiana, Virginia and New York.
In San Diego County, California, a computer trespass revealed information on more than 32,000 employees, including about 5000 police officers. Social Security numbers, dates of birth, and addresses were lifted. In Ohio, the supposedly secure computers at Antioch University were breached, giving up Social Security numbers and payroll records on 70,000 students and employees. In Austin, Texas, no fewer than 200,000 records at the University of Texas were exposed. Once again, these records included Social Security numbers.
According to the
Identity Theft Resource Center, more than 79 million records were compromised last year, a quadrupling of the number of cases in 2006. Some industry watchers estimate 162 million records were compromised in the US and abroad.
To make matters worse, it looks like you’ll soon be able to pay for items by pointing your cellphone at a vending machine or ATM. How nice. You’ll be able to use an unsecured device to wirelessly handshake with networks that may or may not be secure. Sounds like a hacker’s paradise to me.
“Our technological powers increase, but the side effects and potential hazards escalate, too,” said Toffler. He was right about that, but he couldn’t predict the identity theft dilemma we’re now facing. I guess Toffler didn’t have a sufficiently clear crystal ball.
As for me, I’ll carry currency again, saving those pieces of plastic for emergencies only. How about you? Comments? Questions? Write me at
amm at en-genius dot net, or post your comments on our blog.
