Expedia: the Latest Victim af a New Kind of Threat

 
 
By Evan Schuman  |  Posted 2006-06-05 Email Print this article Print
 
 
 
 
 
 
 

Opinion: Forget about criminal hackers and disgruntled employee saboteurs. Car thieves and burglars are now stepping up to the e-commerce data theft game, as Expedia's Hotels.com, the Veterans Administration and the California Department of Financi

More than a quarter of a million Hotels.com customers are now at high risk for credit card theft after a password-protected laptop computer containing their credit card information was stolen from an Ernst & Young auditors locked car in what appears to be a "random petty theft," a Hotels.com spokesperson was quoted as telling the Associated Press. The Seattle incident at Hotels.com, a subsidiary of Expedia.com, prompted the E-Commerce travel leader to launch a PR campaign to argue a difference between potential identity theft and potential credit card theft, according to retail tech blog StorefrontBacktalk.But Expedias problem is just the latest in a series of data-identity cases recently centering not around criminal hackers but around the garden-variety thug breaking into locked places.
In California on June 2, the acting commissioner of the states Department of Financial Institutions was demoted and an employee he supervised fired after that employees laptop—containing data on 232 people and 216 businesses—was stolen from his car.
His offense, according to the Associated Press, was having left the computer in the car and for having not encrypted any of the data. This all comes on the heels of last months Veterans Affairs theft, wherein the unencrypted personal data of some 26.5 million veterans was stolen when a laptop was taken during a home burglary of a VA employee. The VA is now saying that a lot more information was grabbed than initially revealed, according to the Associated Press.
Yet again on June 3, the AP tells us of information from active-duty personnel in those stolen VA files. The pattern here is simple and disturbing, but not especially surprising. Laptops and now high-end PDAs are making it easier for employees to work outside of the office, USB drives with more than a gigabyte of data can fit comfortable in a shirt pocket and the proliferation of wireless networks is making it so easy to work in the field and at home. But employees—especially those working with customer e-commerce data—must simply adhere to the standard security protocols theyve always known. That means everything is encrypted as soon as physically possible. It absolutely means that data must be treated as the valuable treasure that it is. Would employees have left stacks of $100 bills in their cars, in plain view? To a car thief or just an experienced thug, thats what a nice portable laptop looks like. Im a bit more paranoid than most, but when traveling, I never leave my laptop in my room. Lugging it to meetings and interviews isnt fun, but it sure beats the alternative. As for burglaries in the home, thats a bit trickier. In that case, the data simply needs to be religiously backed up and stored in multiple locations and encrypted. My biggest fear is wireless. Cell phones operating as wireless modems and wireless connectivity throughout is just begging for the next wave of identity theft to be airborne. E-Commerce workers must understand that. I assure you that data thieves do. Evan Schuman is retail editor for Ziff Davis Internets Enterprise Edit group. He has tracked high-tech issues since 1987, has been opinionated long before that and doesnt plan to stop anytime soon. He can be reached at Evan_Schuman@ziffdavis.com. Check out eWEEK.coms for the latest news, views and analysis on technologys impact on retail.
 
 
 
 
Evan Schuman is the editor of CIOInsight.com's Retail industry center. He has covered retail technology issues since 1988 for Ziff-Davis, CMP Media, IDG, Penton, Lebhar-Friedman, VNU, BusinessWeek, Business 2.0 and United Press International, among others. He can be reached by e-mail at Evan.Schuman@ziffdavisenterprise.com.
 
 
 
 
 
 
 

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