Prosper Newsletter: September 2007 > Ecommerce
You understand that the following information is educational in nature and is not intended to be legal, accounting, or tax advice. You are responsible for your own financial decisions and should consult your own legal, accounting, and tax advisors before making your financial decisions.
Protecting your Assets-and Yourself-with Proper Internet Security
With innovation comes a new predator-hackers. Last year, in 2006, hackers caused $266 billion worth of damages in the United States alone, according to Jamie Harrison co-founder and CEO of InBusiness Direct. That is 2% of the gross national product (GNP).
Contrary to popular belief, hackers-not viruses-are the leading cause of computer damage, Internet security breaches, eCommerce liabilities, and identity theft. In fact, more than 1 in 20 online customers will be victims of identity theft this year-which translates to 27.3 million people. And with the incidence of cybercrime having increased more than 544% since 2005, Internet security is a serious concern for anyone who uses the Web.
"If you have a house, you aren't going to leave the front and back door open," Harrison says. "The Internet is the same way. If not protected, hackers can physically enter your computer and access your information."
And since computers log your activity, in what are known as cookies, and store the files on your hard drive, without effective security, hackers can access virtually everything. This includes personal files and pictures, commonly used URL addresses, frequently used numbers such as account numbers, addresses, even your Social Security number (if you order products through Amazon.com or other eCommerce sites or use online banking). Thus, it is imperative, especially if you conduct business online and/or host a Website that your computer be protected with ample security. And, if you use a wireless connection, you are especially prone to hackers. According to Harrison, an estimated 70% of wireless users fall victim to hackers.
"People can drive through towns with a computer that picks up your laptop signal and then access your Internet," Harrison says. "So, if you use a laptop or a wireless connection [you will want to] be sure you protect it, protect it, protect it! Hackers are a very real threat."
Different ways hackers can steal your information:
- Keystroke loggers (hackers track frequently used numbers such as credit card numbers).
- Password crackers (if you have set up a Website to remember your password each time you log in, hackers can access this information).
- Webcam control (they can actually watch and monitor you while at the computer).
- Port scanners (hackers access your computer when you have multiple open programs).
- Zombie spammers (hackers take over your computer and send people spam, particularly porn, through your IP address and/or email address).
To bring this issue into more stark perspective, if you run an eCommerce business it is especially important that your computer have superior security. Current legislation stipulates that if an online customer falls victim to identity theft or fraud, due to an online security breech, the original IP address (the computer) from which the information was obtained will be held liable for all damages. In other words, if a hacker accessed a customer's bank account, credit card information, email, or other private information from your computer, you will be held liable-not the hacker.
"More than half of hackers have a financial motivation," Harrison says. "Hackers only need five customers' information to cause $100,000 worth of damages and you, the business owner, will be held liable for that," he says. "If the FBI finds out that it's your computer, it's you they'll come after."
That said, here are some common signs and symptoms of an at-risk computer:
- Computer performance slows down and becomes sluggish (takes more than 10 minutes to boot up).
- Files are missing; files that you know were saved properly but have suddenly disappeared without a trace.
- Internet connection and speed has slowed down considerably.
- Computer tends to freeze or shut down frequently while in use, it may even seize and shut down entirely.
If your computer begins to show signs of slowing, be aware that it is during this time that hackers-known as zombie spammers-take over your computer and begin sending spam through your IP and/or email addresses. Have you ever noticed suspicious or salacious email in your inbox from Veronica P. Smith or Bruce J. Williams? This is an example of a zombie spammer who has taken over an individual computer to send spam. Those individuals-Veronica and Bruce-are real people who are victims; their computers have been taken over by a hacker who is now sending you spam and even pornography. According to Harrison, spam generally comes from spyware that tracks everything you do online through accessing the cookies on your computer.
So, if a customer is receiving spam from your email address, or discovers that their private information has been fraudulatently used, remember that you will be held liable. It is your responsibility as an eCommerce entrepreneur to protect your customers' information. And, if you conduct any personal business online, in any form, it is imperative that you protect yourself as well, by ensuring that your computer is properly protected with adequate security. Entry-level programs such as Norton Utilities or McAffe, which often come free with your computer when you purchase it, are good but they are not good enough.
"The number one menace to society, via the Internet, is not viruses," Harrison says. "It is hackers using spyware. Free programs such as Adware are simply not good enough. Hackers target small businesses [and] businesses online because they have the least amount of security, so protect yourself and your customers by protecting your computer."
In the October newsletter we will talk more about how to ensure your Internet security by properly protecting your computer.
"I have made so much progress so far with this program. I've learned how to list products and sell products on eBay, how to price items, how to look at completed listings, and how to follow historical information to improve my likelihood of success. I feel this program has changed my perception of success - I now know I can do this. I feel so much more confident that I can achieve things with this Internet business. I've gone to flea markets and garage sales looking for products that I can re-sell on eBay and Craigslist.org. I'm so much more motivated to succeed than ever before. I feel like doing more and more all the time. I've sold 4 items so far on eBay and will sell 8-10 more products within the next two weeks. These sales will help me generate approximately $500.00 in income. I know I can do this. I know that Small Success Leads to Big Success! By February 1, 2008 I will have made over $3,000 because of this program. I will succeed!"
Thomas J.
Eastpointe, MI
Enterprise Security
Two of the greatest threats to the long-term success of your online business are computer hackers and viruses. It is important that you understand the risks and liabilities everyone faces while doing business on the Internet because the threat is real. While viruses can infect a computer in a variety of ways, hackers have thousands of potential ways to gain access to your computer system. Contrary to popular belief, anti-virus software alone is not enough to protect your privacy and security. To be truly protected, you need a comprehensive PC security strategy that includes various types of security technologies. Generally, anti-virus software sufficiently protects against well-known viruses from infecting your computer, but it does nothing to prevent hackers, spyware, Trojan horses, and a host of other threats from invading your computer. In addition to traditional anti-virus software, you should have a personal firewall that keeps unauthorized programs from connecting to your computer.
It is also recommended that you use programs that can find and remove hacker tools, and spyware from your system. You should also have programs that patch security holes in the computer programs that you use every day. Most retail or off-the-shelf security products generally provide insufficient protection. Finding all of the different components of a complete computer security system can be time consuming and daunting. Fortunately, we have done some homework for you in this area.
We recommend the INVISUS® PC Security Solution to protect your computer. You do not have to worry about spending hours searching the web for all the different security programs you might need. INVISUS is a professional grade system for small businesses, and home offices. It has everything you need to protect your PC in a single package. We have arranged for a special discount off the price of this system for Prosper clients only. For more information about INVISUS, or to purchase this security system, please visit www.invisus.com/prosper.
