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Posts Tagged ‘SOCIAL SECURITY’

COMPUTER SECURITY: “WE DON’T CARE, WE DON’T HAVE TO”

In Bureaucracy, Business, Entertainment, Law, Law Enforcement, Social commentary on April 14, 2016 at 12:07 am

It’s the nightmare-come-true for corporate America.

Name-brand companies, trusted by millions, hit with massive data breaches.

And with a series of keystrokes, the most sensitive financial and personal information of their employees and/or customers is compromised.

Among those companies:

  • Target
  • Kmart
  • Home Depot
  • JPMorgan/Chase
  • Staples
  • Dairy Queen
  • Anthem, Inc.
  • Sony Pictures
  • Primera Blue Cross
  • U.S. Postal Service

Click here: Data Breach Tracker: All the Major Companies That Have Been Hacked | Money.com

And as of July 15, 2015, Ashley Madison joined this list.

Ashley Madison is, of course, the notorious website for cheating wives and husbands.

Launched in 2001, its catchy slogan is: “Life is short.  Have an affair.”

One of its ads featured a photo of a woman apparently kneeling at the feet of a bare-chested man, her hand passionately clawing at his belt. Next to her was the caption: “Join FREE & change your life today. Guaranteed!”

Ashley Madison - Ashley Madison Agency

Now millions of its clients may find their lives changed in ways they never imagined–and for the worse.

Ashley Madison claims to have more than 37 million members.  And now, untold numbers of them may find their lives changed forever.

Its hackers were enraged at the company’s refusal to fully delete users’ profiles unless it received a $19 fee.

Referring to themselves as “The Impact Team,” they stated in an online manifesto: “Full Delete netted [Avid Life Media, the parent company of Ashley Madison] $1.7 million in revenue in 2014.  It’s also a complete lie.

“Users almost always pay with credit card; their purchase details are not removed as promised, and include real names and address, which is of course the most important information the users want removed.”

On July 20, Avid Life Media defended the service, and said it would make it free.

Adultery-dating website Ashley Madison hacked

The hackers demanded: “AM [Ashley Madison] AND EM [Established Men] MUST SHUT DOWN IMMEDIATELY PERMANENTLY.

“We have taken over all systems in your entire office and production domains, all customer information databases, source code repositories, financial records, emails.

“Shutting down AM and EM will cost you, but non-compliance will cost you more.”

The hackers threatened to “release all customer records, including profiles with all the customers’ secret sexual fantasies and matching credit card transactions, real names and addresses, and employee documents and emails.”

Avid Life Media assured its customers that it had hired “one of the world’s top IT security teams” to work on the breach:

“At this time, we have been able to secure our sites, and close the unauthorized access points. We are working with law enforcement agencies, which are investigating this criminal act.”

This statement gives new meaning to the phrase, “Closing the barn door after the cow has gotten out.”

And it raises the question: Why wasn’t this “top IT security team” hired at the outset? 

After all, its database is a blackmailer’s dream-come-true. Yet apparently its owners didn’t care enough about the privacy of their customers to provide adequate security.

On August 18, 2015, the hackers began releasing their pirated information.

As usual during a corporation’s data breach, Ashley Madison issued a reassuring statement: “We are working with law enforcement agencies, which are investigating this criminal act.

“Any and all parties responsible for this act of cyber-terrorism will be held responsible.”

Eight of those customers (so far) have decided to hold Ashley Madison responsible. They have filed lawsuits against the company in California, Georgia, Minnesota, Missouri, Tennessee and Texas.

They seek class-action status to represent Ashley Madison’s 37 million users.

The lawsuits claim negligence, breach of contract and privacy violations. They charge that Ashley Madison failed to take reasonable steps to protect the security of its users, including those who paid the $19 fee to have their information deleted.

If they win–and force the owners of Ashley Madison to pay up big-time–this could set a precedent for lawsuits by other victims of such data breaches.

An October 22, 2014 “commentary” published in Forbes magazine raised the highly disturbing question: “Cybersecurity: Does Corporate America Really Care?”

And the answer is clearly: No.

Its author is John Hering, co-founder and executive director of Lookout, which bills itself as “the world leader in mobile security for consumers and enterprises alike.”

Click here: Cybersecurity: Does corporate America really care?

“One thing is clear,” writes Hering. “CEOs need to put security on their strategic agendas alongside revenue growth and other issues given priority in boardrooms.”

Hering warns that “CEOs don’t seem to be making security a priority.” And he offers several reasons for this:

  • The sheer number of data compromises;
  • Relatively little consumer outcry;
  • Almost no impact on the companies’ standing on Wall Street;
  • Executives may consider such breaches part of the cost of doing business.

“Sales figures and new products are top of mind,” writes Hering. “Shoring up IT systems aren’t.”

The key to sharply reducing data breaches lies in holding greed-obsessed CEOs financially accountable for their criminal negligence.

Only then will their  mindset of “We don’t care, we don’t have to” be replaced with: “We care, because our heads will roll if we don’t.”

THE QUEEN OF GREED

In Bureaucracy, Business, History, Law, Politics, Social commentary on November 27, 2015 at 11:55 am

“Thirty years after her death, Ayn Rand’s ideas have never been more important.

“Unfettered capitalism, unregulated business, bare-bones government providing no social services, glorification of selfishness, disdain for Judeo-Christian morality—these are the tenets of Rand’s harsh philosophy.”

So reads the jacket blurb for Ayn Rand Nation: The Struggle for America’s Soul, by Gary Weiss.

“The timing of this book couldn’t be better for Americans who are trying to understand where in the hell the far-out right’s anti-worker, anti-egalitarian extremism is coming from,” asserts Jim Hightower, New York Times bestselling author of Thieves in High Places.

Ayn Rand Nation introduces us to the godmother of such Tea Party craziness as destroying Social Security and eliminating Wall Street regulation. Weiss writes with perception and wit.”

For those who believe that Rand’s philosophy is the remedy for America’s economic and social ills, a 2013 60 Minutes news story sounds a warning.

New England Compounding Center (NECC) pharmacy, based in Framington, Massachusetts, is under criminal investigation.  The reason: Shipping, in the fall of 2012, 17,000 vials of a steroid to be injected into the joints or spines of patients suffering chronic pain.

But instead of relieving pain, this steroid–contaminated with fungal meningitis–brought only agony and death.

The vials went out to thousands of pharmacies scattered across 23 states.

Forty-eight people have died, and 720 are still fighting horrific infections caused by the drug.

Just as Ayn Rand would have wanted, the pharmacy managed to avoid supervision by the Food and Drug Administration (FDA).

NECC was one of thousands of pharmacies that Congress exempted from FDA oversight. The reason: By law, they are allowed to make custom drugs for just one patient at a time.

But within a few years, NECC went national–and vastly expanded the quantities of drugs produced.

“The underlying factor is that the company got greedy and overextended and we got sloppy, and something happened,” John Connolly, a lab technician for the company, told 60 Minutes, the CBS news magazine.

And, also as Rand would have wanted, the four family members who founded the pharmacy were enriched by it–receiving over $16 million in wages and profits, from December 2011 through November 2012.

Bankruptcy records show the family members racked up $90,000 on corporate American Express credit cards, including charges made after the company shut down in early October.

A month before the first steroid death, Connolly says he warned his supervisor: “Something’s gonna happen, something’s gonna get missed and we’re gonna get shut down.”

His supervisor just shrugged.

NECC was shut down by the authorities.  Barry Cadden, the president and lead pharmacist of the company, was subpoenaed by Congress to testify.  In true gangster fashion, he pleaded the Fifth.

He claimed he didn’t know how the contamination started.

In May, 2015, a federal bankruptcy judge approved the establishment of a $200 million compensation fund for victims of the meningitis outbreak.

This would have outraged Ayn Rand, who believed that greed was sacred–and should not be punished, whatever its consequences.

Which brings us back to Ayn Rand Nation.

Among the themes explored in Weiss’ book:

  • Atlas Shrugged–Rand’s 1957 novel–depicts a United States where many of society’s most productive citizens refuse to be exploited by increasing taxation and government regulations and go on strike. The refusal evokes the imagery of what would happen if the mythological Atlas refused to continue to hold up the world.  The novel continues to influence those who aren’t hard-core Rand followers, who are known as Objectivists.
  • Ayn Rand’s novels dramatically affirm such bedrock American values as independence, creativity, self-reliance, and above all, a permanent distrust of government.
  • In Rand’s 1936 novel, We the Living–set in Soviet Russia–her heroine, Kira Argounova, tells a Communist: “I loathe your ideals; I admire your methods.” Objectivists believe in defending capitalism with the same ruthless methods of Communists.
  • In Rand’s ideal world, government would control only police, armies and law courts.  To her, a   government which performs more than these three functions is not simply impractical or expensive: it is evil.

Many of those who embrace Rand substitute rage for logic: Tea Partiers are furious about the 2008 Wall Street crash, yet they blame the government for it.

(Ironically, in a way, they are right: The government can be blamed–but not for too much regulation of greed-fueled capitalists but too little.)

Weiss asserts that Tea Party members resent the social and economic realities facing the nation, but lack a coherent intellectual framework to help them focus and justify their rage.  But Objectivists have–and offer–such a framework.

Thus, Tea Partiers form the ideological part of the right wing, and the clarity–and fanaticism–of their views gives them a power far out of proportion to their numbers.

Weiss believes that Rand is presenting a moral argument for laissez-faire capitalism, which means eliminating  Social Security, Medicare, public road system, fire departments, parks, building codes–and, above all, any type of financial regulation.

Weiss maintains that Rand’s moral argument must be directly confronted–and defeated–with moral arguments calling for charity and rationality.

Given the fanaticism of Tea Partiers and the right-wing Republicans they support, success in countering Rand’s “I’ve-got-mine-and-the-hell-with-everybody-else” morality is by no means assured.

THE GOOD NEWS IN THE ASHLEY MADISON SCANDAL

In Bureaucracy, Business, Law Enforcement, Social commentary on August 26, 2015 at 9:50 am

It’s the nightmare-come-true for corporate America.

Name-brand companies, trusted by millions, hit with massive data breaches.

And with a series of keystrokes, the most sensitive financial and personal information of their employees and/or customers is compromised.

Among those companies:

  • Target
  • Kmart
  • Home Depot
  • JPMorgan/Chase
  • Staples
  • Dairy Queen
  • Anthem, Inc.
  • Sony Pictures
  • Primera Blue Cross
  • U.S. Postal Service

Click here: Data Breach Tracker: All the Major Companies That Have Been Hacked | Money.com

And as of July 15, Ashley Madison joined this list.

Ashley Madison is, of course, the notorious website for cheating wives and husbands.

Launched in 2001, its catchy slogan is: “Life is short.  Have an affair.”

One of its ads featured a photo of a woman apparently kneeling at the feet of a bare-chested man, her hand passionately clawing at his belt.  Next to her was the caption: “Join FREE & change your life today.  Guaranteed!”

Ashley Madison - Ashley Madison Agency

Ashley Madison claims to have more than 37 million members.  And now, untold numbers of them may find their lives changed forever.

Its hackers were enraged at the company’s refusal to fully delete users’ profiles unless it received a $19 fee.

Referring to themselves as “The Impact Team,” they stated in an online manifesto: “Full Delete netted [Avid Life Media, the parent company of Ashley Madison] $1.7 million in revenue in 2014.  It’s also a complete lie.

“Users almost always pay with credit card; their purchase details are not removed as promised, and include real names and address, which is of course the most important information the users want removed.”

On July 20, Avid Life Media defended the service, and said it would make it free.

Adultery-dating website Ashley Madison hacked

The hackers demanded: “AM [Ashley Madison] AND EM [Established Men] MUST SHUT DOWN IMMEDIATELY PERMANENTLY.

“We have taken over all systems in your entire office and production domains, all customer information databases, source code repositories, financial records, emails.

“Shutting down AM and EM will cost you, but non-compliance will cost you more.”

The hackers threatened to “release all customer records, including profiles with all the customers’ secret sexual fantasies and matching credit card transactions, real names and addresses, and employee documents and emails.”

Avid Life Media assured its customers that it had hired “one of the world’s top IT security teams” to work on the breach:

“At this time, we have been able to secure our sites, and close the unauthorized access points. We are working with law enforcement agencies, which are investigating this criminal act.”

This statement gives new meaning to the phrase, “Closing the barn door after the cow has gotten out.”

And it raises the question: Why wasn’t this “top IT security team” hired at the outset?

After all, its database is a blackmailer’s dream-come-true. Yet apparently its owners didn’t care enough about the privacy of their customers to provide adequate security.

On August 18, the hackers began releasing their pirated information.

As usual during a corporation’s data breach, Ashley Madison issued a reassuring statement: “We are working with law enforcement agencies, which are investigating this criminal act.

“Any and all parties responsible for this act of cyber-terrorism will be held responsible.”

Eight of those customers (so far) have decided to hold Ashley Madison responsible. They have filed lawsuits against the company in California, Georgia, Minnesota, Missouri, Tennessee and Texas.

They seek class-action status to represent Ashley Madison’s 37 million users.

The lawsuits claim negligence, breach of contract and privacy violations. They charge that Ashley Madison failed to take reasonable steps to protect the security of its users, including those who paid the $19 fee to have their information deleted.

If they win–and force the owners of Ashley Madison to pay up big-time–this could set a precedent for lawsuits by other victims of such data breaches.

An October 22, 2014 “commentary” published in Forbes magazine raised the highly disturbing question: “Cybersecurity: Does Corporate America Really Care?”

And the answer is clearly: No.

Its author is John Hering, co-founder and executive director of Lookout, which bills itself as “the world leader in mobile security for consumers and enterprises alike.”

Click here: Cybersecurity: Does corporate America really care?

“One thing is clear,” writes Hering. “CEOs need to put security on their strategic agendas alongside revenue growth and other issues given priority in boardrooms.”

Hering warns that “CEOs don’t seem to be making security a priority.”  And he offers several reasons for this:

  • The sheer number of data compromises;
  • Relatively little consumer outcry;
  • Almost no impact on the companies’ standing on Wall Street;
  • Executives may consider such breaches part of the cost of doing business.

“Sales figures and new products are top of mind,” writes Hering. “Shoring up IT systems aren’t.”

The key to sharply reducing data breaches lies in holding greed-obsessed CEOs financially accountable for their criminal negligence.

Only then will their  mindset of “We don’t care, we don’t have to” be replaced with: “We care, because our heads will roll if we don’t.”

DATA SECURITY BREACHES: “WE DON’T CARE, WE DON’T HAVE TO”: PART TWO (END)

In Bureaucracy, Business, History, Law, Law Enforcement, Social commentary on July 21, 2015 at 9:35 am

It’s become as routine as the robbery of the corner liquor store.

Name-brand companies, trusted by millions, hit with massive data breaches that compromise their customers’ and/or employees’ most sensitive financial and personal information.

Among those companies:

  • Target
  • Kmart
  • Home Depot
  • JPMorgan/Chase
  • Staples
  • Dairy Queen
  • Anthem, Inc.
  • Sony Pictures
  • Primera Blue Cross
  • U.S. Postal Service

Click here: Data Breach Tracker: All the Major Companies That Have Been Hacked | Money.com

And as of July 15, Ashley Madison joined this list.

Ashley Madison is, of course, the notorious website for cheating wives and husbands.

Launched in 2001, its catchy slogan is: “Life is short.  Have an affair.”

One of its ads featured a photo of a woman apparently kneeling at the feet of a bare-chested man, her hand passionately clawing at his belt.  Next to her was the caption: “Join FREE & change your life today.  Guaranteed!”

Ashley Madison claims to have more than 37 million members.

Calling themselves “The Impact Team,” hackers appear to be enraged at the company’s “full delete” service, which promises to completely erase a user’s profile and all associated data for a $19 fee.

“Full Delete netted [Avid Life Media, the parent company of Ashley Madison] $1.7 million in revenue in 2014,” the hackers were quoted as saying in an online manifesto.  “It’s also a complete lie.

“Users almost always pay with credit card; their purchase details are not removed as promised, and include real names and address, which is of course the most important information the users want removed.”

On July 20, Avid Life Media defended the service, and said it would make it free.

Adultery-dating website Ashley Madison hacked

The hackers demanded: “AM [Ashley Madison] AND EM [Established Men] MUST SHUT DOWN IMMEDIATELY PERMANENTLY.

“We have taken over all systems in your entire office and production domains, all customer information databases, source code repositories, financial records, emails.

“Shutting down AM and EM will cost you, but non-compliance will cost you more.”

The hackers threatened to “release all customer records, including profiles with all the customers’ secret sexual fantasies and matching credit card transactions, real names and addresses, and employee documents and emails.”

Interestingly, the hackers did not target the company’s “CougarLife” website, which caters to female members seeking “a young stud.”

Avid Life Media assured its customers that it had hired “one of the world’s top IT security teams” to work on the breach:

“At this time, we have been able to secure our sites, and close the unauthorized access points. We are working with law enforcement agencies, which are investigating this criminal act.”

This statement gives new meaning to the phrase, “Closing the barn door after the cow has gotten out.”

It’s almost comical, except for the fact that the marriages of millions of people are likely to be threatened by the release of such information.

And it raises the question: Why wasn’t this “top IT security team” hired at the outset?

A website offering cheating services to those wealthy enough to afford high-priced fees is an obvious target for hackers. After all, its database is a blackmailer’s dream-come-true.

This latest breach comes about two months after a similar dating site, Adult FriendFinder–with an estimated 64 million members–was hit with a similar attack.

Again, it was clear that a site like this would be a prime target for those seeking information for blackmail. Yet apparently its owners didn’t care enough about the privacy of their customers to provide adequate security.

“Without question, this is incredibly valuable information,” said J.J. Thompson, founder and chief executive of Rook Security, an IT security firm.

“[Ashley Madison’s customers] are now vulnerable to a significant secret.”

As usual when a corporation’s data breach occurs, Ashley Madison issued a reassuring statement: “We are working with law enforcement agencies, which are investigating this criminal act.

“Any and all parties responsible for this act of cyber-terrorism will be held responsible.”

Brave-sounding words.  But if the hackers make good on their threat, many prominent men in business and politics may soon find themselves facing expensive divorces.

And if that happens, at least some of them may well decide to take out their anger and embarrassment on the websits that assured them that the highly private information they shared was “100% secure.”

That could set a precedent for lawsuits by other victims of such data breaches. Which, in turn, could force profit-obsessed corporations to responsibly protect the highly sensitive information entrusted to them.

There is an important lesson to be learned from this latest disaster.

“Stuff that’s online is pretty much not private, no matter what you might hope or think or wish for,” said Geoff Webb, senior director of solution strategy for security management firm NetIQ.

Old records, like transactions and account details, remain in company databases long after you’ve deleted an account, he said, because the company needs them for tax and other business purposes.

“There used to be an old saying that everybody ends up naked on the Internet at some point,” said Webb.

Although that was meant figuratively, patrons of websites like Ashley Madison could soon find it applying literally.

DATA SECURITY BREACHES: “WE DON’T CARE, WE DON’T HAVE TO”: PART ONE (OF TWO)

In Bureaucracy, Business, Law, Law Enforcement, Social commentary on July 20, 2015 at 12:20 pm

Comedian Lily Tomlin rose to fame on the 1960s comedy hit, Rowan & Martin’s Laugh-In, as Ernestine, the rude, sarcastic switchboard operator for Ma Bell.

She would tap into customers’ calls, interrupt them, make snide remarks about their personal lives.  And her victims included celebrities as much as run-of-the-mill customers.

Lily Tomlin as Ernestine

She introduced herself as working for “the phone company, serving everyone from presidents and kings to the scum of the earth.”

But perhaps the line for which her character is best remembered was: “We don’t care. We don’t have to. We’re the phone company.”

Watching Ernestine on Laugh-In was a blast for millions of TV viewers.  But facing such corporate arrogance in real-life is no laughing matter.

Clearly, too many companies take the same attitude as Ernestine: “We don’t care.  We don’t have to.”

This is especially true for companies that are supposed to safeguard their customers’ most sensitive information–such as their credit card numbers, addresses, emails and phone numbers.

An October 22, 2014 “commentary” published in Forbes magazine raised the highly disturbing question: “Cybersecurity: Does Corporate America Really Care?”

And the answer is clearly: No.

Its author is John Hering, co-founder and executive director of Lookout, which bills itself as “the world leader in mobile security for consumers and enterprises alike.”

Click here: Cybersecurity: Does corporate America really care?

October, 2014 proved a bad month for credit card-using customers of Kmart, Staples and Dairy Queen.

All these corporations reported data breeches involving the theft of credit card numbers of countless numbers of customers.

Earlier breaches had hit Target, Home Depot and JPMorgan/Chase.

And on February 5, 2015, health insurance giant Anthem Inc. announced that hackers had breached its computer system and accessed the medical records of tens of millions of its customers and employees.

Anthem, the nation’s second-largest health insurer, said the infiltrated database held records on up to 80 million people.

Among the customers’ information accessed:

  • Names
  • Birthdates
  • Social Security numbers
  • Member ID numbers
  • Addresses
  • Phone numbers
  • Email addresses and
  • Employment information.

Some of the customer data may also include details on their income.

Click here: Anthem hack exposes data on 80 million; experts warn of identity theft – LA Times

Bad as that news was, worse was to come.

A February 5 story by the Wall Street Journal revealed that Anthem stored the Social Security numbers of 80 million customers without encrypting them.

The company believes that hackers used a stolen employee password to access the database

Anthem’s alleged reason for refusing to encrypt such sensitive data: Doing so would have made it harder for the company’s employees to track health care trends or share data with state and Federal health providers.

Anthem spokeswoman Kristin Binns blamed the data breach on employers and government agencies who “require us to maintain a member’s Social Security number in our systems so that their systems can uniquely identify their members.”

She said that Anthem encrypts personal data when it moves in or out of its database–but not where it  is stored.

This is a commonplace practice in the healthcare industry.

The FBI is now investigating the hack.

According to an anonymous source, the hackers used malware that has been used almost exclusively by Chinese cyberspies.

Naturally, China has denied any wrongdoing.  With a completely straight face, Chinese Foreign Ministry spokesman Hong Lei said:

“We maintain a cooperative, open and secure cyberspace, and we hope that countries around the world will make concerted efforts to that end.”

He also said that the charge that the hackers were Chinese was “groundless.”

Click here: Health Insurer Anthem Didn’t Encrypt Stolen Data – WSJ

Meanwhile, John Hering’s complaints remain as valid today as they did last October.

“One thing is clear,” writes Hering. “CEOs need to put security on their strategic agendas alongside revenue growth and other issues given priority in boardrooms.”

Hering warns that “CEOs don’t seem to be making security a priority.”  And he offers several reasons for this:

  • The sheer number of data compromises;
  • Relatively little consumer outcry;
  • Almost no impact on the companies’ standing on Wall Street;
  • Executives may consider such breaches part of the cost of doing business.

“There’s a short-term mindset and denial of convenience in board rooms,” writes Hering.

“Top executives don’t realize their systems are vulnerable and don’t understand the risks. Sales figures and new products are top of mind; shoring up IT systems aren’t.”

There are three ways corporations can be forced to start behaving responsibly on this issue.

  1. Smart attorneys need to start filing class-action lawsuits against companies that refuse to take steps to protect their customers’ private information.  There is a name for such behavior: Criminal negligence.  And there are laws carrying serious penalties for it.
  2. There must be Federal legislation to ensure that multi-million-dollar fines are levied against such companies–and especially their CEOs–when such data breaches occur.
  3. Congress should enact legislation allowing for the prosecution of CEOs whose companies’ negligence leads to such massive data breaches. They should be considered as accessories to crime, and, if convicted, sentenced to lengthy prison terms.

Only then will the CEO mindset of “We don’t care, we don’t have to” be replaced with: “We care, because our heads will roll if we don’t.”

DATA SECURITY BREACHES: “WE DON’T CARE, WE DON’T HAVE TO”

In Bureaucracy, Business, History, Law, Politics, Social commentary on February 9, 2015 at 2:06 am

Comedian Lily Tomlin rose to fame on the 1960s comedy hit, Rowan & Martin’s Laugh-In, as Ernestine, the rude, sarcastic switchboard operator for Ma Bell.

She would tap into customers’ calls, interrupt them, make snide remarks about their personal lives.  And her victims included celebrities as much as run-of-the-mill customers.

Lily Tomlin as Ernestine

She introduced herself as working for “the phone company, serving everyone from presidents and kings to the scum of the earth.”

But perhaps the line for which her character is best remembered was: “We don’t care. We don’t have to. We’re the phone company.”

Watching Ernestine on Laugh-In was a blast for millions of TV viewers.  But facing such corporate arrogance in real-life is no laughing matter.

Clearly, too many companies take the same attitude as Ernestine: “We don’t care.  We don’t have to.”

This is especially true for companies that are supposed to safeguard their customers’ most sensitive information–such as their credit card numbers, addresses, emails and phone numbers.

An October 22, 2014 “commentary” published in Forbes magazine raised the highly disturbing question: “Cybersecurity: Does Corporate America Really Care?”

And the answer is clearly: No.

Its author is John Hering, co-founder and executive director of Lookout, which bills itself as “the world leader in mobile security for consumers and enterprises alike.”

Click here: Cybersecurity: Does corporate America really care?

October, 2014 proved a bad month for credit card-using customers of Kmart, Staples and Dairy Queen.

All these corporations reported data breeches involving the theft of credit card numbers of countless numbers of customers.

Earlier breaches had hit Target, Home Depot and JPMorgan/Chase.

And on February 5, 2015, health insurance giant Anthem Inc. announced that hackers had breached its computer system and accessed the medical records of tens of millions of its customers and employees.

Anthem, the nation’s second-largest health insurer, said the infiltrated database held records on up to 80 million people.

Among the customers’ information accessed:

  • Names
  • Birthdates
  • Social Security numbers
  • Member ID numbers
  • Addresses
  • Phone numbers
  • Email addresses and
  • Employment information.

Some of the customer data may also include details on their income.

Click here: Anthem hack exposes data on 80 million; experts warn of identity theft – LA Times

Bad as that news was, worse was to come.

A February 5 story by the Wall Street Journal revealed that Anthem stored the Social Security numbers of 80 million customers without encrypting them.

The company believes that hackers used a stolen employee password to access the database

Anthem’s alleged reason for refusing to encrypt such sensitive data: Doing so would have made it harder for the company’s employees to track health care trends or share data with state and health providers.

Anthem spokeswoman Kristin Binns blamed the data breach on employers and government agencies who “require us to maintain a member’s Social Security number in our systems so that their systems can uniquely identify their members.”

She said that Anthem encrypts personal data when it moves in or out of its database–but not where it  is stored.

This is a commonplace practice in the healthcare industry.

The FBI is now investigating the hack.

According to an anonymous source, the hackers used malware that has been used almost exclusively by Chinese cyberspies.

Naturally, China has denied any wrongdoing.  With a completely straight face, Chinese Foreign Ministry spokesman Hong Lei said:

“We maintain a cooperative, open and secure cyberspace, and we hope that countries around the world will make concerted efforts to that end.”

He also said that the charge that the hackers were Chinese was “groundless.”

Click here: Health Insurer Anthem Didn’t Encrypt Stolen Data – WSJ

Meanwhile, John Herring’s complaints remain as valid today as they did last October.

“One thing is clear,” writes Hering. “CEOs need to put security on their strategic agendas alongside revenue growth and other issues given priority in boardrooms.”

Hering warns that “CEOs don’t seem to be making security a priority.”  And he offers several reasons for this:

  • The sheer number of data compromises;
  • Relatively little consumer outcry;
  • Almost no impact on the companies’ standing on Wall Street;
  • Executives may consider such breaches part of the cost of doing business.

“There’s a short-term mindset and denial of convenience in board rooms,” writes Hering.

“Top executives don’t realize their systems are vulnerable and don’t understand the risks. Sales figures and new products are top of mind; shoring up IT systems aren’t.”

There are three ways corporations can be forced to start behaving responsibly on this issue.

  1. Smart attorneys need to start filing class-action lawsuits against companies that refuse to take steps to protect their customers’ private information.  There is a name for such behavior: Criminal negligence.  And there are laws carrying serious penalties for it.
  2. There must be Federal legislation to ensure that multi-million-dollar fines are levied against such companies–and especially their CEOs–when such data breaches occur.
  3. Congress should enact legislation allowing for the prosecution of CEOs whose companies’ negligence leads to such massive data breaches.  They should be considered as accessories to crime, and, if convicted, sentenced to lengthy prison terms.

Only then will the CEO mindset of “We don’t care, we don’t have to” be replaced with: “We care, because our heads will roll if we don’t.”

WHY THE POOR SUPPORT THE RICH: PART TWO (END)

In Bureaucracy, History, Law, Politics, Social commentary on August 1, 2014 at 10:53 am

Republicans have long tried to prevent or eliminate programs that aid the poor and middle-class, including:

  • Social Security – since it began in 1935
  • Medicare  – since it began in 1965
  • Food stamps – since it began in 1964
  • WIC (Women, Infants, Children) – since 1972
  • The Affordable Care Act (Obamacare) – since 2010

So why are so many poor Americans now flocking to this party’s banner?

Two reasons: Racism and greed.  There are historical parallels for both.

Racism:

In 1999, historian Victor Davis Hanson noted the huge gap in wealth between the aristocratic, slave-owning minority of the pre-Civil War South and the vast majority of poor white Southerners.

“Before the war in the counties Sherman would later ruin, the top 10% of the landowners controlled 40% of the assessed wealth.”

In contrast, “more than half of those who were lucky enough to own any property at all still possessed less than 15% of the area’s valuation.”

So Hanson asked: “Why did the millions of poor whites of the Confederacy fight at all?”

He supplied the answer in his brilliant work on military history, The Soul of Battle: From Ancient Times to the Present Day, How Three Great Liberators Vanquished Tyranny.

One of those liberators was General William Tecumseh Sherman, who led 62,000 Union troops in a victorious “March to the Sea” through the Confederacy in 1864.

So why did so many poor Southern whites literally lay down their lives for the wealthy planter class, which despised them?

According to Hanson: “Behind the entire social fabric of the South lay slavery.

“If slavery eroded the economic position of the poor free citizens, if slavery encouraged a society of haves and have-nots…then it alone offered one promise to the free white man–poor, ignorant and dispirited–that he was at least not black and not a slave.”

And the planter class and its allies in government easily fobbed off their poor white countrymen with cheap flattery.  Said Georgia Governor Joseph Brown:

“Among us the poor white laborer is respected as an equal.  His family is treated with kindness, consideration, and respect.  He does not belong to the menial class.  The negro is in no sense his equal.   He belongs to the only true aristocracy, the race of white men.”

The reality of slavery

Similarly, poor whites now flock to the Republican Party–which holds them in equal contempt– in large part to protest the 2008 election of the first black President of the United States.

According to a Pew Research Center study released on July 22, 2011: “Notably, the GOP gains have occurred only among white voters; a 2-point Republican edge among whites in 2008 (46% to 44%) has widened to a 13-point lead today (52% to 39%).”

GOP Makes Big Gains among White Voters | Pew Research Center for the People and the Press

Since the 1960s, Republicans have pursued a campaign policy of “divide and rule”–divide the nation along racial lines and reap the benefits at election time.

  • Republicans opposed the Civil Rights Act of 1964.
  • Republicans opposed the Voting Rights Act of 1965.
  • Republicans, with Richard Nixon as their Presidential candidate in 1968 and 1972, pursued what they called a “Southern strategy”: Use “code language” to stoke fear and hatred of blacks among whites.
  • Republicans have falsely identified welfare programs exclusively with non-whites.  (Of the six million Americans receiving food stamps, about 42 percent are white, 32 percent are black, and 22 percent are Latino—with the growth fastest among whites during the recession.)

Thus, in voting Republican, many of these poor whites believe they are “striking a blow for the white race.”

And they can do so in a more socially acceptable way than joining a certified hate group such as the American Nazi Party or Ku Klux Klan.

Greed:

In the hit play, 1776, on the creation and signing of the Declaration of Independence, there is a telling exchange between John Dickinson and John Hancock.  It comes during the song, “Cool, Cool, Considerate Men.”

Dickinson, the delegate from Pennsylvania, urges Hancock, president of the Second Continental Congress, “to join us in our minuet.”

By “us” he means his fellow conservatives who fear losing their property and exalted status by supporting American independence from Great Britain.

Hancock declines, saying: “Fortunately, there are not enough men of property in America to dictate policy.”

To which Dickinson replies:  “Perhaps not.  But don’t forget that most men with nothing would rather protect the possibility of becoming rich than face the reality of being poor.  And that is why they will follow us.”

Today, poor whites generally identify with the CEOs of powerful corporations.  They believe the Republican gospel that they can attain such wealth–if only the government will “get out of my way.”

They forget–or ignore–the brutal truth that government, for all its imperfections, is sometimes all that stands between them and a wide range of predators.

In return, the CEOs despise them as the privileged have always despised their social and economic “inferiors.”

Unless the Democratic Party can find ways to directly address these bitter, Politically Incorrect truths, it will continue its decline into insignificance.

WHY THE POOR SUPPORT THE RICH: PART ONE (OF TWO)

In Bureaucracy, History, Law, Politics, Social commentary on July 31, 2014 at 3:44 pm

On July 22, 2011, the Pew Foundation, analyzing voter identification, found that the GOP had gained strength among white voters, most specifically “the young and poor.”

A seven-point Democratic advantage among whites under age 30 three years earlier had turned into an 11-point GOP advantage.

And a 15-point Democratic advantage among whites earning less than $30,000 annually had swung to a slim four-point Republican edge.

In addition:

  • The GOP gains have occurred only among white voters.
  • Republicans have made sizable gains among white voters since 2008.
  • Fifty-two percent of white voters now call themselves Republicans or lean to the GOP, compared with 39% who affiliate with the Democratic Party or lean Democratic.
  • Democrats have lost their edge among lower income white voters.
  • In 2008, Democrats had a 15 point lead among white voters with family incomes less than $30,000.  Republicans now have a four-point edge among this group.
  • The GOP’s lead among middle income white voters also has grown since 2008, and Republicans hold a substantial advantage with higher income white voters.
  • Republicans have made gains among whites with a high school education or less.
  • The GOP’s advantage over Democrats grew from one point in 2008 to 17 points in 2011 among less educated whites.
  • Republicans have made smaller gains among whites voters who have college degrees.

What is fascinating about these findings is this: The Republicans have, since 1980, pursued a policy of gutting programs aimed at helping the poor–while repeatedly creating tax-breaks for the wealthiest 1% of the population.

For Republicans, the patron saint of this “love-the-rich-screw-the-poor” ideology remains Ronald Reagan.  Reagan served as governor of California (1967-1974) and President of the United States (1981-1989).

Ronald Reagan

Among those charting Reagan’s legacy as President was former CBS Correspondent David Schoenbrun In his bestselling autobiography, America Inside Out: At Home and Abroad from Roosevelt to Reagan, he noted:

  • On January 28, 1981, keeping a pledge to his financial backers in the oil industry, Reagan abolished Federal controls on the price of oil.
  • Within a week, Exxon, Texaco and Shell raised gasoline prices and prices of home heating oil.
  • Reagan saw it as his duty to put a floor under prices, not a ceiling above them.
  • Reagan believed that when government helped business it wasn’t interfering.   Loaning money to bail out a financially incompetent Chrysler was “supporting the free enterprise system.”
  • But putting a high-profits tax on price-gouging corporations or filing anti-trust suits against them was “Communistic” and therefore intolerable.
  • Tax-breaks for wealthy businesses meant helping America become stronger.
  • But welfare for the poor or the victims of a predatory marketplace economy weakened America by sapping its morale.

“In short,” wrote Schoenbrun,”welfare for the rich is good for America.  But welfare for the poor is bad for America, even for the poor themselves, for it encourages them to be shiftless and lazy.

“Somehow, loans to the inefficient management of American corporations would not similarly encourage them in their inefficient methods.”

Republicans have sought to dismantle Social Security ever since that program began in 1935.  And Republicans have furiously opposed other programs aiding the poor and middle-class–such as Medicare, food stamps and WIC (Women, Infants, Children).

In short, this is not a political party with a history of rushing to the defense of those most in need.

So the question remains: Why are so many poor Americans now flocking to its banner?

Two reasons: Racism and greed.  There are historical parallels for both.

Racism:

In 1999, historian Victor Davis Hanson noted the huge gap in wealth between the aristocratic, slave-owning minority of the pre-Civil War South and the vast majority of poor white Southerners.

“Before the war in the counties Sherman would later ruin, the top 10% of the landowners controlled 40% of the assessed wealth.”

In contrast, “more than half of those who were lucky enough to own any property at all still possessed less than 15% of the area’s valuation.”

So Hanson asked: “Why did the millions of poor whites of the Confederacy fight at all?”

He supplied the answer in his brilliant work on military history, The Soul of Battle: From Ancient Times to the Present Day, How Three Great Liberators Vanquished Tyranny.

One of those liberators was General William Tecumseh Sherman, who led 62,000 Union troops in a victorious “March to the Sea” through the Confederacy in 1864.

So why did so many poor Southern whites literally lay down their lives for the wealthy planter class, which despised them?

GREED? THY NAME IS AYN

In Business, History, Politics, Social commentary on March 13, 2013 at 12:00 am

“Thirty years after her death, Ayn Rand’s ideas have never been more important.

“Unfettered capitalism, unregulated business, bare-bones government providing no social services, glorification of selfishness, disdain for Judeo-Christian morality—these are the tenets of Rand’s harsh philosophy.”

So reads the jacket blurb for Ayn Rand Nation: The Struggle for America’s Soul, by Gary Weiss.

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“The timing of this book couldn’t be better for Americans who are trying to understand where in the hell the far-out right’s anti-worker, anti-egalitarian extremism is coming from,” asserts Jim Hightower, New York Times bestselling author of Thieves in High Places.

Ayn Rand Nation introduces us to the godmother of such Tea Party craziness as destroying Social Security and eliminating Wall Street regulation. Weiss writes with perception and wit.”

For those who believe that Rand’s philosophy is the remedy for America’s economic and social ills, a 60 Minutes news story sounds a warning.

New England Compounding Center (NECC) pharmacy, based in Framington, Massachusetts, is under criminal investigation.  The reason: Shipping, in the fall of 2012, 17,000 vials of a steroid to be injected into the joints or spines of patients suffering chronic pain.

But instead of relieving pain, this steroid–contaminated with fungal meningitis–brought only agony and death.

The vials went out to thousands of pharmacies scattered across 23 states.

Forty-eight people have died, and 720 are still fighting horrific infections caused by the drug.

Just as Ayn Rand would have wanted, the pharmacy managed to avoid supervision by the Food and Drug Administration (FDA).

NECC was one of thousands of pharmacies that Congress exempted from FDA oversight. The reason: By law, they are allowed to make custom drugs for just one patient at a time.

But within a few years, NECC went national–and vastly expanded the quantities of drugs produced.

“The underlying factor is that the company got greedy and overextended and we got sloppy, and something happened,” John Connolly, a lab technician for the company, told 60 Minutes, the CBS news magazine.

And, also as Rand would have wanted, the four family members who founded the pharmacy were enriched by it–receiving over $16 million in wages and profits, from December 2011 through November 2012.

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Bankruptcy records show the family members racked up $90,000 on corporate American Express credit cards, including charges made after the company shut down in early October.

A month before the first steroid death, Connolly says he warned his supervisor: “Something’s gonna happen, something’s gonna get missed and we’re gonna get shut down.”

His supervisor just shrugged.

NECC was shut down by the authorities.  Barry Cadden, the president and lead pharmacist of the company, was subpoenaed by Congress to testify.  In true gangster fashion, he pleaded the Fifth.

He claims he doesn’t know how the contamination started.

Which brings us back to Ayn Rand–and, more specifically, Ayn Rand Nation.

Among the themes explored in Weiss’ book:

  • Atlas Shrugged–Rand’s 1957 novel–depicts a United States where many of society’s most productive citizens refuse to be exploited by increasing taxation and government regulations and go on strike. The refusal evokes the imagery of what would happen if the mythological Atlas refused to continue to hold up the world.  The novel continues to influence those who aren’t hard-core Rand followers, who are known as Objectivists.
  • Ayn Rand’s novels dramatically affirm such bedrock American values as independence, creativity, self-reliance, and above all, a permanent distrust of government.
  • In Rand’s 1936 novel, We the Living–set in Soviet Russia–her heroine, Kira Argounova, tells a Communist: “I loathe your ideals; I admire your methods.” Objectivists believe in defending capitalism with the same ruthless methods of Communists.
  • In Rand’s ideal world, government would control only police, armies and law courts.  To her, a   government which performs more than these three functions is not simply impractical or expensive: it is evil.

Many of those who embrace Rand substitute rage for logic: Tea Partiers are furious about the 2008 Wall Street crash, yet they blame the government for it.

(Ironically, in a way, they are right: The government can be blamed–but not for too much regulation of greed-fueled capitalists but too little.)

Weiss asserts that Tea Party members resent the social and economic realities facing the nation, but lack a coherent intellectual framework to help them focus and justify their rage.  But Objectivists have–and offer–such a framework.

Thus, Tea Partiers form the ideological part of the right wing, and the clarity–and fanaticism–of their views gives them a power far out of proportion to their numbers.

Weiss believes that Rand is presenting a moral argument for laissez-faire capitalism, which means eliminating  Social Security, Medicare, public road system, fire departments, parks, building codes–and, above all, any type of financial regulation.

Weiss maintains that Rand’s moral argument must be directly confronted–and defeated–with moral arguments calling for charity and rationality.

Given the fanaticism of Tea Partiers and the right-wing Republicans they support, success in countering Rand’s “I’ve-got-mine-and-the-hell-with-everybody-else” morality is by no means assured.