In this age of identity theft, autumn is upon us and winter is looming. With each new data theft, more and more identities fall into the hands of thieves. Financial institutions have largely adopted my childhood reaction to the problem by “whistling into the wind”. They have quite reasonably decided that it is simply too great a task to identify two identities among the billions of individuals on this planet, so, they “play the numbers game”, accepting a reasonable amount of loss as the “cost of doing business”. It is still autumn, so the losses are still small enough to make this policy fiscally attractive.

But winter is coming.

As a CEO of a security company, this may seem an unpleasant assessment. I do not wish to appear melodramatic or pessimistic, but sitting where I sit, I have an unique opportunity to look across the financial industry and I can tell you that the time is fast approaching when it will no longer be possible to ignore the losses from identity theft. The day will come when these identity theft losses, these “costs of doing business”, will simply overtake the profits from doing business.

 

The day will come when so many people will be promoting another’s identity as their own that financial institutions will be unable to stay in business. Mortgage lenders will stop lending. Brokerage houses will stop trading. Banks will stop taking new customers. It will simply be a matter of economics. No mortgage company will be able to stay in business when the losses they incur from defaulted, fraudulently-obtained loans exceed the profits they make from lending. No bank will be able to keep its doors open when the losses incurred from hijacked accounts, customer lawsuits, and insurance premiums exceed their bottom line.

OSA Editorial Comments:

This is a wonderful article and it has confrimed what is happening around the world with more than just our personal ID theft issues, make sure and read this entire article and become involved in the fight! find out more about: Authentication

I am glad to see that global Authentication specialists and banking officials are taking a active rolls in trying to solve some of the major problems, including more mandatory industry changes with authentication methods, being made universal!

It’s time to say: “enough is enough” or scream out from the rooftops that “Were not going to Take IT Anymore!!” We as an Internet family have to band together and force politicians, the Federal Government, and International Financial leaders to make changes in how we treat Cyber Criminals.

Cyber crimes are premeditated and as such should be punished accordingly! — NO Tolerance NO 3 Strikes, NO Parole, if you do the crime you do the time! We are heading into the summer months so autumn is just around the corner, could it be this year, or maybe next or could it be 2010 it will happen, we need to prepare NOW!

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Bill Wardell

Written by: OSAblogger / Bill Wardell - Please Read Our Latest OSA eZine Edition

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