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May 21, 2008

Major bust of phishing ring

The FBI announced a major bust of 38 members of a phishing ring in the US and Romania.

The Romanians are charged with stealling the card numbers and selling them to 'cashiers' in the US who are charge with creating fake cards to withdraw the money from ATMs.

Most banks have deployed security measures that prevent this particular mode of attack for several years. so the case has quite likely been developing for quite a while. Prosecutors charge the crimes they have the best chance of gaining convictions for. There are long delays in the system but it is very likely that we will see a steady rise in prosecutions for this type of bank-fraud as cases started in 2003 on start to come to fruition.

The mills of justice grind slowly, but they grind exceedingly fine.

Update: Gary Warner has a summary of the 77 page indictment. The charges relate to activity between 2006 and 2008. In addition to the ATM cashout described in the indictment they were up to other scams.

May 02, 2008

As the gas prices get tough, the tough shop online?

"How about a fun post relating the price of gas to online shopping?" Its an interesting question, but I cannot promise the answer to be much fun.


Rising gas prices have been a source of some concern for people here in the US. When I first moved to the US in 1995 the price of gas was under $1 a gallon. Today it is close to $4. While that is still much less than I was paying 20 odd years ago in the UK it is a significant rise and even if the recent supply restrictions or weakness of the dollar were to reverse there is little reason to believe that the long term trend will follow.


As the Western lifestyle spreads, so do Western patterns of consumption. That means greater demand for energy, in particular oil and greater demand for resource intensive food, in particular meat and high water demand crops such as wheat. As Gandhi once observed, it took the resources of half the world to support the British Empire at its peak, how many worlds would India require to achieve the same standard of living?


To date the Web has quite definitely been a contributing factor in the energy crisis. In addition to the significant quantities of energy require to run the Internet infrastructure itself, Web content is evangelizing the adoption of the high consumption Western lifestyle at breakneck pace. And just as the short term impact of the electronic office was to cause an increase in demand for paper as more documents were produced and printed out, remote collaboration technologies such as the Web, email and voice conferencing appear to be driving increased demand for long distance travel rather than reducing it.


But before we get too desperate, there is also reason for optimism. Although the electronic office did increase demand for paper short term, my friend who analyzes such things tells me that the demand for paper has been sharply reducing in recent years. In particular demand for newsprint is plummeting. This is certainly consistent with my own experience, I used to buy at least one newspaper paper a day, today I only ever buy a paper at an airport to read on a plane.


I expect the longer term effect of the Web will be similar. In the short term online shopping probably increases net energy consumption per product delivered. But as scale increases and the efficiency of the entire supply chain is improved over time the energy input per unit delivered should begin to drop. Five years ago very few people were talking about energy cost or availability in building large data centers. Today it ranks ahead of staffing. It is easier (and cheaper) to take the employees to the cost efficient energy supply than vice-versa.


It seems to be a law of nature that things have to get worse to get better. Eventually we will have high quality electronic books that are better than paper and high quality teleconferencing that is better than meeting in person. We are not quite there today, but there is no reason we cannotget there in the very near future.

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