The Case of the Unscrupulous Bank Employee

The hesitance to transact online is largely based on the fear of online fraud.  However, this type of risk isn’t unique to online transactions alone.  Just recently, I heard (from a reliable insider source, of course) of a credit card fraud perpetuated by a bank employee.  The employee was working as a customer service representative for the bank’s credit card department.  As such, he had access to the cardholder’s account and personal information and the authority to make changes to it, ideally, only when asked by the client.  If you have a credit card and have called their customer service hotline at least once, you would know that all they would need from you to verify that you really are the cardholder is your birthday, billing address, last credit balance, last three digits at the back of the card, etc.  In short, information that can easily be known to or accessed by people coming in and out of your home or office.  Information plus unscrupulous employee plus insufficient security measures equals fraud waiting to happen.  The employee called the bank’s customer service line, pretended to be the cardholder, verified the account successfully through information he has acquired as such employee, asked to have the billing address changed, ordered the processing of a supplementary card in his name (or most likely his bogus identity), then asked that his credit limit be increased (although, allegedly, he increased the cardholder’s credit limit himself as he had the authority to do so, purportedly to about a million pesos).  The supplementary card was delivered to the new billing address and the shopping began.  The employee knew the internal workings of the bank and made sure that he called for authorization before making a huge purchase to prevent the bank from holding the transaction and calling the principal cardholder first before authorizing it.  It was probably about a month later after the cardholder received his billing statement when the fraud was discovered.  The employee was long gone, the credit limit stretched to the hilt and the bank was left to pacify a very angry client and bear a considerable loss.

Fraud happens in any form – virtually or physically, internally or externally. The fact that information is available through public channels does not make it more susceptible to crime.  Any stored information is open for misuse or abuse.  Online insecurity is probably just an overblown fear.  It is a fear that equally exists in the physical world.   Businesses and institutions are constantly developing ways to improve the security of their database and online division.  Visa, for example, has launched an online security program called Verified by Visa (as I discovered to my inconvenience because apparently you can’t purchase online tickets from Philippine Airlines anymore unless your bank is enrolled in the program.  Unfortunately, the only bank in the Philippines enrolled is HSBC).  Verified by Visa gives you a PIN or password other than that provided by your bank (which is usually just the last three digits at the back of the credit card) to be used when purchasing online.  The program also provides a list of Visa accredited online shops and offers a sort of fraud watch program where cardholders can report internet fraud.  In fact, as in the case above, companies may have concentrated their eye on disproving and fighting online insecurity so much that they may have overlooked security measures for their operations and human resources department.  In the case of the bank, the employee was given too much authority without proper checks by his supervisor or the system itself.  The verification system was likewise flawed.  It would have been appropriate to require the customer service representative to call the client to authenticate the source of the request.   When the security measure lies on such personal information, it should not be so easy to modify that information.

Ironically, had the client utilized the online banking feature available to him and checked his account regularly (*cough* paranoid *cough*), he could have detected the fraud earlier.  Financial loss on the part of the bank could have been reduced.  The bank could have conducted a surreptitious investigation before the culprit’s scheduled escape.

Learning the E-sy Way

There is a new and exciting delivery mode which utilizes technology to increase the effectiveness and accessibility of learning these days. This mode provides the learner with information that can be accessed at his or her own time, place and pace. This is called e-Learning.

Wikipedia defines electronic learning (or e-Learning or eLearning) as “a type of education where the medium of instruction is computer technology. No in-person interaction may take place in some instances…In most Universities, e-learning is used to define a specific mode to attend a course or programmes of study where the students rarely, if ever, attend face-to-face or for on-campus access to educational facilities, because they study on-line.”

The Philippines society has adopted this alternative as manifested by the number of online English tutorial centers which cater mostly to Japanese and Koreans. These centers which proliferate like mushrooms in the country promise to have conversation classes online and to send written material by email among others. There are also a number of private online English tutorials which offer the same services at lower rates.

A number of institutions have also opened their doors to this alternative learning method. The University of the Philippines has its 13-yr old Open University which aims ‘to provide education opportunities to individuals aspiring for higher education and improved qualifications but who are unable to take advantage of traditional modes of education.” De La Salle University also has course offerings delivered via this method.

Government has also adopted this as exemplified by the eLearning center for workers in Ermita, Manila and the Mindanao eLearning Space to name a few.

The benefits of eLearning are endless. These include minimal cost incurred. Students need not go to campuses to attend classes. Teachers in the UP Open University can pursue their Masters while working in institutions outside the metro. Koreans need not go to Philippines to meet their online English tutors.

Aside from that, less infrastructure would also equate to less cost due to minimal human interaction. Any place with a working computer will suffice to avail of it.

Furthermore, modules and activities are given which can be accomplished at one’s own pace. My mother finished her Masters through the UP Open University amid her full-time work in the province and pregnancy. It did not matter if she was in her job nor if she was on her way to the oby-gyne while completing the assignments for the given week.

Indeed, e-Learning can be said to bridge the digital divide in the Philippines and in the world. Whether remotely located elsewhere during the entire e-Learning experience or not as long as one has access to computers, one can learn.

However, disadvantages can also be cited which include the possibility that learners may not be able to full comprehend instructions online. Consultations or request for clarifications of instructions and requirements may become less availed of. Interpersonal relationships with co-e-Learners may not be maximized since they rarely meet or sometimes never even meet. Add to these the fact that computers may not be as efficient.

But the disadvantages cannot overshadow the advantages of e-learning. Especially in difficult times, the government and the country in general should realize the potential of e-learning such that it becomes imperative that its use should be maximized.

Embracing (and Indulging in) the Internet

This is my first blog entry. And as much as I proclaimed that I would never blog for reasons which oftentimes offend my blogger friends, here I am making my first blog entry. Indeed, the technology era has invaded our lives making more and more recalcitrant people, like me, realize that it is not just a fad or technical eureka but a utility or way of life. The proliferation of prepaid Internet cards, DSL plans, online games, virtual private networks, online content services, online banking, and online marketing strategies to name a few attests to this.

Alexander Villafania, in his 2004 article published in the Philippine Star, “Looking back at 10 years of Internet in RP”, provides an interesting backdrop for the emergence of Internet in the Philippines. He cites that the Internet was seen as “nothing more than a fad that would pass into oblivion” which was also my mindset being not as technical savvy as my friends. The telephone was seen as a sufficient communication medium along with the pager. But it was eventually the telephone which paved the way for internet to exist in the country.

He claims that the PHNet is the first Philippine organization to connect to the World Wide Web using the PABX network. He also claims that if there is one who deserves to be called a progenitor of Internet connectivity in the Philippines, it is Mozcom President William Torres dubbed as “grandfather of Internet” in the country. William Torres along with other Philippine internet visionaries saw the potential of Internet. At first it was the domain of the technical geeks and those in the academe in communicating with educational institutions since it was seen as cheaper than the phone and fax but later on the commercial aspect would eventually catch up. Gradually, online businesses proliferated and Cybercities in Makati, The Fort, Eastwood, Alabang to name a few were established with a lot more in development. Call centers flourished with PLDT and Globe providing the larger bandwidths necessary for the industry. Mobile applications are tapped realizing the extent of mobile phone usage. And evidently, the Internet has invaded the country.

And rightfully so, it has invaded me. Before, I used to pride myself in having my borrower’s card filled out to the last entry. But now, I just google the topic and voila! All the references are available to me. Before I used to write to relatives abroad but now, I just send an offline message and schedule our time for chatting. Before I used to worry that my thesis or papers would get lost. Now I can safely secure a soft copy through my email account. Before I used to book manually for flights. Now, it is a matter of going to websites and booking online. Now, I have a lot of email addresses under my name. I use the Internet to download music and movies. And now, I comply with blog instead of paper requirement in class.

But just as these moments are emphasized, the ugly issues and controversies also need stressing. The downside bears emphasis. My aunt never ceases to warn me of frauds and net scams. Just a week ago, I had my DSL connection repaired. I myself have yet to believe that doing research in the Internet is better than poring over books and references in the library as I was trained to utilize only 10-20% materials obtained through the Internet in my undergraduate papers. I have yet to create my own Friendster and Blogspot accounts. And I have yet to make my first purchase online.

Undeniably, the Internet has become an important tool for society at large and will be integrated much deeper into our lives. With everything it has brought to the Philippines, I can only surmise the endless possibilities it will bring years hence.

The Twitter[1] Twister[2]

Just about the same time Summer OLA[3] duty began, the news about James Karl Buck’s apprehension by the Egyptian authorities came out in CNN.[4] It would have surfaced the web just like any newsworthy, but not extraordinary, story of a UC Berkeley graduate student who was arrested by Egyptian police officers while photographing an anti-government protest for his thesis, were it not for the Twitter angle to it. It interested me more than any other news that day; I closely followed it just like the OLA cases I have then been handling.

What interested me is how Buck made it out of detention and how the news reached CNN online in a matter of minutes – he sent a tweet (a text-based post in less than 140 words) to his friends and network through his Twitter account, typing the message “Arrested”. Through his friends, the UC Berkeley administrators got the news and sent him a lawyer, who eventually got him out of jail. As soon as he was released, he tweeted “Free” to his friends and network.
After having gone back to California, he found out that his friend and translator Mohammed Maree was also, and was still, held in detention by the Egyptian government. Again, through his Twitter account, he called and solicited support for his friend’s release. Just this Wednesday, after Maree was set free, CNN again got word through Buck’s tweet -- "Mohammed is free! Mohammed is free!"

But even before Buck and Maree’s story, Twitter has already been a hit in US, Canada, India, and UK.

My friend, who is currently based in Palo Alto, told me about Twitter a year ago, as the accounting firm she has been working for has employed the services of Twitter for its employees. All the employees were required to be part of the firm's network to get alerts and urgent announcements through tweets from their superiors. She even told me that she and her other officemates were members of other Twitter account networks and they would send their own tweets to react to the messages that they would get from their bosses.

She thought tweeting would interest me a lot because I enjoy getting updates from friends by reading their blogs, and receiving emails and SMS from them. And because lately, I haven’t had much time to be updated because of my tight work and class schedules, she thought that getting a Twitter account would work best for me.

Wikipeda traces Twitter’s origins from a San Fran start-up company, which was later incorporated as a separate entity (Twitter, Inc) with Jack Dorsey (the same man behind its initial success) as its CEO.

At present, Cisco Systems and Dell have accounts with Twitter. Even the Los Angeles Fire Department got one. It has been also helpful to CNN and BBC. Even Barack Obama used it for his campaign.

With the release of Maree, the Twitter Saga may have already ended; but this does not, in any way, lead to the denouement of the Twitter hype.

To me, Maree’s release just ended the twister for Buck and Maree. As for Twitter, Inc, this shall just mean more bucks and money.

(for the week 06 to 12 Jul 2008)

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[1] “a free social networking and micro-blogging service that allows users to send updates (otherwise known as tweets) which are text-based posts, ranging up to 140 characters long” (source: www.wikipedia,org)
[2] “a localized… windstorm” (source: www.thefreedictionary.com)
[3] OLA stands for Office of Legal Aid, the legal clinic of UP Law
[4] Summer OLA duty officially started on 11 April 2008 (Manila time), while James Buck was apprehended on 10 April 2008 (East Coast time)

Yea and Nay

YEA

It was with a sense of rightness and relief that I read the news the other day saying that Microsoft is helping train Philippine law enforcers how to better deal with cybercrimes. Particularly, the company is working with the International Center for Missing and Exploited Children (Interpol) and the International Police (Interpol) to educate Philippine law enforcers on how to deal with computer-assisted crimes against children and women.

At present, members of the Philippine National Police, the National Bureau of Investigation, the Department of Justice, and the National Defense College of the Philippines are among those receiving the specialized training in the hopes that they will be better-equipped to conduct high-tech investigations relating to crimes such as pornography and pedophilia which are further facilitated by the use of internet technology.

It is only right that Microsoft and other similar companies address issues such as this as a part of their corporate responsibility ethos, since they are the ones who profit the most from the creation of technological products. It must be accepted that for every great piece of technology provided to the public, an even greater threat to unsuspecting end-users (usually women and children) is created to counter it or to abuse it. Apart from the fact that it is morally their (the companies’) responsibility to help police the unpalatable effects of their creation, they are the ones with the resources to do the same.

It was submitted that the creation of a comprehensive cybercrime law would in fact shore up investigations relating to these crimes, since the current law that we employ to catch online predators is the Anti-Trafficking Persons Act (RA 9208) is ineffective to combat crimes done in the cyberworld.

While it is true that the largest number of offensive content now comes from North America and Western Europe, it will only be a matter of time until Asia catches up, and we have to be ready for that time. It is not enough that law enforcers are taught how to better keep up with these predators. To me, the only way we can be ready is if we are able to educate the masses (who stand to be the most vulnerable to these kinds of crimes) by giving them access to the technology, teaching them how to better themselves through it, and arming them with the information necessary to protect them from the same.

NAY

In order to address the problem, our government is creating a coordinating body to work side by side as a complement to private-sector initiated efforts such Microsoft’s. They hope to do this by the creation of National Computer Emergency Response Team which will operate as an umbrella organization for similar smaller coordinate bodies within the government, military, and private sector – the ultimate goal is to come up with uniform policies and enforce coordination among the aforementioned sectors. Furthermore, the government’s goal is to tap the private sector to provide expertise in the creation of safeguarding measures.

Indeed, this steps on the part of the government are necessary, to say the least. What I find so offensive is the P1 billion price tag that is being projected to address this issue. P1 billion – just to create a coordinate body that will police internet crime in a country where 90% of the citizenry don’t have access to basic needs, let alone personal computers. That money would better be spent on providing local government units with the necessary infrastructure and mechanism to teach the citizens exactly what they should be guarded against. Instead of merely tapping private sector groups to merely help in policy-development, we should ask them to provide much-needed equipment and software, as well as training, to LGUs. Seeing that the steps on the part of the government comprises mostly of policy development, I really don’t understand how it could be that expensive. In the long run, I project that the government will again pass the burden of paying that P 1 billion price tag to the taxpayers who will be none the wiser. That, to me, is the real cybercrime.

Life For Sale

Blogging and the Internet: Commodifying One’s Life?

And we thought we already heard it all. Day by day, we hear stories of people, that which before, we could never even conceive of, each story more appalling than the next.

I heard these types of stories from the Internet, from which I was amazed. I read of one Australian man, who, post divorce, offered to sell his life, including his friends, so he could start anew. There was also another who made himself an object of a virtual game, wherein he put out a live video of himself on a site so people could view him real-time, and people can just log on his website and start shooting him. He claims it is part of his study of finding out how trigger-happy people nowadays are. He got more than a million hits in his site, maybe there is something in his theory, after all.

When we find out about stories such as those, we shake our heads and tsk-tsked among ourselves on the ludicrousness of their ‘antics’. Life does not seem to hold so much value these days, to sell is more important, so it seems.

We scoff and gasp in those stories, but do not even bat an eyelash when it comes to bloggers putting out intimate details of their lives in the internet. It is the same with the situations above, is it not? In a way you are selling yourself, your life, albeit in a less direct way. Why would anyone do so?, you wonder. There is so much importance in privacy and ensuring that, but there are those who blab their sins in public, for all the web community to read about and devour.

A friend told me that the Internet has provided a lot of opportunities to make money. Blogging can be a huge money-making venture, you just have to play it right. You just need to set up a blog (there are a lot of websites offering free web space if you are just starting up, she recommended www.wordpress.com as a host for that), a pay pal account, adsense account in Google for advertisements and just write to your heart’s content. Use a simple yet attractive design in your blog, preferably with a large font so people do not complain, oh and leave the convoluted, artsy fartsy language that you love to use. The simpler and more direct style of writing that you employ, the better. Furthermore, make it interesting, create an ‘identity’ for yourself, people like to read about those who have eventful lives, don’t you agree? Now how do you make money in that? Well, she said, you earn money based on the traffic you get on your site. Such is the rationale of the importance of making your stories and articles readable and enjoyable.

I looked at the more popular bloggers’ sites for inspiration and to obtain a clearer understanding on what my friend was pertaining to. I saw them posting pictures of themselves and their friends, and gushing/complaining about their oh-so-exciting lives. There are some who devoted their site in providing informative articles in their respective industries, but most of the blogs I have found (that are among the most popular) are the gossipy type of blogs, online versions of reality TV shows that have become such a hit such as MTV’s Laguna Beach or Big Brother. And then, these sites are laden with advertisements with all their logos neatly arranged out front as you enter their homepages.

And these sites make money, lots of it. And what was the object of sale? Mainly, their lives. Writing talent and computer design are tools in doing so, but the main thing being sold was the identity of the blogger.

There is something a bit sordid about this idea, being the private person that I am. But then there is no law specifically prohibiting you to “sell your life”. On top of that, recent studies have shown that the Internet has garnered more following as an entertainment source than other types of media such as the television and the radio, especially among the youth. More kids are logging on the Internet due to proliferation of networking sites such as Friendster and Myspace, (now I think it is Facebook that is becoming popular). Blogs are also included as being a pastime for these youth.

And what do these blogs contain? Basically, almost everything you can imagine, since there are no regulatory measures as stringent as employed in the television media and the radio. And these are all available to whoever has Internet access, in a scary free-for all fashion.

Yes, business is business. Industry is encouraged, blogging is profitable and the blogger is free to be creative in ensuring that not only his or her ideas get disseminated to facilitate a fruitful exchange in information and be compensated for that. But then, as per any freedom, there must also be limitations. Though there is no specific study directly relating blogging to the changes in the lifestyles and attitudes of their readers, especially the youth being the main audience, one cannot dispute their influence to that sector of the society.

“ No law shall be passed abridging the freedom of speech…” ( Art III, Sec 4, Philippine Constitution) This is correlative to the value that man put on the free trade of ideas for the realization of the common good. But then, in blogging, yes, some people write articles to provide for a healthy exchange of knowledge and information to provide for a development of ideas towards useful innovations-the common good. But then, there are those who blog for profit, and they put out stories, one can even say, sell stories of sex, drugs, and scandals to gain a following to their sites, and they do, some in a massive scale. There must be some measures also undertaken to regulate these sites, as there are in the television and the print media.

But in that proposal, other problems arise. What is your test then whereby police power may be exercised in possibly shutting down these type of blogs? In these cases, the Court goes with the Clear and Present Danger rule. Should the same be applied to these blogs? What are the standards, if met, would show a definite clear and present danger? Furthermore, with more and more people discovering blogging everyday, using different hosts and sites, regulating seems to be an almost impossible task.

These days, one’s life can be sold. And you thought you heard it all. It makes you wonder what’s next.

Anti-copyright software

Peer-to-peer file sharing services and machine emulators escape legal liability of copyright infringement under the justification that their software are not designed to be used to infringe copyrights. The Limewire file sharing software even has a provision in its End-User License Agreement (EULA) that the user of the software agrees not to use Limewire for copyright infringement. The Multi-Arcade Machine Emulator (MAME) banners in its website that the MAME project is primarily for scientific and academic purposes to preserve the architectural mechanism of old arcade machines. A probable hypothesis is that most users of Limewire and MAME use these software to download and use without license copyrighted material. However, due to justifications for use of these software, protectors of intellectual property are unable to ban them. Whenever software is stated in this article, it refers to software which may be utilized to infringe copyrights.

A balance is currently being formulated in cyberspace: preservation of copyrights and freedom to progress computing technologies. In theory, file sharing per se does not violate the law, it actually enhances interconnectivity; arcade machine emulation alone is not illegal, as long as no copyrighted game is run in an emulator. The issue arises: can undertakings justified by theories but in reality fully abused to infringe intellectual property rights be legally allowed?

On one hand, legislation cannot be crafted in a manner which arises from fear of abuse as long as the policy behind it is valid. Knives should not be banned because of the fear that they might be used for criminal means instead of culinary purposes.

On the other hand, legislation cannot be blind to the blatant fact that these software are abused by virtually everybody to infringe copyrights. Guns are banned because although having a gun does not necessarily mean intent to kill, the sheer power of a gun to harm individuals makes it a good policy to ban guns altogether.

However, these software are not as simple as knives and guns. Unlike a weak knife and like a powerful gun, the ease and potential of software to do harm are enormous; hence the justification to outright outlaw software widely used for copyright infringement. But like a useful knife and a unlike a useless gun which purpose is only to harm, software can be utilized to greatly benefit technological progress; hence the justification not to outlaw them due to fear of abuse. Which policy is better?

The heart of the issue must be uncovered. There must be distinction between the different aspects of the undertakings in question and not treat them as a whole. The question should not be whether entities should be prohibited from making potentially copyright infringing software. The root of potential infringements should be identified.

Software development which incidentally may produce tools to infringe copyrights cannot be prohibited by the dangers of using them may bring; these are pursuits of knowledge which cannot be outlawed. It is not the act of producing software which should be prevented, only the use of the software for illegal purposes. Copyright infringement through use of powerful software is not due to the creation of these software, it is free distribution which put these software in the wrong hands.

The root of the abuse of these software to infringe copyright lies in their free distribution, not their creation. What should be changed is the free access to the full features of these software. It is unwise to distribute powerful tools which may cause harm freely. Distributing knives and guns to everyone on the street would surely exponent the use of these tools for the wrong reasons. The same applies to software with the ability to infringe copyrights.

The prudent policy therefore is to regulate distribution of these software. The justifications of why these software should exist is not defeated by formulating parameters in the distribution of these software. Only those who would further the justification of the existence of these software should be allowed to obtain and use them. Casual users should not be able to download Limewire and MAME if they are not affiliates or authorized by institutions which are justified to use Limewire file sharing or MAME emulation. Similar to guns, existence of these software should not be outlawed, but distribution should be regulated to individuals who need them. This way, technology is utilized to benefit humanity without opening avenues for abusers to inflict more harm than good.

Advances in technology should never be impeded. Like any other tool, software can be used for either good or bad. The object of legislation is to prohibit the happening of “bad” acts while upholding “good” ones. The proper way to deal with great power is not to prohibit it; it is to instill responsibility in its use. As Ben Parker said, “With great power comes great responsibility.”