---------- Forwarded message ---------- Date: Fri, 29 Dec 1995 00:02:50 -0800 From: Bud Aaron <bud@checkmaster.com> To: "'privacy@ftc.gov'" <privacy@ftc.gov> Cc: "'hwg-business@daft.com'" <hwg-business@daft.com> Subject: FW: your financial transactions posting ---------- From: Greg Metcalfe[SMTP:biosphere@proaxis.com] Sent: Thursday, December 28, 1995 9:35 PM To: bud@checkmaster.com Subject: your financial transactions posting Bud, I've seen some well thought out messages in the commercial transactions listserver, but you are the first that I've seen with real numbers. Would you do us all a favor and make sure that you get some of this information to the privacy@ftc.gov discussion? I hope I'm not impertinent for asking. But numbers are probably our only hope. The gov has never really been into quantitative thinking... TIA --- Greg Metcalfe | The secret is getting E-mail biosphere@proaxis.com | enough sleep. URL http://www.proaxis.com/~biosphere | Usually. The following is a copy of the information mentioned above: The following article is quoted directly from Bank Technology News "Are Internet Security Fears Unfounded? Just how safe is the Internet? Pretty darn safe, according to Forrester Research, Inc., Cambridge, MA. Forrester predicts Internet fraud will occur far less frequently than current rates of fraud with cellular telephones, toll calls and credit cards (see chart). Cellular telephone fraud costs the phone industry almost $20 per $1000 in revenue, Forrester says, and toll-call fraud eats up $16 per $1000 in revenue. Meanwhile, credit-card fraud cost MasterCard almost $1.50 per $1000 in revenue in 1993. In contrast, Forrester says companies can expect to lose only $1 per $1000 of transactions on the Internet. Forrester's contentions on the safety of the Internet are backed up by some of the judges in this year's Best of the Newest bank technology survey. While many of the judges expressed concern over security issues, quite a few were also confident that the Internet will become a stalwart transaction system. See page one for further analysis of all the newest banking technologies." The chart accompanying this article shows the fraud levels in graphic form. You folks keep making drafts as a collection system seem more and more attractive. The fact that drafts MUST be deposited (not just cashed) and that the bank is going to want to know the depositor quite well means that tracking is excellent. The requirement added by the FTC that those whose accounts are being drafted must be notified by mail makes the system even safer. Let me add this - some level of security is obviously needed but regardless of the level of security, fraud will occur. All of these arguments for high levels of security remind me of the need for virus protection. Yes, virus attacks are real but virus protection vendors certainly make money by raising greater fear than may be realistic. Bud Aaron bud@checkmaster.com http://www.checkmaster.com/internetchecks/ The privacy list is run automatically by the Majordomo list manager. Please mail questions/problems to owner-privacy@ftc.gov