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Dr. Lisa Barden was arrested in southern California on Thursday, January 29 for prescription fraud. She's charged with 270 felonies. She is accused of stealing patients identities to obtain prescription drugs. She obtained drugs on 131 different occasions at43 different pharmacies. For more information, click here.
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In 2007, there were 207 publically disclosed security breaches. As of August 22, 2008, there have been 449 publically disclosed security breaches according to the
Cyber criminals have adopted more sophisticated ways to break into data systems. Business are doing little to combat this, as the majority are spending little money protect the mass amount of data they are now housing on their clients. There are 44 states that required business to disclose security breaches, and when they go public with the information, they’re rarely punished for the lack of security around their data.
Bruce Schneier, chief security technology officer at BT Group belivies that there are two ways to solve these problems: is if the government creates an incentive, either by allowing individuals to hold businesses liable for data breaches or by introducing regulations that impose criminal or stiff civil penalties on businesses that experience a breach.
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Believed to be the largest hacking and identity theft case prosecuted by the Department of Justice, 11 people have been charged with: conspiracy, computer intrusion, fraud, and identity theft. This report from the Associated Press states that Attorney General Michael Mukasey, in a prepared statement said:
"They used sophisticated computer hacking techniques, breaching security systems and installing programs that gathered enormous quantities of personal financial data, which they then allegedly sold to others or used themselves. And in total, they caused widespread loses by banks, retailers, and consumers."
Retailers affected include, TJX Cos, BJ's Wholesale Club, OfficeMax, Boston Market, Barnes & Noble, Sports Authority, Forever 21 and DSW. TJX reported that 45.7 million cards numbers could have been possible stolen, while later, some of the banks have said that the number may have been closer to 100 million. Regardless, this resulted in many retailers facing negative publicity.
The report also mentions that countries of the 11 indicted include the
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PC World reports in this latest article that the three owners of E-Gold, an internet-based payment service like PayPal, have pleaded guilty to charges related to money laundering. The violations include operating a money transmitting business without a license. E-gold, which provided digital currency services, allowed accounts to be opened without verification of user identity. According to the Department of Justice, many E-gold users were using its services for criminal activity, investment scams, identity theft, and credit card fraud. All three owners face potential prison time and fines ranging from $25,000 to $500,000.
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