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Tuesday, June 28, 2005

Data Loss, Identity Theft & Offshoring

We recently covered in the post Personal Data Loss Is Not Identity Theft Bruce Schneier's view on recent citi disclosures about loss of 3.9 million personal data Bruce Schneier says,it an illusion to think that there has been an epidemic of personal-data losses. What we're seeing are the effects of laws that requires companies to disclose losses of thefts of personal data. It's always been happening, only now companies have to go public with it. We concluded therein that most data losses don't result in identity theft. But that doesn't mean that it's not a problem.
Paul McDougall writes Stop Identity Theft; Send Your Data Offshore.Opponents of offshore outsourcing are quick to seize on events that show the practice in a risky light. Eevnts like Sun’s sting operationare shown as evidence. In the United States,it is not needed to go to such lengths to obtain the raw material for identity theft- just wait for it to fall off the back of a truck. Paul is right when he writes, that the anti-outsourcing crowd doesn't want to acknowledge, the fact that reports of fraud in India grab headlines precisely because they are rare. Western companies sends billions worth of BPO work-along with all the associated customer files-to India each year, yet instances of serious security breaches are few and far between. There's every reason to believe that, overall, the art of securing data in India is more advanced than it is in the West for a very simple reason: A series of security breaches in India like those that occurred in the US would bring down not just a few companies, but the country's entire tech-and-services economy. That's why, for instance, many Indian BPO firms prohibit workers from bringing any writing tools or devices of any kind into a call center, and employ only dumb terminals that lack hard drives and printing functions. .The sting operation has definitely woken up the Indian BPO industry who are working on tightening data breach issues further.For some Western companies, just locking the doors at night seems to be a problem

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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld
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