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November 06, 2006
 Microsoft to combat internet fraudsters
Microsoft is to introduce a sophisticated protection system aimed at preventing online fraud. The company is urging rival companies to adopt a similar technique.
The system, Cardspace, has been developed to counter a major crisis facing computer users, the company said. Unless urgent action is taken, consumers risk fraudsters gaining access to banking and financial data, as computer crime contains to grow.
'There has been an erosion of the principles of data protection over the past 10 years,' said Caspar Bowden, chief privacy adviser for Microsoft. 'Data storage has become so cheap, there is no incentive to be selective about what we keep and what we discard. It is easier to keep almost everything and that has had a cumulative effect. There is an approaching crisis in data protection.'
Microsoft's announcement about introducing new technology to safeguard individuals' personal data comes after the news that problems of identity and data theft are reaching crisis levels in the UK. Britons were also revealed to be the most spied upon people in the democratic world. Vast databases in which our DNA, health records and other information are being created and are often being accessed illegally.
In its survey, the human rights group Privacy International ranked 36 countries, including the 25 EU nations, according to their ability to protect privacy. The best scores were achieved by Germany and Canada. The worst score - in terms of protecting its citizens' confidential data - went to the UK.
It was against this background that Microsoft revealed at a meeting at the Science Media Centre in London last week that its new Windows Vista system, which is being marketed in this country early next year, will include sophisticated measures to make it safer to log into websites that hold personal information, such as those run by banks.
'People often get ‘phishing’ emails asking them to log in to false or spoof bank websites,' said Bowden. 'When they do this, they give away their passwords. These are then used by criminals to access the real bank website and to steal their money. Our system will include an identity recognition system that will pinpoint which websites are valid and help prevent people being defrauded.'
Cardspace will be displayed on a computer screen like an opened wallet containing a display of cards. Each card will contain information about the computer user. When making a transaction, he or she will then select the card most appropriate to the type of transaction being contemplated. This will provide only the very minimum of information needed to complete the deal. The essential aim is to minimise the amount of sensitive data stored on a computer or used in transactions.
'If excessive information is requested by a company, then the consumer will be warned and could complain to the data protection agency,' added Bowden. 'This will help control the way information about an individual is distributed.'
However, Microsoft stressed that it wanted its system to be adopted by all other computer and software companies and that it was now in negotiations with other companies, including Apple, to agree that the protocols of Cardspace would be used throughout the industry.
Source: The Observer
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