Wealth And Innovation Beware

By Reed Hallowell | March 28, 2014

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Their impact is tremendous, in the hundreds of millions of dollars from small business, mom and pop operations, who lose their very existence to a financial crime.” Don Johnson, Associated Press.

International cyber crime organizations targeting well to do enterprises are on the rise in the United States. Specifically, cyber gangs seem to be targeting California businesses and financial institutions. A report made by Attorney General Kamala Harris says, “California is a global leader on a number of fronts and, unfortunately, transitional criminal activity is one of them.”

Experts think that the up rise in cyber crime in California is due to the overwhelming amount of companies developing technologies as well as it’s booming mass media entertainment industry.  Not surprisingly, California leads the US for most cyber attacks over the past 5 years.  “California leads all states in the number of computer systems hacked or infected by malware, the number of victims of internet crimes, the amount of financial losses suffered as a result, and the number of victims of identity fraud.”

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Seems like organized crime has figured it out. Why would you put yourself in physical harm and chance of being easily caught when you can hack into a system from the safety of your own safe-house and steal millions of dollars worth of data within hours? California needs to crack down on this crime and establish a way for confidential data to be shared and stored safely, and it needs to be done quickly.

Reports find that a majority of these cyber attacks are transnational criminal organizations, “operating from Russia, Ukraine, Romania, Israel, Egypt, China, and Nigeria.” This realization makes it even harder to thwart international cyber crime since they could literally be anywhere in the world and use advanced proxies to avoid detection, but this issue brings us back to encryption and it’s immense benefits against cyber crime.

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Data encryption could be the savior to all of the problems arising in cyber security in California today.  If these enterprises stored all of their information on the cloud and encrypted all of their data, they wouldn’t run into any of these issues and would avoid millions of dollars in potential loss. New companies are popping up that will put a virtual encryption layer on these databases and literally keeps anyone out who has not been given permission to access the information. Furthermore, the California government needs to amp up cyber security and needs to implement refined laws on confidential file sharing, especially if it puts the public at risk.