How Organized Crime Uses Technology to Make Money

Stock scams, identity theft, you name it, this character has seen it. A fictional "CIO to the mob" explains how organized crime profits from IT.

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I’ve also tasked him (that’s how you say it, right?) with internal security. Basically, his job is chief privacy officer for a bunch of guys who really value privacy. All this technology—phones, the Internet—it’s all great for making money, but the problem is, everything gets logged. My security guy has written and used lots of antiforensic tools to erase those logs, and I’m comfortable telling my boss we have better privacy than the big banks. My security guy knows how to disable the GPS in our cell phones. He’s building some routing programs, sort of like that Onion Router project that, like it says on their website, “prevents the transport medium from knowing who is communicating with whom” so that anything we send over the Internet is scrambled through different routes and hops all over the world, completely anonymous and untraceable. And everything, I mean everything, is encrypted. Say someone stole the servers we keep here at the home office. My guy designed it so that really only two people can access the data: me and him. We have the private keys and no one else does. Not even the boss.

My Kind of Guys
The guys I keep, or keep on a kind of retainer, are the ones that show me something extra. We had one guy who came to us selling a great new way to set up temporary international cell phone accounts, using credentials bought in the identity market. Guys will pay a lot for a disposable international cell phone. We bought some and were so impressed we decided to get into business with him. He set up the phones; we handled distribution. I asked the guy what else he was working on. He flips his laptop around and shows me his own website where he’s auctioning off credit credentials to the highest bidder. Slick. I said to him, “You could be our R&D.” He said, “Cool.” And that was that.

Compared to you guys, I’m pretty lucky with talent. My guys are way ahead on the technology. They work hard. They’re innovative and entrepreneurial. I think they’re some of the most talented IT staff around.

Business-Technology Alignment Among Thieves
Actually, there is one way you and I are different. I read all those stories in CIO about how hard you have to work to align technology with the business’s goals. That’s one problem I don’t have. My bosses don’t let me spend a dime on anything that’s not going to make them money. Why should they? And I wouldn’t even think about investing in a huge project that might fail to live up to expectations. I don’t get play money to buy technology that doesn’t work. I don’t have vendors paying the freight to conferences at swank resorts to convince me to invest in something that’s half-developed and overhyped. I never use jargon. I spend zero time doing PowerPoints.

CIO

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Security MarketSpace
Practical Approaches for Securing Web Applications
Enterprises understand the importance of securing web applications to protect critical corporate and customer data. What many don't understand, is how to implement a robust process for integrating security and risk management throughout the web application software development lifecycle. Learn more »
An Executive's Guide to Web Application Security
Since so many Web sites contain vulnerabilities, hackers can leverage a relatively simple exploit to gain access to a wealth of sensitive information, such as credit card data, social security numbers and health records. It's more important than ever to examine your Web application security, assess your vulnerability and take action to protect your business. Learn more »
Web Application Vulnerabilities
Security managers may work for midsize or large organizations; they may operate from anywhere on the globe. But inevitably, they share a common goal: to better manage the risks associated with their business infrastructure. Increasingly, Web application security plays a significant role in achieving that goal. Learn more »
Retooling IT for a Mobile Workforce
Check out this research note from IDC for guidance. Learn more »
Today's Risky Data Environment
This paper explains how an IT and security service provider can provide a practical, manageable and reliable solution. Learn more »
Business Continuity - Are You Always Open for Business?
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