Earlier this year, the White House introduced a plan called the National Strategy for Trusted Identities in Cyberspace. Kenneth C. Wisnefski, founder and CEO of WebiMax the leader in search engine marketing and ecommerce, announced that the plan may have some “significant disadvantages” and further states “I caution this will open the door to more devastating methods of identity theft”.
The plan was first introduced by President Obama in April 2011 and aims to create an enhanced online identity and bolster confidence in e-commerce amongst Americans. It calls for a single authentication system that can be used for significant transactions placed online, including Social Security, I.R.S. services, banking, and even buying a home. The Identity Theft Resource Center (ITRC) indicated that through the first 6 months of 2011, there were 130 significant breaches, revealing over 9.5 million personal records.
“The new plan proposed by Washington has the right idea, however, the product may increase the extent of fraud committed against others”, states Wisnefski, an expert in internet security. “Essentially creating a master key to your online identity can have extensive ramifications if the single key is lost”.
Wisnefski was recently interviewed on FOX News discussing new Pentagon Cyberwar Guidelines. The video can be found here (courtesy of FOX news).
ITRC states that hacking is the leading cause of identity theft. They also disclose that half of all 2011 data breaches are against businesses, versus government, medical, and financial services.
“Since a security breach through the use of hacking is the leading cause of identity theft, the White House should instead propose a plan to enhance the encryption of secure documents and unique log-in credentials that consumers use online”, furthers Wisnefski. “The majority of stolen personal information comes from a lack of encryption that skilled hackers can easily navigate through. What we need is an increase in protective barriers around the perimeter of our systems in addition to the strength of our keys within the system”.
There are considerations, however that the plan does not correct for, including negligence and carelessness when consumers leave a checkbook or a cell phone in a public area, including restaurants. Instances like those can only be corrected with enhanced awareness by consumers.
“At WebiMax, we’ve seen a substantial increase in the amount of companies that implement an ecommerce component to their website, as it means your company is open for business 24/7/365. In addition to strengthening the perimeters around our online systems, educating consumers as to the dangers and effects of online identity fraud can be two important remedies that are being overlooked. If a consumer loses his master key to his online identity, as outlined by the proposed plan, the thief can have access to the bigger picture”, concludes Wisnefski.
Google Wallet is expected to launch today, as we covered back in May when the system was announced. The new system strategically places Google right in the heart of the multi-billion dollar mobile payments industry. The move to take market share away from PayPal sparked a lawsuit back in May, claiming two former PayPal employees now work for Google and play a critical role in launching the Wallet system. Although the results of the lawsuit are not discussed further, that system is expected to launch today.
Only a small amount of merchants, cities, and users will have access to Google Wallet in the early stages of launch. Most experts are aware that a new era of commerce is upon us. Just as pay-per-click management has begun to take over traditional advertising (see our tips for selecting the best ppc company), the launch of mobile wallet systems through smartphones may bring upon us a new era of commerce.
The only handheld device that is equipped to handle the software is the NFC-enabled Sprint Nexus. It’s a matter of time before smartphone manufactures create NFC enabled products. Could the iPhone 5 (anticipated to be announced any day now) include this technology? It remains to be seen how large and significant of an effect Google Wallets will have on ecommerce. More updates to follow.
Target, Inc. (the retailer recognized as Wal-Mart’s biggest competition) missed a huge opportunity this past Tuesday when their website crashed due to significant demand and traffic. Italian designers Margherita Missoni and Angela Missoni designed an affordable line of clothing that was to be sold exclusively at Target and available online for purchase. This brought outrageous website traffic to Target.com, causing the site to crash from early in the morning until 11:00pm Tuesday evening. Poor website structure and the inability to handle large amount of traffic is the culprit.
“The excitement for this limited-time designer collection is unprecedented”, stated Morgan O’Murray of Target. This “unprecedented” website traffic brought the whole house down and for those 12+ hours as purchasing thru their ecommerce operations stopped. The missed opportunities within those 12 hours, no one will really know, but it doesn’t bode well for their reputation. Not having a well-designed website that can handle high traffic is a classic example of poor web design.
WebiMax CEO Ken Wisnefski, who leads the company as the #1 rated Web Design firm in the U.S. states “this example shows us how vital it is to have a well-designed and structured website, especially for those that experience high traffic daily”. Wisnefski also states that “improper site infrastructure can caused these sorts of crashes on a regular basis”.
Announced today, eBay, Inc. will acquire Magento, a popular (and highly reputable) ecommerce platform. Magento was founded several years ago and has grown from a basic open source platform to an industry leader. eBay is planning to use Magento to create a new open commerce platform, called “X.Commerce”.
The acquisition is expected to close in the third quarter of this year, and fully integrated in October. Announced in February, eBay had acquired a 49% stake in Magento, an investment worth $22.5 million. With the recent selling of their Skype SARL acquisition for $2.4 billion, eBay has a lot of money sitting on the sideline, which they said will be used for “acquisitions”.
Magento will now be used as a further enhanced ecommerce platform (X.Commerce) that will allow eBay to provide additional services for merchants, beyond the ones that they already offer including point of sale (POS) systems, and credit card services.
In an email to all subscribers of Magento, Co-Founder and CEO Roy Rubin, stated that “Why is this acquisition so exciting for all of us? eBay is evolving to become a strategic commerce partner focused on delivering new ways for merchants of all sizes to drive innovation. As a centerpiece of this strategy, they are building a global, open commerce platform that leverages the worldwide developer community. And Magento will be at the core of this new, open commerce platform, called “X.Commerce.”
WebiMax utilizes Magento in their ecommerce solutions. “These platforms are SEO friendly, by design”, states Sean O’Donnell, Vice President of Marketing. “Magento also has open source code that we are able to custom develop, so that we can customize and integrates with other platforms that are being used by our clients.
It is unclear as of now whether or not Magento will have its reach to small businesses that utilize it. Also, what will it look like going forward?
eBay is expected to release further details in October (2011) during the X.Commerce conference.