Saturday, December 15, 2007

Recommended Reading: Government and Economics

Speech entitled "The Proper Role of Government" by Sec. Agriculture Ezra Taft Benson
Philosophy and principles regarding government help, charity, etc.

"Economics on One Lesson" by Henry Hazlitt.
Much more detailed discussion on most if not all sorts of economic programs governments come up with. Why they cause more harm than good, and aren't needed at all. Well reasoned and argued, so I don't have to argue the points myself. Please read this book.

Both can be read online for free. You can find the items via google.

Recommended Reading: The Law

There are principles in this book that are fundamental to understanding law, government and politics -- Given how important is has been, I am disappointed I was never introduced to it in high school and college. Someone in my family referred me to it.

Quote: "What, then, is law? It is the collective organization of the individual right to lawful defense."
Please read The Law, by Frederic Bastiat

Verifying Online Transactions

I recently read an interview of Bruce Schneier about companies not being responsible enough for security to make the changes needed to protect our online finances among other things.

Well, I know getting people to adopt new technology is difficult if it makes life less convenient, so perhaps this is a pipe dream or fanciful idea that has all sorts of prerequisites I won't go into in this post:

Companies like Visa should provide a web appliance for vendors to manage sales transactions, so that vendors (eg amazon or facebook) never actually have a credit card number. The user verifies the sale and authorizes it to Visa (or someone else). This would have to involve something like a SecurID key fob so that a physical device has to be stolen to successfully steal a credit card.

As a note, since I started this post I did some searching. Google is already doing something like this. Paypal is too, but already has key fobs for authentication as well as virtual credit cards. This makes me trust and want to use paypal.

Potential Effects: (1) One point of failure/attack [the transaction provider]. (3) A credit card can't be stolen anymore without stealing a physical device. [Reduces/eliminates wholesale credit card fraud.] (3) Users must get a key fob for every credit card or account. [could get unweildy if you end up needing 4 to 10 of them]

Schneier and Solutions

I recently read an article by Bruce Schneier, saying we need companies to be more responsible, legally, for security in order for security to improve.

So I got to thinking about how to do this, and here is my idea for a doubly sharp sword:
Make financial companies the most responsible, but give them an out: if they can catch the perpetrators of an attack against them, they won't be held (as) personally accountable for the security breach.

This would do three things: companies would have to write rather secure applications in order to even get into the market. They would have to measure their security in terms of guarantees of safety or results (about the only measurement possible). It would also become very scary to be a successful criminal. Bounty hunters, apparently, can be very scary.