KUHN CAPITAL Friday, December 15, 2017
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Psst, Wanna Buy a Watch?

9/1/05

When a recent Reconnex survey on the online security practices of companies showed that 91% regularly exposed credit card numbers and 82% exposed Social Security numbers on the net, we were, ah, surprised.

Another 80% were unknowingly running P2P protocols like Bit Torrent and Gnutella that are mostly used for illegal music file-sharing and that step through corporate firewalls, opening the way for key logging and corporate data theft.

We think the security threats to doing business on the Web will get worse before they get better. The stakes are huge and every successful theft attracts more organized crime rings, rogue governments and terrorist organizations to the party -- groups with big theft and disruption agendas.

In this environment, businesses owe consumers and their trading partners reasonable care. Pardon the sermon, but if they fail to take at least common-sense precautions, they’ll soon find the heavy hand of government regulation clogging Internet commerce, a camel’s nose under the tent for eventual taxation. Then might as well add late-night TV class-action hucksters to the mix.

Of course, tiny Reconnex (sales: $15M) is in the business of providing security solutions and therefore has much to gain from claiming the sky is falling.

But if you discount their survey results by half, you’re still dealing with a big problem… and a big commercial opportunity. So we want to see more and bigger Reconnex’s out there, and a much more aggressive implementation of such software and related policies by Web-using companies. It’s that, or else.


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