With all the traffic on the Internet nowadays it's important to remember that it's not all smooth sailing when surfing the net. With new and sneaky ways being developed by hackers to get their hands on your money, it's important to be aware of how they can get at you.
Identity Theft
Sometimes it's not even your money they're after; at least not directly. Most people nowadays underestimate the value of your personal information and how it can be used against you. The best example of this is when Jeremy Clarkson was served up a big spoonful of humble pie by a would-be hacker.
Phishing
Most of time it's not as easy as that to obtain your details and these guys have to come up with inventive ways to get their on your info. This is done by "phising", whereby you'll receive fraudulent emails from, for example, what appears to be your bank requesting 3 numbers of your PIN code or something similar. Once you do, it'll fail to register and ask you to re-submit the numbers. This continues until the hacker has the full PIN code and therefore access to your account. It's not only bank web pages that can be duplicated so be wary. In this short video, we see how easy it is to create a fake PayPal phising site:
Viruses
Viruses can be stored in downloads and released upon opening the file so only download from reliable websites and make sure you have good anti-virus software installed. Viruses can do anything from creating a backdoor to your computer which bypasses password protection to deleting everything on your hard drive. Here's a video about how virues work:
That's all for now. Hope this helps you protect yourself a bit better
Wednesday, April 8, 2009
Sunday, April 5, 2009
A New Way of Doing Things
As I mentioned before, the Web is changing how people do business. Instead of booking holidays with a travel agency they're doing it online. Instead of sending each other emails with project attachments they're using Google Docs. Now the revolution has come to the retail sector.
The Retailer
As you may already know, the retailer acts as an intermediary lying between the manufacturer and the consumer. Recognisable brands such as Tescos, Supervalu and Easons have all made their name in the retailing industry. However, the industry is not without it's problems. High volumes of inventory mean that the company needs to have a large building to store it. But this building can't be just anywhere. It has to be in a location that's most convenient to the customer such as the main street of a city. Further costs include staff, management and product availability but is there another way?
eRetailing
Amazon.com were one of the first to utilize the Internet as a sales channel. Since they conduct all of their business online, with no physical stores, they are regarded as a 'pure play' company in eRetailing. They began life as a book store but have since moved into other areas now selling music CDs, DVDs and even beds. What has allowed them to expand so rapidly? Well for a start they don't have to pay huge amounts of salaries because the customer can find everything for themselves and even check out without help. Secondly, the only building they have to worry about is the one that contains their inventory which doesn't have to be right beside the customer. And finally, Amazon don't have to keep building stores close to customers since the customer can access the store from their own home! This gives them an advantage over a bricks-and-mortar company like Tesco, who have since launched their own website to get a slice of this market. Michael Clark, co-owner of Ciocclato, certainly thinks eReatailing is the future:
Impact
eRetailing had a massive impact on the travel & tourism sector in particular. Firstly, it eliminated any intermediary meaning the manufacturers, which were airlines, could offer customers booking without having to go through a travel agency. Secondly, the web increased the distribution of information meaning someone with no previous knowledge of a resort could quickly get an idea of what the place had to offer. Again this cut out the middle man with hotels crating their own websites. Thirdly, the increased competition meant that travel agencies had to improve their service and began offering customizable package holidays. And finally, as mentioned in the Web 2.0 blog entry, the transfer of information between users increased which meant you could go online to get other people impressions and opinions of potential holiday destinations.
You may be asking yourself how this helps you. Well the more companies that go online the better your job prospects and since they would have a global reach you wouldn't even have to wait for a position in your own country, let alone city. You also have access to free career advice and the largest place in the world to market yourself to potential suitors. So maybe globalisation isn't the bad after all.
The Retailer
As you may already know, the retailer acts as an intermediary lying between the manufacturer and the consumer. Recognisable brands such as Tescos, Supervalu and Easons have all made their name in the retailing industry. However, the industry is not without it's problems. High volumes of inventory mean that the company needs to have a large building to store it. But this building can't be just anywhere. It has to be in a location that's most convenient to the customer such as the main street of a city. Further costs include staff, management and product availability but is there another way?
eRetailing
Amazon.com were one of the first to utilize the Internet as a sales channel. Since they conduct all of their business online, with no physical stores, they are regarded as a 'pure play' company in eRetailing. They began life as a book store but have since moved into other areas now selling music CDs, DVDs and even beds. What has allowed them to expand so rapidly? Well for a start they don't have to pay huge amounts of salaries because the customer can find everything for themselves and even check out without help. Secondly, the only building they have to worry about is the one that contains their inventory which doesn't have to be right beside the customer. And finally, Amazon don't have to keep building stores close to customers since the customer can access the store from their own home! This gives them an advantage over a bricks-and-mortar company like Tesco, who have since launched their own website to get a slice of this market. Michael Clark, co-owner of Ciocclato, certainly thinks eReatailing is the future:
Impact
eRetailing had a massive impact on the travel & tourism sector in particular. Firstly, it eliminated any intermediary meaning the manufacturers, which were airlines, could offer customers booking without having to go through a travel agency. Secondly, the web increased the distribution of information meaning someone with no previous knowledge of a resort could quickly get an idea of what the place had to offer. Again this cut out the middle man with hotels crating their own websites. Thirdly, the increased competition meant that travel agencies had to improve their service and began offering customizable package holidays. And finally, as mentioned in the Web 2.0 blog entry, the transfer of information between users increased which meant you could go online to get other people impressions and opinions of potential holiday destinations.
You may be asking yourself how this helps you. Well the more companies that go online the better your job prospects and since they would have a global reach you wouldn't even have to wait for a position in your own country, let alone city. You also have access to free career advice and the largest place in the world to market yourself to potential suitors. So maybe globalisation isn't the bad after all.
Wednesday, April 1, 2009
It's a Small World...
Thanks to the current economic recession, we're now all competing with our fellow countrymen for the same job. Of course, it's not just them but also other people who come here to find jobs. But now it looks like we're competing with our fellow man all over the world for the same jobs.
Is the World Flat?
Thanks in large part to Web 2.0, the world has been brought closer together via the web. But as people in traditionally poorer countries become better educated, outsourcing has increased in popularity. This means that the unemployment pool is much larger and those of us in Ireland may well be competing against a better qualified foreigner who is prepared to do the same job for less. The difference is that while we're using the Internet for entertainment, our potential rivals are using it to further their employment prospects. We're taking it for granted. Others are not.
How Did This Happen?
It's generally accepted that there have been three stages of globalisation. Th first came stage began with the discovery of America and ended around 1800. At this point we saw the rise of the multi-national companies and up until 2000, their global operations had helped to shrink the world. At the moment, globalisation 3.0 is yet to be defined as it depends on how we the users will decide on our means of interacting with those who live miles and miles away. Web 2.0 is an integral part of the latest stage in globalisation but it may only be the first step.
A Whole New World
Tom Friedman, a foreign affairs columnist for the New York Times, has attempted to identify what he believes are the causes of the phenomenon. In his book, The World is Flat, Friedman outlines the "10 Flatteners"; events in time that he believes shaped globalisation as we know today. These include the fall of the Berlin Wall, the creation of the first web browser and most recently, the influx of digital, mobile and virtual gadgets. More important than those perhaps, is Friedman's concept of the "Triple Convergence". This outlines how the 10 Flatteners are complementing each other, how we're moving from a vertical hierarchy to a horizontal one and the emergence of new powers in the global market such as India and China.
Be Afraid... Be Very Afraid
When China joined the World Trade Organisation in 2001, ASIMCO Technologies – an American auto parts manufacturer in China put the following African proverb on the factory floor:
Every morning in Africa, a gazelle wakes up.
It knows it must run faster than the fastest lion or it will be killed.
Every morning a lion wakes up.
It knows it must outrun the slowest gazelle or it will starve to death.
It doesn’t matter if you are a lion or a gazelle.
When the sun comes up, you better start running.
Get your Nikes on guys, we've got to catch up...
Is the World Flat?
Thanks in large part to Web 2.0, the world has been brought closer together via the web. But as people in traditionally poorer countries become better educated, outsourcing has increased in popularity. This means that the unemployment pool is much larger and those of us in Ireland may well be competing against a better qualified foreigner who is prepared to do the same job for less. The difference is that while we're using the Internet for entertainment, our potential rivals are using it to further their employment prospects. We're taking it for granted. Others are not.
How Did This Happen?
It's generally accepted that there have been three stages of globalisation. Th first came stage began with the discovery of America and ended around 1800. At this point we saw the rise of the multi-national companies and up until 2000, their global operations had helped to shrink the world. At the moment, globalisation 3.0 is yet to be defined as it depends on how we the users will decide on our means of interacting with those who live miles and miles away. Web 2.0 is an integral part of the latest stage in globalisation but it may only be the first step.
A Whole New World
Tom Friedman, a foreign affairs columnist for the New York Times, has attempted to identify what he believes are the causes of the phenomenon. In his book, The World is Flat, Friedman outlines the "10 Flatteners"; events in time that he believes shaped globalisation as we know today. These include the fall of the Berlin Wall, the creation of the first web browser and most recently, the influx of digital, mobile and virtual gadgets. More important than those perhaps, is Friedman's concept of the "Triple Convergence". This outlines how the 10 Flatteners are complementing each other, how we're moving from a vertical hierarchy to a horizontal one and the emergence of new powers in the global market such as India and China.
Be Afraid... Be Very Afraid
When China joined the World Trade Organisation in 2001, ASIMCO Technologies – an American auto parts manufacturer in China put the following African proverb on the factory floor:
Every morning in Africa, a gazelle wakes up.
It knows it must run faster than the fastest lion or it will be killed.
Every morning a lion wakes up.
It knows it must outrun the slowest gazelle or it will starve to death.
It doesn’t matter if you are a lion or a gazelle.
When the sun comes up, you better start running.
Get your Nikes on guys, we've got to catch up...
Sunday, March 29, 2009
It's the Web Jim, But Not as We Know It
After last week's rant about the banks, I thought I'd move away from all the doom and gloom of the recession and talk about a revolution that is predicted to change the way we do business. The Web.
The Electronic Revolution... Again
Well not quite the web. That's been changing the way we do things for more than a decade. It's the next level of the Web, what is becoming popularly know as Web 2.0. This form of the web is less about the transfer of data between computers and more about the exchange of information between people. This has come in the form of social networking, blogs and RSS feeds which not only allow people to express opinions to a wider audience but also to share knowledge and give advice.
What Makes A Web 2.0?
There is some debate as to what makes this Web 2.0? The answer lies somewhere between the latest advances in technology and the users eagerness to use and adapt that technology to meet their own needs. While Web 1.0 used mainly images and plain text to display information, Web 2.0 has used more innovative ways to get their message across. This has led to the creation of mash-ups, "tagging" and more and more user generated content.
And it's not just affecting the social patterns of the average Internet surfer. Businesses are also having to deal with the winds of change. For example, real estate and travel agencies are now in competition with independent sellers and content providers. And now even celebrities are using it to boost their profiles. Ashton Kutcher generated interest on his Twitter account by posting a picture of his wife undressing and used the attention it generated as an opportunity to advertise for his upcoming movie by posting a video of him getting his chest waxed in the film.
Let's just hope that Web 2.0 doesn't reach it's zenith with a chest-waxing video.
The Electronic Revolution... Again
Well not quite the web. That's been changing the way we do things for more than a decade. It's the next level of the Web, what is becoming popularly know as Web 2.0. This form of the web is less about the transfer of data between computers and more about the exchange of information between people. This has come in the form of social networking, blogs and RSS feeds which not only allow people to express opinions to a wider audience but also to share knowledge and give advice.
What Makes A Web 2.0?
There is some debate as to what makes this Web 2.0? The answer lies somewhere between the latest advances in technology and the users eagerness to use and adapt that technology to meet their own needs. While Web 1.0 used mainly images and plain text to display information, Web 2.0 has used more innovative ways to get their message across. This has led to the creation of mash-ups, "tagging" and more and more user generated content.
And it's not just affecting the social patterns of the average Internet surfer. Businesses are also having to deal with the winds of change. For example, real estate and travel agencies are now in competition with independent sellers and content providers. And now even celebrities are using it to boost their profiles. Ashton Kutcher generated interest on his Twitter account by posting a picture of his wife undressing and used the attention it generated as an opportunity to advertise for his upcoming movie by posting a video of him getting his chest waxed in the film.
Let's just hope that Web 2.0 doesn't reach it's zenith with a chest-waxing video.
Sunday, March 22, 2009
Recession? Not for These Guys
I recently heard about a bill that is being pushed through by Congress in the US, which will see them slap a 90% tax rate on the bonus' received by executives of any nationalised banks. This happened after there was a public outcry in America when the bankers who got us into this mess, not only got off scot-free, but received huge pay-off in the form of bonuses. Here's a video of the efforts being put in to retrieve bonuses that AIG executives were given:
Make Them Pay
Make them pay I say. We had to bail out the banks after the bankers bought dodgy loans because of the housing market boom. These are the very people who should have said "Hold on, is this really wise? We're putting all our eggs in one basket." Even without the dodgy loans they must have realised that the boom wouldn't go on forever. The bad loans simply made the fall even harder. After being paid good money to make this bad decision, instead of being fired from their jobs, they resigned. This is all well and good if it was your average employee, who would forfeit a severance package if fired, but these guys still got a pay package and what a package! With reports of bonuses totaling $200 million for AIG executives alone, most won't have to work another day in their lives.
And it's not just bank executives in the US that got bonuses; the same has happened here in Ireland. Michael Fingleton, ex-chief executive for Irish Nationwide, received a €1 million bonus pay package after the bank was nationlised. However, while Barack Obama proclaims that "no boss of a rescued bank should receive more than $500,000" and that they will "pursue every legal avenue to get it back" the outlook is not so rosy for Irish tax-payers. A spokesperson for the Department of Finance said there is no intention to introduce an Obama-style tax of 90% on bonuses of banking executives in institutions covered by a guarantee and Brian Cowen is projecting a negative outcome to the mess claiming that there's very little hope of recovering bonuses from executives who quit before the bank was bailed out. In relation to the other bonuses, the Taoiseach said that Minister Brian Lenihan "will decide, on that basis, what are the legal avenues available to him and what way can it be arranged that the issue can be dealt with satisfactorily". So no luck there either. The only silver lining is that no more bonuses will be paid out in the near future. Also, Fingleton's expected successor declined the role when it emerged that the head of Nationwide would get no more than €360,000. Peanuts really.
All in all, it looks like we handed out €7 billion to the banks so they could congratulate their executives on getting us into this mess. Makes you want to relocate to a low-tax country like Barbados where the weather is good and the government aren't the ones who rob you blind.
Make Them Pay
Make them pay I say. We had to bail out the banks after the bankers bought dodgy loans because of the housing market boom. These are the very people who should have said "Hold on, is this really wise? We're putting all our eggs in one basket." Even without the dodgy loans they must have realised that the boom wouldn't go on forever. The bad loans simply made the fall even harder. After being paid good money to make this bad decision, instead of being fired from their jobs, they resigned. This is all well and good if it was your average employee, who would forfeit a severance package if fired, but these guys still got a pay package and what a package! With reports of bonuses totaling $200 million for AIG executives alone, most won't have to work another day in their lives.
And it's not just bank executives in the US that got bonuses; the same has happened here in Ireland. Michael Fingleton, ex-chief executive for Irish Nationwide, received a €1 million bonus pay package after the bank was nationlised. However, while Barack Obama proclaims that "no boss of a rescued bank should receive more than $500,000" and that they will "pursue every legal avenue to get it back" the outlook is not so rosy for Irish tax-payers. A spokesperson for the Department of Finance said there is no intention to introduce an Obama-style tax of 90% on bonuses of banking executives in institutions covered by a guarantee and Brian Cowen is projecting a negative outcome to the mess claiming that there's very little hope of recovering bonuses from executives who quit before the bank was bailed out. In relation to the other bonuses, the Taoiseach said that Minister Brian Lenihan "will decide, on that basis, what are the legal avenues available to him and what way can it be arranged that the issue can be dealt with satisfactorily". So no luck there either. The only silver lining is that no more bonuses will be paid out in the near future. Also, Fingleton's expected successor declined the role when it emerged that the head of Nationwide would get no more than €360,000. Peanuts really.
All in all, it looks like we handed out €7 billion to the banks so they could congratulate their executives on getting us into this mess. Makes you want to relocate to a low-tax country like Barbados where the weather is good and the government aren't the ones who rob you blind.
Wednesday, March 4, 2009
Surviving the Recession
Now that people are starting to feel the effects of the "credit crunch", the big question is how do you avoid the backlash of the recession and continue living in the lap of luxury. The reality is you can't, but spending wisely will ensure that you feel less of a pinch then those who don't.
Weathering the storm
Desperate times don't necessarily call for desperate measures. Clear thinking and an awareness of the current situation can serve you just as well. If you're caught in a recession it's easy to start cutting costs in the obvious areas, but there may well be opportunities to save money being overlooked as a consequence. While I'm no Eddie Hobbs, here are a few of my tips to surviving the current economic conditions:
#1: Maximise Your Money
An obvious goal but there are certain ways of going about it. You could go out and rob a bank, taking the risk associated with that or go for a safer option: online banks. In a recession everyone tightens their belts and start cutting back on spending to save money, so if your going to have your money sitting in a vault you may as well have it earning the highest interest possible with the lowest fees. Because online banks don't have to pay for premises and other physical attributes usually costing a bank, they have less expenses than AIB or BOI.
#2: Make A Budget
Drawing up a cash budget should really be something you do anyway but it's vital in a recession. It gives you a broader view on your finances and also your liquidity. You shouldn't be spending money under the assumption that all your cash inflows will come through. After all you could lose your job and then what?! A budget will help you identify the areas where prompt payment is priority, like credit card bills, and where it can be put off for a time. It also gives you a better view of where you can make the cut-backs and how this will affect your disposable income (if you have any left!). One of the best uses of the budget is to identify and eliminate needless expenses ie. impulse buys. How you eliminate these expenses can involve a bit of willpower:
#3: Be Innovative
Think outside the box because since everyone is trying to save money, a good idea could give you that competitive advantage over the rest. We live in an age where globalisation is becoming more and more prominent and eBay is a great example of that. "One man's trash is another man's treasure" has never been more true with the explosion of this site's popularity. You probably won't be able to flog off that antique vase or the lock of Bono's hair you have, but there may be other objects of value. For example, a used games console would make an ideal birthday present for a recession stricken child.
#4: Bargain Bin
This needn't be as horrible as it sounds. My family have recently started shopping at Aldi instead of Tesco and when you look at the prices it's easy to see why. While the store lacks the recognised brand names, the quality is just as good and the price is certainly better. You can even treat yourself by buying luxury goods like sweets in bulk, and hardly feel the pinch. And for those of you who just HAVE to have the brands, they have started stocking some of the more popular names but at the same price as other stores. In relation to clothes, you can get a comfortable plain white t-shirt for €30 in Tommy Hilfiger or an exact replica for €8 in Dunnes Stores. The difference? A tiny rectangular crest that makes no different to the clothing itself. Again, its just a question of pride, something we can ill afford during these times.
Hopefully you can put these tips to good use and save yourself a bit of money. If not, then there are always the desperate measures mentioned earlier:
Weathering the storm
Desperate times don't necessarily call for desperate measures. Clear thinking and an awareness of the current situation can serve you just as well. If you're caught in a recession it's easy to start cutting costs in the obvious areas, but there may well be opportunities to save money being overlooked as a consequence. While I'm no Eddie Hobbs, here are a few of my tips to surviving the current economic conditions:
#1: Maximise Your Money
An obvious goal but there are certain ways of going about it. You could go out and rob a bank, taking the risk associated with that or go for a safer option: online banks. In a recession everyone tightens their belts and start cutting back on spending to save money, so if your going to have your money sitting in a vault you may as well have it earning the highest interest possible with the lowest fees. Because online banks don't have to pay for premises and other physical attributes usually costing a bank, they have less expenses than AIB or BOI.
#2: Make A Budget
Drawing up a cash budget should really be something you do anyway but it's vital in a recession. It gives you a broader view on your finances and also your liquidity. You shouldn't be spending money under the assumption that all your cash inflows will come through. After all you could lose your job and then what?! A budget will help you identify the areas where prompt payment is priority, like credit card bills, and where it can be put off for a time. It also gives you a better view of where you can make the cut-backs and how this will affect your disposable income (if you have any left!). One of the best uses of the budget is to identify and eliminate needless expenses ie. impulse buys. How you eliminate these expenses can involve a bit of willpower:
#3: Be Innovative
Think outside the box because since everyone is trying to save money, a good idea could give you that competitive advantage over the rest. We live in an age where globalisation is becoming more and more prominent and eBay is a great example of that. "One man's trash is another man's treasure" has never been more true with the explosion of this site's popularity. You probably won't be able to flog off that antique vase or the lock of Bono's hair you have, but there may be other objects of value. For example, a used games console would make an ideal birthday present for a recession stricken child.
#4: Bargain Bin
This needn't be as horrible as it sounds. My family have recently started shopping at Aldi instead of Tesco and when you look at the prices it's easy to see why. While the store lacks the recognised brand names, the quality is just as good and the price is certainly better. You can even treat yourself by buying luxury goods like sweets in bulk, and hardly feel the pinch. And for those of you who just HAVE to have the brands, they have started stocking some of the more popular names but at the same price as other stores. In relation to clothes, you can get a comfortable plain white t-shirt for €30 in Tommy Hilfiger or an exact replica for €8 in Dunnes Stores. The difference? A tiny rectangular crest that makes no different to the clothing itself. Again, its just a question of pride, something we can ill afford during these times.
Hopefully you can put these tips to good use and save yourself a bit of money. If not, then there are always the desperate measures mentioned earlier:
Wednesday, February 11, 2009
Recession Session
Every since the economy's gone into a tailspin, things have started to change. VAT rates have gone up, business are closing down and instead of being asked if I want to go to the pub, I'm being asked if I fancy a "Recession session".
As funny as this is, it got me thinking about how many people out there know what caused the worldwide recession. Sure we all know it had to do with the banks messing up since we're the ones bailing them out, but how did we get into this position?
As funny as this is, it got me thinking about how many people out there know what caused the worldwide recession. Sure we all know it had to do with the banks messing up since we're the ones bailing them out, but how did we get into this position?
Well one of the causes of the current recession was that governments were slow to raise interest rates when the economy started to boom again in 2004. Low interest rates in 2004 and 2005 helped created the housing bubble. Irrational exuberance set in again as many investors took advantage of low rates to buy homes just to resell. Others bought homes they couldn't afford thanks to interest-only loans.
Cause of Current Recession
In 2006, when higher rates finally kicked in, declining housing prices caught many homeowners who had taken loans with little money down. As they realized they would lose money by selling the house for less than their mortgage, they foreclosed. This meant that the banks were repossessing houses which they couldn't sell. An escalating foreclosure rate panicked many banks and hedge funds, who had bought mortgage-backed securities on the secondary market and now realized they were facing huge losses. Here's a video released by UBank, an Australian Bank which summarises how the credit crunch happened:By August 2007, banks became afraid to lend to each other because they didn't want these toxic loans as collateral. This led to a $700 billion bailout, and bankruptcies or government nationalization of AIG and Freddie Mac in the US, a £500 billion bailout in England and a €7 billion bailout of AIB, Bank of Ireland and Anglo Irish here in the Emerald Isle. Here's a link to a slideshow which gives a humourous account of how the banks got us into this mess:
http://files.filefront.com/MortgageMessExplainedpps/;13410857;/fileinfo.html
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