In addition, you can read a full white paper on this topic from the Financial Services Roundtable here.

While there has been some positive movement by the current administration to address the cybercrime issues plaguing our nation, there is much more work to be done. From new legislation aimed at appointing a national cyber security czar to bringing the cyber initiatives under the NSA, these all show that the U.S. government is starting to address this problem – at least on the surface.

The challenge is that we need to dive deeper and reach wider to address this problem. For example, President Obama is at the G20 meeting this week mainly to address the global financial crises. Are the leaders discussing how to stop the global hacking rings – especially the ones coming out of Russia and the Ukraine?

Speaking of Russian hacker rings, we urge you to check out the 60 Minutes clip below. What is most disturbing about this segment is that these hackers are actually celebrated figures in their country. They are perceived as being heroes because they rob from the “greedy westerners.” These are obviously deep cultural issues that need to be addressed.

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Industry should not have to shoulder the burden alone. No matter how much time and investment is put into developing virus-protection technologies and fraud prevention programs at banks and financial institutions, the bad guys always seem to be one-step ahead.

This week, the House Homeland Security Committee held a hearing on the impact of the PCI standards on reducing compromises of sensitive personal information — so the issue is being addressed — and the news was not good. According to a Justice Department official who testified, a new breed of international cybercriminals are developing sophisticated techniques for stealing personal data – a major threat to millions of Americans. Read more here (link).

The bottom line is that we need broader support from the U.S. government, which needs to address this on a global political and diplomatic scale. Seriously, what do you all think about this? Do you think the U.S. government can do more to bring down these hackers? If so, what more can be done??

We want to hear from you!

The news is not good. Brian McGinley, a former ITAC chairman who now runs his own risk management consulting firm, described identity fraud criminals as terrorists who arrive in the night to do terrible damage and then disappear like smoke. They include street gangs who recruit corporate insiders to steal information, and global syndicates like the Russian Business Network (RBN). They operate indiscriminately with little threat of arrest and prosecution, enabled by technologies readily available on the Internet to steal information, which can then be bought and sold online.

Jim Van Dyke, founder of Javelin, found some good news among the bad. Identity theft grew by 22%, affecting some 9.9 million adults. The good news is it appears financial services companies and consumers are doing a better job detecting fraud so they can act quickly to prevent further damage. Here’s the news release.

Van Dyke attributed the increase to a deteriorating economy – a trend he expects will worsen in 2010 – as well as the growing sophistication of criminals. He stressed the importance of addressing the tough question of who owns an individual’s identity. The zero liability model (where the company assumes any financial loss) has not succeeded in changing consumer behavior. And financial services companies currently operate in a “paternalistic” manner to protect consumers. He suggests a more integrated approach where marketing, IT professionals, customer service work with consumers with a consistent protection message.

It is clear that technology alone cannot address identity fraud – it’s something like walking up a down escalator. But it is clear from today’s event that there must be resolve, across disciplines, to marry any technical solutions, authentication practices and education that’s meaningful to consumers.