National Discount Broker Site Compromised National Discount Brokers
National Discount Broker Site Compromised “National Discount Brokers’ site, which has 200, 000 customers, was down for more than an hour Thursday as company engineers tried to fend off what appeared to be an attack” “The FBI is still investigating the other attacks, which took down Yahoo!, e. Bay and E*TRADE, among others. ”
Ikea’s Contact DB Compromised From: "IKEA" <ikea_promo@ikea-webkit. com> To: lisamarie@psu. edu Dear Lisa, As promised, we want to provide you with an update on our rigorous site security investigation. We worked with an expert third party Internet security firm to ensure that our system supports the most advanced Internet security protection that is essential in keeping up with today's ever-changing Internet climate. Rest assured that no credit card or financial information was ever at risk. Additionally, access to your email account was not at risk. You will still receive the IKEA catalog as you requested. Sincerely, IKEA Customer Service
How Security Empowered e. Schwab to Become the #1 Internet Broker Ginni Chadha and Lisa Lacombe MIS 597 C November 27, 2000
Charles Schwab Services ¨ Retail brokerage ¨ Mutual funds ¨ Support services for independent investment managers ¨ Equity securities market making ¨ Research services ¨ Professional advising services
Traditional Trade Process Customer wants to make a trade. Customer walks into or calls Schwab Trade transacted. But what if it’s 3 am? ? ?
e-Transformed Trade Process Customer wants to make a trade. Customer walks into or calls Schwab No Problem!!! Trade transacted.
e-Transformed Trade Process Customer wants to make a trade. Customer walks into or calls Schwab Trade transacted. But what if you’re in the middle of nowhere? ? ?
m-Transformed Trade Process Customer wants to make a trade. Customer walks into or calls Schwab Voila!!! Trade transacted.
Trading Anywhere
Trading Anytime
Obvious Benefit to Consumer, but What is Value Added for Schwab? ¨ Increased customer base ¨ Customer relationship development ¨ Knowledge acquisition ¨ Increased profits ¨ Cross selling/increased service offerings ¨ Increased brand awareness
Market. Place Value Chain
Market. Space Value Chain
Industry Sources Say… ¨ #1 Internet Broker, #1 Serious Investor, #1 In Ease of Use, #1 in Relationship Services, Fall 2000, Gomez. ¨ #1 Full Service Broker and #1 Discount and Online Broker, Sep 2000, Worth Magazine ¨ #1 in Investment Research, #1 in Portfolio Tracking, #1 in Banking Services, March 2000, The. Street. com.
SWOT Analysis of e. Schwab Strengths ¨First to e-market ¨Multi-channel strategy ¨Large alliance network ¨Strong security initiatives ¨Strong brand ¨One-stop shopping Weakness ¨Weak international presence (esp. in wireless) Opportunities ¨Knowledge value creation ¨Global expansion ¨Wireless market has great potential Threats ¨Competitors catching up ¨net. Gen may prefer cheaper trades ¨Evolving security threats
Internet Security Model incorporates SSL Browser requests secure conversation w/ server Browser uses public key to encrypt shared secret key Server provides certificate Browser sends encrypted share secret key to server Browser authenticates Shared secret key encrypts rest of conversation
WAP Security Model incorporates WTLS Wireless Device Wireless Network Internet Network Content WAP Server Gateway WTLS enables super secure transactions without requiring the power-and memory-hungry security solutions used on the Web.
Evolving Security Issues ¨ Viruses ¨ Hackers…ask Bill Gates ¨ Continued investment in IT
Developing Security Technologies epad chip 2 chip Biometrics Smart cards Digital signatures
Summary ¨ Schwab’s evolving business model ¨ How the e-business is dependent upon state- of-the-art security measures ¨ Future issues and evolving security technologies
2000 Statistics Schwab ¨ 39% revenue growth from 98 -99 ¨ 69% profit growth from 98 -99!!! ¨ 4. 1 m online accounts ¨ 81% trades online (compared w/ 36% in 97) ¨ 80% transaction cost savings per trade ¨ 21% online market share (down from 50% in 97)
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