Sudden Allure - Digital Transactions

Trends & TacticsTrends & TacticsSecurity NotesEnlisting Electronic Payments in the War on TerrorGideon@AGSgo.comAtime may come when the countermeasures to face the potential of daily acts of urbanrobustness and omnipresenceof the electronictermeasure,and the question for us is implementation.terrorism. Disallowing cash transactions is one such counpaymentindustry will be summonedOne sector of concern is the huge unbanked population.by the country to help root The solution here might be to sell prepaid debit cards againstout a wave of urban terrorism. cash and personal identification. The system will then be able toIt is an open secret that the tie the use of each card with its purchaser. The second considerationpolice and the FBI use electronicmay be volume. As the threshold for no-cash transactionspayment records as a mainstay tool to fight crime and terrorism.is set lower, the volume of transactions in the system gets larger.Nearly everyone goes through his or her day purchas-At some point, the industry would have to develop a solutioning merchandise to support his or her lifestyle. This personal with multiple authentication points and with built-in redundancy.information tells volumes about who we are, and where weIncreased transaction volume also means an increasedare—day by day, hour by hour. Recently, the Patriot Act number of disputed payments, requiring a regulatory change togave the government an unprecedented reach into the privacyforce a quick solution, especially for micropayments.of the citizenry, with the argument that we all have to There would be plenty to be concerned about with such apay with privacy to purchase security. This is deemed today system. What is quite worrisome is that the government, forby our representatives in government as a well-balanced sacrificereasons of secrecy, might develop regulations without allow-to the cause of victory over terrorism.ing the industry itself to adequately participate in their formu-The only thing is, the terrorists are fully aware of the lation. This could lead to chaos in, and even paralysis of, agovernment tentacles and their extensive data-mining capability.system that has become increasingly critical to our civil order.They pay with cash, even for large-ticket items. A common mistake is to not properly account for the reac-Recent terrorism manuals have laid out clear instructions to tions of both terrorists and privacy activists. People could makestay under the radar through cash transactions.it a point to exchange equal-value cards to confuse the system.In this cat-and-mouse game, the next step is for the cat Hackers, as well as privacy fanatics, may offer merchants ato take. It may be a really controversial one: mandating that higher cash price for merchandise that the merchant will thenthere be no anonymous transactions over a preset threshold. report lost or stolen. Once popular, this trend could create pressuresThis threshold could be adjusted at will, and would be setfor laundering and similar unintended consequences.at low enough level to ensure that our enemies will have to Another worry: If the no-cash measures help stop wouldbeleave an electronic track record of their behavior.terrorists, they might become a permanent fixture. TheOf course, the price will be exceedingly high, as all our government would surely enjoy the snooping power theminute actions will become an open book for the government.measures offer. And proponents could argue that this no-But in the war on terror, one has to prepare for all cash payment regimen should be used to catch criminals,eventualities. In Israel, just seven or eight years ago, terrorismspot alimony evaders, and so on.ran rampant, with daily explosions on buses, in res-But enforcement is rather straightforward. Merchants’taurants, on boardwalks, and in shopping centers. It was books would have to show the card used for each payment,relentless, nearly paralyzing the entire civil order. Suicide with prosecution following for cash transactions.bombers and their small support teams purchased their bomb The long-range impact of such a move is hard to foretell.ingredients inconspicuously, blended into the crowds, andShould it become a serious option, it should be broadlyblew themselves up along with scores of innocent victims. debated by all stakeholders, taking into account the technologicalSince America is also an open society, it is equally vulnerable.stress, the operational burden, the ethics and privacyAs a result, our planners must prepare suitable implications, the cost, and, of course, the expected benefit.12 digitalFebruary 2010