Know The Laws, Know Your Rights: Begins

We are vigilant in our house about monitoring credit card activity, especially after traveling, and this was not the first time that unauthorized charges had appeared after recent trips. So I immediately got on the phone and reported the problem to the American Express Platinum Card office. The card was invalidated, a fraud investigation was begun, the charges were removed, and a few days later a new card arrived via FedEx.

Then I called my friend the security expert, Anthony C. Roman, and said, problem solved, right? Not exactly. “Red alert! Red alert! Red alert!” he responded.

What’s the big deal? Aside from the inconvenience of having to enter the new credit card information on recurring accounts, the cost to me was zero.

“Well, hopefully it was,” said Mr. Roman, president of Roman & Associates, which specializes in investigations and risk management consulting. He explained, however, that isolated unauthorized charges on your credit card statement most likely indicate that sophisticated cybercriminals are waiting to see if you will notice.

“What credit card fraudsters do is test your vigilance, how carefully you’re watching your account, and how carefully the credit card providers are watching your account. They do this by making relatively small purchases first, to see if it sets off any bells and whistles,” he said. Many frequent travelers are lax about checking activity statements in a timely manner, which flashes a green light to criminal hackers. Then, he said, “Hell or high water, the big charges are coming.”

Worse, he said, a hacked card could indicate that more serious identity theft might have occurred.

In its 2013 Global Security Report, Trustwave, a data security management firm, says that the top three industries targeted for data breach attacks in 2012, measured by the number of its investigations, were retailing (45 percent), food and beverage (24 percent) and hotels (9 percent). Three years ago, the hotel industry was at the top, but hotels have since made “significant strides” in improving credit card security measures, the report says.

Still, criminal hackers gravitate to some hotels because, like retail stores and restaurants, hotels do many credit card transactions at a local level, where centralized and highly sophisticated data security safeguards may be lacking. Last year, for example, the Federal Trade Commission sued Wyndham Worldwide, the hotel chain, for what it said was inadequate safeguarding of credit card information that led to three data breaches at hotels in under two years, with “millions of dollars in fraud loss, and the export of hundreds of thousands of consumers’ payment card account information to an Internet domain address registered in Russia.”

Wyndham responded that it had done all it could to report the crimes and carry out “significant remedial measures.” The company also charged that the commission had overstepped both its authority and its expertise in hotel data security enforcement.

Most hotels are locally owned, though managed by big hotel chain companies. For hotel owners, it is expensive to come into full compliance with the tough global data security criteria set by the credit card companies. And, Trustwave says, “Cybersecurity threats are increasing as quickly as businesses can implement measures against them.”

The threat is constant, Mr. Roman said. “The best protection is vigilance, and that takes work,” he said. That includes using complex passwords, being wary of public Wi-Fi, updating antivirus software — and checking credit card statements carefully.

Speaking of work, I hate to memorize passwords and PINs, but that appears to lie ahead. In the United States, credit cards use magnetic strips that are more vulnerable to hacking than the electronic chips embedded in credit cards in Europe and elsewhere. Such cards also require entry of a PIN.

These so-called chip-and-PIN cards are headed our way, said Kathy Orner, vice president for information security at Carlson Rezidor, a worldwide hotel company that is among the industry leaders in data security.

All of the major credit card issuers plan to start introducing these cards in the United States within two or three years. Ms. Orner had some advice for when that happens. “Do not use the same PIN on your credit card that you use on your debit card” or anywhere else, she said.

Right: more numbers to remember, coming soon.

Sunday, August 4, 2013

DealBook: Jury Begins Deliberations in Tourre Trial

Wednesday, February 27, 2013

Media Decoder: Glenn Beck Begins Campaign to Urge TV Systems to Add His Web Channel

8:48 a.m. | Updated Glenn Beck is beginning a campaign to get his Internet channel, TheBlaze, onto cable and satellite television systems across the country, and the one system that already carries the channel, Dish Network, is backing him up.

The campaign will begin on Monday when Mr. Beck starts promoting GetTheBlaze.com, a Web site that asks fans to contact their television provider and request the channel. He will talk about the site on his nationally syndicated radio show and link to it on his social networking Web sites.

“You probably pay good money every month to your TV provider for access to channels like MSNBC and Al Jazeera America — channels that you might not watch, or even agree with,” Mr. Beck wrote in a letter on the Web site. “Adding TheBlaze will ensure that you and your family have a source of news and analysis that you can trust and that doesn’t betray your values.”

Mr. Beck has previously indicated that he plans to position the channel as a libertarian news and entertainment source, which would put it into relatively direct competition with Fox News Channel, where he hosted a hugely popular 5 p.m. talk show for nearly three years. The plan is rather audacious, partly because TheBlaze is owned by Mr. Beck’s company, Mercury Radio Arts, not by a media conglomerate like Fox’s parent, News Corporation.

Twenty months ago Mr. Beck left Fox and started GBTV, the subscriber-only Internet channel that he later renamed TheBlaze. Within a year he had 300,000 subscribers, no small feat for any Web site. But by then he’d also decided he wanted to get back on old-fashioned TV. In September 2012 Mr. Beck announced a carriage deal with Dish, the first of what his company hoped would be many such deals. Simply stated, the economics of television are better — TV channels get small per-subscriber fees, whether or not the subscribers ever watch, and the advertising possibilities are enormous.

Dish has a period of exclusivity with TheBlaze, so no other cable or satellite system can carry the channel quite yet. The companies haven’t disclosed how long this period lasts, but it is probably ending soon, because TheBlaze is starting its campaign now. Such campaigns are attempted all the time by small, independently-owned channels, often with little success. Ordinarily cable and satellite systems are reticent to carry new channels; in fact, the trend is in the other direction, toward dropping independent channels altogether.

But what Mr. Beck has — and what other small channel owners don’t have — is an audience of millions on the radio and on the Internet. And some help from the Dish Network. In a statement provided by a spokesman for the channel, Dave Shull, the Dish senior vice president of programming, said, “TheBlaze and Glenn Beck bring a unique perspective to Dish’s broad spectrum of political programming on all sides.” When the channel was added last fall, he said, “We had customers sign up quickly, and we saw new customers join Dish. In fact, subscriptions attributable to TheBlaze outpaced our projections by 80 percent, proving that Dish is giving customers what they want with a choice in programming, not to mention the technology to choose how to watch it.”

Even with Dish’s endorsement, it remains to be seen whether other cable and satellite systems — such as DirecTV, Comcast and Time Warner Cable — will agree to carry TheBlaze. They may simply point out that viewers can find it on the Internet.

An end to Web streaming was something Al Jazeera accepted when it bought Current TV in January for an estimated $500 million. (Mr. Beck said he tried to bid for the channel, but was rebuffed by Current’s co-founders, Al Gore and Joel Hyatt.) Al Jazeera currently streams its English-language news channel on the Internet free, but to make its cable and satellite distributors happy, it will stop doing so when it officially replaces Current this spring.

Then again, the Al Jazeera stream was free; the Internet stream of TheBlaze is only accessible to subscribers. Asked whether the channel would be taken off the Internet as a condition of gaining carriage on television, a spokesman said, “TheBlaze has no plans to do that at this time and believes that the continued success of the subscription platform proves to distributors the demand for our content.”

Along with the campaign announcement on Monday, TheBlaze said that Lynne Costantini, a former Time Warner Cable and Scripps Networks executive, was joining the channel as president of business development, to lead its effort to get on television.

The “Get TheBlaze” campaign will commence in phases and last for at least nine months. Mr. Beck wrote in his letter: “This journey for truth that we are on is much bigger than you and I; the future of liberty is hanging in the balance. All of us have a choice to make: sit on the sideline, or get involved.” He described TheBlaze not just as a family-friendly news and entertainment channel, but a cog in nationwide political change.

“If we succeed then we change the media. If we change the media, we control the debate. If we control the debate, we change politics. And if we change politics, we change the country,” he wrote.

TheBlaze has more than 40 hours of programming a week, including simulcasts of Mr. Beck’s radio show, a nightly show of his just for the channel, a nightly panel conversation about the news, and a couple of documentaries and reality shows. In January Mr. Beck described ambitious plans for the channel, involving more news reporting (“We are currently looking for our own Woodwards and Bernsteins,” he said) and a libertarian bent. “I consider myself a libertarian,” Mr. Beck said.

Tuesday, January 1, 2013

News Analysis: In Europe, Focus Begins to Shift to Speed of a Recovery

A year ago, many people seriously doubted whether the euro would still exist by now. On the threshold of 2013, the debate is more about how long it will take for the euro zone economy to recover and what must be changed to avoid future crises.

Europe still has plenty to worry about. Economic output is shrinking in nine of the 17 nations that use the euro. European banks remain weak, and many have yet to confront their problems decisively.

Many businesses in Spain, Italy and other distressed countries cannot obtain credit, hampering a recovery.

On top of that, with national elections coming in Italy in February and Germany in September, leaders there may be more focused on the narrow concerns of their voters than the cause of European unity.

“At the moment the crisis seems to have calmed down somewhat,” Jens Weidmann, president of the Bundesbank, the German central bank, said in an interview with the Frankfurter Allgemeine newspaper published on Sunday. “But the underlying causes have by no means been eliminated.”

But consider some of the doomsday situations that did not occur in 2012. Greece did not leave the euro zone or set off a financial disaster like the one sparked by the collapse of Lehman Brothers. Spanish and Italian bond yields, rather than succumbing to contagion from Greece, retreated from levels that had threatened their governments with bankruptcy. And nowhere did populist, anti-euro political parties gain the upper hand.

All of these things could still happen, but the probability of catastrophe has fallen substantially because of a fundamental change in the way that European leaders are dealing with the crisis.

Under its president, Mario Draghi, the European Central Bank has promised to buy the bonds of countries like Spain, if needed, to control their borrowing costs.

That vow, which cooled the crisis fever of late summer, bought time for elected officials to begin creating the superstructure needed to make the euro more credible, including a permanent fund for rescuing stricken member countries and a unified system for overseeing banks.

“In 2012, the euro area leaders finally got the diagnosis right,” said Jacob Funk Kirkegaard, a research fellow at the Peterson Institute for International Economics in Washington. “It wasn’t about Greek debt or Irish banks. It was about some very fundamental design flaws that needed to be fixed. That’s what markets were looking for.”

Even though European political leaders seem to argue endlessly, they have made enough progress to keep speculators at bay. Investors surveyed by UBS recently ranked the chances of a breakup of the euro zone well behind the potential danger from a combination of spending cuts and tax increases scheduled to take effect in the United States next month or a hard landing by the Chinese economy.

“There is more of a perception that nobody is better off if this thing breaks up,” said Richard Barwell, senior European economist at Royal Bank of Scotland.

The question in 2013 will be whether a fragile calm in Europe holds long enough for economic growth to resume, for banks to rebuild their balance sheets and for leaders to make progress creating a more durable currency union.

Here are some of the main things to watch:

ECONOMIC PERFORMANCE The euro crisis, arguably, will be over the day that all of the stricken countries are generating economic growth. Ireland, one of the first countries to get into debt trouble back in 2008, might already have turned the corner. Its gross domestic product grew 0.2 percent in the third quarter from the period a year earlier.

Spain, Italy and Portugal are still deep in recession, and Greece is in a de facto depression. But there are some signs of progress in one crucial measure: trade balances. All of the distressed countries have increased exports this year and reduced trade deficits. That is a sign their products have become more competitive on world markets.

Saturday, September 29, 2012

Advertising: Green Mountain Coffee Begins Fair Trade Campaign - Advertising

In recognition of October being Fair Trade Month, the brand is seeking to educate coffee drinkers about fair-trade certification, which many people may vaguely associate with worthiness without quite understanding it.

“I think about fair trade sometimes like antioxidants,” said Jonathan Yohannan, executive vice president for corporate responsibility at Cone Communications, one of several agencies working on the campaign, referring to substances often praised for their health benefits. “You know it’s good for you, but you don’t really know what it means.”

Green Mountain Coffee will help explain what fair trade means with a campaign called “Great coffee, good vibes, pass it on.” Print and online ads will direct consumers to the brand’s Facebook page, which will feature videos with the musicians Grace Potter and Michael Franti visiting certified coffee farms in Colombia and Sumatra.

“The videos are all about showing an authentic experience with fair trade, with the celebrities seeing firsthand the impact that fair trade has,” said Derek Archambault, senior brand manager for Green Mountain Coffee.

The brand works with the nonprofit Fair Trade USA, which certifies that producers conform to labor and environmental standards, and links farmers directly to companies rather than enriching middlemen.

When companies buy fair-trade coffee, they pay a community-development premium in addition to the base price. For every pound of conventionally grown coffee, the premium is 20 cents; for organically grown coffee, it is 50 cents, with 20 cents going to community development and the remaining 30 cents to farmers.

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In 2011, when more than 138 million pounds of certified coffee was imported to the United States, fair-trade premiums totaled about $17 million. The money went to cooperatives of farmers, who voted to apply it to development projects like new schools, health care facilities and equipment to improve the productivity of farms and the quality of their coffee.

Green Mountain Coffee Roasters — the parent company, which also produces brands like Tully’s Coffee and, under a licensing agreement, Newman’s Own Organics — is the largest purchaser of fair-trade coffee in the world. It imported about 50.3 million pounds in 2011, or 24 percent of its raw coffee purchases, according to the company and Fair Trade USA.

Green Mountain Coffee Roasters also owns Keurig, which makes systems that brew single-serve pods called K-Cups. Green Mountain spent $22.9 million on advertising in 2011, compared with $100.5 million for Starbucks, $37.5 million for Folgers and $24.9 million for Maxwell House, according to the Kantar Media unit of WPP.

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One of the new online videos opens with Mr. Franti, the musician, who says, “I’m here in Sumatra teaming up with Green Mountain Coffee, where I’m going to learn about how fair trade makes a better cup of coffee and a better quality of life for farmers.”

In the video, a farmworker tells Mr. Franti that premiums from the fair-trade program enable him to send his children to school.

An on-site Green Mountain employee in the video adds that through such direct relationships with small farmers, the brand can help pinpoint the locations on a farm, like the side of a mountain with a certain amount of sun exposure, that yield the most drinkable coffee.

The videos with Mr. Franti and Ms. Potter — which are by Y&R New York, part of Young & Rubicam Group, owned by WPP — will be featured on Green Mountain’s Facebook page, which has more than 656,000 followers, and on YouTube.

Print ads for the campaign, also by Y&R, begin appearing Friday in publications like People, Rolling Stone and Entertainment Weekly. Digital ads will be introduced Monday on Web sites like YouTube, Hulu and Oprah.com.

Ms. Potter will perform live exclusively on the brand’s Facebook page on Oct. 9, and Mr. Franti on Oct. 24.

In 2011, Fair Trade USA helped farmers and farmworkers earn $22 million in premiums beyond the base price for their products.

While a wide range of products can receive fair-trade certification, including cocoa, nuts, wine and flowers, coffee is by far the most dominant. In 2011, the $17 million in coffee community-development premiums accounted for 77 percent of all premiums.

For Fair Trade Month, which the nonprofit organization is spearheading, other companies will also be promoting the cause. Whole Foods, for example, will hold sampling events with a range of certified products at more than 100 of its stores.

Mary Jo Cook, who calls herself the chief impact officer at Fair Trade USA, said she could recall no other marketing campaign devoted to fair-trade practices by a brand with the scope of the Green Mountain Coffee campaign.

“It’s a giant step in going out and engaging consumers so that they understand what fair trade is,” Ms. Cook said, adding that the campaign would have the effect of promoting fair-trade goods in categories besides coffee.

“We believe this will have a halo effect for fair trade as a movement, which is what we’re here to support,” she said.

Andrew Hetzel, founder of CafeMakers, which provides strategic planning and brand development for coffee businesses, said the coffee industry tended to focus more on social and environmental issues than other industries.

“You don’t see an Apple campaign for how well they treat workers in factories,” Mr. Hetzel said, referring to reports of poor working conditions at factories owned by some of the technology giant’s subcontractors. “But the coffee industry in particular seems to be especially sensitive to the environment and to workers.”