Tuesday, March 22, 2011

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Wednesday, March 16, 2011

Making Money With Youtube



What's up with buying tickets to Next instead of just making a reservation? That's creativity as well. Nick, my business partner, said, "you know, Chef, this doesn't make any sense to me. Everybody that opens a restaurant does it exactly the same way. Why don't we identify the elements of operating a restaurant that clearly don't work, rip the whole thing apart and put it back together in a way that makes sense as a business, then maybe we'll have something."



So having five reservationists—a grand total of $175,000 a year—to answer the phone from 9AM to 6PM, and tell people they cannot come to our place to spend money, because we're full, that makes absolutely no sense.



For Next you will have four menus a year, and each one is a different time and place. How much poetic license are you going take with those menus? We're starting out with Paris 1912 Escoffier. Anyone who has read any of Escoffier's cookbooks knows they are incredibly vague. Back in the early 1900s, they didn't have a VitaPrep blender. He pushed everything through a fine screen. Do we use a screen to uphold the authenticity of Escoffier? Or, do we use a blender to uphold Escoffier's philosophy about using the technology we have? Of course you'll use the blender.



When we go into the future, Bangkok 2060, obviously nobody knows what it's going to be like in 2060. So, sure, we're going to take some poetic license. But you can bet we'll do our homework and look at where Thai food has been the last couple of hundred years, identify the way it's swung, and try to extrapolate what WE think it might be like in 2060.



It looks like the Modernist Cuisine cookbook is going to have some adapted Alinea recipes. Do you align yourself with the Modernist movement? I will by no means parallel myself with the Beatles, but they went through their career, starting off in Liverpool playing one kind of music, then came to the States. By the time they did the White Album, stylistically, they were executing from a far different place. Alinea is aligned with the Modernist Cuisine movement but me, personally, I have the opportunity, to be at one time a modernist chef, then over at Next, I can be something entirely different.



Who do you consider to be the target audience for cookbooks like Modernist Cuisine or Alinea's? Do you see the future American kitchen incorporating dishes like these? We understood when we published the Alinea book in 2008 that a small handful of people would cook out of it. But we also know, because that book was published, it lends a little more credibility to the movement. Ten years from now, it might be more popular for people to cook like this at home, for the very reason that we printed those books.



What's the best thing you've recently eaten for under $20? We were in Tokyo about six months ago and had the most amazing bowl of ramen. It was bigger than my head. It would be like four meals for under $20, if you don't count the flight.



Over $150? It was in Sapporo, Japan. When the chef came out at the end of the meal, I felt like I already knew him. I had never met him before, nor could we communicate, but I felt like there was this connection after eating his food. And to me that's magical.





Pizza pizza!



At Slice we profile pizza obsessives with the following question: The Pizza Cognition Theory states that "the first slice of pizza a child sees and tastes ... becomes, for him, pizza." Do you remember your first slice? Where was it from, and is the place still around? Not my very first slice, but I could probably tell you where it was from. It was literally Little Caeser's pizza in my tiny hometown. Every Friday night that was like the go-to in my house.



Are you into deep dish? I am, but I prefer thin. I had the best pizza experience in my life about 3 weeks ago. It was at Great Lake, here in Chicago. It's a tiny little place, husband and wife team, BYOB. They have one pizza they make a night. You walk in, you get your salad, you get your pizza—whatever they're making that night. It's freaking awesome, man.









The Board of Editors of The New York Times is demanding significant cut backs in public sector union contracts, but refuses to recognize the cause of the problem, which is the entire structure of public employee unions:

At a time when public school students are being forced into ever more crowded classrooms, and poor families will lose state medical benefits, New York State is paying 10 times more for state employees’ pensions than it did just a decade ago....
In all, the salaries and benefits of state employees add up to $18.5 billion, or a fifth of New York’s operating budget. Unless those costs are reined in, New York will find itself unable to provide even essential services.



To point out these alarming facts is not to be anti- union, or anti-worker. In recent weeks, Republican politicians in the Midwest have distorted what should be a serious discussion about state employees’ benefits, cynically using it as a pretext to crush unions.
Yet The Times Editors, in the subsequent paragraphs, acknowledge that the public sector unions are not willing to make the necessary changes:

Gov. Andrew Cuomo has pursued a reasonable course, making it clear that he expects public unions to make sacrifices, starting with a salary freeze. He wants to require greater employee contributions to pensions and health benefits, with a goal of saving $450 million.



Negotiations begin this month, but so far union leaders have publicly resisted Mr. Cuomo’s proposals. If they don’t budge, Mr. Cuomo says he will have to lay off up to 9,800 workers. That would damage the state’s struggling economy. Some compromise must be found.
Having secured very sweet contracts for their members through political influence, the public sector unions have no incentive to change.  They know from history that politicians eventually back down or move on, and the consumer of public sector services ends up paying through higher taxes and diminished services.



The current system also pits older union membership, which has vested in all these benefits, against younger members, who will bear the cost of cutbacks and likely never will see such sweet deals for themselves because there simply is not enough money.



The cause of the problem is not just the terms of a particular public sector union contract, it is the system which allows public sector unions to pass costs onto future generations of taxpayers and union members.



Wisconsin Gov. Scott Walker is correct to recognize that collective bargaining for benefits is the cause of the problem, and that it is not enough to treat just the symptoms.



--------------------------------------------

Related Posts:

What Did Former Providence Mayor David Cicilline (D-RI) Know, And When Did He Know It?

In Rhode Island, Nothing Succeeds Like Failure



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Monday, March 14, 2011

Making Money Now

Actually, these bastards are going to end up hanging themselves on a couple of points (not my words, but family deeply involved in the legal business as lawyers and law professors).


First, there is a little point of technicality called the “Equal Protection Clause(s) of the U.S. Constitution, which pretty pointedly states that it is not exactly legal to try to deny guaranteed rights (under the constitution) from any one group of citizens. This is what ultimately torpedoed much of segregation (and Jim Crow laws) in the Deep South, and why the attempts to impose a modern day equivalent in Arizona are unlikely to survive a constitutional challenge. Trying to deprive these state union members of legally recognized rights, in organizations that are recognized as legitimate under both state and federal laws, is going to set off a whole minefield of legal issues, and could extend way beyond just the rights of union members to seek representation for collective bargaining purposes. Such as the rights of any number of groups to organize and hold meetings about common points of interest. Not too great an extension to say that if this bullshit can fly (what the Spotted Wanker is pushing in WI) than some other governor with a rubber stamp legislature could turn his attention to stripping rights from gays. Or blacks. Or Jews. Or whoever the hell these goons feel like ganging up on. That is why the poem from the 1930s has never lost any of its power…”first, they came for the trade unionists, but I didn’t speak up, because I wasn’t a trade unionist…” (apologies if this quote is not completely accurate or otherwise misstated) )


Second: the little abomination that the Gang of Five on the Supream Court gave us a year or so ago (Citizens Inebriated) actually contains a little bouncing betty of its own that could very well go off in the faces of Govs Wanker, Sacitch, Krysty, and J.O. Daniels. Since this ruling extended the concept of “personhood” to both corporations and unions, to try to deny them any right to operate within the legal framework that they were organized under deprives these “persons” of the freedoms of speech, association and movement. Which means (once again, quoting law school trained family) that either the courts have to uphold these rights for the unions (as individual “persons” as guaranteed by the Federal (and most state) constitutions, or they have to declare that these attempts at stripping or limiting union rights have to apply to major corporations, also.




It’s nearing two weeks since unions and their cohorts on the Left have thrown a nationwide fit over Scott Walker’s solution to what is ailing Wisconsin. Unions and Democrats have made Wisconsin their cause célèbre by deploying OFA astroturf, the big talking heads, as well as recruiting just about every known Grateful Dead concert attendee on their mailing lists into Wisconsin. Meanwhile, Democratic state senators (now humorously known as fleebaggers) comically continue to hold the state hostage over an issue of union power, politics and money—nothing more and nothing less.


Despite unions’ long hatred of Scott Walker, the new governor is moving to address both the symptoms of the disease and the disease itself—the public-sector union scheme that has molested Wisconsin’s taxpayers and their children by gaming the system. Unions like Wisconsin’s teachers’ union [WEAC] (which was Wisconsin’s biggest-spending lobby in 2009) have been extraordinarily adept at fixing the system through spending millions to elect politicians who, in turn, reward the unions at the expense of the taxpayers.


Now, in response to Walker’s proposals, the Left has gone overboard in their attempt to protect their stranglehold on Wisconsin taxpayers. Even though unions have made clear that their fight is not about their wages or benefits (they’ve offered concessions), they’ve made the fight all about their “right to be unionized” and the fictitious right to “collective bargaining”—which makes their cause even more despotic.


In making Madison into something reminiscent of the spectacle of the 1960s, unions, Democrats and their liberal cohorts are attempting to make the Wisconsin union battle into a civil rights battle, when it is not.  In fact, the Wisconsin fight, when compared to private-sector negotiations is about: 1) the Scope of Bargaining, 2) Union “Income” Security [Right-to-Work vs. Forced Dues], 3) whether Wisconsin should be the unions’ dues collection agency [payroll deduction of dues], and 4) whether public-sector unions should be ‘recertified’ by holding elections every year.


Contrary to the Left’s hyperbole, Scott Walker’s proposals do nothing to eliminate public-sector workers’ right to association, assemblage, or to petition their government. Even pretending that it is a “rights” issue is a mistake. There is nothing in the U.S. Constitution that requires a government to engage in a back and forth negotiation with a collective of workers. In a poignant piece entitled There is No Right to Collective Bargaining, Public Service Research Foundation President David Denholm summarizes the problem with the unions’ argument, stating:


A law granting public-sector unions monopoly bargaining privileges gives a union, a special interest group, two bites at the apple. First, it uses its political clout to elect public officials. Then it negotiates with the very same officials.


When you consider that between 70 and 80 percent of all local government expenditures are personnel costs, you begin to get an idea of the magnitude of the power such laws give unions.


Not only is there no right to collective bargaining in public employment, it is wrong. Collective bargaining distorts and corrupts democratic government.


Collective bargaining is a process for employer-employee relations that was designed for the private sector. This process served as the model for the development of public-sector collective bargaining without taking into account the fundamental differences between the two sectors.


As Mississippi Governor Haley Barbour explains:


“When they have collective bargaining in Wisconsin, on one side of the table there’s state employee unions or the local employee unions. On the other side of the table are politicians that they paid for the election of those politicians,” Barbour said. “Now, who represents the taxpayers in that negotiation? Well, actually, nobody.”


Even Newsweek’s Evan Thomas noted on Sunday [via Newsbusters]:


The Democrats really depend on these public employee unions in a lot of states for their support and for their political muscle, and public employee unions got a problem here. I want to distinguish between unions and public employee unions. Unions obviously are critical, but in the public sector, public employee unions have a pretty easy time getting a lot of benefits because nobody’s really pushing back all that hard.


Admittedly, Walker’s proposals are a threat to unions in several ways. As Walker’s proposals determine:



  1. The extent of what unions will be allowed to bargain about. Walker’s proposal limits bargaining to wages only, effectively eliminating the WEA Trust monopoly which gets its money from local school boards and runs it through a union-run insurance company.

  2. Whether unions can have workers fired for not paying union dues. According to its most recent financial record on file, WEAC (the teachers’ union) raked in over $25 million in 2009. Walker’s proposal makes paying union dues voluntary, as opposed to mandatory. This goes to the lifeblood of any union. If, for example, 20% of those teachers who are currently required to pay union dues as a condition of employment opt out, WEAC could lose up to $5 million a year in revenue. [It is noteworthy that, in the private-sector, the SEIU will be conducting its second strike at a Pennsylvania medical center over the issue of mandatory dues.]

  3. Whether the state will continue being the unions’ dues collector. Walker’s proposal eliminates’ the employers’ payroll deduction of union dues. Again, while it is commonplace for unions to negotiate payroll deduction, there is nothing anywhere (in private or public sector law) that states that it is an employers’ duty to be a union’s collection agency.

  4. Whether the unions will have to ‘re-certify’ every year to maintain representational status. Of all of Walker’s proposals, this seems to be one that could be considered a ‘throw away’ item in negotiations. If Walker’s other proposals get enacted, and union-represented employees feel that the union is worthless, they can initiate an election themselves every calendar under existing law [see Section 111.83(5)[h]] .


Given the ability of the unions and their co-conspirators on the Left to hijack the issue in Wisconsin over these last two weeks, there appears no way for a “win-win” compromise to be worked out. One side or the other will win. Either the unions and the Left, or taxpayers will prevail.


If the Left wins, all chances of reforming public-sector unions will be tossed aside by weak-kneed Republicans who will then be held hostage by temper-tantrum throwing Democrats (see Indiana for example). In addition, the Left has already painted the entire Republicans party with bulls eyes and has for years. Therefore, there is no reason for GOP governors like Scott Walker, Chris Christie and John Kasich to back down, which puts the Left in an untenable situation as well.


In the meantime, the disciples of Saul Alinsky will continue their prattle, attempting to convince America that the Battle of Wisconsin is something more than a fight over union power, politics and money…even though it’s not.


_________________


“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine, December 23, 1776


X-posted.



Photo Credit: Tony the Misfit




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Friday, March 11, 2011

How to Making Money

Founded in 2009 by Amanda Steinberg, DailyWorth is known as a day-to-day electronic mail newsletter that includes information on fiscal literacy and cash management skewed in the direction of a female audience. DailyWorth’s subjects range from the way to organize your finances to tax tips to saving recommendations. And DailyWorth has an amazing editorial employees to build content material. MP Dunleavey, previously a private finance columnist together with the New york Occasions and presently a contributor with Funds magazine, is foremost DailyWorth’s editorial group.

Despite unions’ very long hatred of Scott Walker, the new governor is shifting to tackle equally the signs and symptoms from the condition along with the condition itself-the public-sector union scheme that has molested Wisconsin’s taxpayers and their young children by gaming the strategy. Unions like Wisconsin’s teachers’ union [WEAC] (which was Wisconsin’s biggest-spending lobby in 2009) are actually extraordinarily adept at correcting the technique through paying millions to elect politicians who, in flip, reward the unions at the expense for the taxpayers.

the Wisconsin fight, when in comparison with private-sector negotiations is about: one) the Scope of Bargaining, 2) Union “Income” Protection [Right-to-Work vs. Forced Dues], 3) whether or not Wisconsin have to be the unions’ dues assortment company [payroll deduction of dues], and four) irrespective of whether public-sector unions must be ‘recertified’ by holding elections each yr.

put the photographs on the web to present our jobs staff at msnbc.com, and photographer Jim Seida reported, why don’t we just publish it being a slide indicate? I used to be skeptical initially - would that crimp the writing? - but during the stop I was advocating executing it this way when the photo team was skeptical. I considered much more many people would go through by it by doing this, and it might be value an experiment.”


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Being Right or Making Money

On Monday night, I watched my foremost, The Final Phrase host Lawrence O’Donnell.
Whereas O’Donnell laudably tried to concentrate the audience’s interest onand hopefully very last, Charlie Sheen trainwreck interview, courtesy of the tragic undertow that threatens to pull Sheen below for great, I was overtaken, not through the pulling around the thread, along with the voracious audience he serves. It didn’t make me unfortunate, it created me angry.

Concerning celebrities, we could be a heartless region, basking within their misfortunes like nude sunbathers at Schadenfreude Beach. The impulse is understandable, to some degree. It could possibly be grating to pay attention to complaints from consumers who love privileges that most of us can’t even just imagine. If you ever can not muster up some compassion for Charlie Sheen, who makes a great deal more dough for a day’s operate than most of us will make in a very decade’s time, I guess I cannot blame you.



Using the quick pace of activities on the internet and therefore the information and facts revolution sparked from the Internet, it’s rather simple for that technologies community to imagine it’s completely unique: perpetually breaking new ground and doing points that no one has ever before accomplished just before.

But there are actually other kinds of online business which have already undergone several of the very same radical shifts, and have just as amazing a stake during the foreseeable future.

Get healthcare, as an illustration.

We typically presume of it as a tremendous, lumbering beast, but in reality, medication has undergone a sequence of revolutions while in the previous 200 a long time which have been at the very least equal to these we see in technology and knowledge.

Much less understandable, but however inside the norms of human nature, is the impulse to rubberneck, to slow down and consider the carnage of Charlie spectacle of Sheen’s unraveling, but for the blithe interviewer Sheen’s lifestyle as we pass it with the perfect lane of our every day lives. To get straightforward, it may be challenging for men and women to discern the distinction among a run-of-the-mill consideration whore, and an honest-to-goodness, circling the drain tragedy-to-be. On its personal merits, a quote like “I Am On a Drug. It is Labeled as Charlie Sheen” is sheer genius, and we cannot all be expected to get the complete measure of someone’s daily life every last time we listen to one thing funny.

Swiftly ahead to 2011 and I am trying to take a look at indicates of staying a bit more business-like about my hobbies (primarily audio). Through the conclude of January I had manned up and started out to promote my weblogs. I had established various totally different blogs, which have been contributed to by associates and colleagues. I promoted these activities by Facebook and Twitter.


Second: the tiny abomination the Gang of 5 about the Supream Court gave us a 12 months or so back (Citizens Inebriated) truly contains somewhat bouncing betty of its personal that can extremely effectively go off while in the faces of Govs Wanker, Sacitch, Krysty, and J.O. Daniels. Seeing as this ruling prolonged the notion of “personhood” to both equally firms and unions, to check out to deny them any perfect to operate within just the legal framework that they had been organized below deprives these “persons” of the freedoms of speech, association and motion. Which suggests (when once more, quoting law school skilled family members) that either the courts really have to uphold these rights for the unions (as individual “persons” as assured from the Federal (and most state) constitutions, or they've to declare that these attempts at stripping or limiting union rights should use to main firms, also.


There's plenty of blame to go around! I have been a "quit your job!" evangelist. I have hustled entrepreneurism in magazines; we even run a quit yer job column right here (and there's a good interview coming later today!). I have a great rationale for this position: it is that working conditions have turned to a state of serious suck over the last decade and many employers have demonstrated that they don't give a flying fig about workers, and the only way to even consider retirement in the future is either on your own dime or on the streets.


So yes, do it! And but also… The air in this bubble isn't being recycled very well. The biosphere is a little stinky! No offense to a smart little idea, but LaunchRock is what did me in, and now the NYC Startup Bus is driving over my soul on its way to SXSW.


LaunchRock is a startup that services startups with a jazzy signup-for-beta-invite page and… no, wait, that's it! LaunchRock is incredibly useful, in that you can keep track of all the startups that are about to startup! Like Elephant. What could it be? WHO KNOWS, let's sign up. I hope it's for dream journalling! Social networked dream journalling, man, I would almost pay money for that.


And if you're not glued to the live updates from the Startup Bus that is on its way to Austin, you are missing out. They are starting startups on the startup bus! It's been a tough morning, clearly:


8:57 a.m. — Buspreneurs are pitching their startup ideas, and other buspreneurs are trying to shoot them down. "The whole bar trivia thing isn't really monetized yet."


You know what I wish someone would start-up for me? A widget that would autorefresh that page in a window every 10 minutes so that I don't miss a single absurd word.


There's still good news about the bubble. Like, all my friends are going to get insane money to run their companies. Let's hope some of them show a return! There's going to be nothing sadder than a bunch of 34-year-olds that have given up and been worn down, wearing their kryptonite neck-irons of expansive bubble burn-rate in the isolation of their grey office cubicles.


Let's hope they remember the fun of the crazy times! We're living in a world where venture capitalists have the time to write blog posts about how to write email subject lines that will get them to open your email due to them not having any time.


Even the most zealous haven't forgotten that something killed the dinosaurs, is what the people who are down on this fun little segment of upturn say. Terrorism, swine flu 2.0, war, a derivatives market disaster, the elimination of government-run services, President Palin, something something China, all the palladium gets mined, Google gets MySpaced—who can tell in advance? The fun thing about our modern age is that the meteor is always already about to hit the roof of the bubble, it's just not identifiable until afterwards (hello, Nevada's housing market!), when we're picking up the pieces and working at Walgreen's.


Or you know what else might happen? Nothing! People might just keep making money in one company out of eight or whatever, and everything just shuffles along. The free market, baby.


All that being said, I bet if you wanted to put a little money into a smart and successful editorial company, drop me an email, I bet we could work something out. Couldn't we? While the incubators and angels are awesome—low-cost, high-adventure quotient, great schemes—the real future of startups isn't investment money. It's very little money, because the person with the big checkbook actually almost always turns out to be your boss.



The U.S. military is getting serious about energy change






One thing the military is getting right these days: Making the connection between fossil fuel dependence and insecurity. I did a lot of research in the past year on efforts throughout the Department of Defense as a whole, and especially within the Navy and Air Force, to improve energy efficiency on military bases in the United States. For instance, Jacksonville Naval Air Station, in Jacksonville, Florida, has put young officers in charge of changing the culture of energy use from within their own units. They've convinced their fellow soldiers to make small changes, like turning off lights that aren't being used or sharing a single coffeemaker among several people. More importantly, they've got soldiers thinking in broad ways about energy, waste, and future security—What else could be done with the money spent on unnecessary energy use? What happens in a fuel-related crisis if this base can't be more self-sufficient?



These changes in culture and ways of thinking are making a difference. Last summer, officers at Jacksonville Naval Air Station told me that, thanks to several different energy efficiency campaigns and improvements, they've watch activity on the base increase over the last three years while energy use on the base has fallen.



There are some interesting and important changes afoot in the way the military handles energy. And not just at home. David Biello of Scientific American has a really fascinating story about the Department of Defense getting involved with ARPA-e—a Department of Energy program for developing cutting-edge energy technology. Among the collaborations: Energy storage systems for the front lines of war.



That's why the U.S. Defense (DoD) and Energy (DoE) departments are partnering on initiatives to further develop and test energy-storage technologies first developed by ARPA-e. Secretary of the Navy Ray Mabus announced two such development and deployment partnerships on March 2 for power electronics modules and batteries capable of storing megawatts of power--both to be funded by a requested $25 million each from DoD and ARPA-e in the fiscal year 2012 budget.



"Twenty-five million dollars is the cost of one H-1 helicopter," Mabus said. "The change that $25 million from DoD and ARPA-e can generate, can multiply that one helicopter hundreds and thousands of times."



Mabus was referring to saving both lives--for every 24 fuel convoys in Afghanistan and Iraq, one soldier or Marine is killed or wounded, according to a U.S. Army study--and money. The DoD fuel bill came to some $14 billion in 2010. "For every dollar the price of a barrel of oil goes up, the Navy spends $31 million more for fuel," Mabus noted. "Our dependence on fossil fuels creates strategic, operational and tactical vulnerabilities for our forces."



The Navy has taken a lead in attempting to change that, setting a goal of deriving half its energy needs from non-fossil fuel sources by 2020 as well as making half of its bases energy self-sufficient.



Scientific American: U.S. Military links energy research to lives and dollars saved




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Saturday, March 5, 2011

Affiliate Making Money





UPDATE: DirecTV has given Consumerist its side of the story.

_________________

For years, DirecTV has been advertising its "refer your friends and get $100" promotion. But for one DirecTV customer in Florida, that referral didn't end up profiting her; in fact, it ended up draining her bank account after that friend passed away.



The woman referred her friend to DirecTV a few months ago, but when that friend died unexpectedly, DirecTV debited at least $800 — without notifying her — from her bank account to pay for her late friend's unpaid service.



"I was never told of this," she told the NBC affiliate in Jacksonville. "I didn't see any of this. I never signed for this. I was blindsided. I have no record of this....



"I have a sick child at home that I couldn't afford to buy her Pedialyte... I had to ask for help from family. I had to get money for gas to get to work today, and DirecTV hasn't offered anything."



There is nothing in the DirecTV terms and conditions that ties a referrer's account to anyone they refer to the company. But the customer says that all her phone calls, letters and faxes to DirecTV failed to get her an explanation or refund.



It wasn't until after the local TV news got involved that she got any sort of response from DirecTV, who wrote, "This is definitely not part of DirecTV's policy. If a customer refers a friend, they are not responsible for making payments on their friend's account."



Eventually, she received a call from the company's president, who told her that DirecTV would be refunding all the money that was taken from her account. The next day it was back safely in her bank.



We've reached out to DirecTV to see if anyone there can explain what caused this huge error and will update if we get a response.



DirecTV Bills Woman After Friend Dies [News4jax.com]



Thanks to Jeff for the tip!










UPDATE: DirecTV has given Consumerist its side of the story.

_________________

For years, DirecTV has been advertising its "refer your friends and get $100" promotion. But for one DirecTV customer in Florida, that referral didn't end up profiting her; in fact, it ended up draining her bank account after that friend passed away.



The woman referred her friend to DirecTV a few months ago, but when that friend died unexpectedly, DirecTV debited at least $800 — without notifying her — from her bank account to pay for her late friend's unpaid service.



"I was never told of this," she told the NBC affiliate in Jacksonville. "I didn't see any of this. I never signed for this. I was blindsided. I have no record of this....



"I have a sick child at home that I couldn't afford to buy her Pedialyte... I had to ask for help from family. I had to get money for gas to get to work today, and DirecTV hasn't offered anything."



There is nothing in the DirecTV terms and conditions that ties a referrer's account to anyone they refer to the company. But the customer says that all her phone calls, letters and faxes to DirecTV failed to get her an explanation or refund.



It wasn't until after the local TV news got involved that she got any sort of response from DirecTV, who wrote, "This is definitely not part of DirecTV's policy. If a customer refers a friend, they are not responsible for making payments on their friend's account."



Eventually, she received a call from the company's president, who told her that DirecTV would be refunding all the money that was taken from her account. The next day it was back safely in her bank.



We've reached out to DirecTV to see if anyone there can explain what caused this huge error and will update if we get a response.



DirecTV Bills Woman After Friend Dies [News4jax.com]



Thanks to Jeff for the tip!







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Zero-Friction-Marketing-9 by BlakeJefforson


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Zero-Friction-Marketing-9 by BlakeJefforson




















































Monday, February 21, 2011

Making Money Scams









Social Networks



According to Cisco, criminals are targeting social network users more aggressively. In particular, criminals are spending more time and effort trying to steal users' social networking credentials, since that makes it possible to exploit the trust of all that users' friends.



Although the exploitation of trust is crucial, Cisco predicts a decline in simple phishing and social networking scams. The company expects instead a rise exploits similar to the Zeus trojan, which steals banking credentials and propagates on social networks, mobile devices and more.





Social Engineering



Cisco warns of the "seven deadly weaknesses" exploited by social engineers:




  • Sex Appeal

  • Greed

  • Vanity

  • Trust

  • Sloth

  • Compassion

  • Urgency





Even the most savvy users can fall prey to social engineering. For example, Thomas Ryan of Provide Security created fake identity called "Robin Sage." Ryan was able to get hundreds of government officials and security professionals to friend this imaginary person on social networking sites and, as a result, share personal information with Ryan.



According to the report:



Clickthrough rates for most malware or spam incidents consistently hover at around 3 percent, according to data from Cisco ScanSafe. While 3 percent may not seem high, imagine the impact of repeated waves of spam to which 3 percent of workers consistently respond to and click on. Even this small percentage is the equivalent of having a gaping hole in the network firewall that cannot be closed. Instead of trying to change human behavior, security researchers are exploring the possibility of changing the way we use software to reduce risks.


Java: The New Number One Target





Java and PDF are both frequently exploited, but according to Cisco Java exploits rose last year and PDF exploits fell. Java surpassed PDF as the most commonly exploited technology.



Cybercrime in the Post-PC Era



According to the report, Windows has been so prevalent and so easy to exploit that there was no need for criminals to try to exploit other systems. However, the proliferation of other devices and OSes along with improved security in Windows 7 has changed that.



However, this move is happening slowly. A report from Forrester on security in the post-PC era notes that mobile device OSes are inherently more secure than desktop OSes due to sandboxing. This means that even jailbroken iPhones and rooted Android phones will be harder to compromise than older Windows PCs. However, social engineers can prey on anyone, regardless of the device they are using.



The Cloud: Friend or Foe?



The report cites the cloud as having both benefits and drawbacks for security. The drawback is that data can be intercepted while traveling between a server and the devices that access it. The advantage is that having data stored off-device makes it hard to extract sensitive information from lost or stolen devices.



Money Mules



The report has an interesting section on "money mules." Once a criminal has stolen a victim's bank account information, they need a way to get the money into their own accounts without getting caught. Money mules are people who transfer money from a victim's bank account to a criminal. One way to do this is to transfer money into the mule's account, then have the mule wire it via Western Union to the criminals overseas. The recipient of the wire from Western Union might not have to provide bank account information to receive the money, making them more difficult to trace.



Some mules are low-level criminals who participate for the money. Others are duped by work at home job ads. Students and people with large debts are often targets.

However, there's a shortage of mules. "Currently, the ratio of stolen account credentials to available mule capacity could be as high as 10,000 to 1," says the report.



Winners of the Cybercrime Showcase



Cisco highlights two winners in this year's "Cybercrime Showcase" - a "good" winner and an "evil" winner.



The Good winner is Thorsten Holz of the security firm LastLine. Holz identified the top 30 servers that the botnet Pushdo/Cutwail used for sending spam. Holz got ISPs to shutdown those servers and, as a result, the rate of spam decreased from 350 billion messages per day to 300 billion per day.



The Evil winner is Stuxnet, which we've covered frequently.



What, No Malvertising?



Surprisingly, there is no discussion of malvertising in the report. You can read our post "What You Need to Know About Malvertising" for more about this threat.












How low is a Facebook scammer prepared to go? Here's a pretty sick rogue application that we've seen affecting some users of the world's most popular social network, leading to the all too familiar money-making survey scam at the end.



OMG she is so busted!! Dad catches Daughter on Webcam!


Hmm. It would be nice to think that no-one would be interested in clicking on a link like that. But human nature being what it is, some folks (guys in particular I would guess) might be tempted to find out more and find they aren't able to show some restraint.


So, what does happen if you click on the link?


First thing you'll see is this splash screen (I've used some pixelation to protect the innocent):



If you are still tempted to click further, you'll be asked by a rogue Facebook application to grant permission for it to be able to post to your wall.



By the way, it's not just your personal Facebook page that the app will be able to post updates to - it will also be able to publish to any pages you might be responsible for, which could prove highly damage if you administer a Facebook page for your firm.


So, after all this, do you get to see the video?



Nope. Instead, you'll be greeted by a survey. And this survey makes money for the scammers behind the scheme as they earn commission for every survey completed.


Worse still, your Facebook account has already been abused by the rogue application which has posted a message about the dad catching his daughter stripping on a webcam for all of your Facebook friends to see.




Wow she got caught so dirty.


Busted!! Dad Catches Daughter on Webcam!

Do not watch unless 18+

Content is graphic. Watch at your own risk!


In this way the scam spreads virally, attempting to earn as much money as possible for the survey scammers.


I know there will be people out there who feel that anyone who clicks on links like this deserve everything they get, but that doesn't mean the rest of us should be bombarded by spammy messages on Facebook just because some of our online friends have turned out to be a littel bit seedy.


We've seen cybercriminals use grubby themes like this to spread their attacks, and no doubt we'll see them again. Human nature isn't going to change and people will carry on clicking on them unless they're educated about the threats. Of course, it wouldn't do any harm if Facebook could work a little harder at preventing scams like this occurring in the first place.


If you have been hit by scams like this on Facebook, and are struggling to clean-up your profile, here's a YouTube video I made which describes what steps you need to take:



(Enjoy this video? You can check out more on the SophosLabs YouTube channel and subscribe if you like)


Make sure that you keep informed about the latest scams spreading fast across Facebook and other internet attacks. Join the Sophos page on Facebook, where over 60,000 people regularly share information on threats and discuss the latest security news.

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