Feb06_EdNote

One of my diversions is reading paperback novels–candy for the brain. Over the holidays, I picked up Total Control, by David Baldacci, which first was published almost 10 years ago. The story is predicated on a character employed by a company that is developing new faster computer chips and engaging in a potentially future-altering acquisition. This character disappears under suspicion of selling company secrets to a competitor. As part of his investigation, an FBI guy is given a tour of the company by its founder. The dialogue quoted here evolves from comments by the founder regarding how the Internet is about to become “boring” and “quaint,” and technology is set to change everything human beings do.

Says the founder: “All the world's knowledge, the solutions to every problem, will be one keystroke away. . . . Isn't that a thrilling vision?”

The FBI guy responds: “You tell me one guy can get all that information, and you know the first thought that pops into my head? . . . What if he's a bad guy? What if with one keystroke he wipes out all the world's knowledge? Or just screws it all up. Then what the hell do we do?”

Fast forward a decade, when data is a more strategic asset than ever, privacy is both a security and compliance concern, fraud is alive and well, and both hackers and scammers are finding more sophisticated ways of plying their trades. At the same time, proactive security technologies constantly are evolving, and reactive data and analytics systems to combat claims fraud also are increasingly effective (for more, see “The Best Defense,” p. 20).

While some crime-fighting efforts are voluntary, others are not. One recent “not” example occurred on Oct. 31, when under two final rules announced by the Financial Crimes Enforcement Network (FinCEN), U.S. insurers that provide specified products were mandated both to establish anti-money laundering programs and start filing suspicious activity reports. According to FinCEN, “Using customer and other information obtained through agents, brokers, or otherwise, an insurance company can assess the money laundering risks presented by its business based on such factors as the particular types and locations of customers served, distribution channels, and products offered.” It's safe to assume technology will be integral, and data management is key.

Insurers are taking control of data, according to Celent's 2006 CIO/CTO survey. The analyst firm “was surprised to see a 100 percent 'in progress or high priority' frequency for data warehousing among large insurers, and high frequencies . . . for projects linked to the general issue of 'data mastery.'”

So, is technology a blessing or curse?

According to that fictional company's founder: “The benefits of technology far surpass any potential dangers. You may not agree with me, but the coming years will prove me right.”

I hope so. I would submit there's no difference between technology and, say, money, education, or power–all things can be used for good or evil. But I like to believe the good guys always win.

Sharon S. Schwartzman

Editor-in-Chief