[107149] in Cypherpunks
identity fraud newsletter
daemon@ATHENA.MIT.EDU (Robert Hettinga)
Sun Jan 3 20:18:23 1999
Date: Sun, 3 Jan 1999 19:51:20 -0500
To: cypherpunks@cyberpass.net
From: Robert Hettinga <rah@shipwright.com>
Reply-To: Robert Hettinga <rah@shipwright.com>
Wherein Evangelista blows milk out her nose...
The nymity meme hits us over the head again.
Numerology, innumeracy and the mystification of identity r00lz, d00dz...
Welcome to the Diet of Worms. For your nailing pleasure, we've put the
door, right, over... there...
Cheers,
RAH
--- begin forwarded text
To: worley@ariadne.com, fjaffe@netcom.com, dcsb@ai.mit.edu
Date: Sun, 3 Jan 1999 17:29:35 -0500
Subject: identity fraud newsletter
From: sidney3@juno.com (Sidney Lieberman)
Sender: bounce-dcsb@ai.mit.edu
Reply-To: sidney3@juno.com (Sidney Lieberman)
From: Edentifica@aol.com
************************
ELECTRONIC
IDENTITY FRAUD
NEWSLETTER
Volume 1, Issue 4
January 3, 1999
************************
From: e-DENTIFICATION, LTD
Voice: (717) 859-2430
Fax: (717) 627-5454
Email: EDENTIFICA @ AOL.COM
******************************
BROTHER, ARE YOU STILL PARADIGMING ?
************************
In this issue we will continue our examination of paradigms currently
being
used that may invite and enable identity fraud. Again, I would like you
to
question the assumptions and challenge the conclusions.
The subject to be examined in this issue is: The Six Laws of Identity.
WHO ARE YOU?
~~~~~~~~~~~~~~
In answering the question "Who are you?" we need to reexamine the whole
concept of identity. I propose that there are laws of identity, just as
there
are laws of physics. You might even see the similarities. There are
those
who suggest that information follows the laws of thermodynamics, and the
argument is persuasive. Since any identity is information the
interrelationship between physics and information is inevitable.
Therefore,
it may be just two ways of viewing the same thing.
THE FIRST LAW OF IDENTITY
~~~~~~~~~~~~~~~~~~~~~~
+ Identity is a fundamental quality of life and unique.
+ Each identity is unique.
+ Identity is a fundamental quality of all life forms.
Even the simplest of life forms -- viruses -- recognize identical viruses
and
similarly recognize the life form upon which the virus is dependent for
existence. If one were to analyze the complete realm of choices
available for
both forming affinities between like kinds of viruses and the possible
combinations of target species and even specific locations within target
species the potential for mistake is overwhelming.
The price the virus pays for a mistake in processing identity information
is
death. There is very strong evolutionary selection pressure to be right
in
recognition. The process of recognition at this level is chemical and
when
compared to the recognition processes of more complex animals, simply; it
is
in no way trivial.
While viruses recognize both identical viruses and hosts, inanimate
objects
that may be chemically more complex (like rocks, or continents or entire
planets) have no recognition capabilities. Identity and its counterpart,
recognition, would seem to be limited to living, information processing
forms.
This brings up the interesting prospect of other information processing
systems -- computer networks, etc. At present the systems all require
some
living interface and can be viewed as an extension of the living forms.
However, when the day comes that artificial information systems rise sui
genres and are self-replication they too may become life forms.
THE SECOND LAW OF IDENTITY
~~~~~~~~~~~~~~~~~~~~~~~~
+ Identity is a paramount quality of life perpetuated through the genetic
process.
The identity of a living form is the most essential bit of information
and
essential to the existence of that life form. Identity information is
critical for both metabolic functioning (recognizing food and foes) and
specie
perpetuation (breeding). Identity information is so specific that
interbreeding between species is an impossibility.
Without identity/recognition replication of individuals and the
perpetuation
of species would be impossible.
THE THIRD LAW OF IDENTITY
~~~~~~~~~~~~~~~~~~~~~~
+ Evolution is the process of identity variation.
Evolution is the process by which identity information is altered. The
basic
nature of evolution is the alteration of specie identification to a new
specie
identity. At a molecular level it is the identity information contained
within the DNA/RNA complex that is changed to provide the first step in
evolution. The process of selection involves the processing --
recognition --
of identity information.
Even if one were to say that the evolution was, in longer legs to run
faster,
or a more efficient metabolism, this improved quality becomes part of the
identity information package for that individual and must be embedded
genetically and passed on through generations to be of evolutionary
import.
Therefore, a characteristic, such as long-legs, is dependent upon the
information set that is the identity for the survival of the
characteristic
across generation lines.
THE FOURTH LAW OF IDENTITY
~~~~~~~~~~~~~~~~~~~~~~~~
+ Individual identity is invariant.
Each individual has only one true identity throughout life. This is true
for
all life forms -- the simple and the most complex. No life form
transmutes
into another individual let alone another species. Even in complex life
cycles, such as the metamorphosis of insects, the identity package
travels
along throughout the process. This can be readily seen in the repetition
of
the process generation after generation. So even though the individual
form
may mutate from caterpillar to butterfly, it is a single individual
carrying a
single identity that goes through the process.
The attempts to alter one's identity are all ultimately futile. One can
disguise, but at the molecular level identity is maintained constant.
This
does not mean that the disguise is ineffective for the purpose intended,
only
that the underlying identity is unaltered.
THE FIFTH LAW OF IDENTITY
~~~~~~~~~~~~~~~~~~~~~~
+ Identity is information
Recognition is the processing of identity information. At the simplest
level,
the specific chemical receptors provide the recognition process. At the
most
complex levels, such as verifying the identity of a stranger from
information
provided it is more challenging and requires various strategies.
However,
along the entire spectrum of recognition from the simplest to the most
complex, it is information that is being processed.
THE SIXTH LAW OF IDENTITY
~~~~~~~~~~~~~~~~~~~~~~
+ No Two Identities are the Same
No two identities can occupy the same space at the same time. Even if
two
identities were indistinguishable under all methods of scrutiny, they
could
not both occupy the same space at the same time. Therefore, location in
time
and space can serve as an adjunct component of identity under appropriate
circumstances.
HOW ARE IDENTITIES TREATED IN THE COMMERCIAL WORLD?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
What is commonly referred to as "our identity" is really what we call
ourselves or what others all us. This naming function is a surrogate for
real
identity and provides a simpler process of identification that references
real
identity in the ideologic sense.
Since humans first became socialized, we have been using the convention
of
names as identifiers. However, names while convenient and capable of
functioning perfectly in small groups, fail completely in large groups.
Names
are limited and may be shared by more than one individual and may be
changed
at will.
Unlike the fixed nature of true identity information, the surrogate that
has
become commonplace over thousands of years of commerce, is stretching its
utility as communications and commerce become both anonymous and global.
The
challenge of positive identification, that faces the use of names as
unique
identifiers, has not and cannot be adequately met, without some reference
to
the basic true unique identity package that is a basic life function.
The challenge faced by the world of global intercourse is the integration
of
the surrogate system of names, that is ingrained in our social fabric and
the
biologic identification information. This challenge was first met and
adequately served by appending additional information to our names, in
the
form of a numeric component, that might have been a social insurance or
security number, a national service number, a drivers license number, an
account number, etc. The appended information varied depending upon its
origin and purpose. The result was a cacophony of numeric identifiers,
which
served specific, but not general identification/recognition purposes.
In the world of commerce and particularly the world of electronic
commerce,
identities have taken on new intrinsic value within the system of
commerce.
Typically, the value has related to credit and/or positive or negative
actions
of the individual in the past.
The abuse of identity for the purpose of usurping the value component has
always been a part of human nature. This usurpation has been a part of
literature from Cyrano and Shakespeare to incidents of doubles standing
in for
important government functionaries. The abuse of the process for illegal
purposes and theft of the value component of identities is proliferating
now.
It will continue to proliferate at ever increasing frequency as the
anonymity
of commercial transactions increases. What now passes for commerce is
not the
physical exchange of currency and goods, but is frequently only the
exchange
of information, which are symbolic analogues for value.
CONCLUSION
~~~~~~~~~~~
In conclusion, we should be clear that the problem is not one of
identification. Our identification is as solid and sacrosanct as ever.
The
challenge is on the recognition side of the identity/recognition
equivalence.
What must be created is a system that allows for facile, quick and
certain
recognition without confusion.
As commerce becomes increasingly dependent on the pure exchange of
information, the information component that is the identity of the
parties
must be as verifiable and certain as the economic information exchanged.
The good news is at its most basic form, an identity is biologic
information;
a much older form than commercial digital information based identities.
The
basic biologic and digital identities need only be integrated with
certainty
to provide a solid base for electronic commerce to flourish in the
anonymous
environment of the Internet.
By, John F. Ellingson, Madison, WI - editor
Principal in e-DENTIFICATION, LTD
Personal Email Address: JohnE37179 @ aol.com
**************
BOOK REVIEW
**************
The Next World War: Computers Are the Weapons & the Front Line is
Everywhere.
James Adams, Simon & Schuster, 1998.
This book is a must read for anyone dealing with information systems.
Adams,
the CEO at United Press International, writes in a reportorial style of
events
that are at the same time alarming and fascinating without promoting a
point-
of-view. He examines every aspect of the use of information for
accomplishing
goals that were previously accomplished by other means. He examines the
use
of information for military, political, commercial and criminal purposes.
>From terrorists to hackers to DARPA, NSA, and the commercial world, he
gets
inside events we have all read about. He clinically examines events from
the
invasion of Haiti to the hacking of Citibank.
If you are responsible for the security of an information system, you
will
never again sleep well after reading this book. We all have heard about
the
$10 million attack on Citibank by the hacker in St. Petersburg, Russia.
I
previously thought that this case had been solved with the arrest of
Vladimir
Levin in St. Petersburg. It wasn't. Levin was the hired hand of a group
the
St. Petersburg police arrested in October of 1995. When the police made
the
arrest they confiscated computers, sniper rifles, assorted guns and
ammunition
and close to $500,000
in cash. This gang was the masterminds of the break-in.
Adams concludes that today the hackers hold the high ground and the rest
of us
are at extreme risk. One of the ways we perpetuate that risk is by our
failure to exchange information about fraud and computer attacks. It is
nearly universal that financial institutions that are victimized will not
publicize the fact for fear of losing the confidence of their customers.
The
fear is not necessarily well founded. When John Reed at CitiCorp acted
counter to this practice and disclosed the hacking of Citibank many of
the
banks prime customers were contacted by competing banks all claiming
their
banks were more secure. None of the customers left Citibank.
This book should be available at your local bookstore for $25.00 US or
$35.00
CDN. To help you ordering .com, the ISBN is 0-684-83452-9. Watch for
our
test of your level of risk awareness in the next newsletter.
By, John F. Ellingson, Madison, WI - editor
Principal in e-DENTIFICATION, LTD
Personal Email Address: JohnE37179 @ aol.com
************
NEWS ITEM
************
LONG ISLAND WOMAN SENTENCED TO THREE YEARS' PROBATION PLUS FINES FOR ROLE
IN
CHECK CASHING RING
BOSTON, Dec. 18 /PRNewswire/ -- A Long Island woman, EILEEN MOTLEY, 44,
was
sentenced today to three years' probation, including six months of home
detention, and was also ordered to pay up to $129,812 in restitution to
numerous victims, for conspiring with others, to commit a wide range of
fraudulent check cashing schemes, including bank fraud and uttering
forged
securities, that netted over $300,000.
This check fraud scheme utilized the names of legitimate businesses in
the
Boston area. Checks issued by corporations were obtained and then used
to
order new blank checks in the name of that business, which were delivered
to a
nondescript post office box.
Once these blank checks were received, a series of payroll checks were
issued
in the names of aliases obtained by conspirators. The "persons" to whom
these
checks were issued, matched fake forms of identification, which the
conspirators had obtained as part of the scheme.
Armed with the fraudulent checks and fictitious identifications, the
conspirators would cash the checks in supermarkets, food stores, check
cashing
establishments, and banks. The checks generally ranged from $250 to
$400,
often in odd amounts, so that they would appear to be payroll checks
issued to
low paid employees. The fraudulent checks were cashed in Massachusetts,
New
York, Connecticut, Maine and Rhode Island.
SOURCE U.S. Attorney
**************************
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--- end forwarded text
-----------------
Robert A. Hettinga <mailto: rah@philodox.com>
Philodox Financial Technology Evangelism <http://www.philodox.com/>
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'
