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Inside this issue:

No Rush For DVD Recorder
More Paypal Scams
---No defense on charge backs for items over $250
---Paypal allows an obvious scam
---Even Using A Credit Card Doesn't Help
Victim Begs To Be Scammed
Hotel Key Cards Are Safe
$100k Reward Offered for Stolen Laptop
The Latest On Spam
---New Federal Law Victory For Spammers?
---Spamcop Playing Both Sides
---Anti-Spam Organization Targeted by Spammers
---Yahoo Proposes Anti-Spam Solution
---Felony Indictment for Spammers
Outsourcing: Know the Risks
Let's Outsource CIOs
Anti-Piracy Group Seeks $63 Billion
Hardware, Software and Sites


No Rush For DVD Recorder

ZD Net Story
The National Institute of Standards and Technology (NIST), a division of the U.S. Commerce Department's Technology Administration, said its tests proved DVDs and DVD drives to be compatible only 85 percent of the time.

One of the battles concerns competing formats for rewritable discs and another different formats for blue-laser technology, which promises to provide greater storage than current red lasers can.

What all of this means is that if you can wait a little longer to buy a DVD recorder, it makes sense to do so. As for DVD players, they are getting cheaper by the day. You can now buy one for under $30 and you don't have to be trampled at Walmart to accomplish this. But the newer ones are coming out with the DIVX standard, so again, if you can wait a little longer, it makes sense to do so.

More Paypal Scams

No Defense Against Paypal Charge Backs for Items Over $250

OTWA Post
Looks like Paypal had an ulterior motive for making the seller get signature delivery on items over $250. They know that it takes a few weeks to get proof of signature back from the deliverer (FedEx or USPS). This gives them the opportunity to allow the charge back and deny the seller protection even when the seller has complied completely with all the requirements.

Another Paypal Scam where paypal knowingly protects the scammer

ebay forum
Someone uses his paypal account to scam his customers by offering items for sale and not delivering. He then uses the funds to buy items from other paypal sellers. Since these are paypal balance funds and not credit card, the sellers are not worried about charge backs. But they do ship to the confirmed address, so they are covered by the seller protection, right? Wrong! Buyer files a forwarding address with the post office so the item is delivered to a different destination. Then the buyer is charged with fraud by the people who paid him and never received the merchandise. Paypal asks the sellers to prove that they shipped the items to the confirmed address. Even though the receipts all show the confirmed addess, delivery tracking shows that it was forwarded. (Note that it say right on the USPS site that it was forwarded at the customer's request.) Despite this clear evidence that the buyer is a scammer and the sellers did nothing wrong, paypal takes the money from the sellers!

There are at least two nasty tricks that paypal is pulling here. 1) Paypal's terms state that to qualify for seller protection, you must be able to prove SHIPPING to the confirmed address - not DELIVERY to the confirmed address. They give USPS Delivery Confirmation as an example of proof. The sellers complied with the stated terms. (In a case that happened to someone I know personally, Paypal denied her seller protection because they said that USPS DC only shows the destination zip code, not the actual address. So Paypal places terms on their site that they are prepared to violate from the outset.)

2) Paypal is taking money from C to recoup losses they suffered when A cheated B. No one is complaining about these sellers. No one is claiming that the merchandise wasn't delivered. But Paypal suffered a loss when seller A cheated buyer B, so now they are looking for other people to steal from, robbing Peter to pay Paul. Imagine if you deposit cash in your bank account and your bank tells you, "We know you got the cash from Jack. Since Jack cheated someone else, we're going to take away YOUR cash." I believe this would be considered theft in any courtroom. But of course, there are banking laws to protect customers. With Paypal, you enter in the lawless Wild West where Paypal is judge, jury and executioner. There is no appeal.

What reports like these prove is that paypal isn't safe, not for buyers and not for sellers, not when using credit cards and not when accepting paypal balance payments.

Even Using A Credit Card Doesn't Help

Someone recently wrote to me that they paid for an ebay auction using their Discover card via Paypal. Another ebayer emailed them to warn them that the seller was a scammer. Sure enough, they did not receive their purchase. The seller continued to rack up negatives for non delivery until he was NARUd, then came back under another ID and continued the scam. The buyer contacted Paypal and were told that there were no funds to collect from the seller. They then contacted Discover and received a credit. A while later, Discover reversed the credit.

Discover and Amex have tried an interesting ploy to bypass the consumer protection mandated by law. They claim that when a buyer uses Paypal, the buyer is paying for the service of transferring the money to the seller. This service has taken place regardless of whether the merchandise is actually received and can not be charged back. Amex has already lost this argument and was forced to reimburse scammed buyers. I guess Discover hasn't gotten the message that companies can not enter into agreements which violate federal consumer protection law.

Victim Begs To Be Scammed

OTWA Forum
What the seller did here may not be ethical but it was not illegal. The seller showed a collection of beanie babies and claimed that this was left over from a batch his ex-wife had left behind. He said that he knew nothing about it and could not verify if they were worth anything. One bidder emailed him to say that they were probably fakes. He wrote back to say "then don't bid." The bidder persisted with questions, so the seller blocked the bidder. The bidder then obtained another ebay ID and bid anyway, winning the auction at over $800. When they arrived, the bidder saw that these were nearly worthless imitations. She then files complaints against the seller. A debate is now raging over whether the bidder was ripped off.

In my opinion, this bidder begged for it. She emailed the seller stating that these were probably fake. The seller not only made no effort to argue - he told the bidder not to bid and then blocked her from bidding. She circumvented the system (for which she received a suspension) in order to bid. Why did she bid? She says that she took a chance because one of the animals was worth over $1,000 if it was genuine. So she gambled and she lost. That is the risk she took.

Hotel Key Cards Are Safe

TruthorFiction.com
In another paranoia story circulating the net, a claim is made that hotel key cards contain personal information about the guest staying in the hotel, including credit card numbers. This is false. A key card is probably the safest way to protect guests because it contains nothing but a room number. When the matching card is inserted in the correct door, the door opens. The room number is often not even printed on the card, so if a card is found by a thief, he won't even know which door it opens. Key cards also often contain an expiration date, to thwart a common hotel crime. A thief rents a room and then "forgets" to return the key. He comes back a few days later and robs the next occupant of the room. A key card with an expiration date prevents such a crime.

How did this rumor originate? Possibly because in some hotels, key cards can be used to order items at the bar or shops. Somebody must have assumed that the cards contained credit card information. No, all they recorded was the room number to which the items are to be charged. There was also a story in which credit card thieves were able to lift the information recorded on a credit card and then record it on to the magnetic strip of a key card. But in this situation, the key card was being used only as a sort of floppy disk. It was the thieves who recorded the information, not the hotel which issued it. The rumor might as well say "Warning: floppy disk may contain your personal information." If someone deliberately puts it there, it will.

There is a fine line between caution and paranoia.

$100K Reward Offered for Stolen Laptop

ZD Net Story
Wells Fargo has offered a $100,000 reward for information leading to the arrest and conviction of the burglar who stole a Concord, Calif. bank consultant's computer containing sensitive customer information. This begs the question, if this data is worth $100,000, why was is so poorly protected? There are programs, even free ones like PGP, which let you password encrypt files, directories or entire drives.

Note that with encryption the data itself is written to the drive in a scrambled fashion so that it can not be read without the matching decryption. This is different than password protection, where the data is stored normally but a password is required to access it. Hackers can bypass password protection rather easily. Encryption is far more difficult to defeat.

The Latest On Spam

New Federal Law Victory For Spammers?

TechUpdate Story
When the NAAG (the National Association of Attorneys General) recommends that the bill not be passed because "The bill creates so many loopholes, exceptions, and high standards of proof, that it provides minimal consumer protections and creates too many burdens for effective enforcement..." you know there's something wrong. So why was it passed? So that a few more clueless Senators can get some free publicity and pretend to be doing something? Read the article to see why some people believe this new law is a victory for spammers.

Spamcop Playing Both Sides

MSN-Cnet
The same company which aquired Spamcop is also known for the fastest spam-generating system. Spamcop was the anti-spam solution that started out with the best intentions and quickly became the Frankenstein of the anti-spam movement. Many innocent publishers had their domains branded as spammers due to Spamcop's reliance on unverified reports of spamming. Now Ironport is playing both sides, both sending spam and also stopping it (or at least pretending to). Isn't that like releasing viruses in order to sell anti-virus software? Many reliable publications have cast doubt on Spamcop's reliability. This new entity does not improve their rating.

Anti-Spam Organization Targeted by Spammers

ZD Net Story
Spamhaus, an organization dedicted to fighting spam, has been targeted by spammers in a particularly nasty way. Emails were sent out spoofing the address to make it appear that Spamhaus had sent them out. The emails stated that child pornography was being sent to the recipient unless a link in the email was clicked. The link took the victim to the Spamhaus site. Spamhaus has been flooded with angry messages.

Over the past few months, we have heard similar stories from other web masters and have been victims of this ourselves. Hardly a day goes by in which we don't receive dozens of "undeliverable" messages for spam that was sent out using our domain name. We also get the occasional nastygram from someone who is upset at receiving this spam. We are also upset. We are upset at the spam and we are upset that someone is spoofing our domain to sent it.

There is only one way to know who the spam is coming from and you have to be careful when using this method. If it is typical spam offering growth pills, mortgages or drugs, the link will take you to a website. You can then fill out an order (or many orders) using fictitious information. If you know of a valid credit card number for a card that no longer works, you might want to use it. Each time you press the submit button (no reason you can't hit the back button and submit numerous times), the site is charged an order processing fee. Why not make them pay for spamming you? Why not show them that if you put junk into millions of mailboxes, maybe some of those people will return the favor?

However, you have to be careful. Some spam contains attachments which are either viruses that will damage your computer or trojan horses which will spy on you and report back to their creator. For maximum security, never open an attachment and read your email only in text mode. If you have not yet installed anti-virus software and a firewall, shame on you.

Yahoo Proposes Anti-Spam Solution

ZD Net Story
Yahoo has come up with an interesting anti-spam solution. The only drawbacks are that it requires cooperation from many ISPs and that one company must be in charge of keeping the keys. The way it works is that every domain will have a private and public encryption key. When email is sent, the server's public encryption key would be attached to the email. Using this key, other servers along the way can verify that it came from the server named in the header. In other words, if the email header says it is coming from yahoo.com and the key attached to it can be read with the encryption key assigned to Yahoo.com, it came from that server. However if Yahoo's key can not read the key attached, then it did not come from Yahoo and is therefore spam. If this solution can be adopted, it should reduce spam significantly.

Felony Indictment for Spammers

ZD Net Story

Outsourcing: Know the Risks

Techupdate Article
Here is my view on the same points mentioned in the article:

Cost-Reduction Expectations
My experience in large corporations has always been that managers ignore the costs and overstate the benefits of any move they make. Why is this? Because the corporate structure is almost always geared to rewarding immediate "benefits" without looking at the long-term costs.

At a major corporation where I once worked, managers were given bonuses of 15% of any costs they saved. One manager figured out that the company spent $160,000 a year on water coolers. He cancelled the contract and received his bonus. I asked him if he took into account the fact that in the large office building there were no water fountains or refrigerators. Now employees had to go to the store in the lobby every time they wanted a drink. If they did this three times a day and each trip took twenty minutes (figure in the elevator ride down and back, waiting in line at the store, chatting with other acquaintances), the company was now losing an hour a day of work per employee. Mutiply that by the ten thousand employees in the building and the loss was much greater than the $160,000 a year that was saved. The manager told me he was well aware of this, but the company did not grant bonuses for good ideas, only for ideas which appeared to be saving money.

Outsourcing is no different. Many managers argue that if an Indian programmer works for $20 an hour while an American programmer wants $50, there is a $30 an hour savings. Not taken into account are the costs involved in the knowledge transfer; making certain that the offshore programmer fully understands what is needed and codes the program in a way that is understood by the people who will later maintain it. As the article states, the actual saving usually end up in the 15% range. One small cost overrun and this small savings can vanish. Small savings like these are often not worth the risk.

Data Security/Protection
There are enough horror stories about hackers and stolen data without worrying that sensitive information is being routinely sent around the globe so that some company can save some money. A recent California law requires that sensitive information such as social security numbers must be protected. As a result, we can no longer send genuine sample payroll data to the offshore consultants. We now have to strip out this information and the offshore consultants have to fill it back in (with made-up numbers). When the cost analysis and time estimates were done, they did not account for the time spent doing this. It also means that the offshore programmers can not test with real data.

Knowledge Transfer
It is one thing to explain a complex system to an employee who is in the office and expected to remain there for a long period of time. It is extremely difficult to transfer knowledge to someone in another country, whose first language is not English, who does not see the process in operation and can at best understand only the concept.

Loss of Business Knowledge
There are employees in our organization who have been here for years and know all the rules and issues involved in our custom applications. They can glance at a printout and spot immediately if there is a problem. But now the programming is being done by offshore consultants who are far from experts in the rules. Then we have to test their work to make sure they got it accurately. A lot of time is wasted having to explain and re-explain our rules. When an error is found by an end-user and we have to go back to the offshore programmer to get it corrected, more time is lost. This problem is exacerbated by the next one:

Scope Creep
Most projects change by 10%-15% during the development cycle.

Anyone who has participated in the development of a complex system knows that new requests are constantly being made. In our payroll system, contract changes occur regularly or someone decides that the way a rule was implemented is not correct. When the developers were the employees in the office, fixes could be quickly made and costs to the company were fixed (salaries were already being paid). Now each request for a change must go back to the offshore firm, who often argues that this is outside the scope of the project and requires another payment.

Vendor Failure to Deliver
After paying a consulting firm well in the five figures for a custom payroll system, they delivered something that was totally useless. Two years later, we have changed every screen, every program and almost every table. We would have been better off writing it from scratch, but the management did not want to admit that they paid a fortune for nothing, so they are pretending that we only "enhanced" the original system. As I tell my manager, I have the original axe that George Washington used to cut down the cherry tree. I replaced the handle and the blade, but it's the original axe.

Turnover of Key Personnel
The reason the particular firm we used was chosen was because they delivered a working system for a previous project. We were told that we would be working with the same people, but once the project was under way, we learned that those people were no longer employed by that firm. We had to waste a lot of time training the new people in the knowledge that we had already imparted to the previous group. Even though the new project was building on top of the previous system, it was written in a completely different style and used different tools and data access methods. The result was a hodge-podge which performs poorly.

Let's Outsource CIOs

TechUpdate Story
Jim Jensen makes a very compelling case in his letter. What is happening in today's U.S. corporations is scandalous. Companies are losing fortunes, laying off tens of thousands of workers to recoup losses caused by mismanagement, greed and corruption at the highest levels and in middle of all this, the CIOs and upper management are still raking in big bonuses. Why fire a thousand $50,000 a year workers and move their jobs offshore? Isn't it easier to fire the CIO, take away his multi-million dollar salaries and bonuses and move his duties offshore? An offshore CIO can't possibly run the company any worse, will do so for much lower wages and may even do so ethically. Everybody wins.

Years ago when I read that a particular company had $50 million in losses yet paid their president $38 million in bonuses, I was tempted to write to them that I could save them at least $37 million. For a million dollars I could be equally incompetent. I might even do a better job and make them some money. At least I could sell some digital cameras on the side.

Portable DVD Player Battery

DVD Player Battery
This rechargeable battery works with just about every portable DVD player and supplies 4 to 6 hours of running time. List price is $99.95 but you can get it here for $70.

Anti-Piracy Group Seek $63 Billion

NewsForge
Washington DC and Lindon Utah -- Three of America's most active intellectual property litigators announced that they have decided to pool their efforts and jointly file what they're calling "a reverse class action suit against every human being on the entire planet." The name of the new group is ORAMITY, which stands for "Our Rights Are More Important Than Yours." "We have not ruled out legal action against beings on other planets who may be illegally copying radio or TV transmissions they pick up from their spacecraft or with super-powerful receivers on their home worlds," said ORAMITY spokesperson Hilary McBralenti, "but for now we are confining ourselves to inhabitants of Earth."

According to ORAMITY, "Every living human has derived benefit from Linux in one way or another, and since American movies and music are available everywhere in one form or another, all residents of all countries have either viewed or heard them or have illegally used copyrighted phrases taken from movie dialog or song lyrics."

Two of the most popular copyrighted phrases used in everyday speech, according to McBralenti, are "I'll be back" and "Don't worry, be happy."

"The royalties owed on these two statements alone are higher than the entire Gross National Product of Jamaica," noted McBralenti.

The amount sought by ORAMITY is $63 billion, which is approximately $10 from every living person.

Hardware, Software and Sites

Site collection

Batch Tricks
Batch files are files containing series of commands. Instead of entering them via the keyboard, you can execute the batch file and have them run in sequence. The site above contains tips and tricks for using batch files.

XXcopy.com
A copy program with many parameters you can control.

Leopard Programming
A neat little windows programming language that lets even novices create simple windows programs.

saypad
A program that will read aloud to you.

xp resources
More Windows XP resources

Recover CHK Files

Eric Helps.com
After something goes wrong with your system and Scandisk is run, you may find CHK files on your disk. This generally happens when a scan of your disk finds a file where the FAT (File Allocation Table) says there should not be one. That unknown file is saved as a CHK. But what does it actually contain? The link above contains two programs which will help you analyze the CHK file and possibly recover something of value.

Windows 95/98 and XP Resource Sites

Windows XP Resource
Above is a site with links to lots of Windows XP resource sites. Below is a site for Windows 95/98.
Windows 95/98 resource

Here is a site for XP/Nt/2000: Wayne's Resource Sites

Clean A CDRW Drive

Fix A CD
Here's a site with step-by-step instructions (including detailed photos) on cleaning a CDRW drive and possibly making it work again.

Free Google Utilities

Google Labs
Ever be reading an email or working on something and you want to do a quick search of Google? It seems annoying to have to stop what you're doing, open up a browser window, brow to Google and then enter your search. Now there's a better way. With the new Google desktop search, a search icon appears right on your taskbar. You can click it, enter a search and have the results pop up in a window. You can even highlight the search term right in the application you are using and press ctrl+alt+g to have it automatically pasted into the search box. Visit the link above for this and other useful Google utilities.

Fantastic Greeting Card Site

www.JacquieLawson.com
There are a lot of sites that let you send greeting cards to your friends. But this one stands out from the crowd for sheer genuis and creativity. Here are just two breathtaking samples: Thanksgiving     4th of July

There is a membership fee of $8 a year which allows you to send personal greeting cards to family members.

Thanks to Leonard, one of our readers, for sending this in.

Cute Helicopter Game

Helicopter     Fly a helicopter over the Internet.

MIT Makes 500 Courses Available Online Free

Course List
You don't get credit and you don't get help from an instructor but if all you're interested in is the knowledge, you can "attend" MIT courses for free online.

"Microsoft Office" For Free

OpenOffice
It's not exactly Microsoft Office but Open Office gives you almost all the bells and whistles of the Microsoft Product and even a few extras like creating PDF and Flash files. It creates files compatible with Office and according to people who have been using Office for years, it's easy to switch. Best of all, it's free.

List of 2000 and XP Services

Microsoft       theElderGeek.com
There are a number of services that are run automatically on 2000 and XP machines. Each service uses up some amount of system resources. While each one in and of itself may be harmless, running many of them does take its toll and there are a number of them which can be disabled for many users. The links above will bring up lists of these services and what they do.

Click Your Computer On or Off Line

Free Download
There are times when you want to take your computer offline. This program toggles the registry key which tells your system if it is on or offline.

Good Tweaking Site

PurePeformance.com
A site that explains many tweaks that let you get maximum performance from your PC.

Speed Up Your PC & Prevent Crashes

Software review and order page
There are a number of products that claim to speed up your PC or prevent crashes. Some of them don't work. Some of them even introduce new problems. But SpeedUpMyPC from LIU not only claims they can help even a novice speed up his machine in minutes, they back it up with a money-back guarantee and a number of reviews that agree. While SpeedUpMyPC already combines the features of several other programs into one 29.95 package (memory manager, crash preventer, system diagnostic and speed up), there are also two more advanced versions of this program. SpeedUpMyPC is a quick and easy way for a novice to gain speed and make a system less prone to crashes. WinTasks does more but requires a little more technical skill. For advanced users, there is WinTasks Pro.

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