What's Personal Data Worth on the Black Market?

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Dec. 30 (Bloomberg) -- Jon Erlichman reports on the hacker economy on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Talking about a very sophisticated world.


Gone are the days where somebody picks your pocket and goes on a shopping spree.

Compare it to what happens with hackers, you would prefer that.

One of the dangers with what hackers are doing, they know where your data is going.

It is going to the black market.

When you look at the target data breach and the fact that millions of cards are in focus.

The reason that hackers are going after such volume is because on the black market, a single card does not have a lot of value, maybe three dollars based on some estimates from dell security.

They have done some number crunching.

As soon as they can add sensitive data to that, your date of birth, name on the card, all of a sudden you are giving people who buy these cards more information that they can potentially use to get around security walls put up when you are using a car.

Then you take those numbers and you multiply them by the millions of potential cards on the black market.

You're talking about serious amounts of money.

A lot of sophistication.

What happens when one of these cards and that sensitive information makes it into the black market?

Is it just a simple case of racking up as much spending as possible as quickly as possible before the company or the bank recognizes what is going on and puts a provision in place?

A lot of times, the buyers of these cards are just as sophisticated as people attending the event selling it.

It is -- obtaining the data and selling it.

It is acquiring a credit card, shipping that money to a gift card where you buy actual goods, whatever.

Then use lsl.

Tying to avoid leaving an easy trail for authorities.

While we might use our credit cards to buy stuff, when people buy cars on the black market, they don't use their own cards, they use wire transfers or even reports of bitcoin being used on the black market.

Jon, clearly, if increased surveillance of credit cards becomes the norm -- we already thought it was until we saw what happened at target.

We will be beneficiaries.

What about the companies that could benefit?

Are there any?

People have been trying to piece this together.

The last couple weeks, you have heard about smart card technology.

Cards that can fool hackers.

There are large european companies.

Gemalto, oberthur, g&d, that have been playing for this technology in a long time.

This has been adopted in a big way in europe.

Less so in the u.s. the question becomes, do recent examples like target create that

This text has been automatically generated. It may not be 100% accurate.


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