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					                             ITGS – Areas of Impact

Business and employment- Traditional Businesses

Banks and EFT

Cash couriers reveal terror fund challenge

When money can cross borders electronically at the
touch of a button, the idea of couriers laden with
bundles of cash may seem like an anachronism.


Not so, according to the Group of Seven rich nations.

The G7's finance ministers have set their sights on
tightening the restrictions on these cash couriers, who
are seen as a key element in the funding of extremist
groups who may plan attacks on European and US
targets.

Electronic fund transfers may be quick and easy, but they leave a paper trail - a risk which
bulk cash smuggling can avoid.

Work to do

The G7 nations are at pains to stress they know other, more well-trodden, elements of the
fight against terrorist finance need improvement too.

The IMF and World Bank are only now including anti-money laundering and anti-terror
finance regulations in their assessments of the health of a country's economy, building on
the work of the international anti-financial crime body, the Financial Action Task Force
(FATF). Charities also need better scrutiny.

And informal money transfer systems such as hawala need to
be made more transparent, rather than stamped out, while
access to mainstream financial services needs to be made
easier.

The ability to freeze assets also needs to be made quicker
and more responsive. All of which, experts in the field would
argue, is fine - so far as it goes.
                                                                Drug money is thought to
The problem, they say, is that in certain quarters there         have underwritten the
remains a misunderstanding of just how the funding of terror       Madrid bombings
works.
Crime pays

One key mistake, current and former investigators in both the US and UK tell BBC News
Online, is a confusion between financial crime and terrorist finance. Not that the two don't
overlap.

The bomb attack which hit Madrid on 11 March, killing 191 people, was almost certainly
part-funded by the proceeds of smuggling marijuana grown in Morocco's Rif mountains.

The FARC in Colombia rely on cocaine and drug-related protection rackets for their funding.
And for the IRA in Northern Ireland, protection rackets, smuggling - of diesel, drugs or
anything else - and other forms of criminality were all justified if it helped underwrite the
cause.

That overlap creates an opportunity for investigators, because regardless of whether the
proceeds of crime head for criminals' pockets or terrorists' plans, they still need to be
laundered back into the mainstream economy.

Low cost

But in two respects, the linking of money laundering and terrorist finance in the minds of
both the public and policy-makers causes concern. Firstly, much of the funding for terror
comes not from illegal sources but from legal ones - diverted charity money, and out of the
pockets and bank accounts of supporters, for example.

More importantly, the sums involved are miniscule relative to the huge amount of money
washing around the financial system. The best-documented map of terrorist finance to date
remains the 9/11 attacks on the US.

The total cost of an operation involving at least 20 people, some living in the US for most of
the two preceding years, and training four of them on commercial-grade flight simulators,
was probably less than half a million dollars.

And a careful analysis of evidence - including wire transfers from a range of European
sources seen by BBC News Online - suggests that the largest single transaction was less
than $5,000. The Madrid bombings will have cost a fraction of that.

In the UK, meanwhile, a spate of arrests in late March revolved around allegations that the
discovery of half a tonne of ammonium nitrate fertiliser in a storage unit in West London
could be connected to a possible attack.

The unit's rental would have been well under £200 a month, while the ammonium nitrate
appears to have been stolen - and in any case would have cost only a few hundred pounds
at retail.

Follow the trail

Certainly, stops at borders and reports from financial institutions can produce the goods for
investigators. But security services and law enforcement are sometimes reluctant to give
financial institutions, for instance, too many details of what they should look for.
The concern is that someone in one institution or another could pass the information to the
very people targeted, enabling them to change their tactics.

In reality, money trails are less of a tool for alerting the
authorities to potential suspects - and more a way of
prosecuting the investigation once the initial suspicion is
aroused.

That, investigators say, is where financial enquiries really
make a difference: allowing a picture to be built up of what
suspects do, who they associate with and where they are
going.                                                               Self-storage is not an
                                                                      expensive business
Increasingly, templates of how funds can flow to terror groups
are being built up to aid investigators in following the money - from charities, from crime, via
money transfer, false invoices, cash, or through dealings in jewels and high-value goods.

Flood of alerts

But there still remains the perennial problem of "people power". Suspicious activity reports -
the warnings sent to the authorities by banks and other institutions about deals they fear
may be problematic - are key source material.

But in the UK, the US, and elsewhere, they are arriving in floods that threaten to overwhelm
the personnel available. That leaves little time or effort to follow up where necessary, while
investigators fear the international co-operation needed to follow the trail is well short of
what it should be.

And all the G7 statements in the world will do little to help solve that problem.

http://news.bbc.co.uk/2/hi/business/3664407.stm
                                ITGS – Areas of Impact

Business and employment- Traditional Businesses

Banks and EFT

Computer chips 'fight card con waiters'

Computer chips and credit card 'pin' numbers
could help curb the record rates of fraud being
blamed on waiters working for criminal gangs.

Staff at Italian, Chinese and Eastern European
restaurants in Britain have been caught copying
diners' details and passing them to international
counterfeiting rings.

A Home Office report revealed they are the vital
first stage in an illicit industry making tens of millions of pounds for organised crime, with
credit card fraud hitting £189m last year.


Home Office minister Charles Clarke has met bank and retail chiefs to
discuss tighter controls as more customers start using the internet   The fraudsters are
and telephone to bank and shop.                                       incredibly clever
                                                                      and can copy this
As well as smart cards, a four-digit "pin" number has been suggested stuff
as a better way of protecting the customer and technical companies
are stepping up to meet the challenge.
                                                                            Vicki Kirk, Retail
'Skimming' scam                                                             Logic
The restaurant scam, called "skimming", occurs when a card's magnetic strip details are
electronically copied and put onto another card.

Counterfeiting gangs then use the details to create bogus cards
which run up bills for the original cardholder.

The HO report, compiled by criminologist Professor Michael Levi
revealed the restaurant rip offs were the vital first stage in an illicit
industry making tens of millions of pounds for organised crime.

The racket has contributed to an explosion in credit card fraud,
pushing the annual cost up by 40% - or £54 million - in a single year.
                                                                            Waiters have been
There is also concern over phone-based fraud, which jumped from             caught passing on
£13.6 million in 1998 to £29 million last year, where purchases can             details to
be made without presenting the card or using a signature.                      fraudsters
Professor Levi suggested the four-digit code could be used every time someone uses their
card, as happens in France.

Thinking cards

Banks such as Barclays and the Co-operative have already started issuing smart credit and
debit cards which have an in-built computer processor to help battle against fraud. The chip
can start security checks between itself and the bank if it is suspicious about how much it is
being used for or how often. They are more difficult to steal information from or copy.

Vicki Kirk, marketing manager for Retail Logic, which provides software for Electronic Fund
Transfer, said holograms and magnetic strips had helped cut fraud in the past. "But the
fraudsters are incredibly clever and can copy this stuff," she said.

She said card chips, pin numbers and even fingerprint security in the future, were the new
weapons against fraud. She said customers wanting better protection needed to be aware
of the new technology and encourage banks to be more proactive about ensuring card
safety.

http://news.bbc.co.uk/2/hi/uk_news/809900.stm
                             ITGS – Areas of Impact

Business and employment- Traditional Businesses

Banks and EFT

ATM to offer downloads and games

A cash machine that allows consumers to download music, print photos and top up their
mobile phone is being launched. The Max Box, which has been developed by Felix Group
and is distributed by Bank Machine, will also allow users to download games and mobile
ring tones.

The Max Box is a free standing, broadband kiosk and is likely to be located in garage
forecourts, shopping centres and convenience stores. Bank Machine has 1,400 UK ATMs,
most of which charge for withdrawing cash.

Some ATMs operated by High Street banks allow customers to top-up their mobile phones
but the Max Box is believed to offer the greatest number of non-cash services.

Customers using the Max Box will be expected to pay a fee for non-cash services.
However, the level of charges is not yet known. Max Box machines will start to appear in
the spring.

Controversy

Bank machine, a division of US firm Cardtronic, is one of the main operators of fee-
charging ATMs in the UK. Fee-charging cash machines have courted controversy, with
charities and consumer groups arguing that they penalise the poor.

The suggestion has been that traditional free-to-use ATMs, operated by High Street banks,
have been shut in some poorer areas of the UK and been replaced by fee-charging
machines.

Just under half of the UK's 58,000 cash machines charge an average of £1.50 for a
withdrawal.

The rate of spread of charging cash machines has been phenomenal in recent years. Six
years ago there were only a handful of charging machines.

http://news.bbc.co.uk/2/hi/business/6422335.stm
                              ITGS – Areas of Impact

Business and employment- Traditional Businesses

Banks, EFT and ATMs

Now the Pin is mightier than the pen

Say goodbye to signing your credit card slip. As the pen makes way for the Pin in a new
pilot scheme, beating high street fraud is now a hi-tech challenge.

Shoppers who pay for their goods by card rather than cash can forget about signing on the
dotted line in future. Instead, we will be asked to tap out a Pin number to authenticate the
card.

The change is part of a new drive to stamp out credit card fraud, a crime which accounted
for losses of almost £½bn in the UK in 2001.

Shops and shoppers in Northampton are already trialling the new system, which, it is
claimed, will almost wipe out the card counterfeiters overnight.

The scheme, which will be rolled out across the UK and the rest of the world, is known as
Chip and Pin because it relies on the combination of a microchip embedded in the card and
a Pin number.

In the more distant future, the technology could be adapted,       UK CARD USE IN 2000
say those who helped develop it, to use "biometric" testing
such as iris and fingerprint scanning.

Its introduction will be welcomed by the likes of politician Ann
Widdecombe, who became a high-profile victim of credit card
fraud when her Barclaycard was cloned. The culprits went on
a 10-day spending spree which culminated in them running
up a £2,500 bar bill.
                                                                   2.3bn debit card
Every year, thousands of card users are shocked to find            purchases
rogue transactions listed on their monthly statements - the        1.5bn credit and charge
result of card counterfeiting.                                     card purchases
                                                                   2.7bn cheques written
Much of this is down to so-called skimming - the copying of
details held on a card's black magnetic strip. Counterfeiters Card fraud - a victim's
simply write the copied information on to a bogus card and go story
out shopping. The receipts are charged back to the original
cardholder.

However, cards with embedded chips are much harder to
clone, and the growing number of these helped cut counterfeit losses last year from a 2001
peak. The latest step of adding a Pin number deals with the problem of criminals forging
signatures on stolen cards. The French introduced their own Chip and Pin system 10 years
ago, and saw card fraud drop by 80%. Australia and New Zealand also use a similar
scheme.

"At the time the French didn't have much card usage - only about 20-25,000 places
accepted them," says Mike Hendry, Chip and Pin's technical and operations manager. "But
they also had relatively much higher fraud than us. So the urgency was greater and it was
easier to do something."

But the French security is not tight enough, says Mr Hendry, hence the need for new
technology. The system being used in Northampton is based on a new international
standard, developed with the world's two biggest credit card companies, Mastercard and
Visa, and will be rolled out globally in the coming years.

A chip holds the same personal data as a magnetic stripe -     BROAD FRAUD
cardholder name, number, expiry date - but can lock it in      Card fraud takes many
more effectively, using sophisticated encryption.              forms eg: counterfeiting
                                                               cards, lost and stolen
But while Chip and Pin tackles counterfeiting, a big growth    cards, and card-not-
area for fraudsters is "card-not-present" purchases, such as present payments
goods bought on the internet and over the phone.               Counterfeiting was down
                                                               7% in 2002, but ID theft
Fraud in this sector grew by 15% last year, accounting for     was up by 41%
losses of £110m. Usually card details are taken from discarded receipts or copied down
without the cardholder's knowledge. In the future, says Mr Hendry, mobile phones could be
fitted with card slots, to verify these sorts of transactions.

So does this new system spell an end to card fraud? Probably not, admit the experts, who
are locked in a cat-and-mouse game with criminals.

"Protecting a card transaction is like protecting any other
asset. You build your walls based on how high is the highest
ladder," says Mr Hendry. But the in-built flexibility of the Chip
and Pin system leaves room for improvement. One day
biometric information unique to the individual, such as
fingerprint details or iris patterns, could be stored in the card.

Other options are for signatures to disappear from the back of
cards and be digitised in the memory of the chip instead, and         Soon PIN pads will be
for voice recognition. But such security additions are not cost      appearing in most high
effective at this stage and the technology is not up to the job.          street shops

Further in the future, says Mr Hendry, the credit card might shrink to the size of a thumbnail.
"After all, the chip in a card is all that's important and that's no bigger than a mobile Sim
card. So you could have a contactless card, embedded in a keyring, that you just wave in
front of a reader. It would be quicker and you would never need to hand it over to someone
else."

http://news.bbc.co.uk/2/hi/technology/3039619.stm
                              ITGS – Areas of Impact

Business and employment- Traditional Businesses

Banks and EFT

Business: The Economy One in three UK banks 'to close'
Internet and telephone banking will force the closure of a third of all UK bank branches,
according to a survey by Deloitte Consulting.

The new methods of selling financial products are overtaking the traditional full-service
bank branches, where customers get their cheque book, pay in cash and ask for savings
advice.

The consultants expect that 3,600 of the 11,000 High Street bank branches will disappear,
with the loss of thousands of jobs.

Based on a survey of 200 bank executives, Deloitte Consulting says that "full-service
branches are still the single most important channel" for banking today, but predicts that "in
just five years time call centres will be level-pegging with the high street bank branch
networks".

The runner-up is Internet banking, soon to be on par with hole-in-the-wall cash machines.
During recent years some UK banks have begun offering their customers to bank using the
phone and Internet.

Others have set up subsidiaries with separate brand names that do without any branches
and rely solely on secure servers and call centres. Competition is now coming from outside
the banking sector as well. Insurance companies, for example, have begun to recognise
the cheap start-up costs of offering banking services exclusively on the phone and Net.

Banks will have to make an extra effort to compete with the new entrants to the financial
services market, said John Harrison, a partner and retail banking specialist with Deloitte.

He said banks would need to develop effective systems and train staff to match customer
expectations.

According to Deloitte, UK banks have begun to make the necessary investments to develop
new marketing channels, although some of them have been held back by the need to make
their computer systems millennium compliant first.

http://news.bbc.co.uk/2/hi/business/319772.stm
                              ITGS – Areas of Impact

Business and employment- Traditional Businesses

Banks and EFT

CYBER SECURITY GUIDE

Paul Grout's case of the internet taking over his life is a rare one, but every computer user
should be aware of security. There are some simple ways to protect yourself on the 'net
and in the office, to make life much harder for the hackers.

Don't forget that Paul's situation, although awful, was very rare and shouldn't stop you from
using the internet or your work PC. It should just make you more aware of the potential
dangers.

Computer expert Gary O'Leary-Steele tells Inside Out some ways that you can become
more secure on your PC.

Starting up

One of the first ways to protect yourself is by setting passwords. As Paul Grout's case
showed, being blasé about your password can be a big mistake.

There are two things to consider when dealing with passwords. Firstly make it tough for
someone to work out. Don't use any words from the English dictionary; instead use a
combination of letters and numbers in what appears to be a random
order. Secondly, change it as often as you can.

"Changing your password as regularly as it is feasible is the text
book answer," says Gary O'Leary-Steele, but he also warns of
sharing your password.

"Never give out your password to anyone unless it is absolutely
necessary," he says. "You never know who is within earshot."

Certainly when using work computers you may be relying on your          Gary O'Leary-
Information Technology (IT) manager to keep you safe, but don't         Steele is a "white
assume this is always the case - take it upon yourself to keep your     hacker" who works
information current and secure.However, Gary warns against taking       to combat viruses
it too far. "Don't start to install your own protection software on a   and security
work PC as this could severely compromise the network," he says.        breaches

If you are concerned about computer security at work, talk to your IT manager.
Staying in touch

Almost any internet user will use the technology to keep in touch with work colleagues,
family and friends.

Emails are the most common form of communication but you should be aware of their
limitations. Most emails are sent un-encrypted, which means potentially any hacker could
get hold of them.

Normal users on the internet wouldn't be able to see other people's emails very easily but a
hacker certainly could.

Gary suggests remaining aware of what content you are sending via email. "The true
answer is that if it's confidential don't send it via email.

"Think of it like sending a letter on the back of a postcard. If you wanted it to remain private
you just wouldn't do it," he says.

Instant chat software packages, such as Windows Messenger, are common, quick ways to
keep in touch. Messenger now comes as standard on any Windows operating system.

Again, Messenger is un-encrypted, so be aware of what information you are passing
through the system although Gary says it would be unlikely you would be "hacked".

"Messenger is one of those things where information is travelling between one user to
another, therefore the hacker would need to be already in one PC (which had been hacked
already) or between point A and point B.

"It isn't impossible and Messenger certainly can be hacked, but it's not something many
people would be able to do," he says.However there was one recent scam where hackers
were using the "file exchange" option on Messenger to compromise the recipient PC.

With both email and other communication software like Messenger it is important that you
never open attachments you aren't expecting or from people you don't know.

Money matters

A recent survey carried out by the Association for Payment Clearing Services found that
one in 10 credit card transactions are now carried out over the internet

There is no doubting the popularity of buying online and generally it is fairly safe to do, but
there are some ways to limit the risk.
Always make sure you can see the "padlock" symbol at the bottom
of the webpage before you enter any payment or personal details.
This symbol is an internationally recognised sign that you are in a
secure area and any information will be encrypted before it is sent
on.

Secure pages will also change from the standard http:// prefix to
https://.

Always try to use well known and trusted companies when buying
online and avoid giving out any personal information on a site you        The 'padlock'
haven't checked out first.                                              symbol is always
                                                                           found in the
Organisations such as "Paypal" are generally a safer way to buy         bottom right hand
from smaller businesses online as they ensure only the correct          corner of a secure
amount of money is taken from your account, which helps cut down              page
fraudulent transactions.

It's not just buying online that we delve into though, internet banking has become a quick
and easy way of managing money for many people. Internet banking is overall very secure,
however recent scams have emerged where hackers send emails, apparently from your
bank, asking for personal details.

When bank users then send their details to their "bank" the hacker takes over their account.
All banks maintain that they will never send any banking requests via email so never reply
and give out any personal information. Some banks will email promotional offers and
advertisements for products, but it will never ask for any personal details to be sent back.

Crafty characters

Viruses are one of the biggest threats to home users as they can sneak up and wreak
havoc seemingly out of the blue.

The only way to protect yourself from viruses or worms is to ensure
you have good anti-virus software on your PC. There are many
different versions on the market but the key with any brand you use
is to update it regularly.

Hackers create new viruses or worms on a constant basis, and
although there are "white hackers" who work to foil the attempts of
their "black" counterparts on an equally constant basis, you won't
receive the benefit of that unless you have the latest version of the
anti-virus software.
                                                                           New ways to
Most updates are available from the supplier's website so make          penetrate computer
sure you keep up to date with the latest "virus fix" available.         systems are being
Operating systems such as Microsoft Windows XP also need                devised by hackers
updating regularly to get the latest additions to keep your computer         every day
safe. Gary's advice is to keep updating your computer whenever
feasible.
"Latest versions of Windows for example, offer much more security and will also tell you
when you need to download a new add-on to your system," he says.

Fighting fire with fire

Firewalls are another way to protect your computer from unauthorised access. "Basically
when you go online you become part of the internet community and without a firewall your
computer is exposed to anyone in that community," Gary explains.

Recent worms have been created to specifically target PCs without a firewall, and once
they penetrate your system they can access all your personal details. The latest operating
systems on the market have firewalls installed as standard but if you are unsure, most
service providers such as AOL or BT offer free firewalls for their clients. Alternatively you
can download firewalls such as ZoneAlarm from the internet.

Parental guidance required

With computer use becoming commonplace in the home, many children are now logging on
regularly. Parents do need to be aware of what their children are doing on the internet and
who they are in contact with.

Unfortunately there are some dodgy characters out there that prey
on youngsters but you can keep the risk to a bare minimum.

Make sure children are educated in "netiquette". Ensure they are
aware of the potential risks and teach them to never give out any
personal details such as phone numbers, schools or even surnames.

Many service providers offer filters for clients so that you can block
any possibly unsafe websites. The software searches for any
unsuitable material such as violent images or adult material - and
blocks the browser from loading it.However no filter is foolproof so      Children won't be
make sure you keep an eye on what your children are up to on the           as vulnerable on
'net. If possible keep the computer in an easily accessible area such     the internet if they
as the living room so that you can constantly monitor which sites        follow some simple
your child is accessing.                                                         rules

Staying safe

Although hackers do seem to be able to stay one step ahead of the average computer user,
Gary says that's why we just have to stay up to date. Major companies employ "white
hackers" to continually thwart any attempt by those wanting to cause havoc on our
computers and to continue devising ways of making our systems more secure.That's why
the best way to stay secure is to let them keep you secure! Make sure you are regularly
updating your system and keep in mind security measures whenever you log on.

Computers and the internet can be risky if you don't follow some basic security rules but
they can also be an amazing place to learn, contribute and enjoy, so what are you waiting
for?

http://news.bbc.co.uk/2/hi/technology/7117213.stm
                              ITGS – Areas of Impact

Business and employment- Traditional Businesses

Banks and EFT

Electronic cash

London starts digital cash trial


London commuters are getting the chance to swap the cash in their pocket for a
digital wallet.

500 travellers have been issued with Nokia phones which swap digital cash via the
technology used for the capital's Oyster travel card.

The phones will double as a travel pass and wallet that can be used to make small value
payments. Swiping the phone against special posters will give participants access to
information or local maps. The trial uses the same Near Field Communications system
behind the Oyster card.

Spending power

The phones will be loaded with £200 for the users to spend during the six-month trial. Using
that cash on the transport system will be simple enough, but the triallists may struggle to
find shops where they can make small payments.

The contactless payment terminals are only installed in around 1,000 shops and cafes -
mainly in the City of London and at Canary Wharf. Customers can use the phones or cards
to make payments of up to £10.

Cath Keers, O2 UK's customer director, said the "mobile wallet" was an idea whose time
had come, because mobile phones were already seen as many people's most vital
possession.

"Research shows more people are likely to go back home and
get their phone if they leave it behind, rather than return for
their wallet," she said.

O2 is working with Barclaycard, Visa and Transport for
London on the trial, with all the partners keen to learn whether
customers are really interested in making payments by phone
- many are likely to be worried about security.
                                                                 The Oyster card is widely
The triallists have been given a single helpline to ring if they    used on London's
lose their "mobile wallets" and have been told that                  transport system
Barclaycard will meet the cost of any payments made on a stolen phone.
Digital money is an idea which has been a long time coming to fruition. In the 1990s the
Mondex electronic cash system was tried out in Swindon but failed to win sufficient interest
or trust from customers or retailers.

But mobile payment services are in use in Japan and South Korea where they have proved
popular.

O2 believes British customers are now willing to embrace the idea - but they will only get
the chance if the trial proves successful. A full scale launch of the mobile wallet service
may come in late 2008.

http://news.bbc.co.uk/2/hi/technology/7117213.stm
                              ITGS – Areas of Impact

Business and employment- Traditional Businesses

Online Shopping
Worried about putting your credit card
online? Or maybe you're just new to the Net?
BBC News Online explains what happens
when you buy something over the Internet.

                1. Jane decides to buy a book.
                At an online book shop, she selects the book and decides how to pay:
                credit card, debit card or electronic cash. Using secure server software, the
                Website encrypts the order (title, method of payment, shipping location) and
                sends it across the Net to the Web storefront.

2. The book shop receives Jane's order, checks on availability, and waits for its bank to
check Jane's credit.

3. Jane's credit card information is not sent to the bank on the Internet but on a secure
network that keeps out hackers. The bank decrypts Jane's charge and puts it into the bank
network's format.

4. The bank checks Jane's credit, then sends the purchase authorisation to the book shop.

5. The shop tells Jane that her purchase is authorised, when it will ship, and instructs its
warehouse to send Jane's book.

6. Jane's order is shipped, her preferences noted in a marketing database, the sale
recorded in accounting, and the money collected through treasury.

Note: Online merchants process orders in various ways. This is a common e-commerce
strategy used by Web success stories like Amazon.com and Amazon.co.uk.

http://news.bbc.co.uk/2/hi/special_report/1998/12/98/e-commerce/233169.stm
                            ITGS – Areas of Impact

Business and employment- Traditional Businesses

Electronic money and electronic commerce
Most companies pay their employees via bank transfer, from the companies account to the
employees'. It's now rare to be paid in cash.

Goods and services are usually paid for with electronic methods of payment, for example:
    direct debit
    standing order
    debit cards (Switch/Delta)
    smart cards
    online bank transfers

Electronic Commerce

Electronic Commerce or e-commerce is the selling and buying of goods or services over
the Internet. E-commerce has both advantages and disadvantages for businesses and
customers.

Advantages for businesses

      Increased customer base – with a website, a local store can have an international
      customer base.
      Cost effective – save on staffing a physical shop (or shops) and the associated
      costs, eg rent, electricity, gas, water etc.
      Services - for example, accountancy, lend themselves to being advertised online.
      Specifics on what's offered can be listed on the website, decreasing the need for real
      world consultation.

Disadvantages for businesses

      Increased competition - competition once limited to other local shops is now on an
      international scale.
      New comers – consumers may be reluctant to buy from a company they haven't
      heard of.
      Slow adoption – companies whose competitors already have an online presence
      may find it hard to gain market share.

Advantages for customers

      Increased convenience – customers can find what they're looking for without
      leaving their home.
      Greater choice - customers are no longer limited to shops nearby and can even buy
      from abroad.
      Cost effective – competition on an often international scale means prices are
      cheaper/more competitive.
      Product details – greater wealth of information available online than what a
      member of staff is able to provide in-store.
      Customer reviews – many sites allow customers to review products or services
      they’ve purchased, increasing buyer confidence.

Disadvantages for customers

      No human interaction - some people prefer to buy their goods or services in
      person.
      Returning goods - can be inconvenient (arranging postage) and expensive (if it is a
      large/heavy item).
      Fraud - a website may take your money, but have no intention of delivering the
      goods.
      Stock issues - the product may be out of stock, or if ordered and later found to be
      out of stock, a substitute product may be sent instead.

http://www.bbc.co.uk/schools/gcsebitesize/ict/implications/1lifestylerev3.shtml
                              ITGS – Areas of Impact

Business and employment- Traditional Businesses

Hotels - Germans pioneer hotel heaven

I love travelling. I enjoy the thrill of discovering new places. But there is something
about hotel rooms which often makes me want to turn around, rush home and lock
away my suitcases forever.

Over the years I have stayed in some real "shoeboxes" around the world - rooms which
have lacked not only size, but also character and comfort.

But thanks to German scientists, the hotel experience is about to be transformed.
At the Fraunhofer Institute for Industrial Engineering and Organisation, they have
developed a "hotel room of the future".

The experimental room has been assembled in a giant laboratory. The idea is to show
hotels how new technology can help guests relax.

Flying saucer
To be honest, it looks more like a flying saucer than a hotel room - it is round, white and
filled with glass and gadgets.

"There are no straight lines here, everything is curvy," says
my guide, scientist Nikolay Dreharov, pointing at the chairs,
tables and walls.

According to Mr Dreharov, research has shown that
straight lines and corners in hotel rooms are guaranteed to
leave guests feeling depressed.

You won't be depressed in this room. Although, perhaps, a
little dazed.                                             Our reporter relaxes in blue
                                                          light and tells his TV to rock him
Mr Dreharov presses a button. Suddenly, everything in the to sleep
room turns red... then green... and then blue.

"We have integrated light-changing sequences," he explains. "You can programme your
favourite colour - any colour of the spectrum." The bed looks like a normal double bed, but
it isn't.

On my guide's suggestion, I lie down and tell the computer screen on the wall to "turn on
the energy bed". "Yes, Mr Rosenberg," replies the screen, sounding a little like a cyber-
man. "The energy bed is now on."

It certainly is - the bed has started moving and is rocking me gently from side to side like a
baby in a cradle. Now that's service!
Future bathroom
There are plenty of other innovations in this futuristic hotel room.

There is an "intelligent floor", with sensors that work out
where you are heading and automatically turn on the lights
to help you get there.

In the hotel bathroom of the future, you can relax in the
jacuzzi and, with the help of a remote control, check your
e-mails in the bathroom mirror... which doubles as a
screen.

There is also a vapour pot pumping out steam filled with       Steve Rosenberg prepares to
the scent of lemons.                                           check his e-mail on the
                                                               bathroom mirror
Like many hotel rooms, there is also mini-bar. But this one
is a mini-robot which brings the drinks to you.

And remember the talking computer screen which switched on the bed?
Well, you can also ask it questions like, "What is for dinner?" or "What time is breakfast
served?" and it will speak the answer.

All very clever. But is there a serious point to all these innovations?

"The point of the room," Mr Dreharov assures me, "is to evaluate new technologies and let
the service industry improve the service for their guests."

At the end of my short stay, at the touch of a button I turn the window from transparent to
translucent and it suddenly becomes a giant video screen.

I climb back onto the moving bed, settle down under the changing soft lights, and watch a
film on the window. Now that's what I call hi-tech hotel heaven.

http://news.bbc.co.uk/2/hi/europe/7802945.stm
                              ITGS – Areas of Impact

Business and employment- Traditional Businesses

Hotels - Check out your credit card bill

A Working Lunch viewer has got in touch about the level of security when hotels
swipe credit cards at check-in.

Trevor Irwin is concerned by the common practice of hotels using cards to set aside money
against potential extras such as food and drink.

Pre-authorisation is a practice used within the hotel industry and car hire as both provide a
service before the customer pays for it.

Companies ring fence a certain amount of money on a credit card to ensure that the
customer will be able to pay when it's time to settle the bill. The reservation of funds means
that the cardholder's credit limit is decreased by the amount earmarked.

But if the bill is paid with cash or a different card, then the customer can be left out of
pocket for a few days until the ring fencing is removed. Trevor's main worry is that a hotel
may be able to go ahead with a disputed transaction.
The UK payments association APACS says that businesses do not have the authority to
process a bill unless the customer re-enters their PIN code.

"What the customer of the hotel has to do when he's presented with his statement, is
thoroughly check what has been itemised," Mark Bowerman from APACS told Working
Lunch.

"If there is anything that he disputes, then he shouldn't enter
his PIN until he's sorted out his dispute," he advised.

However, there is an exception to this rule if the customer
leaves without paying, in which case companies can put
through a 'customer not present' payment without the PIN
code.

Disputed transactions can be queried with credit card         Customers shouldn't enter
companies, whose records will show whether the final bill has their PIN without solving a
been authorised with a PIN code.                              disputed charge
http://news.bbc.co.uk/2/hi/programmes/working_lunch/7067601.stm
                              ITGS – Areas of Impact

Business and employment- Traditional Businesses

Supermarkets - Loyalty cards
The larger stores offer customers loyalty cards. When the
customer shops at the store they're awarded a set number
of points depending on how much they spend. The loyalty
card stores their points. One point is commonly worth 1p
with a point awarded for each pound spent.

Points can be converted into vouchers that provide
discounts on products or services.

Each customers' loyalty card has a unique card number
linked to a database which stores information about them (provided by the customer when
they signed up) and their purchases.

How do they work?
Swiping a loyalty card is an example of data capture. Every time the customer visits the
shop the card is swiped, reading the unique number. This identifies the customer whose
points total, stored in the database, is then updated. The tills use barcodes to identify each
item bought.

Targetting customers
When a customer signs up they provide basic details such as their name and address.
Loyalty cards provide companies with information about customer spending habits. This
information can be used to target customers generally or specifically.

Product placement
If customers frequently buy bread and milk together, these items may be put nearby each
other for customer convenience or, farther apart forcing the customer to walk through the
entire store (in the hope they buy additional items along their way).

Vouchers
If a customer frequently buys beans, vouchers offering money off beans will be sent to
them (further increasing their loyalty), rather than for products they rarely buy.

Mailing lists
Can be used to send out tailored advertisements. For example, someone who regularly
buys garden magazines might be sent special offers on garden products.

New stores
When customers sign-up they provide their address. This information can be used to see
where the customers come from and identify opportunities for new stores.
The Data Protection Act

The Data Protection Act applies to the personal data gathered by the schemes. The mailing
lists which supermarkets gather from loyalty cards can also be sold to other advertisers as
long as Data Protection law is followed. Find out more about the Data Protection Act in
the legal framework section.

http://www.bbc.co.uk/schools/gcsebitesize/ict/implications/1lifestylerev2.shtml
                             ITGS – Areas of Impact

Business and employment- Traditional Businesses

Supermarkets - Shop rings changes with DIY tills

A supermarket in Cheltenham has scrapped all its
checkout lanes and introduced do-it-yourself tills.

Customers at the Co-op store in Montpellier Street must
now scan, pack and pay for their shopping without the help
of checkout staff.

A spokesman for store operator Oxford, Swindon and
Gloucester Co-op said the scheme aimed to save
customers time.

"It (the shop) is in a busy commuter area. It's very much a
culture of 'pick up and go'", he said.

A number of supermarket chains have introduced some DIY checkouts as a way of
reducing queues.

No staff cuts

Customers pass the barcode on items over a scanner at the till and place them in a carrier
bag. When finished, shoppers process the payment themselves by inserting either cash,
debit or credit card into the computer.

The new-look Montpellier Street branch, due to open on Tuesday, will have four self-serve
tills. The tills have a supervisor on hand to assist shoppers if needed.

To stop theft, the machines weigh shoppers' baskets when they arrive at the checkout. If
the goods scanned do not correspond with their estimated total weight, the supervisor is
alerted.

Despite doing away with checkout operators, the spokesman said staff numbers would
remain the same, with employees used elsewhere in the store. "We have the same number
of staff," he said. "We are not thinking about cost savings at all."


http://news.bbc.co.uk/2/hi/uk_news/england/gloucestershire/3952881.stm
                             ITGS – Areas of Impact

Business and employment- Traditional Businesses

Supermarkets - Supermarket tills to speak Welsh
Shoppers at branches of a supermarket chain will
now be able to use self-service checkouts in Welsh
following demand from customers.

Tesco said a programme that was started in the summer
to convert the automatic tills was now complete.

The Heritage Minister Alun Ffred Jones said: "It is
important that we give Welsh an opportunity to grow and
adapt to the modern environment."

The announcement coincides with the European Day of Languages.
Tesco runs 74 stores in Wales and most of them now provide self-service checkouts.
Before the change, these tills spoke only in English.

But now customers will be able to hear instructions in a Welsh female voice.
Mr Jones said: "I am happy to see private sector businesses increasing the use of Welsh in
their stores and responding to the need for user-friendly Welsh language services."

"I would like to see more businesses and organisations promoting their services bilingually
and allowing Welsh speakers and Welsh learners to be able to shop, learn, work and play
in their own language."

'Customer demand'
Felix Gummer, the Tesco's corporate affairs manager for Wales said the change allowed
the supermarket to "serve communities in the best possible way".

"In response to customer demand and multilingualism in Wales all our new stores signs
have been fully bilingual for some time, but today is a further step forward as we have
listened to the views of customers for more services to be in Welsh.

"This roll out programme which started this summer is now complete." The change was
also welcomed by Cymdeithas yr Iaith Gymraeg, the Welsh Language Society.
Dafydd Lewis from the society said: "We've been in discussions with Tesco and large
similar companies and this is one of the things we've been asking them to develop. This is
a first step towards developing a full language policy.

"What we'd really want is a language act that would mean all companies in the private
sector developing a Welsh language policy without having to have any pressure put on
them," he added.

A spokeswoman for the supermarket Morrisons said there were no self-service checkouts
at its stores in Wales. The European Day of Languages was launched in 2001 by the
Council of Europe, with the aim of promoting language learning and widening the range of
languages learnt. This year also marks the tenth anniversary of the European Charter for
Regional or Minority Languages.

http://news.bbc.co.uk/2/hi/uk_news/wales/7636177.stm
                               ITGS – Areas of Impact

Business and employment- Traditional Businesses

Travel Agencies - Online air charges face criticism
Airlines "think up" extra charges and add them to
the cost of online bookings, a watchdog has said.

The Air Transport Users' Council (AUC) is concerned
that these extra charges are "spiralling out of control".
It also said airlines attract customers with cheap
prices, but then bump up the final price with extra
charges.

However, some airlines, such as Ryanair, say that
they separate the fare from the charges to highlight "ridiculous" government charges.

Variable charges
The AUC compared the taxes, fees and charges quoted by airlines during the booking
process on different intra-European routes.

It found that the final price can include charges to cover air passenger duty, local airport
taxes, passenger service charges, fuel costs, security and insurance costs, as well as
credit and debit card transactions. Charges vary from carrier to carrier.

"Our concern is that there might be a scenario where a low-           Our concern is that
base fare might entice a passenger to book with a certain         there might be a scenario
airline," its report said.                                        where a low-base fare
                                                                  might entice a passenger
"After choosing what looks like competitively-priced outbound     to book with a certain
and return flights, the passenger is faced with, at a late stage  airline
in the booking process, a total that bears little resemblance to
the figures quoted previously."                                  Air Transport Users'
                                                                 Council report
It said consumers believe the charges are imposed by a third
party, such as the government or airport authorities, when they actually reflect business
costs.

The AUC wants the airlines to quote prices inclusive of taxes, fees and charges at all
stages of the booking process.

Reaction
However, low-cost carrier Ryanair said it deliberately separated the cost of the fare from
taxes and other charges to expose "ridiculous" government charges.

It added that its pricing structure was made clear to customers before they confirmed the
booking.
Flybe. airline, which does not include its charges in the initial stage of its online booking
service, said its charges were clear to consumers. It added that its advertised fares are
inclusive of taxes, fees and charges.

However, it admitted that other costs - in addition to government charges - were sometimes
included within "taxes and charges".

Online travel agency Opodo has confirmed it is reviewing its booking policy. It charges a £5
booking fee, but customers are only alerted to this fee after they have started booking their
ticket. It said it is looking at bringing the charge "forward" in the booking process.

British Airways told BBC News that its customers were made aware from the outset of what
all charges would be.

http://news.bbc.co.uk/2/hi/business/4371577.stm
                              ITGS – Areas of Impact

Business and employment- Traditional Businesses


Travel Agencies - Net fears stunt online travel

Bigger discounts and better security could tempt more
people to book holidays online, a survey has found.

More than 50% would swap a travel agent for the net if it
was cheaper, said technology consultants LogicaCMG.
For others worries about what happens to personal and
financial details was stopping them turning to the net to sort out holiday plans.
The fears mean many people only use the net to research resorts but turn to travel agents
when ready to book.

Fraud fears
Although many people are happy to buy books, CDs and DVDs online, many are still
reluctant to buy holidays via the net.

Research by technology consultancy LogicaCMG has                    Because of fears
revealed some of the reasons behind this reluctance.             about internet security,
Top of the list was the perceived cost of holidays booked        more consumers are
online with 51% of those questioned saying that online           using the internet for
discounts are not high enough to tempt them onto travel          researching than actually
websites.                                                        booking their travel
                                                                 online
About 10% of those contacted for the survey said the process
of booking online was still too complicated.                 Dave Martin, LogicaCMG

Others, 14%, were not convinced that any personal and financial information they hand
over would be kept secure by online travel shops.

"Because of fears about internet security, more consumers are using the internet for
researching than actually booking their travel online," says Dave Martin, principal security
consultant at LogicaCMG.

The effect of this reluctance, says Mr Martin, is to increase the cost of administering
bookings for travel agents. He said phone bookings typically cost about £30 to service. By
contrast net bookings cost about 75p.

He said this explains the off-net surcharges many online travel firms are starting to impose.
Recommendations by friends and family was cited by some respondents, 17%, as one way
of overcoming their reluctance to book holidays online.

According to associated research by Association of British Travel Agents (ABTA) the online
travel market has a long way to go before it replaces high street travel agents.
Abta estimates that by 2007 online travel will be 17% of the UK's £28bn travel market.
But, it warned, this growth relies on steadily growing numbers of people happy to book
holidays online as well as improvements to technology and the creation of better websites
by travel firms.

http://news.bbc.co.uk/2/hi/technology/3939035.stm
                              ITGS – Areas of Impact

Business and employment- Traditional Businesses
Retailing - Advertising
Free computers .. with ads!


Free-PC's website has been swamped
with users. An Internet start-up company
plans to give free computers to 10,000
customers in return for filling their
machines full of advertising.

The computers will only be given out to
customers who match the demographic
profile demanded by the advertisers, after they fill out a detailed questionnaire about their
income, tastes and personal interests.


Free-PC, a Silicon Valley, California company backed by USA Networks, plans to begin
shipping the Compaq computers out in the second quarter of 1999.
Each will come with Internet access, 32mb of RAM, and a 4.2
gigabyte hard drive.

But two gigabytes of the hard drive will be filled with advertising from
associated companies which will fill the frame around the working
area of the computer screen. The ads will be periodically updated
while the customer is working online. The company will also track
what ads the customers actually view.

'An inevitable trend'
                                                                           Will computers
Bill Gross of Idealab!, an Internet start-up specialist who helped         become like mobile
create web merchants e-toys and MusicNow, is behind the launch.            phones, given
                                                                           away for free?
"Free-PC is the breakthrough first product to start an inevitable
trend," he said. "(Merchants) will pay to reach you, so they essentially subsidise the cost of
the PC, indirectly."

The company has signed up advertisers like Disney, sports network ESPN, credit card
company MBNA, and Internet car retailer Autobyte! to take part - and it says that their
payments will help recover the $500 cost of the computer.

"For advertisers, Free-PC represents the first real opportunity to reach a mass audience via
the computer," said Don LaVigne, Free-PC's chief executive.
Privacy worries

But some advocates warn of the dangers to personal privacy from the detailed profile of
customers that will be built up.

They're offering a Faustian bargain here,'' Evan Hendricks, editor of the newsletter, Privacy
Times. "Everyone has to decide for themselves what's more important: a free computer or
what people learn about their lives from that computer.''

A number of commentators have suggested that as prices tumble, computers will become
like mobile phones and be given away in order to entice people to join networks.

But up to now most have argued that it will be Internet service providers who will give away
the computers to entice customers to sign up to their networks.

Whether advertising on personal computers will ever pay enough to justify their full cost, a
lucky 10,000 users will be helping to find out.

http://news.bbc.co.uk/2/hi/business/275213.stm
                              ITGS – Areas of Impact

Business and employment- Traditional Businesses

Retailing - Advertising
Company fined $3m for adware use

An online advertising company is to pay $3m (£2m) for "unfairly and deceptively"
downloading its software onto people's computers.

In a settlement with the Federal Trade Commission, the firm also agreed to now seek
consent before installing software and to make removing it easier.

US-based Zango, the FTC said, installed adware more than 70 million times, causing 6.9
billion pop-up ads. Zango's CEO said he "deeply regretted"
any negative impact.
                                                                 Consumers'
Zango, previously called 180 Solutions, is based in           computers belong to
Washington and was described by the FTC as one of the         them, and they shouldn't
world's largest distributors of adware - programs that, once  have to accept any
installed, can bombard people's computers with adverts.       content they don't
                                                              want.
The FTC alleged the company used third parties to install its
adware onto consumer's computers, hiding the programs in      Lydia Parnes, FTC
games, screensavers or browser updates being offered for
free.

Once installed, the programs monitored internet use and offered pop-up ads based on the
sites that had previously been visited.

The FTC claimed Zango deliberately made it difficult to identify, locate and remove the
adware once it was installed.

The result, the FTC added, was that millions of consumers were receiving adverts without
knowing why, and were being watched without their knowledge or consent without a means
of stopping it.

Ill-gotten gains

Lydia Parnes, director of the FTC's Bureau of Consumer Protection, said: "Consumers'
computers belong to them, and they shouldn't have to accept any content they don't want.

"If consumers choose to receive pop-up ads, so be it. But it violates federal law to secretly
install software that forces consumers to get pop-ups that disrupt their computer use."

The company will now have to pay the US government the $3m fine, for what the FTC
describes as "ill-gotten gains", and it is barred from installing adware without computer
users' knowledge and prior consent.
In a statement, Zango said third-party affiliates were to blame for the problems and stated it
had been working in accordance with the FTC's standards since January 2006.

Keith Smith, CEO of Zango, said: "Early in our business, and as we've acknowledged, we
relied too heavily on our affiliates to enforce our consumer notice and consent policies.

"Unfortunately, this allowed deceptive third parties to exploit our system to the detriment of
consumers, our advertisers and our publishing partners. We deeply regret and apologize
for the resulting negative impact.

"The FTC's leadership in providing clarity around best practices is a welcome and
significant step forward for Zango and our industry.

"We embrace the new standards and will continue to create, abide by and strive for best
practices that protect consumers."

http://news.bbc.co.uk/2/hi/technology/6122046.stm
                              ITGS – Areas of Impact

Business and employment- Traditional Businesses

Retailing - media

Media revolution: stop press? Newspapers are facing
tough times.

Over the last decade, the UK's favourite dailies have lost
some 2.25 million readers. Falling circulations mean less
money through the till and newspapers' other main source
of income - advertising - is also drying up.

In the last 10 years, ad revenues have fallen by about 20%. The UK newspaper industry
In the struggle to stay profitable, newspaper companies      is no longer as strong as it
are cutting staff, closing offices and, in the case of local          used to be
papers, ditching titles.

Some within the industry predict that within the next 10 years we could even see one or two
of Britain's best loved dailies go to the wall. These problems are partly caused by the
economic downturn.

Advertising is one of the first things companies cut spending on during a recession and
cash-strapped consumers may see newspapers as a luxury they can do without when
times are tough. But it is our changing lifestyles that pose the biggest problem for papers.

Digital Difficulties

The internet has made it easier than ever for us to find out
the news. At the click of a button, we can catch up on the
latest stories in whatever form we choose - text, audio or
video.

Newspaper proprietor Rupert Murdoch, chairman of
NewsCorp, owns papers all over the world including The
Sun and The Times in Britain and The Wall Street Journal
in the US.
                                                                The world is changing and
He says the internet has given readers much more power, newspapers have to adapt
"Everybody wants choice and thanks to the personal
computer, people are taking charge of their own lives and Rupert Murdoch, NewsCorp
they read what they want to read or what they are interested in and young people today are
living on their computers," he says.

"The world is changing and newspapers have to adapt to that." After a slow start, most
newspapers are now embracing the web as a platform for reaching readers, but it seems it
is even harder to make profits from online publishing than from old-fashioned newsprint.
With so many free news sites to choose from, no one seems prepared to pay money to
read newspapers online.
That means they have to rely on web adverts to generate income for their sites.
But it is not straight forward. Online, advertisers have many more spaces to choose from,
making the market much more competitive.

Online opportunities

But it is not all bad news. The web also opens up new
opportunities for papers. On the internet, newspapers are
freed from the shackles of print, allowing them to exploit
other forms of media, such as audio and video.

Papers such as The Guardian and The Daily Telegraph
increasingly see themselves as online news providers first
and news papers second.
                                                                  I don't think newspapers
This means radically new ways of working for journalists,
                                                              will die
but readers seem to like the results. The Guardian's
website, for example, now attracts more than 20 million
                                                                 Sir Martin Sorrell, chief
users a month.
                                                                     executive, WPP
Surprisingly, two thirds of those hits come from overseas, opening up potentially lucrative
opportunities in international advertising. Guardian Media Group's Editor-in-Chief Alan
Rusbridger has a long-term target to triple the Guardian's US-based readership.

"You then start getting on the radar of American advertising agencies, in which case you're
into a very big market indeed; the biggest most wealthy market in the world," he says.
And Rupert Murdoch anticipates that new digital devices in the pipeline will provide papers
with further opportunities to make money.

"I don't think it's available in England yet, but there's a wonderful new machine called the
Kindle," he says. "You can store six or 10 books in it or you can have a newspaper
subscription on it and you get every word of the newspaper for a subscription rate.
"And it's mobile. You don't need to plug it into anything. It all comes over the airwaves."

Evolve and prosper

Newspapers are in a difficult transition. They have to weather the economic downturn and
at the same time find funds to invest in the digital opportunities of the future.
But despite the tough challenges facing the industry, it looks as if newspapers are here to
stay.

"Many people say newspapers are going to die. I don't think newspapers will die because
they are the best way, or one of the best ways along with TV, of reaching large sections of
the population," says Sir Martin Sorrell, chief executive of advertising agency WPP.
"That's not going away." Those papers that embrace change the fastest will be best placed
to survive and prosper.

http://news.bbc.co.uk/2/hi/business/7872154.stm
                               ITGS – Areas of Impact

Business and employment - Online Businesses (e-commerce)

Teleworking - Home working trial proves
popular

Four people have been trapped in their homes for 48
hours to discover the benefits and pitfalls of teleworking.

Run by net firm Telewest the trial tried to find out if workers
can do their job better when at home.

Those taking part said they did get more done but missed the chance to chat face-to-face
with colleagues and contacts. Being at home also gave those taking part much more time
to spend with their families.

Confined to quarters
Howard Watson, chief technology officer of Telewest Broadband, said the trial was not just
a test of technologies that make it easier to connect to corporate systems from home or
other remote locations.

As well, he said, the trial was undertaken to see just what difference it can make to a
working day and to see what effect it had on an employee's ability to manage their day's
work.

"The one resounding factor that all participants agree on is that home working enables
them to get more work done in a shorter time," he said. On the first day of the trial Colin
Dean, systems director at timber firm Arnold Laver, said: "I have been absolutely flying
through my work this morning."

"I also did something I haven't done for years - eat lunch," he said, "I know this sounds
really insignificant, but to the people who work with me in the office this will be a revolution."
The participants in the trial said that they got so much done because they did not have to
deal with the constant round of interruptions that punctuate a day in the office.
However, said Mr Watson, this separation did expose one of the problems of remote
working.
The fact that the trial participants could not talk face-to-face
with colleagues and contacts in other firms was seen as a
disadvantage.

Not being able to find and talk to a co-worker could mean that
some tasks take longer when out of the office and working
remotely.

The biggest advantage reported by those taking part was the Teleworking might help us
extra time home working gave them to spend with their          balance work and family life
families.
"Doing away with commuting meant they could get more work done and had more personal
time available in the evenings," said Mr Watson. Some of those taking part were able to
drop children off at school, pick them up, help with homework and get a full day's work
done.

I found time to run an errand this lunchtime and get some petrol as I'm going out this
evening," said Nick Harwood, group computer Security manager at insurance firm Royal
London.

"I suppose the benefit of being at home is having the flexibility to pop out and do this," he
said. Those taking part are all employed at companies that are customers of Telewest
Business.

http://news.bbc.co.uk/2/hi/technology/4023301.stm
                              ITGS – Areas of Impact

Business and employment - Online Businesses (e-commerce)
Telecommuting - UK commute 'longest in
Europe'
British commuters have the longest journeys to work in
Europe with the average trip taking 45 minutes, according
to a study.

That is almost twice as long as the commute faced by
Italians and seven minutes more than the European Union
average, the RAC Foundation said.

The motoring organisation said it now wants the
government to "take a fresh look at commuting from the
perspective of the commuter" and to improve
'telecommuting' by computer and video links.

It said seven out of ten people outside London travel to work by car and more must be
done to improve roads and public transport so that journey times can be cut.

According to the report, the average distance travelled by UK workers is 8.5 miles - 17%
further than a decade ago.

Outside the capital, only 11% of people get to work by public
transport and just 5% of commuting is by national rail. Only
3% cycle to work, while one in 10 walks.

There are some strong regional variations however - with
28% of people in Cambridge cycling to work, and more
Norwich people walking to work than anyone else in Britain.

'No improvements'
                                                                 'My marathon commute'
The RAC Foundation's Kevin Delaney told BBC News the
UK's ongoing love affair with the car could be blamed on the lack of improvements in public
transport under Labour.

"In the last six years, life for the driver and people who use   European commutes
the roads has not improved, in fact it's probably got worse."    Italy: 23 minutes
He said there had been no improvements in public transport       Spain: 33 minutes
to compensate. "The trains are running just as late now, or      France: 36 minutes
they certainly seem to be, as they were six years ago," Mr       EU average: 38 minutes
Delaney said.                                                    Netherlands: 43 minutes
                                                                 Germany: 44 minutes
"Outside London there don't seem to be the same level of         UK: 45 minutes
improvements in bus services either."
Workplace charging

The foundation also showed that liking an area was the main      Drivers would rather sit
reason why people did not live closer to their work.         in their cars twice as long
                                                             than change jobs, move
The main reason given for using the car to drive to work was house or change their
that it was quicker than other options.                      work base

Almost half of the motorists questioned said that if their car     Edmund King, RAC
journey time doubled, they would simply allow more time for           Foundation
their journey. Only 7% would make the switch to public
transport.

The foundation said its findings showed that people are "wedded to the car for practical
reasons" and must be catered for by planners.

Car commuters

The RAC Foundation's executive director Edmund King said: "Our research shows that we
are a nation of car commuters.

"We have the longest commute in Europe and even if our commuting time doubled most of
us would just shrug and leave more time for the journey." The study asked whether people
would pay a £5 workplace parking charge scheme.

More than half said they would park on the road if a charge was introduced, with only 2%
saying they would pay the charge.




http://news.bbc.co.uk/2/hi/uk_news/3085647.stm
                             ITGS – Areas of Impact

Business and employment - Online Businesses (e-commerce)
Telecommuting - Office workers want to
break free
Liberating office workers from their desks could make
them more productive, research by BT suggests.

Two-thirds of those questioned in BT's survey said
they would be happier and more relaxed if they could
choose where they did their work.

The most popular alternative workplace was the
beach with 37% of respondents. But many of those responding to the survey would also be
happy to telecommute from park benches, mountain tops or their own back garden.

Son of beach

Wireless networks that swap wires for radio waves are proving popular inside many
businesses, but many workers would like them extended to make it easier to work from
home or perhaps some much more exotic locations, reveals
the BT survey.

Carried out to complement Wireless Broadband Week the
survey found that many workers think that teleworking could
help them strike a better balance between work and home life.

The survey found that 66% of those responding said choosing
a different place to work from would help them reach this
balance.
                                                               Even Mayors can
Although the beach was the top location for work weary            telecommute
Britons other locations such as mountain tops (18%) and park
benches (17%) were popular too. Only 4% said they would be happy to work at home in
bed.

The survey also revealed the long hours that Britons put in. It found that 28% of people
work between nine and 12 hours per day and 57% spend five hours using a computer
every day.

"As we spend longer at our computers it's no surprise we want to choose where that
computer is stationed," said Steve Andrews, a spokesman for BT.

http://news.bbc.co.uk/2/hi/technology/3445231.stm
                              ITGS – Areas of Impact

Business and employment - Online Businesses (e-commerce)
E-commerce - online marketing
Online junk food adverts ban call

A ban on all junk food marketing aimed at children,
including online games, is being called for by
campaigners. The British Heart Foundation (BHF)
and the Children's Food Campaign are calling for
the rules on packaging and online marketing to be
tightened.

A ban on adverts for junk food during television programmes aimed at children under 16 is
already in force. The government said time was needed to assess the impact of the existing
law before extending it.

A BHF survey found many parents were unaware some food firms had online games aimed
at children and more than half did not realise that games and quizzes appeared on food
and drink labels.

Regulation 'limited'

The survey questioned 1,069 parents of children aged seven to 14 years in November. It
found only 30% were aware that some junk food firms used online games to attract children.

And 52% of parents did not realise that games and quizzes appeared on food and drink
labels. The BHF and the Children's Food Campaign want the existing regulations extended
to cover all forms of marketing aimed at children.

They are calling for packaging, internet sites, product             Restrictions on
placement and sponsorship all to be included in marketing        advertising are just one
regulations.                                                     part of a much broader
                                                                 set of actions
They say the current regulation is limited and allows some       government is taking
forms of marketing to slip through the net. The ban on
adverts for junk food during television programmes came into     Government spokesman
force at the beginning of the year.

Regulator Ofcom outlawed adverts for foods high in fat, salt and sugar in an effort to tackle
rising childhood obesity levels.

BHF director of policy and communications Betty McBride accused junk food
manufacturers of luring children to online playgrounds.
Commenting on the proposed changes to marketing rules, she said: "They have the
potential to transform the supermarket experience for stressed parents and change the way
future generations of children view food."

A Department for Culture, Media and Sport spokesman said it was committed to tackling
childhood obesity and had "significantly" tightened the rules last year.

"We must have a proper opportunity to assess the impact of these new rules, which are
amongst the toughest in the world, before considering further restrictions," he said.

"Restrictions on advertising are just one part of a much broader set of actions government
is taking to support the public health agenda." The Food and Drink Federation has
described the calls for further restrictions as "not based on reality".

"When it comes to marketing, the UK already has some of the strictest rules in Europe -
thanks to a combination of regulation and voluntary action covering TV and non-broadcast
marketing. These rules are dramatically changing the marketing landscape in this country. "

http://news.bbc.co.uk/2/hi/health/7199236.stm
                              ITGS – Areas of Impact

Business and employment - Online Businesses (e-commerce)
E-commerce - online marketing
How to make web ads work

On Friday technology consultant Bill Thompson
argued that online ads are a waste of time. Not so,
argues online marketing expert Derick Hill.
Advertisers just have to change the way they
work, he writes.

Apart from wobbly wheels on my supermarket trolley, I find nothing more annoying than a
barrage of unwanted and irrelevant ads appearing before, during and after a visit to my
favourite website.

But it is not usually the format that annoys me. What does annoy me is that fact that the
ads are not what I came for, bear no relation to my interests and are wasting my valuable
time. And I am going to ignore them.

So they are doing me no good and certainly doing the advertiser who is paying for them,
and the site that is showing them, no good either. But it does not have to be like that. Enter
permission marketing.

Happy consumers

The principles behind permission marketing are nothing new. It is all about the advertiser
creating a relationship with the consumer and understanding them and their interests.

Ask the consumer for permission to communicate with them by showing them adverts and
listen and respond to their comments.

Make sure you show them things they are going to be interested in, at a time and in a
format they are happy with. Finally the successful advertiser recognises and rewards the
consumer for their attention.

Instant data

This can be remarkably successful online. Take a simple site like www.thedailydraw.com
where players specify their interest areas and play a free £1m lottery every day in return for
seeing ads and special offers on their selected subjects.

The reason sites like this are able to make online advertising work is because they really
exploit the internet's advantages in producing a genuine win-win situation.
The advertisers are happy to pay for an attentive and receptive
audience and the consumers are being respected and rewarded for
looking at an advert they are actually interested in seeing.

The internet's greatest strength for a marketer is its ability to provide
a wealth of instant consumer behaviour data.

It is the advertising industry's responsibility to collect that data, use it
to understand consumers and construct products and advertising
campaigns that match their changing needs.
                                                                     Hill: Online ads
Only when we in the online advertising business have addressed the need to be relevant
problem of relevance should we begin to address the problem of
creative interpretation.

So, I do not mind if I see an ad in a skyscraper form or as a pop-up. But in an ideal world, it
appears just before I am about to go to the supermarket and offers me an instant wobbly
wheel fixer kit.

http://news.bbc.co.uk/2/hi/technology/2188829.stm
                               ITGS – Areas of Impact

Business and employment - Online Businesses (e-commerce)
E-commerce - data mining
Software can spot digital deceivers

Careful when composing your CV and sending it
off to potential employers, they could be using
software to spot if you are stretching the truth
about your achievements.

A US company has developed a program that is
said to be able to sift through text to spot when people are lying or confused about facts.

The software works by spotting the changes in writing style that emerge when someone is
concealing the truth. The program is likely to be used by companies that receive lots of e-
mails or documents and want to speed up their handling of them.

Mining messages

Lie detectors, or polygraphs, that can sometimes help spot an uttered untruth have been
around since the opening decades of the 20th Century, but ones that can analyse written
fibs are rarer.

 Now, software maker The SAS Institute claims its Text Miner
program can scour through written or typed documents to extract
key information about their content. "It looks for patterns within text
in the same way that data mining looks for patterns in numbers,"
said Peter Dorrington, a SAS Institute spokesman.

Data mining is used by many organisations to scour through sales
data looking for trends that can help organisations spot fraud, tune
their supply chains or predict what customers want.

Witness statements                                                        Data mining is used
                                                                          to spot credit card
Text Miner works by comparing a sample document against a                 fraud
database of text examples that contain all shades of the truth.

Mr Dorrington said the software could spot cases when a lie was clearly being told, but
more often would leave humans to weigh up whether someone was lying or just not
expressing themselves very clearly.

"It uses a statistical technique so what you get back is a probability score," said Mr
Dorrington. "You get the most suspicious cases or a top match."
He said the software was likely to be used by companies that received lots of e-mail or
letters and wanted a quick way to rank them in importance, ensure they were routed to the
right department or to work out what exactly they were talking about.

It could also find a use with police forces conducting major investigations who had to sift
through conflicting witness statements and needed to determine an exact sequence of
events, said Mr Dorrington.

http://news.bbc.co.uk/2/hi/science/nature/1775020.stm
                             ITGS – Areas of Impact

Business and employment - Online Businesses (e-commerce)
E-commerce - Spyware
Spyware warriors call for action

Computer users whose machines have been
hijacked by potentially dangerous software are
being asked to add their tales of woe to an
online campaign.

Security experts say that growing numbers are
being conned into paying for fake anti-spyware programs. Now grassroots online security
activists in the UK hope testimonies can raise awareness of the problem.

The number of malicious infections worldwide soared in 2005, said security firm Webroot.
In its annual report into spyware, Webroot, which develops legitimate anti-spyware software,
expressed concern over the increasing sophistication of attacks.

New laws in the US allow disgruntled computer users to petition the Federal Trade
Commission about unsolicited software.

If the FTC gathers evidence of a crime, it can - and does -           People hear so many
launch prosecutions. Last month two companies were                  horror stories about
ordered to hand back more than $2m (£1.14m) garnered                keyloggers, phishing
through selling fake anti-spyware products.                      sites, rootkits and trojans
                                                                     that they pay good
But in the UK, which has the highest rate of spyware infection      money for a useless
in Europe, prosecution is more difficult. Local Trading                  program
Standards offices can register complaints, as can regional
police forces, but there remains no easy central pathway to         Gwynne Brothwood
the National Hi-Tech Crime Unit.                                    Anti-spyware activist

Part-time saviour

Gwynne Brothwood, a volunteer who works feverishly in            SPYWARE IN EUROPE
online forums training people to remove spyware and other        Spies per consumer PC
infections, believes the issue needs to be resolved. "The        Oct to Dec 2005
people who push this software make life a misery for             UK 21.6
vulnerable users, not just in the UK but worldwide," Mrs         Norway 20.3
Brothwood told the BBC News website.                             Sweden: 19.1
                                                                 Lithuania 17.2
Last year Mrs Brothwood was named a Most Valuable                Slovenia 15.7
Professional by Microsoft for her security work.                 Source: Webroot

She holds down a full-time job in the real world and can only work on the Malware Removal
University website in her spare time.
In an effort to stir up public interest in the problem, she has helped set up an online forum
for people infected with spyware, located at malwareremoval.com.

"All of a sudden people are bombarded with messages that they have spyware on their
computer and that this particular program will clean them up," Mrs Brothwood said.

"They hear so many horror stories in the news about keyloggers, phishing sites, rootkits
and trojans that will steal your personal data that they panic and part with good money to
pay for a program that is little more than useless.

"What they don't know is that the makers of this program infected them in the first place."

International issue

According to the latest figures from Webroot, there are more than 21 online spies for every
Windows PC in the UK, the highest figure in Europe. But the problem does not respect
national borders. Other forms of so-called malware have spread further as internet use has
grown.

In Poland, 867 of every 1,000 domestic PCs have been
infected by trojans, unsolicited programs that can allow
remote users to control the machine.

It is this international reach that concerns those in authority
trying to combat the spread of spyware.

"The real problem is that there is a need to encourage active
international co-operation to bring about an end to this," said   Andrew Miller MP hopes
Andrew Miller MP, who chairs of the UK Parliamentary               the UK can fight back
Information Technology Committee (Pitcom).                            against spyware

Last year Webroot organised a high-level international          STAYING SAFE ONLINE
conference to raise awareness of the problems. Major            Install anti-virus software
developers of security software have announced plans to         Keep your anti-virus
collaborate.                                                    software up to date
                                                                Install a personal firewall
Nevertheless, for those millions who find themselves            Use Windows updates to
infected today, their first port of call is rarely a government patch security holes
agency or even a high-profile security firm like Symantec or Use reputable anti-spyware
McAfee.                                                         programs such as
                                                                AdAware or Spybot
Alliance                                                        Do not open e-mail
                                                                messages that look
Instead worried PC owners wind up at sites run by highly-       suspicious
skilled volunteers like Gwynne Brothwood and her colleague Do not click on e-mail
Chris Davis.                                                    attachments you were not
                                                                expecting
Spyware Warrior, a high-profile US-based website, has
become a key port of call. The site includes an exhaustive
index of rogue anti-spyware programs, and key players Suzi
Turner and Eric Howes have emerged as minor celebrities in the fight against spyware.
Andrew Miller MP wants UK web users to see a direct route from infection to diagnosis,
official complaint and, he hopes, possible criminal action by the National Hi-Tech Crime
Unit.

The government has launched a portal site for users, called Get Safe Online, but making it
stand out from the welter of self-help and self-harm websites cluttering the net is a tough
proposition.

Mr Miller said that the challenges of streamlining even a UK-wide fight against spyware
were "enormous".

"People will need to take advice and receive support from well-meaning people not working
for government agencies," he said.

"That kind of co-operation is going to be a pre-requisite."

http://news.bbc.co.uk/2/hi/technology/4696532.stm
                             ITGS – Areas of Impact

Business and employment - Online Businesses (e-commerce)
E-commerce - glossary
Hi-tech crime: A glossary

Like many subjects, information security comes
with its own terminology and the jargon can be
opaque to outsiders. Click below to shed light on
the murky world of cyber crime.


Adware
Blackhat
Bot
Botnet
Botnet herder
Bullet-proof hosting
Carder
Cash-out
Channel
Cross-site scripting
Dead-drop
DDoS
Drive-by download
Exploit
Firewall
Honeypot
IP Address
IRC
Keylogger
Malware
Man-in-the-middle
Packet sniffing
Phishing
Port
Roots
Script kiddie
Spyware
TCP
Trojan
Virus
Whitehat
Worm


http://news.bbc.co.uk/2/hi/uk_news/5400052.stm
                               ITGS – Areas of Impact

Business and employment - Online Businesses (e-commerce)
E-commerce - Spyware
Security service targets gamers

A British intelligence agency has targeted a new
generation of recruits by advertising in computer games.

The Cheltenham-based surveillance service GCHQ
hopes to attract the attention of "tech-savvy" gamers.

Adverts featuring the GCHQ website are on billboards
within Xbox 360 games such as Splinter Cell: Double Agent and Enemy Territory: Quake
Wars. GCHQ said it hoped the campaign would "capture the imagination of people with a
particular interest in IT".

'Very successful'

Laura Robertson, who runs the GCHQ account at advertising agency TMP Worldwide, said
the aim was to do something different during GCHQ's
graduate recruitment season.
                                                              We're just asking
She told BBC Radio Five Live: "When we heard about this    people to have a look at it
opportunity we decided that it was worth investigating and and go and find out more
happily when we talked to GCHQ about it they were really   about the
pleased to take it on.                                     opportunities

"It's been predominantly used for consumer advertising to         Laura Robertson
date, and very successfully, and this is the first time it has    TMP Worldwide
been used for recruitment purposes.

"Hopefully it just raises your attention and the idea is to encourage you to have a look at the
website.

"We're just asking people to have a look at it and go and find out more about the
opportunities."

GCHQ, which works alongside the UK's other intelligence agencies MI5 and MI6, employs
about 5,000 people and provides monitoring information for the government and protecting
its communication and information systems.


http://news.bbc.co.uk/2/hi/technology/7053369.stm
                             ITGS – Areas of Impact

Business and employment - Online Businesses (e-commerce)
E-commerce - Spyware
'Lord' jailed for £229m bank plot
A bogus peer who led a "sophisticated" plot to steal
£229m from a Japanese bank has been jailed for
eight years.

"Lord" Hugh Rodley, of Gloucestershire, who bought
his title and lived in a manor house, was convicted of
conspiracy charges dating back to 2004.
Gang members had installed spyware on computers                                             at
the London offices of Sumitomo Mitsui bank in order                                         to
steal money from big business accounts.

Four other men were jailed for between three and four
years. Rodley, 61, who lived in Tewkesbury and was
described as the "chief executive", had teamed up with a gang of internet thieves to target
the bank.

The "bold and sophisticated" plot was only foiled at the 11th hour by the complexities of
inter-bank money transfers, the court heard.

Bank insider and security supervisor Kevin O'Donoghue, 34, of Birmingham was jailed for
four years, four months after admitting conspiracy to steal at Snaresbrook Crown Court.
He had unlocked the Japanese bank's London offices so the gang could make
"surreptitious" visits at night, the jury was told.

He also tampered with CCTV equipment in a bid to avoid          There was dishonesty on
the presence of Belgian computer expert Jan Van              a gigantic scale and if it had
Osselaer, 32, and his "recruiter", Frenchman Gilles          been successful... it would
Poelvoorde, 35 being caught on camera.                       have occasioned huge
                                                             losses
Osselaer and Poelvoorde then used software to corrupt
the bank's computer system, record the keystrokes of staff Judge Martyn Zeidman QC
and reveal user names and passwords, jurors were told.
That gave them access to the holdings of major companies like Toshiba International,
Nomura Asset Management and Sumitomo Chemical UK.

'Death threats'
They made several attempts to electronically transfer up to £12.5m at a time around the
world, but were unsuccessful because of "field logging errors". The plot was discovered
when staff returned to work after the weekend and realised their computers were not
working properly.
Then they found a number of network cables had been "taken out". Sentencing the men,
Judge Martyn Zeidman QC, said: "In the old days the villain would break down the door of
the bank, go in and simply take the money.

"Nowadays a different technique is applied... but the        THE £229M BANK SWINDLE
principle is exactly the same. "There was dishonesty on a    PLOT
gigantic scale and if it had been successful, as it easily   Hugh Rodley, 61, of
could have been, it would have occasioned huge losses.       Tewkesbury,
"In the event, because of a minor piece of carelessness,     Gloucestershire, guilty of
the operation failed."                                       conspiracies to defraud and
                                                             to transfer criminal property
Rodley was found guilty of conspiracy to defraud and
conspiracy to transfer criminal property between 1           David Nash, 47, from
January and 5 October 2004. Soho sex shop owner David        Durrington, West Sussex,
Nash, 47, from Durrington, West Sussex, was jailed for       guilty of conspiracy to
three years for his role in the plot.                        transfer criminal property
                                                             Kevin O'Donoghue, 34, of
Woman cleared                                                Minstead Road, Birmingham,
                                                             admitted conspiracy to steal
He had been used by Rodley to front accounts into which
the funds would have been channelled, the trial heard.       Jan Van Osselaer, 32, of
Judge Zeidman said he had tried to "hide behind others"      Belgium, admitted
and "pull the wool over the eyes of this jury".              conspiracy to steal
                                                             Gilles Poelvoorde, 35, of
Osselaer received three-and-a-half years while               France, admitted conspiracy
Poelvoorde got four after they admitted conspiracy to        to steal
steal.

Swedish national Inger Malmros, 58, who lives in Gran
Canaria, was cleared of both counts.
She had told the court she knew nothing of two instructions - allegedly from her firm -
concerning the planned transfer of some of Sumitomo's cash.

A seventh defendant, Rodley's 74-year-old business partner Bernard Davies, committed
suicide two days before the trial began.

A note was read to the court in which he said he had "lost the will to live" after receiving
death threats from an underworld figure because he would not reveal Rodley's and Nash's
whereabouts.

Sumitomo Mitsui said its systems and controls had prevented the fraud's success and that
at no point were customer accounts at risk.

http://news.bbc.co.uk/2/hi/uk_news/7926294.stm
                              ITGS – Areas of Impact

Business and employment - Transportation

Airline Reservation Systems - EU passenger data row
In 2004, the European Union and the US agreed that airlines leaving Europe for the
US would provide a range of information about every passenger.

The agreement came about after detailed negotiations with the US about the data that
would be provided, how it would be used, who would see it and how long it would be kept.
The agreement was annulled by the European Court of Justice in May 2006 and was
replaced by a temporary deal in October 2006. A long-term agreement was reached in
June 2007.

What information is provided?
The US is interested in information on each passenger held in the ticket reservation
database. This includes such things as information about the booking of the ticket, the
passenger, and some things about his or her travelling companions and travelling history.
Frequent flyer miles, credit card number, e-mail address and telephone number could all be
present, depending on how the ticket was booked and paid for.

Requests for a special meal will show up too, unless they indicate the passenger's race or
religion. In this case, the data is not meant to be provided.

There are also "open text" fields where the travel agent may enter general information
about a passenger's tastes and preferences, but data from this area is only meant to be
transferred when it is relevant for security purposes. If US officials want more information
about a traveller's bank or e-mail account, they can apply for it through the courts.

How does the 2007 agreement differ from the 2004 agreement?
In the original deal, the US gained access to 34 data fields in the reservation database, but
that figure has apparently been reduced to 19.

At the same time, the US won the right to retain the data for much longer - up to 15 years,
instead of three-and-a-half years - and has more freedom to share the information between
various US agencies.

There is also a change in the way the US Customs and Border Protection (CBP) obtains
the data. Originally it had direct access to the reservation databases, and was able to pull
out the information it wanted. But the new deal contains a "clear commitment" to a system
where the airlines pull out the data and push it to the US authorities.
How is the information used?
The US initially demanded the data in the wake of 9/11 and primarily uses it for anti-
terrorism purposes. However, it insists on the right to use the data for other purposes, such
as disease control.
The US authorities attempt to identify passengers who could present a security risk, by
comparing their reservation data profile - of missed flights, tickets bought at the last minute,
seating preferences etc - with profiles deemed to be suspicious.

The Department of Homeland Security said in December 2006 that it was using a computer
system, the Automated Targeting System, which assigns people travelling to the US a
numeric score.

Any traveller whose score reaches a certain level will be subjected to a full interview, or
barred from entering the country.

Does the new deal comply with EU data protection regulations?
The EU's data protection supervisor, Peter Hustinx, said on 27 June 2007, as the deal with
the US was being finalised, that he had "serious doubts whether the outcome of these
negotiations will be fully compatible with European fundamental rights".

He said he was concerned that the deal would not be legally binding on the US, that there
were insufficient limitations on what the US was allowed to do with the data, that the data
would be kept for too long, and that there was no "robust legal mechanism" for EU citizens
to challenge misuse of their personal information.

The EU's Article 29 Data Protection Working Party, which includes national data protection
chiefs from each member state, said the old list of 34 data items was too long, so the EU
may welcome the fact that it has been shortened.

However, an MEP who wrote a report on the subject for the European Parliament, Sophia
in't Veld, has voiced suspicions that the reduction in data fields may have been achieved by
merging some of them - so that what used to be counted as two data fields are now
counted as one.

What does the European Union think of the Automated Targeting System?
Justice Commissioner Franco Frattini told the European Parliament in December that the
information given by the Department of Homeland Security (DHS) about the ATS indicated
that it violated the undertakings given by the DHS on the use of European passenger data.



Why did the European Court of Justice annul the old deal?
It said the Commission had been wrong to give the deal a basis in the body of EU law
dealing with the internal market. It said the data was used for security reasons rather than
commercial reasons, and should therefore be founded on the body of law dealing with co-
operation between member states in justice and home affairs.

The case was taken to the court by the European Parliament, but the court did not examine
the MEPs' complaints about violation of privacy. A side-effect of the court's ruling, changing
the legal basis of the agreement, is that the parliament no longer has the power to vote it
down.

http://news.bbc.co.uk/2/hi/europe/5029258.stm
                              ITGS – Areas of Impact

Business and employment - Transportation

Airline Reservation Systems - Interpol
concern over UK borders

The head of Interpol has told of his "surprise" at
shortcomings in the passport controls at UK
borders.

Ron Noble, an American, said he was not asked for
his passport serial number when he entered the UK.
"It's been proven in every single terrorist incident that
a fraudulent passport has been used," Mr Noble told a House of Lords committee.
He said officials should record and check the numbers against Interpol's list of five million
stolen passports.

The Home Office says there have been a range of border security measures and its plans
for electronic checks will improve things further.

'Unknown terrorist'
As well as the Interpol list, the EU has a database of 10 million lost or stolen passport serial
numbers, the EU Home Affairs sub-committee was told.

But in the UK there was no automatic requirement to record passport serial numbers,
unless the traveller falls into certain categories, such as students from outside the EU or
people applying for work permits.

Names and details can be checked against a register of known or suspected offenders, but
further checks are at the discretion of individual immigration officers.

Mr Noble showed peers the immigration card he filled in              When it comes to
when he entered the country on Tuesday. "I was surprised          sharing information
that the immigration card didn't ask me for my passport           internationally the UK is
number," he said.                                                 one of the leaders in the
                                                                  world
Terrorists were known to use fake passports, and in those
circumstances, he said, wondering "why wouldn't the UK            Ron Noble, Interpol director
want to know my passport number?"                                 general

The UK is already taking steps to prevent people wanted by the police entering the UK, Mr
Noble said, but - until cross border co-operation was improved - it should do more to tackle
those using stolen documents.

He told peers: "Assume there is an unknown terrorist in possession of a stolen passport.
We need to find an interim solution to make sure those people don't get into the UK."
He said Interpol would allow the UK to download all of its stolen passport numbers as a
temporary solution.
The committee heard the EU is considering plans to force           INTERPOL
member states to share data on lost and stolen passports.          Provides a secure global
It already has a database of stolen passport numbers               communication system for
covering the 15 countries in the Schengen treaty, which            police forces in 182
removes some of the border controls between member states          member countries
but does not include the UK.                                       Operates databases of
                                                                   international criminals,
Mr Noble praised the EU for agreeing to share its stolen           stolen travel documents,
passport data with Interpol. But he added: "It's important for     stolen vehicles, fingerprints,
the EU to know whether the stolen passport is being used in        DNA and other information
the EU or outside the EU. "That's why an EU system alone           Offers operational support
will never work."                                                  and analysis in the fight
                                                                   against terrorism, people
Tight control                                                      smuggling, money
He said Interpol's efforts to gather information across            laundering, paedophilia and
international borders were hampered by the EU and national         other cross-border crime
police services' fears they would "fall into the wrong hands".
Mr Noble agreed that "not all information should be shared with all countries at all times".
But, he added, some organisations misunderstood the nature of Interpol, which he said
gave them tight control over the countries their information was given to.

He also praised the UK's record, saying that "when it comes to sharing information
internationally the UK is one of the leaders in the world".

Electronic checks
Responding to his concerns about passport numbers, a Home Office spokeswoman
pointed to plans for "e-borders", which will work alongside ID cards from 2008.
"This system will efficiently record people travelling into and out of the UK, using airline
reservation information and capturing passenger's biometric data from their travel
documents," she said.

"The Immigration and Nationality Directorate is committed to working closely with other
government agencies, the police and EU partners to combat the threat of terrorism.
"In addition the UK's borders have been made more secure through a range of initiatives
including moving controls overseas, the deployment of new detection technology, the
introduction of new visa regimes and the deployment of Airline Liaison Officers assisting
airlines to check travel documents."

The UK also had a database of about 200,000 stolen passport numbers, which it shares
with Interpol, a Home Office spokesman added.

http://news.bbc.co.uk/2/hi/uk_news/politics/4058427.stm
                             ITGS – Areas of Impact

Business and employment - Transportation

Navigation - Ambulances to use
satellite navigation
Satellite navigation technology is to be
introduced on ambulances in Devon,
Cornwall and Somerset to help crews can
find patients more easily.

The latest performance figures for the
Westcountry Ambulance Trust show it still
has to make big improvements to meet new
Government targets.

New technology similar to that already being used in Staffordshire should help ambulance
crews speed up their response times.

The system relies on satellite navigation so ambulance control can pin point where there
ambulances are and also ensure the crew get detailed directions to the patient.

                             By September 75% of category A emergencies must be
                             reached within eight minutes.

                             Despite all the efforts to introduce more paramedics on
                             motorbikes and cars the figure is stuck at around 60%.

                             It is hoped the new satellite navigation system will be
                             introduced next month.
 The Government has set
      new targets

http://www.bbc.co.uk/devon/news/032002/07/satellite_navigation.shtml
                              ITGS – Areas of Impact

Business and employment -
Transportation

Navigation - Mobiles navigate the future -
Satellite navigation is going places.


In the first nine months of 2006, nearly 12 million Global
Positioning System (GPS) devices were sold across the
world, according to research firm Canalys.

In 2007, this is forecast to more than double to nearly 28
million, with Europeans the most likely to want to know
exactly where they are at any time. At the moment, most of
these devices are specially designed units or handhelds
incorporating downloaded software.

Most are used by car drivers navigating around town, sailors on the ocean wave or by
ramblers on blustery hillsides. But all this is set to change.

According to the mobile industry, 2007 is the year when GPS will finally lock on to phones
across Europe.

"GPS has been in the domain of the early adopters to date, but in 2007 it will come to the
masses," said Marcus Dacombe, head of product marketing at handset manufacturer Nokia.
And when this happens, mobile phone users will be able to take advantage of a range of
new services, from restaurant finders to systems that accurately plot their morning run.

Clear run

GPS-enabled phones are nothing new to the millions of mobile users throughout the US
and Asia. Eighty-three million GPS-enabled handsets were shipped last year, according to
IMS Research.

Countries like Japan are well known for their early adoption of    Many of those barriers
technology, while in the US, the mass up-take of GPS was        that did exist have been
down to legislation.                                            addressed

In 1999, the Federal Communications Commission pushed
through an act that requires all handsets to incorporate the technology. The E911 system,
as it is known, allows the emergency services to pinpoint the exact location of a mobile
phone caller.

Although GPS remains a passive technology for most in the US, only to be activated in
times of emergency, the legislative imperative pushed the technology ahead and into the
mainstream.
At the same time, Europe remained lost. Unlike the US and Japan, which use a mobile
standard known as CDMA, Europe's networks run on a totally different system called GSM.

Developments in the US and Japan could not simply be rolled out across Europe.
Obstacles overcome elsewhere remained in Europe.

But now, according to Mike Short, chairman of the Mobile Data Association, the road ahead
is clearing. "Many of those barriers that did exist have been addressed," he said. "We have
seen a lot of progress in the last year."

Helping hand

Developments in chip design and the increased processing power of mobile phones means
that GPS can now more easily be incorporated into a handset.

In addition, a new technology called assisted-GPS (AGPS),
in-part developed off the back of the E911 programme, does
away with the frustrating "lag-times" traditionally associated
with GPS devices as they search for satellites.

AGPS takes advantage of the cellular network to speed up
the process of finding a location. Mobile operators divide the
whole country into thousands of individual geographic areas
known as "cells".                                                 GPS relies on a network of
                                                                     orbiting satellites
At the heart of each of these is a base station or mast, which
communicates by radio with individual handsets within the cell. In urban areas such as
London, base stations are usually built about 200-500m (650-1,300ft) apart.

This cell information can be used to get a rough fix on the location of a phone user. Once
this is known, a computer on the network can relay information to the mobile about which
satellites it should be visible to in the sky.

The phone then only has to search for signals from specific satellites instead of scanning
for all 32 in the GPS constellation. AGPS is particularly useful for pinpointing locations in
"urban canyons", under heavy tree cover, or even indoors.

Imaginative solutions

This new level of accuracy has allowed a host of "location-based services" to be developed
in the US and Japan, which could now come to Europe.

These include "buddy finders" that alert you when a friend is in the same area or systems
that track your morning run to show you how many kilometres you have covered and how
many calories you have burned.

"You can also have turn-by-turn navigation, family locators and maps with points of
interest," said Shekhar Somanath from mobile GPS chip manufacturer Qualcomm.

Other proposals include location-based advertising, mobile blogging, location-based games
and services that will allow you to geo-tag photographs with their locations.
"We just cannot predict all of the applications that will come about," said Mr Short. "We are
making a capability available." One boom sector in Japan and the US is for services that
allow parents to track their children through their mobile phone. Entertainment giant Disney
has even launched a service.

But privacy experts have already spoken out about the potential to abuse systems such as
these for tracking and inappropriate use. As a result, mobile operators have drawn up a
code of conduct for all location-based services.

Power in hand

Riding this wave of new services are a raft of new handsets from mobile manufacturers that
are now cheap enough for operators to offer them as upgrades or bundled with contracts.

In Europe alone, the number of GPS-enabled mobile phones is expected to soar from
around three million last year to nearly 70 million in 2010, according to IMS Research.
Globally, the figure will be close to 300 million.

But this meteoric rise will not be a completely smooth ride.         GALILEO UNDER
                                                                     CONSTRUCTION
The new mobile phones will be battery hungry, particularly
when they offer turn-by-turn navigation like the systems used
in cars.

Consequently, manufacturers are working hard to pack more
power into handsets.

In addition, the accuracy of GPS is still not quite good
enough for all applications to work in all areas.

"It still requires a bit of faith particularly in urban settings,"
said Jonathan Raper, professor of geographic information             A European Commission
science at London's City University. One development on the          and European Space
horizon that could solve this is Europe's GPS equivalent,            Agency project
known as Galileo.                                                    30 satellites to be launched
                                                                     in batches by end of 2010
Life's necessities                                                   Will work alongside US GPS
                                                                     and Russian Glonass
The system's additional 30 satellites will offer greater             systems
coverage and precision than the existing GPS system alone.           Promises real-time
"It's going to massively improve positional quality and              positioning down to less
accuracy," said Professor Raper.                                     than a metre
                                                                     Guaranteed under all but
The joint venture between the European Union and the                 most extreme
European Space Agency should be launched in 2010 - but it            circumstances
is already behind schedule. As a result, the mobile industry         Suitable for safety-critical
cannot start to prepare for the new system.                          roles where lives depend on
                                                                     service
"Until we see more deliverables from the Galileo community, it is very difficult to plan for,"
said Mr Short.
The system will require new technology to be incorporated into mobile phones, particularly
in mobile chip sets. But regardless of potential hurdles with existing and future systems,
some people believe the incorporation of GPS into mobile handsets is destined to happen
in part because of the sheer number of mobile users - nearly half the world's population -
and for some more deeply-rooted reasons.

"Time and place are the two most fundamental systems for framing our lives," said
Professor Raper. "Today, everyone has a watch to tell the time, but it's a glaring omission
that we don't have a universal device for telling us where we are.

"Mobile phones are the only way of doing that."

http://news.bbc.co.uk/2/hi/science/nature/6294287.stm
                             ITGS – Areas of Impact

Business and employment - Transportation

Package Tracking - Personal data
exposed on website
Personal data including the signatures of
recipients has been exposed to those tracking
deliveries on the Parcelforce website, the BBC
has discovered.

A failure in the system allowed people using the
mail tracing service access to the name,
postcode and signature of various addressees.
The breakdown put Parcelforce at risk of
breaching data protection rules.

The delivery service, part of the Royal Mail Group, apologised. It said the problem had
been resolved.

Fail track
Customers sending a package with Parcelforce Worldwide are given a reference number
which allows them to track the progress of the delivery.
However, when the BBC News website entered reference          The more you think about
numbers into the "track and trace" feature on the        it, the more you wonder what
Parcelforce website, a series of unconnected deliveries  is going on
was revealed.
                                                         Parcel recipient Linda Mitchell
Although the same reference number was typed in, the
specifics of parcels with other reference details were
displayed.

Within the space of 30 minutes, the system handed out details of parcels in Cleveland,
Swansea and even awaiting customs clearance en route from Shanghai.

These included some parcels that had already been delivered. On the page declaring
"proof of delivery", the name and postcode at its destination were shown, alongside a
reproduction of the signature of the recipient.

Such information would give an identity fraudster easy access to people's names,
addresses and signatures. During the BBC's investigations, we saw the details of Linda
Mitchell, of Farnham in Surrey, and the signature of her mother who signed for the parcel.
Mrs Mitchell noticed a problem when she entered the reference number on the website and
it said her parcel was in Glasgow, then Coventry.

"The more you think about it, the more you wonder what is going on," she said.
And BBC News website reader Steve Davis, of Twickenham, said he was left confused by
the tracking service fault.
"I thought that the bike I had been waiting for all week had been delivered and accepted in
Germany," he said.

Data Protection
Businesses have a responsibility to keep personal and sensitive information secure,
according to the Information Commissioner's Office (ICO).
"Any organisation which processes personal information
must ensure that adequate safeguards are in place to keep
that information secure," said a spokeswoman for the ICO.

"Failure to protect personal details such as names,
addresses and signatures could lead to information falling
into the wrong hands and ultimately the loss of customers'
trust and confidence.

"We will be contacting Parcelforce to establish how this      Parcelforce Worldwide is part of
security breach occurred and to find out what steps it will   the Royal Mail Group
be taking to ensure that such a breach cannot happen
again."

On some occasions, the website suggested the tracking service was "temporarily
unavailable".

A spokesman for Parcelforce Worldwide apologised to customers who had been affected.
He said the problem emerged after work to the computer system late on Wednesday night
and early on Thursday morning. Attempts were being made to fix it, with the online and
telephone system halted until this had been done.

"We can confirm that the fault was rectified and the service restored on Thursday night. We
apologise to customers for any inconvenience caused."

Parcelforce Worldwide advertises itself as able to deliver to 99.6% of the world's population.
It aims to be "the UK's most trusted worldwide express carrier".

In the nine months to Christmas last year, all four Royal Mail businesses were profitable for
the first time in almost 20 years. Royal Mail Letters, the Post Office, Parcelforce Worldwide
and European parcels business GLS contributed to an operating profit of £255m.
The government is planning to sell 30% of Royal Mail's parcels and letters service.

Data loss
This is not the first case of potential exposure of sensitive data. Last month, it was revealed
that a laptop computer with details of 109,000 members of six pension schemes had been
stolen from offices in Marlow in Buckinghamshire.

The data, which was not encrypted, included names, addresses, dates of birth, employers'
details, national insurance numbers, salary details and, in the case of those receiving their
pensions, their bank details too.

Last October, a laptop containing personal details of more than 100,000 members of the
Network Rail and British Transport Police pension schemes was stolen from the
accountancy firm Deloitte.
And in November 2007, HM Revenue and Customs lost two computer discs that held the
entire child benefit database, including the personal details of 25 million people, covering
7.25 million families.

If a business regularly fails to safeguard sensitive information, it can be served with an
enforcement notice by the Information Commissioner. Any breach of such a notice is a
criminal offence.

http://news.bbc.co.uk/2/hi/business/8107737.stm
                              ITGS – Areas of Impact

Business and employment - Transportation

Traffic Control Systems - Inventions proved a driving force
Traffic safety has always taxed the brains of transport civil servants who, as files from the
Public Record Office reveal, were often open to the weirdest of suggestions.

As far back as 1938 a certain County Durham inventor came up with a crude method of
stopping cars to protect pedestrians - which may have been a forerunner to today's road
crossings.

Another device - to be used as a car indicator - showed a hand with
a finger pointing the way the vehicle was about to turn. These
invention ideas, together with other colourful prototypes, were
carefully filed and stored in the vaults of the Ministry of Transport.

The files, released on Wednesday by the record office in Kew, west
London, show that all possibilities were considered to cut accident
rates.

Among them was a vision of a road safety system, by a Mr Beck of
South Shields, which would have involved installing a set of giant
electro-magnets under the road.                                           Showing the way:
                                                                          An imaginative car
The creator suggested that any car trying to drive over his                    indicator
pedestrian crossing while people were on it, would be brought to a
grinding halt by the powerful magnets. Mr Beck said steel skids would need to be attached
to vehicles so that they could be stopped by the magnetic "ground-tables".

'Accidental' find

He suggested his system of magnets would "defy any sort of weather, they are shock-proof
and harmless". In 1919, when drivers commonly used hand signals to indicate they were
turning, the Ministry of Transport was keen to find a basic alternative.

One submitted plan proposed attaching a clumsy contraption to the side of the car,
depicting an image of a hand with one finger pointing the way.

There was also a suggestion for a dust preventer which looked like a tin can punctured with
holes and anti-mud splash devices which resembled giant bicycle mudguards.

Rather than being binned as daft, these suggestions were carefully stored away by civil
servants in the department's archives.

David Humphries, publicity officer for the public record office, said they were all uncovered
by accident as he went through the files, ahead of publication.
Online archive

"They were amongst hundreds of pretty dull files and pictures of buses and cars and were
just found by chance," he said.

"They were all kept by the ministry and do suggest it was open to a
wealth of suggestions."

Odd though his invention may seem, Mr Beck was obviously an
inventor to watch - he also provided an alternative proposal
remarkably similar to a modern pelican crossing.

The public record office hopes to provide online access to the files
by the end of the week under the new releases section of its website.

http://news.bbc.co.uk/2/hi/uk_news/2053347.stm

                                                                        The department
                                                                          made sure
                                                                        everything was
                                                                             filed
                               ITGS – Areas of Impact

Business and employment - Transportation

Traffic Control Systems - Air traffic simulator introduced
Air traffic control staff will use a £1.5m simulator to train to use a £50m control tower at
Heathrow.

More than 50 controllers with the National Air Traffic
Services will use the 300ft tower from the winter. It
replaces one used since 1955. NATS provides air traffic
control at 15 of the UK's biggest airports.

The virtual reality machine replicates the view, equipment
and layout of the new control tower and gives day and
night and weather effects. It covers emergency and
unusual situations.

Terminal 5

High resolution images are projected on to a 10 metre diameter cylindrical screen to create
panoramic 3D scenes.

The replacement control tower will include a view of the new Terminal 5, due to open in
March 2008.

Nats Heathrow general manager Martyn Jeffery said: "The existing tower is too small to
meet the future requirements of this busy airport.

"The move to our new home will deliver both capacity and service improvements and
provide an air traffic control platform for decades to come."

http://news.bbc.co.uk/2/hi/uk_news/4975974.stm
                   ITGS – Areas of Impact                                  Global
                                                                           Positioning
Business and employment - Transportation                                   System
                                                                           The first GPS
IT Systems in Cars - Satellites in the driving seat                        satellite was
                                                                           launched in 1978
The UK Government is reported to be considering using satellite            Twenty four GPS
technology to control the speed of cars on the streets. Under the          satellites orbit at
system, motorists would be automatically limited according to the          12,500 miles
local speed restriction.                                                   above the Earth
                                                                           and are
While electric cars are still struggling along in the slow lane,           continuously
electronically-controlled cars are moving into the fast lane.              monitored by
                                                                           ground stations
One of the latest features is the satellite-based Global Positioning       GPS satellites
System (GPS) which directs drivers from A to B via electronic maps in      around the globe
their vehicles.                                                            transmit signals
                                                                           that can be
And now researchers at Leeds University and the Motor Industry             detected by
Research Association (Mira) have proposed using the system to limit        anyone with a GPS
speeds on Britain's roads.                                                 receiver
                                                                           GPS was designed
GPS is the key element in their Intelligent Speed Adaptation (Isa)         originally as a
system, and allows you to find your exact position on the Earth to         military aid, but it
within an accuracy of one metre.                                           soon got taken up
                                                                           in civilian life
The researchers found GPS can be linked to a vehicle's electronic
engine management, thereby controlling fuel supply, ignition and           During
braking. So just as a driver enters a 30mph zone, the vehicle's speed      construction of the
is cut accordingly.                                                        Channel Tunnel,
                                                                           engineers relied
Research project leader Mark Fowkes of Mira, told BBC News Online:         on GPS receivers
"The satellite is just giving the system the car's place on the map. Isa   to make sure they
tells it what to do." The researchers originally thought electronic        met exactly in the
signals from speed signs would do the same job as GPS.                     middle

But Mr Fowkes said: "There
are an awful lot of speed limit
signs, so that would have
been very expensive. "With
GPS becoming more widely
available, it seemed an
obvious step to make."
Early in-car GPS systems were notoriously
inaccurate, but Mr Fowkes said the technology was now sufficiently advanced for it to
pinpoint cars accurately enough for use in speed reduction.

He admitted that manufacturers, who sell many cars on their ability
to exceed the speed limit, may not be keen to introduce such a
system in their cars.

However, in the 1997 Master project, financed by the European
Union, a field study was carried out in Sweden, the Netherlands and
Spain with a car equipped with an automatic speed limiter.

Twenty people in each country test drove the car and half said they
would accept the limiter voluntarily in their own vehicles.
                                                                          Spy in the sky: GPS
Mr Fowkes admitted it could be difficult getting systems imposed on satellites are the key
car drivers, without an override system to turn it off. "We still want to to speed control
see how people respond to it," he said. "But an override system           system
might make it more acceptable."

http://news.bbc.co.uk/2/hi/uk_news/590387.stm
                               ITGS – Areas of Impact

Business and employment - Transportation

IT Systems in Cars - GPS goes mainstream

GPS or Global Positioning System uses satellite signals to
pinpoint your exact position on earth. For some people,
especially those with high end cars, GPS is already a way of
life.

In the consumer world navigation has usually consisted of a
stand-alone product. Not anymore. "Convergence certainly is becoming more and more
important", says Velle Kolde, product manager from Microsoft Automotive Group.
"Customers are looking for more convenience and more usefulness out of their devices.
"By integrating navigation with music and information services just makes it more
convenient, more powerful, richer solutions for consumers."

So why would GPS be more attractive to the average person now?
The answer is that newer models of cell phones, PDAs and MP3 players have the
necessary processing power for navigation along with wireless capabilities.

Andrew Gage, vice-president of product management for Destinator Technologies, says:
"Our first product offering in North America comes with personal navigation on a smart
phone.

"But it also brings with it location-based services, like traffic, where you can get real-time
updates through the connectivity of the phone. "We understand your routes, and we can
detect if there's an accident out there that's going to cause you a delay and we can notify
you of that and allow you to navigate around that. It's very powerful."

Money-spinner?
Location-based services is one reason why big and small companies are suddenly very
interested in real-time mapping. Increased competition means information supplied to
devices has become more accurate and timely.

These companies know there is money to be made, if you can find your nearest bank
branch in a hurry or visit all the tourist sites in an unfamiliar city without wasting time.
Philip Magney, principal analyst at Telematics Research Group, says: "One thing we're
seeing is more advanced what we call POI - Points Of Interest - databases.

"Not only will the navigation system allow you to find your way, it will also allow you to
obtain a great deal of information on potential places of interest that you may want to visit -
restaurants, shopping, what have you."

New possibilities
So you don't hike and you don't drive? It doesn't matter - 2006 might be the first time you
use GPS without even realising it.
Take star gazing for example. That just got a lot easier for amateurs thanks to a new device
called a Skyscout, a suped-up telescope.

"It's a GPS device that does what no other GPS device has
done before", says Jennifer Adams, marketing manager at
Skyscout.

"It locates and identifies stars, planets, constellations, nebular
galaxies - over 6,000 objects." And GPS is being combined
with two-way speech and video monitoring. The Cyber
Tracker, produced by Homeland Integrated Security Systems,
can be used in any vehicle, personal or business.

The company's Adam Clough says: "Say you have a delivery
company, and you have someone who is delivering
something and you look at them on the GPS map and you
notice that they have gone astray, you can then contact the
person with the Cyber Tracker and let them know that they
have gone off-route and communicate to them and give them
directions to get back on track."                             The Galileo satellite in
                                                              Europe opens up even
Since 1978 The Global Positioning System has been the only more possibilities
satellite network offering navigation services to the world.
But at the end of 2005 a European equivalent, The Galileo Project, was launched.
So consumers can expect more innovation and more gadgets that take advantage of both
systems.

http://news.bbc.co.uk/2/hi/programmes/click_online/4748042.stm
                                ITGS – Areas of Impact

Business and employment - Transportation

IT Systems in Cars- smart roads

The car that drives you

A new autopilot system for cars has been
developed which guides a car through town traffic
- the "driver" just sits back and watches.

The technology takes over steering, lane-changing
and indicating, as well as controlling speed.
Previous systems could only keep a car a certain
distance from the one in front.
One quirk of the system is that it does not automatically keep to speed limits, because it
sets it speed by matching that of other cars.

This tactic avoids the need to recognise individual lanes which is difficult on busy town
streets.

Professor Frank Heimes, of the Fraunhofer Institute for Information and Data Processing,
Germany, says the aim is to make driving easier in the high-stress, complex situation of
inner-city driving, particularly for people with disabilities.

He says that accidents are usually caused by slight errors of human judgement. Although a
machine will never be perfect, it might do better than a human in some circumstances.

Driving by video
The system relies on two video cameras on the front of the car. This visual information is
fed into two computer chips. These work out where the car is on the road and where any
other cars are.

The chips recognise cars, pedestrians and road junctions by comparing what the cameras
see with stored three-dimensional models.

If action is necessary, then the steering, for example, is automatically adjusted. The driver
could take over at any moment by grabbing the wheel or stepping on a pedal.

The prototype system is not foolproof. The database only contains roads of fixed widths.
It is also too large to fit into most cars and so it is unlikely that it will be used in the near
future. There would also need to be legal changes. In the UK, for example, automatic
control of steering and brakes is illegal.

http://news.bbc.co.uk/2/hi/science/nature/281432.stm
                              ITGS – Areas of Impact

Business and employment - Transportation

IT Systems in Cars-India en route for grand highways
Smooth, pristine roads; traffic flowing at over 100km/h; emergency medical teams on
standby for accidents.
It is not an image many would associate with the Indian road
network. But India is changing at last.

The country is witnessing one of the world's largest road
building projects, worth more than $12bn.

With roads up to six lanes wide covering nearly 14,000
kilometres (8,750 miles), Indian officials say the country is
finally gearing up to take on its Asian economic rival, China. In The first phase is almost
October 1998 Prime Minister Atal Behari Vajpayee promised complete
the people of India world-class roads connecting the whole
country.

Dream project

An extra rupee on every litre of petrol or diesel was levied to fund the project. The scheme,
which is regarded as Mr Vajpayee's dream, has also received the backing of the World
Bank and other financial institutions.

Often, such huge projects in India are ill-conceived. They lack     He suggested I use the
planning, meet bureaucratic hurdles and invariably result in    emergency call box - who
time and cost overruns.                                         could think of anything
                                                                like that in this
Nearly five years later, 80% of the first phase of the project  country?
has been completed, say officials. It connects India's four big
cities - Calcutta, Madras, Delhi and Bombay, also known as Delhi lawyer Awadh Kaushik
Mumbai.

Work on the second phase connecting Srinagar in the north to
Kanyakumari in the south and Silchar in the east to
Saurashtra in the west is due to begin shortly. The deadline
for completing the whole project is 2007.

But officials say the speed at which the project is progressing
and the professionalism of those involved could mean it is
completed ahead of schedule.

India's Surface Transport Minister BC Khanduri told the BBC
he has adopted unusual methods to ensure the project runs to schedule.
"I brought the completion date forward with a view to activate and energise. I told the
contractors to complete the first phase by 2003. I knew it was difficult," he says. "We
started giving bonuses. For completing the project one month ahead of schedule we would
give 1% bonus and a months' delay could result in a 1.5% penalty."

Resistance

But Mr Khanduri, a retired army general who studied engineering, is being accused of
setting unrealistic targets in view of coming general elections.

The project has been delayed due to strong resistance in             People will get more
some parts of Maharashtra state, where tribal groups are              facilities - more
angry at efforts to acquire their land.                               employment

In states such as Tamil Nadu and Orissa the pace of the            Shravan Singh
project has been particularly sluggish. But Mr Khanduri says
his approach has helped change the stereotypical assumption that nothing happens on
time in India.

Officials say this is the first time a road project of this magnitude has been undertaken
since Muslim emperor Shershah Suri built the famous Grand Truck road in the 16th century.

The road ran from Sonargaon in Bengal to Peshawar in the North-Western Frontier (now in
Pakistan).

Smart roads

Although nearly 75% of the work is being done by Indians, companies from China, Russia,
Malaysia and South Africa are also participating. Anil Bordia of the National Highway
Authority of India says the considerable interest being shown by the private sector in the
project is due to three major factors.

"Ensured revenue repayment, fair bidding and speedy
execution."

Nearly 250,000 labourers have been working every day since
the project started three years ago and attention has been
paid to the minutest detail. Most of the four lane sections
avoid the problem of glaring lights from oncoming traffic by
raising the road height on one side of the carriageway.

A special "Intelligent Traffic Management System" has been
installed on the Delhi-Jaipur Highway (NH-8).                     Drivers have access to
                                                                 emergency phone boxes
It provides information on weather and traffic flow and helps
reduce traffic congestion, environmental degradation, and checks for stress-related
accidents.

Emergency call boxes fitted at various points on the stretch help drivers with information
about where they can buy fuel, or give them directions to the nearest hospital.
Happy travellers

Awadh Kaushik, a Delhi lawyer, is astonished by what he has seen. He was returning from
Jaipur to Delhi when his bus left without him after a tea break.

"I was desperate to make sure that my luggage was safe so I went to the nearest police
station," he told the BBC. "I got the usual answer that nothing could be done until it reached
Delhi.

"So I took a taxi and when the driver heard my story, he
suggested I use the emergency call box.

"The message was conveyed to the bus driver by the traffic
police. Who could think of anything like that in this country?"

Sunil Lulla, an engineer, is equally impressed.

He said: "It used to take up to seven hours to cover a distance The network is monitored
of 250 kilometres from Jaipur to Delhi, now it takes less than     by state-of-the-art
five hours even during peak hours."                                    technology

Data prepared by highway officials shows accidents have also come down by nearly 20%.
Better, wider roads have raised expectations among the rural population, too, and among
those living close to the highways.

"As the city progresses there will be more factories. People will get more facilities - more
employment," said Shravan Singh, a resident of of Dehmai village in Rajsthan's Behror
district. But the new technology is also proving so tempting to some that they cannot keep
their hands off it.

So much so, in fact, that the authorities are having to think up ways to stop the electronic
gadgets from being vandalised or stolen.

http://news.bbc.co.uk/2/hi/south_asia/3043235.stm
                               ITGS – Areas of Impact

Business and employment - Transportation

IT Systems in Cars - How green can California's cars go?
US President Barack Obama gave
California's environmentalists cause
to celebrate when he took a step
closer to backing the state's plans for
strict vehicle emissions standards.

The BBC's Rajesh Mirchandani
looks at whether the technology
required is feasible and if drivers
would pay for it.

Driving is a way of life in California:
the state has more cars than any other. But the authorities think they are a major
contributory factor to global warming and should be targeted in attempts to reduce
greenhouse gases.

California wants to cut emissions by 30% within eight years.
Part of its plan includes tough new fuel efficiency goals - new cars would have to average
42 miles per gallon (mpg), more than twice what most vehicles on America's roads manage.
In a laboratory in El Monte, half an hour's drive east of Los Angeles, scientists from the
state's Air Resources Board test vehicle emissions.

While I was there, scientists tested a Chevrolet Blazer, a fuel-hungry SUV.
In 20 minutes, it spewed out more than 4kg of carbon dioxide, which equates to around
17mpg fuel efficiency, far short of the levels California wants. They also tested a Smart car,
one of the small, lightweight run-arounds that are already popular in Europe and are
starting to be seen on America's roads.

Applying technology

In a shorter test, it emitted 800g of carbon dioxide, which equates to 36-38mpg.
This is higher than new federal standards approved by the Bush administration, but still
lower than what California wants.

In fact, the only car they tested that exceeded 42mpg was a specially-adapted Toyota Prius.
Its boot was taken over by a much larger battery, and it was able to charge via an external
plug-in power source. A typical Prius can achieve 50mpg. This one got as high as 70mpg.
But such a model is not available to buy. It was specially modified for scientists at the
testing centre.

So, their tests beg the question: Is it technologically feasible to achieve the fuel efficiency
standards California wants?
Supporters say, if not now, then it will be by the time the standards kick-in in 2016.
John Swanton, an air pollution specialist at the Air Resources Board, says: "Our standards
are based on using existing automotive technologies that are available today.

"Turbo chargers, 6-speed transmissions, advanced fuel injection; vehicles such as Lexus,
Acura, Audi, all have these types of technology in them. "What we are simply asking is that
these technologies are applied to a much broader range of vehicles so that all vehicles at
all price points have the advantage of technologies that right now are found typically on the
high-end vehicles."

Falling sales

Mr Swanton's organisation estimates the new technology will add about $1,000 (£698) to
the cost of a new car by 2016, money that drivers will recoup through lower fuel usage in
two to three years.

At a Hollywood Ford dealership, Leo Hagen, has seen his business dwindle. Where they
used to sell 150 new cars a month, now 15 would be good. Last December, he says, he
sold just four.

Yet he believes his company has green products
consumers will want. "I have nothing to be ashamed of
with what I'm selling today," he says.

"We have the best-built, safest and among the most fuel-
efficient vehicles. And in the very near future, when you
think of fuel efficiency, people will think of Ford."
He argues America's struggling automakers cannot afford
the investment needed to develop the technologies
required to meet California's desired fuel standards.       American states may in the
                                                               future set their own car
And if they do spend the money, he says, foreign                 emission standards
competitors could then benefit from the expertise and undercut American car prices.
The costs involved are disputed too. Automakers say forget $1,000; drivers could end up
paying up to $5,000 (£3,490) more for cleaner cars.

Such a premium, they argue, will take many more than three years to claw back. And that's
only if a driver doesn't change cars. The eventual figure may be somewhere between the
two. But it is a difficult decision for cash-strapped consumers.

It is estimated a fifth of America's greenhouse gases come from passenger vehicles. But in
a recession, the environment could be a tough sell.

http://news.bbc.co.uk/2/hi/americas/7868016.stm
                              ITGS – Areas of Impact

Business and employment - Transportation

IT Systems in Cars- EU car firms fail consumers'
green test

Executives at European car makers are tearing their hair out.
Their efforts to clean up their act and reduce the amount of
harmful emissions from the cars they produce seem to have
come to nought.
                                                                     In a nutshell [BMW]
Instead, "the European auto sector could be the first casualty   has prospered by selling
of increased climate change concerns", according to Lehman          powerful, sporting
Brothers analyst Christopher Will.                                 vehicles to Europe's
                                                                    affluent buyers
This is a paradox, Mr Will observes, since the European car
sector "is responsible for no more than 1.5% of global carbon John Lawson, Citigroup
dioxide (CO2) emission - half that of the US auto industry and
two thirds of Asia-Pacific".

"Of the three markets, unit CO2 emission per car sold is lowest - by some margin - in
Europe," Mr Will points out in a report, The Business of Climate Change. This is in part
because "the European industry has invested more than its peers in technology to increase
efficiency".

In other words: those who make cars in Europe, for the European markets, have done
more to make them cleaner than their counterparts in America or the Far East.

Green consumers

Such behaviour by Europe's car makers could be seen as a rational response to both
consumer demand and environmental regulation. The European Commission is expected
to order EU car manufacturers to make sure the cars they produce in the future emit much
less CO2.

And greater awareness among drivers here means more people are more likely to chose
cars that pollute less. "The European electorate is more 'green' than counterparts
elsewhere," according to Mr Will, though he adds that "depressingly, this appears not be
accompanied by any great hunger for the facts".

Consequently, the European car industry is set to suffer from falling sales and profits while
its American and Asian counterparts will probably escape relatively unscathed. Mr Will
expects the European backlash to materialise "within a two to three year investment
timescale".

Or rather, shares in European car makers could start sliding pretty much right away, a risk
that appears more pronounced for companies that specialise in making powerful cars.
"Most exposed are BMW, Porsche and DaimlerChrysler," according to Citigroup analyst
John Lawson, and of the three "it is impossible to ignore the fact that BMW is a carbon
outlier in Europe, comfortably the worst of the major groups, and one with the least
progress in the last eight years".

"Under most conditions we expect that a headwind to BMW from the re-focussing of the
consumer on fuel economy is likely," Mr Lawson says in a report CO2 - A New Auto
Investor Issue for 2007.

Law of averages

There is no value judgement behind the way analysts write about these issues.

They are not saying that BMW pollutes more than its rivals, but merely that the car maker's
model range consists mainly of powerful cars, thus the brand's "average fuel economy
improved by only 10% from 1997 to 2005, against a
17% improvement by Mercedes".

BMW's competitors also offer powerful cars, though
they are better prepared for an anticipated shift in
consumer tastes away from so-called "gas-guzzlers".

Take arch-rival Mercedes, which according to Mr
Lawson was "the worst of the major European
makers from a fuel economy vantage". Mercedes'
share price is nevertheless likely to suffer less of a
hit as drivers desert thirsty motors, Citigroup predicts.

Why?

Because it offers a greater range of "small and micro
cars" and because it has "the highest diesel content
in the upscale group". Interestingly, Mr Lawson does
not bundle Porsche into the same category as BMW.

Whereas BMW is expected to suffer as customers switch away from their thirsty cars,
Porsche drivers might well prove more loyal. "Any estimate of the order of magnitude of
carbon concern impacts on Porsche is extremely tentative," Mr Lawson says.

The logic seems to be that drivers of Porsche sports cars simply do not care.

And with regards to an anticipated backlash against sports utility vehicles in Europe,
Porsche has little to fear since "much of the recent strength of the Cayenne has been in
Asia, where we would see limited carbon sensitivity", according to Mr Lawson's report.

Able to deliver

In BMW's defence, there are hints it is waking up to smell the coffee. Its latest Mini model
emits 18% less carbon dioxide than its predecessor, thanks to what Mr Will describes as its
"industry-leading direct petrol injection engine" which he sees as "an indicator of the real
progress the industry is making".
And its small 1-series helps pull down the average emissions
from its BMW brand.

In fact, BMW's poor performance in terms of average
emissions is a result of its strategy to target the market for
luxury cars, which is typically dominated by big and powerful
vehicles.

In America, luxury car drivers have been charmed by BMW's
ability to deliver plenty of oomph, hence in that market it had
"worse fuel consumption in 2005... than in 1997", according to Fiat's line-up should bring
Citigroup.                                                       success going forward
In Europe, meanwhile, fuel economy improved during that same period - which makes it
clear that BMW is able to deliver clean technology when the customer - or regulation -
demands it.

"Despite its formidable technological prowess, and the outstanding specific fuel economy of
some of its engines, in a nutshell it has prospered by selling powerful, sporting vehicles to
Europe's affluent buyers," Mr Lawson points out.

Small winners

So in the near term, producers of smaller, more fuel efficient cars may well be the winners
in Europe's competitive car markets.

Take Fiat, which according to Mr Lawson "shows decisively how a small-car mix, and the
willingness to make a light environmental footprint, positions the company to benefit from
growing consumer and legislator concerns surrounding carbon emissions".

Renault is another car maker that is "already skewed towards smaller, lighter vehicles",
observes Mr Will. Mr Lawson talks about PSA Peugeot Citroen's "well positioned.... mix
and technology perspective".

While Volkswagen Group's broad model line-up insulates it from any "significant net gains
or losses" from anticipated changes. But it would be churlish to write off the likes of BMW
and Mercedes just yet.

If demand is changing the way the investment bankers predict, there is every chance that
they too will reposition themselves and produce more small cars to satisfy European
consumers and law makers. Only, do not expect Porsche to race down that same route
anytime soon.

http://news.bbc.co.uk/2/hi/business/6318099.stm

				
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