The Target Security Breach - A Big Payout
Target's recent security breach has been labeled the "nightmare before christmas" but from another standpoint, that may not be the case. I would think most shopping has been done by now. Plus, Target spends a lot of money on advertising and PR - this could be played very well - and has enjoyed a great reputation amongst consumers.
Perhaps the most interesting tidbit about this recent theft is the theft itself. Stolen credit card information sells for around $.25 a unit (on the black market). You can do the math and see how it is very much a numbers game. So much a numbers game that you need hundreds of thousands of names. Credit card companies (the largest is JP Morgan) have massive fraud units that cut the percentages of thieves successfully running transactions on these stolen units by a hefty amount.
"The chain said customers who made purchases by swiping their cards at terminals in its U.S. stores between Nov. 27 and Dec. 15 may have had their accounts exposed. The stolen data includes customer names, credit and debit card numbers, card expiration dates and the three-digit security codes located on the backs of cards." Link
When I was on Silk Road a while back I noticed an ATM cover unit for sale that could lift debit cards and pin numbers. I was curious about it, and then started thinking about how often crime is perceived to pay, but many times it doesn't even remotely pay (think modern bank robberies).
Of course, white collar crime pays. And on that, let's look to the recent matters of SAC Capital Advisors and how one of Cohen's main men (Michael Steinberg) was found guilty of insider trading and then fainted in court.
Steinberg’s conviction is also expected to aid the SEC in its attempt to ban Cohen from the industry for life...
While modern technology enables theft in many different ways, it is also detouring theft in more ways then one.
Why I held onto my feathercoins
It was tough, but I believe in the movement and could not bring myself to dump my holdings, though I received a tremendous rate of return on my original investment. Feathercoin hit a high of $1.75 recently before dropping to $0.60, where it is still hovering.
But, I believe in the community and personally think feathercoin will be worth $10 - $30 a coin after the markets become more established.
And personally, I bought these from profits made using arbitrage tactics and trading practices, and that never happens in todays market.
Some of the crypto's out there are not worthy of any attention - others like Litecoin, Bitcoin and Feathercoin are fundamentally stable - but all investments take research and knowledge and understanding. This is not a penny stock game.
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