Egghead.com Guilty as Charged Says Tripeze.com CEO

[Calgary, ALBERTA] According to Paul Verhoeff, the key to escaping credit card-related security breaches online is simply for e-commerce Web sites to avoid storing credit card numbers.

The chief executive officer of Alberta's Tripeze.com, an online travel-booking firm, offered this advice in the wake of e-tailer Egghead.com's security disaster. Just three days before Christmas, the California-based dealer of electronics products for small to mid-sized businesses announced that a hacker had broken into its system, potentially stealing information from approximately 3.6 million credits cards belonging to Egghead.com customers. The hacker could have gained access to this sensitive financial info because Egghead allows its customers to store their credit card numbers on its site in order to alleviate the inconvenience of re-typing credit card information each time they wish to make a purchase.

Egghead has enlisted the services of Internet security consultants to investigate the breach.

These fears were bolstered earlier this month when it was discovered that a 20 year-old man in Moncton, NB, was operating a Web site that fraudulently advertised the sale of almost impossible-to-acquire Sony Playstation 2 units. Before authorities were able to shut the site down, Scott Frederick Byers had conned over $400,000 (CDN) out of 2,500 unwitting holiday shoppers.

As fast as hackers are cracking security codes, however, credit card companies and banks are endeavoring to make online shopping safer. The Canadian Imperial Bank of Commerce (CIBC) recently released one-use Visa credit cards specifically designed for making Internet purchases, mimicking American Express' one-use card that was rolled out in the U.S. earlier this season. Both companies maintain that consumer response to the initiative has been positive.

Still, Verhoeff emphasizes the need for e-commerce Web sites to forsake convenience in some areas in the name of higher security. "Having to type in their credit card numbers each time they buy something online is a minor inconvenience for consumers, but one that is well worth it to guard against hackers," he said.