[June 14, 2011] AVG CEO Discusses Tax Credit on Internet Security Tools Tweet Jun 15, 2011 (Close-Up Media via COMTEX) -- AVG Technologies CEO JR Smith called the Maine US District Court's ruling that Ocean Bank is not liable for $300,000 stolen by hackers from Patco Construction Company's online banking profile, a "landmark decision" to which consumers and small businesses pay close attention. The Company said the judge asserted it was Patco's responsibility to protect account credentials - namely via use of internet security and identity protection tools. Smith believes the decision represents a critical shift in liability of the industry's willingness to absorb the skyrocketing costs of identity theft and fraud via the World Wide Web. With more than 110 million customers around the globe, AVG is one of the leading providers of internet and mobile security software. The company has been on the forefront of protecting consumers and small businesses from organized crime on the internet for more than a decade. "AVG has long predicted that banks and retailers would reach a tipping point where they could no longer fully cover losses that are incurred as a result of small businesses and consumers not taking responsibility for securing their personal information," said Smith. "More than two years ago AVG began asking governments to consider tax incentives for consumers and small businesses as a way of helping them understand their role in securing the World Wide Web. We believe the money ultimately saved by thwarting online attacks could not only offset, but supersede the revenues lost in a tax incentive." According to a release, Smith would not be surprised if the Maine decision is soon joined by others that take the side of the retailer and banks who have long covered for their customers' inattention to security threats. According to Smith, a recent US study carried out by AVG Technologies and the Ponemon Institute revealed very disconcerting trends relating to consumer practices in the mobile space - trends that banks, governments and retailers will probably no longer ignore. -66 percent of respondents store significant data on their phones -29 percent store debit and credit card information -38 percent use their phone to make payments -89 percent of respondents were unaware that smartphone applications can transmit confidential payment information such as credit card details without the user's knowledge or consent -91 percent of respondents were unaware that financial applications for smartphones can be infected with malware designed to steal credit card numbers and online banking credentials, while nearly a third (29 percent) report already storing credit and debit card information on their devices and 35 percent report storing "confidential" work-related documents as well -Less than half of consumers use keypad locks or passwords to secure their smartphones and only 10 percent of consumers say they turn off Bluetooth "discoverable" status on their smartphone when not in use -90 percent do NOT turn off Bluetooth discoverability -Less than 50 percent use key pad locks and 71 percent have never even considered installing AV software Furthermore, AVG noted that its recent SMB landscape report found that one in seven small businesses have no security software (rising to one in four for single-employee businesses in the US) - and less than half are aware of the real and tangible threats posed by Internet based attacks. AVG also found that 77 percent of firms recognise that a security breach could have a significant impact on their business and 83 percent feel that having the right level of protection is critical to their business. Yet less than half have a clear security policy in place. "Banks and retailers are going to expect small businesses and consumers to meet them halfway when it comes to security," said Smith. "AVG believes that tax incentives for small businesses and consumers are important steps in the process of helping them understand they are a critical link in the security chain. Because consumers and small businesses really do not have a choice when it comes to doing business in the digital world, and as business and government are completely dependent on the worldwide web to conduct commerce, it is important they have tax incentives to make the right security investments." For people who wish to show their support for the government to provide tax incentives for consumers who utilize security software and tools to protect their online activities, AVG is initiating a viral effort on Twitter where consumers can get involved. More information: www.avg.com ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]