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October 27, 2007

Feature/Function Innovation: Inventing Left-Hand Columns

Innovation does not mean listening to what a user is asking for and building it. Heck, the way I see it, by the time a user starts asking for something, they are most likely asking everyone for the same thing.

Real innovation is what I refer to as "inventing left-hand columns." What I mean by this is that once users hear what is now possible, they not only realize they must have it … they now consider it a requirement. As a requirement, they place this newly discovered functionality in the left hand (vertical) rows of their spreadsheet. Across the top (horizontal) columns of the spreadsheet, they place the products/solutions being evaluated. Buyers use this matrix to evaluate market offerings … thus the more unique features, you offer the more the X’s appear in your in your column … and this is a good thing.

New left-hand columns cause users to start asking everyone else for such capabilities.

The competition is now forced into reaction, all the while the innovators are working on next generation left-hand columns!

RELATED POSTS:

Getting Big Things Started

October 13, 2007

Takin’ Vegas

When I moved to Las Vegas in the early nineties, I had no idea I would get wrapped up in the world of gaming surveillance and intelligence. In fact, I had no idea I would soon be immersed in a high stakes game of cops and robbers.

My first glimpse into this world was unanticipated. Having just arrived, I needed a couch for the house. After finding a used couch in the newspaper classifieds, I called a guy and drove to his house to inspect it. While making small talk I asked him what he did for a living – and he said he played blackjack for a living. Striking me as odd, I asked him if he was a card counter. He said "Nope, what I do is hard core, I’m talking about the difference between pot and heroin!" When I asked what technique he was using and he only raised his eyebrows and smirked. Then he proceeded to show me a drawer of disguises, which included glasses, fake mustaches and other such stuff.

About a year later I learned about a certain blackjack surveillance team that had identified 12 dealers in the state of Nevada that each had a slight aberration in the way they dealt blackjack. This aberration opened the door to very specific exploitation. Only a small handful of opportunists knew the identities and shifts of these dealers, and they were exploited at low volume in an effort to remain undetected. And thus, the identity of these 12 dealers was very tightly held, their specific identity still unknown at that time.

Was the hard core guy who sold me the couch involved in this particular scheme? I’ll never know. And as it turned out, I would come to know many schemes. What kind of schemes you ask? Well, try these on for size:

Some players mark cards with a material during the game that only they can see (e.g., via special contact lenses). Others bend cards ever so slightly enabling them they visually recognize them later. And there was one time when someone was able to secretly modify manufacturing die – the die used to print the playing cards. Imagine that, the deck comes out of the wrapper and out of the box and the cards are already marked!

When the new one hundred dollar bill came out, new bill validators were required in slot machines. Shortly thereafter, a team from the Pacific Rim region discovered that when a certain bill validator was used in a conjunction with a specific brand of slot machines, there was a problem. Actually, not a problem for them. A member of the team would feed a hundred dollar bill into a machine in certain states, and the machine would spit the hundred dollar bill out. At the same time it would register a hundred dollars in credit. In other words, the one hundred dollar bill lasts all day. In short, after about $1.2 million dollars walked out the door over a two week period, the casino woke up to this hardware vulnerability.

Once a customer conducted a two week surveillance operation against a specific roulette table – tracking the every outcome (which number the ball fell into). After some mathematical modeling in his hotel room, he determined not only that the wheel was not perfectly balanced but also where on the board the ball would have a tendency to fall. Placing bets favoring the known bias allowed this player to walk away with $5 million over the next few weeks. Oh, and in case you are wondering, there is no crime here … the casino simply closes the table for repairs and the player gets to walk with the money.

Card counters (now called "advantage players") are another thing all together. While card counting is not illegal as it requires only mental skill, if a casino determines that you have figured out how to change the odds of the game (albeit even in your head), they can ask you to leave. Fortunately, when card counters count and bet according to the count, they are very easy to detect. Unfortunately, the now infamous "MIT" card count team (as brought to life in the book "Bringing Down the House") developed and fully exploited a different technique. The first player, a professional card counter, performs the counting function while playing without any significant variation to his bet. When the deck has a favorable count the first player covertly signals a second player. The second player then joins the game making only large bets. Separating the counter from the bettor presented gaming organizations with a very serious detection challenge.

When a dealer can be co-opted into helping a player, really bad things happen. For example, when the dealer lets the player introduce a new deck on the game (i.e., the dealer willingly swaps the shuffled deck with the player’s perfectly sorted deck) this scam can cost a casino a quarter of a million dollars in just 15 minutes.

Then there was the programmer at the gaming manufacturer who inserted some malicious code into the video poker machine so that it would deliver royal flushes at his will.

And how about this for high tech: Some teams send players to the table wearing an infrared lighting source, a mini-camera, batteries with a heat shielding system and an antenna. A truck in the parking lot receives the broadcast video via a satellite dish-like antenna. The operator in the vehicle slows down the video to determine a card value or card sequence and then radios the player (via an ear piece) with very helpful insight e.g., the next card is a four!

Wild uh? Actually, these examples are just the tip of the iceberg. The ingenuity of the opportunist is most amazing.

So how do these groups operate and how do casinos detect and preempt this kind of activity? Good question. And the subject of some forthcoming posts … so stay tuned!

On An Unrelated Note: A few weeks ago I coincidentally ended up sitting next to a US Senator on a commercial coast-to-coast flight. While I read up on the FISA debate, he played a pong-like game on his phone almost the entire time. Hello?

RELATED POST:

IEEE Spectrum Story: Vegas 911

IEEE Paper: Threat and Fraud Intelligence – Las Vegas Style

October 05, 2007

Six Ticks till Midnight: One Plausible Journey from Here to a Total Surveillance Society

The ACLU has recently announced a Surveillance Society Clock which depicts, in their view, how close we are to a total surveillance society. At the time of this writing the clock sits at 11:54pm – just six minutes from midnight!

This clock got me thinking about what series of plausible events might lead up to total surveillance. Unfortunately, such an exercise turned out to be spooky because I quickly concluded that a total surveillance society is not only possible but a certainty. It will happen through a series of fairly quick small steps, it will be irreversible, and the real shocker is that I suspect consumers will find it "irresistible!"

The Six Ticks till Midnight

11:54pm – All cell phone are GPS enabled

Consumers love all of the location-based services. They’ll know that Starbucks is just ahead on the left. The kids just made it home. To avoid the traffic accident at I-15 and Central Parkway, try Pierre Avenue instead. As the prices drop for GPS cell phones, everyone wants one. Manufacturers decide there is no point in making cell phones that don’t have GPS.

Tick.

11:55pm – RFID chips everywhere

The cost of RFID becomes so cheap that objects of all sizes and shapes are embedded with these little transmitters, each announcing what they are … to nearby receivers. RFIDs find their way into your car, keys, sunglasses, prescription bottles and underwear. They also happen to be in everything else ranging from your dinner plates to your casino chips. While manufacturers need this to improve supply chains and lower costs, consumers applaud the new conveniences, e.g., faster check-out lines, simplified warranty service and merchandise returns, etc.

Tick.

11:56pm – Biometric user authentication is added to cell phones

Recognizing that cell phones contain so much information, manufacturers start integrating biometric user authentication (e.g., fingerprint). Consumers cannot seem to live without this feature because it prevents information loss if the phone is stolen and, better yet, now that phones can be tied to specific owners, consumers are able to use the cell phone to pay for goods and services without having to even take out their wallet. Predictably, there is less identity theft. Everyone is a winner! Responding to market demand, manufacturers add biometric user authentication to all cell phones.

Tick.

11:57pm – Cell phones become RFID readers

In a natural convergence of two very useful technologies, cell phones are designed to also be RFID readers. Cell phones can now probe nearby objects recording "what" things (e.g., your Dolce & Gabbana sun glasses), "when" things (e.g., 7:35pm last night) and "where" things (e.g., at your friend Bill’s house). Consumers absolutely love this feature because it makes it so easy to manage all their stuff, e.g., where were my sunglasses last seen. So many nifty services are now possible that user demand for RFID-enabled cell phones goes through the roof. Consumers can’t seem to live without it.

Tick.

11:58pm – Cash is replaced by cell phone debit

Why go to the ATM or manage all those plastic cards when you can move cash via your cell phone? No more losing money. No more stolen credit cards. Consumers also appreciate the improved transaction speeds, and retailers like the fact that many cashier errors are eliminated. The cashless society emerges because it is preferred.

Tick.

11:59pm – All persons carry cell phones at all times

By this point in time, most everybody will be hard pressed to ever separate themselves from their cell phone. In fact, consumers will be incentivized to keep it with them at all times. For example, insurance companies may offer lower rates for those consumers who agree to always carry their cell phone as the GPS will help determine driving habits. Furthermore, since cell phones contain important life saving data like emergency contact info, current medical prescriptions and blood type, the value of marrying a cell phone to every person become obvious. Between personal benefit, corporate benefit, state and federal services, health and safety issues, immigration and national security it becomes a no brainer to mandate legislatively that every person over the age of six carry their cell phone. Instead of having to have a social security number or carry some form of ID, your cell phone will do.

Tick.

12:00am – Welcome to the Total Surveillance Society

Total? How total? I guess one might argue that my made-up sequence of events results in a lot of surveillance but not total surveillance. Maybe total surveillance would require that every bathroom have cameras covering every angle and people having to wear skull caps with mind reading instrumentation (coming?). My argument simply being: there comes a degree of surveillance under which everything that matters will be digitally recorded – one’s location, communications, transactions, associations to others, and one’s proximity to things.

Oh yeah, one more thing, no more need for facial recognition (a very hard problem many years off anyway). In this coming world, all that useless video being collected can now be efficiently recalled because GPS data provides the missing link … who was where when?

While the exact technologies or the exact sequence of events may unfold quite differently, nonetheless such a future is coming. And this future is being created by us consumers, not the government!

Consumers are funding the surveillance economy, with the blistering pace of this extraordinary surveillance being driven by ordinary people who relish all the technological advances and willing to entirely trade in their information and privacy as they optimize their life.

Now what?

Well, if this is the future, then I think here are some key considerations:

1. Under what condition and authority can an actor (i.e., a person, an organization, a government) look at what data, and when?

2. How will we know when an actor is breaking the rules?

3. Will oversight and accountability be easier in a total surveillance society?

4. How do we make sure that access to extraordinary knowledge is not limited to a few? And, how do we ensure that data about us is knowable by us?

5. For the few people that resist being plugging into the matrix – will they be less employable, less trustworthy, or suspected of hiding criminal activity?

With all this in mind, it seems ever more important that the technology community better engage the privacy community – there simply is not enough conversation going on between these two camps – and time is of the essence. [See: Responsible Innovation: Staying Engaged with the Privacy Community]

Why are more people not working on privacy-preserving technology e.g., anonymization, immutable audit, selective revelation, data masking, data expiration and destruction services, etc. – and more importantly why are not more organizations starting to take advantage of these emerging privacy-enhancing alternatives?

Closing Thought: Will virtual reality be the only remaining place one can enjoy anonymity and freedom of action?

RELATED POSTS:

Ubiquitous Sensors? You Have Seen Nothing Yet

Responsible Innovation: Designing for Human Rights

Responsible Innovation: Some Things are Best Left Un-invented

Responsible Innovation: Staying Engaged with the Privacy Community