metaViper

Lately there’s been buzz on the inter-web about a new phone service option, Ooma. Their idea is to provide phone calls utilizing a peer to peer (P2P) network. That means everyone on the Ooma platform will end up sharing some bandwidth to facilitate calls.

The business model is different in that new customers will pay about $400 up front for the device and thereafter will be able to make calls for life within the United States without any additional charge. International rates are promised to be pennies per minute.

I have a couple of thoughts on this approach. First, I wonder what happens when the company distributes enough of its hardware and sales begin to slow. They’ll be making some money from international calls but will it be enough to sustain continued growth and innovation? Anytime there’s a steep up-front fee I’m a little hesitant, especially after my experience as a refugee from VoIP provider Sunrocket’s bankruptcy.

The difference here may be that the hardware will be independent and won’t require maintenance on Ooma’s part, which is the concept behind most modern P2P applications.

Another concern is with the competitive landscape. A product like this challenges the fundamental business model of traditional telephone companies and I would expect a strong response first with some sort of patent lawsuit, and later with innovation.

If you’d like a first hand account of what setting up and using the service is like check out Stephen Shankland’s post, My so-so Ooma setup experience on CNET.

So far in this five part series we’ve talked about many ways to prevent identity theft through simple techniques and what to do if you become a victim. Now let’s focus on some specific examples of how identity thieves get the information they need to make a move and some of their motives.

Peer-to-Peer networks (P2P) such as Limewire, Kazaa, and Morpheus can quickly connect you to volumes of content. But remember, by default those programs are opening up your computer for others to search also! That means any confidential document stored on your hard drive is at risk. If you’re going to use P2P services, be sure to configure them to share only a specific directory that contains non-confidential documents. Searching keywords like “passwords” or “credit cards” brings up a wealth of personal documents in Kazaa. Here is a video and additional info on the identity risks associated with using P2P networks.

Even though they may not be using P2P networks to solve their dilemma, illegal immigrants in the United States need a means of finding work. Since they have no legal recourse, demand for stolen identities among this segment of the population is high — a fertile market for identity thieves.

In order to meet the demand for identities “for sale”, thieves have to become more efficient. That has resulted in a myriad of phishing scams, which is the act of convincing someone to willingly hand over personal information through deception. On the Internet, if a web site seems to be asking for too much information, enter the destination web address yourself instead of following a link. It’s also good to purge your system of spyware.

If phishing doesn’t work, some thieves will resort to direct phone calls, as they did with the recent “$299″ Medicare scams against seniors. Identity thieves phoned seniors and offered to help them navigate through Medicare Part D for a fee. Seniors who accepted the offer handed over their bank account information which the scammer promptly billed. A sad but true story, and seniors looking for help make easy targets for identity thieves.

The best way to approach this reality is to think about where you’re putting personal information and why. If you can’t answer that question in a reasonable way, don’t share the info.

It is metaViper’s hope this series has helped educate your approach toward identity theft!