Passport Chip Sets Security Concerns Wednesday, Aug 9 2006 

By Stacy A. Anderson, Wall Street Journal

August 9, 2006

http://online.wsj.com/article/SB115506010992230068-search.html?KEYWORDS=stacy+anderson+&COLLECTION=wsjie/6month

A new kind of U.S. passport with an embedded chip containing personal data will be issued starting Monday, amid some concerns about privacy and its vulnerability to hacking.

The State Department says it has chosen the chip technology in the so-called e-passports as part of an effort to better secure U.S. borders by making passports harder to forge. Congress also passed an act requiring countries in the U.S. visa-waiver program to issue passports with such chips by October.

The technology is designed to make it easier for customs officers to verify travelers’ identities. Travelers will simply present their e-passports to customs officials the old-fashioned way. Officials will open the passport and scan the characters on the bottom of the personal-data page. The border official then verifies the personal information from the chip that is encrypted and transferred to the screen of a special e-passport reader machine.

Privacy advocates charge that the technology hasn’t been sufficiently tested, and some experts have recently found ways to pull data off the radio-frequency-identification, or RFID, chips in e-passports in other countries. But other technology-security experts say such fears are overstated, saying that the perception of e-passports as being unsafe comes from confusing RFID tags with contactless technology, such as that used on some ATM and credit cards. The retail industry uses RFID to track merchandise, crates and pallets. Contactless technology can calculate and store new information that is often encrypted for security purposes.

E-passports will first be issued at the Colorado Passport Agency next week and are scheduled to be rolled out to other U.S. passport agencies in the following months. Existing passport holders may keep their travel documents until the expiration date. All new passports will contain the chip, according to the State Department, and the e-passport will eventually become the national standard.

Although it looks similar to earlier passports, retaining the traditional navy cover with an eagle etched in gold, the e-passport is slightly thicker and displays the international e-passport icon: two bars with a circle in the middle. Inside the back cover is an RFID tag loaded with a traveler’s name, nationality, sex, date and place of birth, and a digitized photograph. The e-passport also has a digital signature, an electronic “seal” within the chip that proves the e-passport is issued by the government.

The Department of Homeland Security has run trials at various airports, while State Department personnel have also tested the new passport. The State Department says it has addressed key privacy concerns by adding metal sheets to the document’s cover. These metal fibers make the chip inactive and data unreadable when the passport is closed, the State Department says. The chip can only be read by a scanner within a three-to-four-inch distance, says Joerg Borchert of Infineon Technologies North America Corp., which supplies the State Department with chips.

For added security, the chip will also have an electronic-access-code system, known as the Basic Access Control, which will be automatically read by U.S. border officials’ scanners. The system generates a key which opens the chip and makes reading personal information possible. If the chip in the electronic passport were to fail, border officials would revert to relying solely on the printed personal-data page within the passport.

Travel Watch: No-Surprise Hotel Bill Tuesday, Aug 8 2006 

 

The Westin Resort St. John

By Stacy A. Anderson, Wall Street Journal

August 8, 2006

http://online.wsj.com/article/SB115499488695829283-search.html?KEYWORDS=stacy+anderson&COLLECTION=wsjie/6month

You can expect no unexpected charges on your bills when staying at hotels and lodges run by LXR Luxury Resorts, thanks to a $2.3 million settlement with the state of Florida.

The settlement ends the practice of imposing automatic — and undisclosed — surcharges on guest bills for such things as resort, energy and parking fees. The state began investigating in 2001 after discovering surcharges on Wyndham Hotel travel vouchers submitted by state employees. Eventually 16 Florida properties, in Miami, Orlando, Tampa and Coconut Grove, were accused of adding unexpected surcharges.

LXR, a division of Blackstone Group, inherited the issue when it bought Wyndham International Inc. last August. (It later sold the brand to Cendant Corp. but retained ownership of some of the hotels.)

According to the settlement, which requires LXR to change its practices nationwide, all charges must be stated at the time of reservation. LXR will divide $560,000 among those wrongly charged, after verifying guests that stayed in the hotels. Taxpayers will also be reimbursed $1.8 million for the costs of the five-year investigation and four-year court proceedings. Any remaining compensation will be given to the Florida Hurricane Relief Fund, whose funds are used to help residents meet needs that are unmet by insurance, government and immediate relief assistance.

This follows similar agreements with Starwood Hotels & Resorts Worldwide Inc. and Marriott International Inc. last year.

Creative Fitness

Feel like you’re stuck on a treadmill? So do many hotel guests, but more hotels are offering creative workout programs to address a growing interest in personal fitness.

Today, Gramercy Park Hotel in New York will open its Aerospace High Performance Center, which offers a high-tech gym with LCD screens. The fitness center will soon have the Aeropod, a private workout room with a life-size virtual trainer projected on the screen as guests complete 30- to 60-minute routines. For $100 an hour, guests can reserve a workout with a personal trainer. A workout with Michael Olajide Jr., co-founder of Aerospace, costs $200 an hour. Appointment times are available from 6 a.m. to 9 p.m.

The Loews Hotel in Annapolis, Md., is offering guests a U.S. Naval Academy training experience free. The program’s hourlong run begins at 6:45 a.m. and requires that guests bring IDs, because the trek covers secured sites.

The Westin St. John in the U.S. Virgin Islands offers eight programs ranging from Water Tai Chi to Step Aerobics, free of charge.

New Routes

Starting Oct. 28, UAL Corp.’s United Airlines will begin nonstop service between Washington-Dulles and Tokyo…On Dec. 22, Frontier Airlines will launch Monday, Wednesday, Friday and Saturday nonstop service from Denver to Guadalajara, Mexico.

BRIEFS: Today, Marriott will begin testing mobile wireless check-in service. Guest with Microsoft Windows Mobile can test the free service at Arrive.Marriott.com… Portland Walking Tours has started offering “Portland Underground,” a daily 2 p.m. tour exploring the Oregon city’s Old Town and Chinatown areas … United Airlines will upgrade menus with Polynesian food and Mai Tai cocktails for flights to Hawaii and flights over five hours… Tripmates launched a free travel-network Web site, allowing members to post Web logs, pictures and reviews of their vacations.

Some Outsourcing Might Ease Amid Errors, Disappointments Sunday, Jul 30 2006 

 

By Stacy A. Anderson, Wall Street Journal

July 11, 2006

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Companies may be tapping the brakes in the race to outsource information-technology.

A survey by DiamondCluster International Inc., a Chicago-based management-consulting firm, found that 64% of the buyers of offshore outsourcing services and 50% of buyers of onshore services planned to increase their use of such services in the next 12 months, a much lower figure than in previous years. Last year, 74% of the survey respondents said they planned to increase their outsourcing overall.

Buyers of outsourcing services also showed a greater willingness to terminate outsourcing contracts. About 8% of the buyers of offshore services and 9% of the onshore buyers said in the latest survey they planned to decrease their use of outsourcing in 2006. In last year’s survey, 5% of offshore-service users and 7% of onshore-service users said they were poised to terminate contracts. In 2004, none of the survey respondents had such plans. DiamondCluster has been conducting the survey since 2002.

This waning enthusiasm partly reflects mistakes companies have made or unrealistic expectations they have had in earlier outsourcing efforts, says Tom Weakland, managing partner of global sourcing practice at DiamondCluster. Others feel they have outsourced as much as they could.

Some companies feel expected savings from outsourcing never materialized. “They’re not getting the 40%, 50%, 60% cost reductions they thought they would get,” Mr. Weakland says.

Slower growth in outsourcing raises the likelihood of industry consolidation. Mr. Weakland predicts a growing number of mergers and acquisitions among the top outsourcing firms. There also will be fewer successful new entrants, he predicts. Onshore outsourcing firms in the U.S. may further consolidate their resources overseas to take advantage of lower costs, he says.

India continued to be the leading home of outsourcers, with business from 75% of the survey respondents. But the number of companies saying they expect to outsource to China is growing.

Also, U.S.-based companies are increasingly looking into Canada for outsourcing needs. While the cost isn’t low, buyers are comfortable with “near-shoring” because of the proximity and common language, Mr. Weakland says.

DiamondCluster interviewed 153 buyers of outsourcing services in the U.S. and United Kingdom and 188 providers in about 10 countries. The survey focused on information technology, because it is one of the most popular services that is outsourced. It includes such things as help desks and computer and database maintenance.