Alberto Gonzales and three other men were indicted on Monday for stealing over 130 million credit card numbers from several Fortune 500 companies. So how did he do it? Simple. Gonzalez and his team was able to exploit end users that didn’t know how poor their security was by launching “hacking platforms” on each of their point-of-sale systems, along with the classic SQL-injection attacks. He then used malware to extract credit and debit card numbers.

The companies hit hardest were ones who had taken their security systems for granted. Makes you think twice about your network security, doesn’t it? Just think of all the money and classified information at stake…

To read the full story of this harrowing identity theft, click here.

• When you send out e-mail campaigns (or any marketing campaign, I suppose), include a photo. It adds a personal touch to an otherwise faceless company and generates more customer responses.
• There’s already a conversation going on that relates to your product or service. Are you a part of that conversation? Use Twitter search to find out what people are already talking about. When you get comfortable, jump in with your professional opinions. Become a part of the conversation.
• Social media is great, but it doesn’t hurt to use a physical presence as your base. Host an event, then integrate social media tools like Twitter. Even a small gathering of customers can expand to 100 times more people when you provide social media incentives.
• Twitter contests are a great way to involve customers (crowdsourcing!!) and expand your base. Example: this Twitter contest by Zappos.

Cool tools you can use:

• Twitter search – GREAT way to discover what people are interested in. Provides better results using real-time data, not some old link that’s been lying around for weeks.
• Tinker – stay on top of trends in Twitter and across the web. You can also use Tinker to create your own channels and promote your business.
• SM2 from Techrigy – this “freemium” service provides social media monitoring and analysis specifically for PR and marketing professionals.

I haven’t used these tools yet, but I plan to… if anyone has, or has any other tips on social media marketing, please share!!

In October of 2006, Netflix announced that it would award $1 million to the contestant who could improve its movie recommendations by at least 10 percent. After receiving nearly 42,000 entries, the contest is on the verge of announcing its winner. This more accurate recommendation system will help the company deliver more on-demand movies and television shows, giving it a crucial advantage over the competition.

The genius behind this contest is crowdsourcing, or asking others for help (often for no compensation) via the Internet. Your small business can use this tactic to expand your talent pool while gaining deeper insight into what customers want.
Here are a few ways you can outsource innovation:

• Blogs – if your company has a blog, you can use it to ask readers for input.
  • Example: Southwest employees share their stories and communicate directly with customers through the “Nuts About Southwest” blog.
• LinkedIn – you can use their “Answers” section on this site to ask users questions.
  • Example: Chad Moutray uses this feature on a regular basis, and got over a thousand answers when he asked “What measures should small businesses take to weather this economic downturn?” (yes, this is an unusually high number).
• Online Forums – reach out to your community by participating in forum discussions and soliciting innovative new ideas.
  • Example: Cambrian House has over 50,000 members in its forums and more than 7,000 ideas from the crowd.
• Twitter – it started as a service that asks one simple question: what are you doing? Now, its popularity can help you drive your small business by engaging viewers with your simple questions.
  • Example: Chris Brogan asked Twitter for ideas on a social media project for Oreo. In a matter of minutes, people responded with answers.
• Facebook – you can create a page, share a link, add an application and start a conversation with other Facebook users.
  • Example: Target’s “Bullseye Gives” campaign is going to give $3 million per week for next few weeks to charities chosen by their fans on Facebook. To learn more about it, click here

Clearly, the Internet is a powerful marketing vehicle. How are you using it to drive your business?

IBM researcher Craig Gentry has figured out a system that analyzes encrypted data without sacrificing confidentiality.

IBM said the system could be used to identify spam in encrypted e-mail, protect electronic medical records, and let users look at information from search engines without feeling like their privacy was threatened.

Charles Lickel, vice president of IBM Software Research, said that this method “is a bit like enabling a layperson to perform flawless neurosurgery while blindfolded, without later remembering the episode.” He also added that “We believe this breakthrough will enable businesses to make more informed decisions, based on studied analysis, without compromising privacy.”