This week another store, Home Depot, timidly assured its customers that a major security breach of its systems had occurred but everything was ok. Last week, I was contacted by PNC that someone had charged $125.00 at a gas station in Colorado on my account. What was interesting was PNC knew the charge was fraudulent and related to last Nov's Target breach. No PIN or ID was needed to transact. Basically, 10 months after the theft, millions of accounts are still being accessed.
The truth is the internet wasn't built for commerce. Far from Colorado gas charges, the banking system and the exchanges are under constant and systemic sophisticated attack. A fiat system sits on a foundation of faith. Behind the scenes, balances are reduced by hackers and magically replaced by insiders. The biggest offender is the Fed. Caught out be "debt worriers" in the crisis, Bernanke was forced to admit, "All we do is electronically mark up the balances." The Fed's best "tightening tool" is to hand more money to its constituents?
One day, impossible to say when, a breach will occur big enough to shake the US consumption machine. The origin will most likely trail back to quasi-governmental based activity. There's a Black Cygnet out there and it will grow up to be a Swan.