Archive for December, 2007
The Importance of Password Security
A small business owner contacted me recently in a panic. A “hacker” had compromised his web hosting account and used it for “phishing.” His website had been immediately shut down and years of hard work had been lost. Phishing is such a risk to identity theft that if such activity is identified on any of your shared or even dedicated web hosting accounts, most companies will immediately delete your data without notice. This is an ugly, dangerous business and you’d better take it seriously.
How Hackers do it – Phishing is the use of fake websites which hackers establish to try to get you to reveal your username and password. Once they have your info, they attempt to log into your accounts and steal your personal information.
Hackers won’t host this information on their own web servers or websites it would be too easy for them to get caught. Instead, they attempt to discover the username and password of YOUR web hosting accounts. Once they access the information, they set up shop inside of your web hosting, where they establish replicas of popular websites such as Bank of America, Paypal, Washington Mutual, Yahoo!, etc. Then they’ll send out e-mail like the one below.
“Dear PayPal User, Recently we have made new updates to our services. We would like you to log in and see all the new features that are available at http://www.paypal.com.”
The key is, when you click the link for “paypal.com” it will go to something like: “http://www.paypal.com.securityonlinelogin.com” or it will have numbers in the url such as: “http://66.512.412.1/paypal.com/index.htm.”
This website of course is NOT PayPal. Hackers have built this to bilk you.
Protect Yourself! – As a consumer, make sure that ANYWHERE you enter a username or password, that it is positively the website you intend to visit. Don’t be fooled by looks! Remember these keys:
a) Examine the URL at the top of the page. Whatever appears right before the .com/ should be the name of the website you intend to visit.
b) Enable security features on all websites you frequently visit. For example, Bank of America requires you to choose a personal image (Site Key) where you enter your passkey. A Bank of America login page without a personal Site Key is not official. Many companies also allow you to choose an image for authentication.
c) Avoid clicking links within e-mail. If you get a security message from PayPal, instead of clicking the link inside the message, type www.paypal.com into your browser and proceed from there.
d) Run virus protection and a firewall on any computer you use to access the Internet. “Key stroke logging” programs infect your computer when you merely visit unscrupulous websites.
e) Make sure you are in a secure environment. The URL in the browser should have https: in front. Internet Explorer shows a Yellow Lock at the bottom of the screen for IE version 6. In IE version 7, the lock is next to the URL. In Firefox, the lock is at the bottom of the browser page.
f) Avoid P2P software such as music sharing programs.
Beware the “Bots” – Merchants should remember that “automated bots” or scripts are continuously trying to figure out the passwords to your website. Almost every website has the ability for FTP (File Transfer Protocol) to be used. If hackers learn your website’s FTP, they can use your web hosting account info for unscrupulous activity. To prevent this:
a) Change passwords for anything that requires frequent password use.
b) Change passwords whenever people leave your company.
c) Choose STRONG passwords. Use at least 8 characters and include capital letters and numbers (e.g. tY7uXnkZ). Avoid repetitive numbers, letters, or personal information (e.g. phone number or birthday).
d) Check the list of authorized FTP users to your website frequently, and remove access to users which no longer qualify.
e) Run firewall and virus protection on EVERY computer in your organization, even those without Internet access (many viruses are spread on removable media devices such as USB drives).
f) Avoid P2P software such as music sharing programs.
g) Scan your network frequently.
The stakes are high! For more information, visit http://en.wikipedia.org/wiki/Phishing
Solid Cactus, Inc. has designed or redesigned more than 3,000 e-commerce sites. Solid Cactus is an Inc. 500 company and was named one of the "Best Places to Work in Pennsylvania" in 2006 and 2007.
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A Fond Farewell!
I can’t believe it’s almost over! As they say in television, “there’s another one in the can.”
In just a few short days 2007 will just be a memory. Still, here we are getting ready for the biggest shopping season of the year and I feel as if I’m still recovering from the 4th of July! I know the days got shorter, but do they suddenly have fewer hours as well?
I hope that by the time you read this, you will already be proclaiming what a great holiday season your e-commerce store had. I ignore the talking heads who say “consumer spending is down.” If you have a good business you’re doing well. Everyone is telling me their sales are up and by the looks of parking lots at the local malls, lots of traditional shoppers are out there spending money. Let me be the first to offer hearty congratulations for a holiday season well done (oh, yeah, don’t forget to thank your customers for shopping at your cyber-shop!).
2007 has been a great year for me. In May we rolled out this wonderful little monthly magazine called eBiz Insider. This was an ambitious undertaking and I am delighted to hear that so many of you have already put eBiz on your “must read” list. Month after month our subscriber base has increased and we’ve added several pages since the first issue. We’ve reached out to the most knowledgeable people we know in e-commerce. We have asked them to put pen to paper each month to bring you what I hope you agree is a fantastic resource for running your e-business.
Please help my staff and me to continue to make eBiz Insider YOUR magazine and tailor content to YOUR needs. Please take a moment to fill out our reader survey by clicking here. Your comments, suggestions and candid responses will ensure that we continue to deliver a magazine that you look forward to receiving each month. This survey is extremely important to the success of eBiz Insider so please take a moment to respond. We want to give you what you want in this magazine. So be sure to tell us!
Finally, I would be remiss if I didn’t take this opportunity to thank the entire eBiz Insider staff for the excellent job they all have done. This was our first shot at a magazine and if I may say so, so far I think we’ve hit a home run. Thanks to you for reading eBiz and for supporting our advertisers who make this whole thing possible.
Happy New Year!
Solid Cactus, Inc. has designed or redesigned more than 3,000 e-commerce sites. Solid Cactus is an Inc. 500 company and was named one of the "Best Places to Work in Pennsylvania" in 2006 and 2007.
All posts by ebiz Insider Staff | E-Mail the author
How One Successful Cyber-business Stays Vital
A Knack for Niches
Joe Tantillo of GreekGear.com is a veteran in e-commerce; he opened his first site in 1999. GreekGear.com provides “personalized products for people passionate about their pursuits.” There are more than 4,000 different personalized items, from key rings to mouse pads, baseball caps, custom flip-flops, trailer hitch covers, coffee mugs and formal dinner/dance fluted champagne glasses. If it can identify a fraternity or sorority, GreekGear.com has it.
After GreekGear.com, Tantillo launched GuidoGear.com, MyChristianGear.com and several other sites devoted to niche markets. His 12th site just came online named GearforGoldens.com (a site for retrievers, not retirees…). “I believe in regular redesigns, constant tweaking and expanding the number of niche sites for our customers,” Joe says. “I’m still wrestling with how to increase our real world presence. Our business model presents certain limitations.”
Learning from Traditional Businesses
The “real world” is very real to Joe Tantillo and he has applied the lessons there to his web sites. “My wife’s family has a brick-and-mortar store,” says Joe. “They update every two or three years. More people are shopping online, and they expect us to change, just like conventional stores.” GreekGear.com and the other “Gears” Joe launched have changed constantly, in spite of their success. GreekGear.com just underwent its third major redesign.
“Traffic is good on GreekGear.com,” says Joe. “Our average sales are up per purchase which suggests we’re getting a better brand of customer. Still, we focused our latest efforts with our designers on making a better site experience for our customers and better shopping cart conversions for us.”
The Better Mousetrap
GreekGear.com redesigned its navigation. Formerly the site had numerous categories with endless merchandise available. Now there is a section head with 5 subsections. “Think of it as a highway,” says Joe. “Before, you got to the fork in the road and there were a hundred options. Now you have five general highways and then smaller roads continually branching off based on your interest. It’s less confusing for shoppers.”
They made their shipping policy information more clear to customers. GreekGear.com also instituted a flat rate of $5 for flat ground shipping. “We play with pricing and shipping a lot,” says Tantillo. “Some of these things are risky if you’re playing with tight margins. It’s why we constantly tweak.”
Most of all, GreekGear.com has done countless little things. They’ve put their phone number in more places on the site. They’ve begun publishing customer testimonials. They redesigned the shopping cart to make the “place order” button larger. They’ve included guarantees to improve customer satisfaction. The net result? In 3 months GreekGear.com increased its conversion rate by 70%. “I’m using GreekGear.com as the test site for improvements my designers make on the other sites,” says Joe.
Cyberspace and Real Space
Joe Tantillo believes that just as all brick-and-mortar businesses should have a web presence, Internet companies should, when possible, have a footprint in the real world. GreekGear.com has, predictably, reached out to college bookstores and Italian festivals with success. “We’re branding for Barnes and Noble’s 600 stores and Follett’s 1000 stores,” says Joe. “We do it all and send them a commission. It’s a great way to grow your business.” He says that sometimes re-branding works for larger stores. The key is to strike the right balance between margins and volume.
Tantillo would like his in-laws to have a larger presence online. He believes it is crucial to be able to reach out to the wider market. Still, he understands the reluctance of people to step outside what they know. “I’m thinking of kiosks in bookstores as a good way to get the word out,” says Joe. Each opportunity comes with its challenges. With so many bookstores that could be a huge undertaking. Then there are staffing issues and slow traffic times. “And tell me, how do you display 4,000 items in a kiosk? I’m thinking of wholesaling the products and let the retailers get the word out for us.”
Joe Tantillo is an Internet vet who never stops tweaking. “The web is changing constantly, with improvements and entire brand new product lines emerging. In cyberspace, if you’re not improving, you’re falling behind.”
Solid Cactus, Inc. has designed or redesigned more than 3,000 e-commerce sites. Solid Cactus is an Inc. 500 company and was named one of the "Best Places to Work in Pennsylvania" in 2006 and 2007.
All posts by ebiz Insider Staff | E-Mail the author
Tracking Expenses: Tax time is in April, but we can prepare for it all year. Here's how.
April 15th will be here in a few short months and to prepare for the tax season rush, I am offering a process to help track expenses and ease the burden of tax time. If you are audited by the IRS, State, or Local Government, it will be necessary to prove that the information reported on your return did in fact occur. It is extremely important to keep track of all supporting documentation used in your tax return. The documentation proves the transaction happened and warrants the reduction on your return. In the event of an audit, the burden of proof is on you to prove your tax return is legitimate. A paper trail is your best defense on an audit. Supporting documentation for revenues and expenses includes billing, cash receipts, deposit slips, invoices, and proof of bill payment including canceled checks and credit card statements. It’s a pain, but you have to do it to protect yourself.
Follow this seven-step process to organize and track expenses:
1. Use an accounting software package to track revenues and expenses. There are good ones out there which are accurate and easy to follow. Choose one!
2. Arrange clients and vendors in the appropriate accounting area. This will allow you to view how much you billed a client over time and to see vendor spend reports with historical activity. This is important information which can help your business in addition to preparing your taxes.
3. Set up general ledger accounts which cater to your industry. Keep it simple so you can more easily follow your own paper trail.
4. Don’t procrastinate. Record revenue and expense activity on the day it occurs so you won’t forget it. You wouldn’t want to lose a deduction by not recording.
5. Have someone review all data entry to verify its accuracy. It is easy to make a data entry mistake or add an extra zero onto a number and you don’t want a misstatement of revenues or expenses. Nor do you want expenses showing up in the revenue section and revenue showing up in the expense section. Properly stated financials is the goal.
6. Proper record keeping is imperative. Invest in a filing cabinet, file folders and a label maker. Establish and maintain a good filing system so if you ever need to research a record, you can do it quickly and easily. File and sort cash register tapes, billing reports, canceled checks, bank account statements, credit card statements, payroll reports, and expense receipts. Keep records according to IRS guidelines. To learn how, visit www.irs.gov.
7. Prepare monthly account reconciliations on all balance sheet accounts. After all, this financial statement shows the value of your business. Properly maintaining these accounts from the start spares you from unraveling years of data. You should be able to explain exactly what makes up the balance in each balance sheet account.
If you establish and maintain a consistent system, you will be able to track expenses more accurately and file your tax returns more easily.
I have been involved in numerous audits including everything from Internal Revenue Service, Securities Exchange Commission, State Sales Tax, and Internal Audits of large corporations. The first items always requested by any organization are your tax returns and financial statements backing up the information on your return. Once the auditors start looking at the numbers on the financials, they will request backup for the items showing proof the transaction occurred. Without the backup, you may be unable to properly verify your tax return. This can expose you to additional taxes, penalties and possibly jail time. Keep it clean, report the correct information on your tax return and have proper backup documentation. If you do, you’ll avoid the nightmare of the tax audit. Make it your e-commerce New Year’s resolution toâ€â€do your homework!
All posts by ebiz Insider Staff | E-Mail the author
Tracking Expenses: Tax time is in April, but we can prepare for it all year. Here’s how.
April 15th will be here in a few short months and to prepare for the tax season rush, I am offering a process to help track expenses and ease the burden of tax time. If you are audited by the IRS, State, or Local Government, it will be necessary to prove that the information reported on your return did in fact occur. It is extremely important to keep track of all supporting documentation used in your tax return. The documentation proves the transaction happened and warrants the reduction on your return. In the event of an audit, the burden of proof is on you to prove your tax return is legitimate. A paper trail is your best defense on an audit. Supporting documentation for revenues and expenses includes billing, cash receipts, deposit slips, invoices, and proof of bill payment including canceled checks and credit card statements. It’s a pain, but you have to do it to protect yourself.
Follow this seven-step process to organize and track expenses:
1. Use an accounting software package to track revenues and expenses. There are good ones out there which are accurate and easy to follow. Choose one!
2. Arrange clients and vendors in the appropriate accounting area. This will allow you to view how much you billed a client over time and to see vendor spend reports with historical activity. This is important information which can help your business in addition to preparing your taxes.
3. Set up general ledger accounts which cater to your industry. Keep it simple so you can more easily follow your own paper trail.
4. Don’t procrastinate. Record revenue and expense activity on the day it occurs so you won’t forget it. You wouldn’t want to lose a deduction by not recording.
5. Have someone review all data entry to verify its accuracy. It is easy to make a data entry mistake or add an extra zero onto a number and you don’t want a misstatement of revenues or expenses. Nor do you want expenses showing up in the revenue section and revenue showing up in the expense section. Properly stated financials is the goal.
6. Proper record keeping is imperative. Invest in a filing cabinet, file folders and a label maker. Establish and maintain a good filing system so if you ever need to research a record, you can do it quickly and easily. File and sort cash register tapes, billing reports, canceled checks, bank account statements, credit card statements, payroll reports, and expense receipts. Keep records according to IRS guidelines. To learn how, visit www.irs.gov.
7. Prepare monthly account reconciliations on all balance sheet accounts. After all, this financial statement shows the value of your business. Properly maintaining these accounts from the start spares you from unraveling years of data. You should be able to explain exactly what makes up the balance in each balance sheet account.
If you establish and maintain a consistent system, you will be able to track expenses more accurately and file your tax returns more easily.
I have been involved in numerous audits including everything from Internal Revenue Service, Securities Exchange Commission, State Sales Tax, and Internal Audits of large corporations. The first items always requested by any organization are your tax returns and financial statements backing up the information on your return. Once the auditors start looking at the numbers on the financials, they will request backup for the items showing proof the transaction occurred. Without the backup, you may be unable to properly verify your tax return. This can expose you to additional taxes, penalties and possibly jail time. Keep it clean, report the correct information on your tax return and have proper backup documentation. If you do, you’ll avoid the nightmare of the tax audit. Make it your e-commerce New Year’s resolution toâ€â€do your homework!
Solid Cactus, Inc. has designed or redesigned more than 3,000 e-commerce sites. Solid Cactus is an Inc. 500 company and was named one of the "Best Places to Work in Pennsylvania" in 2006 and 2007.
All posts by ebiz Insider Staff | E-Mail the author
