TVI Express, yet another Speak Asia?

The MLM company promises five-star travel packages on joining and lucrative compensation fees up to Rs4.5 lakh on its direct selling model

Travel Ventures International (TVI) Express, a multi-level marketing (MLM) company, is growing its base in India. And like in the recent case of another MLM, Speak Asia Online that is being investigated, some people are questioning the big promises on its business model.

TVI Express claims to be in the home-based direct selling business, inviting those interested, to become members on a payment of Rs15,500. Members get a seven-nights-eight-days travel package in 3/5 star hotels of their choice, from about 4,000 hotels that the company has a tie-up with. A new member also gets a personal portal, which is primarily a booking website.

The company has a business model which, it says, is compensation-based. The member can sell the travel package to two new members. Those two new members would in turn sell the travel package to a further two members each. This goes on till level four, which is known as "Traveller Board". On completion of Traveller Board the top member is paid a compensation of Rs31,000.

Beyond this there is an "Express Board" level. Once the Traveller Board is completed, members can enter the "Express Board". Here too, the number of new entrants increases, taking the original members a step ahead. On completion of "Express Board", the top member gets Rs4.5 lakh as compensation fees.

Members also get a 5%-10% bonus for every new member joining after he/she "cycles out of Express board".  It also rewards the members with incentives "ranging from luxury cars to private jets and splendid villas in exotic locations around the world."

However, contrary to the company's claims, members have alleged that it is not paying the promised compensation. According to complaints posted on consumer forums on the Internet, the TVI Express business model is a scam, as many members who have increased their down line have not been paid any compensation.

TVI Express has a presence in many countries, among them the United Kingdom, South Africa, Canada, France, Germany and China.

Interestingly, according to a news report, The Bank of Namibia had warned people about investing in TVI Express and Holiday and Cash because they were operating in Namibia in violation of the laws.

When Moneylife called TVI Express, a company official said: "We abide by the laws. We follow all the rules and regulations. Ours is not an investment scheme; our business works on compensation fees which we pay to our members, who generate business for us. Those who work, earn. All these complaints are posted by our competitors who are jealous of our business growth."

Meanwhile, it has been reported that bank accounts in Singapore of Speak Asia, the online survey company which is being investigated, have been frozen, disrupting payouts to vendors, clients and staff.  

Moneylife has consistently exposed the dubious claims made by such MLM companies that are promising high returns in a short span. (Read, "Stay on guard: Need to regulate MLM firms, websites, so investors don't suffer".)

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    COMMENTS

    GOVINDAN

    8 years ago

    Speak Asians say their company's Singapore bank account was frozen as a result of adverse media campaign unleashed by Star News.

    Ridiculous.

    How can a Bank freeze the account of a customer stating reasons of "Adverse media reports"?

    Can any Speak Asian disclose the legal steps the company has taken to unfreeze the Bank Accounts?

    Hars

    8 years ago

    There is another company like this named- xlnc in Bandra who does not deliver what it promises.

    REPLY

    Akash Mehra

    In Reply to Hars 8 years ago

    @Hars

    No information about xlnc but did you ever try TVI Express. And this is not a sales pitch..

    The point here is that no comments ahould be made until and unless the product is tried, and tested.

    Moneylife reporter has gone absurd here publishing bullshit about aan orgaanization that has a goood ravel package as well as pays off well.

    Akash

    govindan

    In Reply to Akash Mehra 8 years ago

    Goood "ravel" package indeed!!

    Kishore

    In Reply to Hars 8 years ago

    Yes, I went to their offive in Khar and they have good set of people to convince you. i landed up buying 3 id's. 2 for vacation package and 1 for website. Neither the website operates properly nor does the vacation package promised was give. they are frauds. Charged me 17,000 for 2 packages which turned out to be for only 7000. I lost my 10,000 besides the website charges of 12,000 which is a real waste as the rates are higher than other sites and also if someone tries to make a transaction, the credit card is charged but the tickets are not issued.

    NEVER INVEST WITH THEM!

    Akash Mehra

    8 years ago

    @anonymous

    Unfortunately, it is media and people believe them. They are going to believe these script kiddies even if they write your mom is a prostitute.

    They should think before writing as every word written by them can impact thousands of lives. Unfortunately, conspiracy, politics and money revolves around them.

    Akash

    REPLY

    kishore

    In Reply to Akash Mehra 8 years ago

    MLM professionals and their mental lying:

    It is impossible to calculate the moral mischief, if I may so express it, that mental lying has produced in society. When a man has so far corrupted and prostituted the chastity of his mind as to subscribe his professional belief to things he does not believe he has prepared himself for the commission of every other crime (Thomas Paine, The Age of Reason)

    kishore

    In Reply to Akash Mehra 8 years ago

    It is impossible to calculate the moral mischief, if I may so express it, that mental lying has produced in society. When a man has so far corrupted and prostituted the chastity of his mind as to subscribe his professional belief to things he does not believe he has prepared himself for the commission of every other crime (Thomas Paine, The Age of Reason)

    Annonymous

    8 years ago

    This is not done, pls provide the MLM companies an equal opportunity platform. Even a Sales executive who gets 10,000 salary, for getting a business of 10,00,000 gets a commission of 25000-30,000 and then gets into corporate slab of incentives(which at times get into lakhs), so whats the big deal ?

    GOVINDAN

    8 years ago

    Who is this Dr. Maddineni of NANO EXCEL MLM.
    Is he a doctor?
    Any idea about this man?

    rajesh

    8 years ago

    gald you bought up this MLM scam i had requested you to do a write about it when u wrote on the speak asia story ....... the sheer number of desperate greedy people who fall for this scam is just amazing
    The biggest MLM con of course is still good old AMWAY

    Akash Mehra

    8 years ago

    Moneylife Magazine

    I strongly urge you to contact TVI Express India to get your facts straightened out. You are a reputed organization and publishing false facts or defaming a company doesnt really suit your profile.

    If you knew that TVI Express has completed one year of operations in India, is a valid organization in the Direct Selling Industry, paying proper service taxes and TDS to the government along with fulfillment of the fabulous products they offer you wouldnt have written such an article about them.

    I write this as I feel media has to be vigilant before writing anything about a company as people still tend to believe media and not the facts.

    As a respected editor working for Moneylife magazine, you should contact them and take this article down comparing TVI Express with Speakasia. There is no comparision between a valid product offering company and an investment plan.

    Akash Mehra

    REPLY

    govindan

    In Reply to Akash Mehra 8 years ago

    Sir,

    Can you please confirm that none of your distributors are from lower strata of the society like housemaids/ domestic helps, coolies, manual laborers, cab drivers, class-IV employees etc etc.,

    theertha

    In Reply to Akash Mehra 8 years ago


    http://www.consumercomplaints.in/complai...

    Mustansir Engineer

    8 years ago

    Respected Editor,

    Your article is on TVI Express. Does it make any sense using Speak Asia Online Survey name here for comparision. Is there any similarity in one survey another travel package ?
    I honestly believe media should act responsibly when commenting. Your honoured news do make a impact on 19 lakhs Speak Asian Panelist.

    REPLY

    kris

    In Reply to Mustansir Engineer 8 years ago

    What about comparing Speak Asia with Ram Survey?

    Mustansir Engineer

    In Reply to kris 8 years ago

    Is there any comparison ?
    Speak Asia had paid each panelist till the disruption caused by media. Even after all the onslaught, the board, staff are still present in India.
    About Ram Survey, I have no clue. If you have and want to share your views please go ahead.

    praful

    In Reply to Mustansir Engineer 8 years ago

    Is it because of indian Media the singapore bank accounts frozen?

    Mustansir Engineer

    In Reply to praful 8 years ago

    Why would a banker withdraw support to its client ?

    Star News Channel repeatedly showing Speak Asia as FRAUD, SCAM, GURUGANTAL, PONZI SCHEMER.

    Obviously a reputed International Banker like UOB would think on whole of its whole client in such a scenario.

    Please visit my blog http://showzohocompublicashe2rose.blogsp... for more information and recent happenings about Speak Asia

    govindan

    In Reply to Mustansir Engineer 8 years ago

    Can a Singapore bank freeze accounts of its customers as per the reports of a news channel in India?

    Prasanna

    In Reply to govindan 8 years ago

    Arey Govindan,

    Pls come out of the trauma.Your world revolves around Kerala,but this is not the case for others.STAR TV has a wide coverage amongst Indians residing in Singapore and hence the banks have asked for a closure of accounts due to media noise.Govindan,pls grow up kid....pls come out of Kerala,there is country called India and there are other states as well.Pls ask relevant questions.

    Rahul

    8 years ago

    I think the most notorious of MLM company is running in Rajasthan Jaipur named Gold Sukh. They have collected tremendous amount of money from the MLM participants. Last year they were raided by Income tax department which took around 29 Crores as taxes. This whole scheme is similar to GoldQuest of Chennai and needs to be investigated. It is one of the biggest scam which can come out..

    REPLY

    govindan

    In Reply to Rahul 8 years ago

    All MLM compnaies are notorious. What about NANO EXCEL, UNIPAY/VISAREV, TYCOONS EMPIRES?. NANO EXCEL looted Kerala. Unipay looted Tripura, Gold Sukh looted Rajasthan, RMP Tamil Nadu, Speak asia Maharashtra

    Mustansir Engineer

    In Reply to govindan 8 years ago

    Mr. Govindan,

    What is "Speak Asia Maharashtra" ???
    Never heard about this organisation...???
    Please go ahead and educate me on it...

    govindan

    In Reply to Mustansir Engineer 8 years ago

    Don't worry. you will soon hear about this "organization".

    Mustansir Engineer

    In Reply to govindan 8 years ago

    Mr. Govindan,

    That is fine with me. I thought you had knowledge about what you commented...

    Prasanna

    In Reply to govindan 8 years ago

    Hello!All,

    Pls maintain a distance from Govindan.He is allergic to MLM,so even when some says MLM or Direct selling he will start barking.He will some up with his own stories from kerala,then he will give some evidence of press release,he will name few companies and finally conclude that it's Money Laundering Mechanism.It's not his fault,he has been taught the same lesson and his world is Kerala,Kerala and only Kerala>no use breaking your heads and trying to educate Govindan...he has a mental block for MLM or Direct Selling.Secondly,he is an excellent example of that section of society who will never embrace change or development.They will prefer standing whole day under the sun with flags,but they will not budge their way for development.It is because of such type of people that India has still got the tag of a 'Developing Nation'.

    govindan

    In Reply to Prasanna 8 years ago

    Respected Prasannaji,

    Your assessment is correct. We prefer standing whole day with flags under the sun rather than spending a whole day for cheating innocent and uneducated housemaids, domestic helps , coolies, class IV employees, slum dwellers, beggars etc etc

    jitender

    8 years ago

    Dear ,

    TVI Express is not a money chain business, it is purely MLM company. it is not very easy to earn Rs. 4,50,000 .

    All the best

    Akash Mehra

    8 years ago

    TVI Express pays off very well on the sales that distributors make and is not at all an investment plan.

    @Simon, I guess you need to check the services you receive when you become a member. You get a 7 nights/8 days holiday in a resort or a 3 nights/4days accommodation in a business hotel.

    We all can write anything here as its a world of free voice.. however, the truth doesnt depart from the fact that TVI Express is not an investment plan and is a legitimate Direct Selling Company like other established players in the industry.

    Akash Mehra

    SImon

    8 years ago

    You wrote, "Members get a seven-nights-eight-days travel package in 3/5 star hotels of their choice, from about 4,000 hotels that the company has a tie-up with."
    This is wrong. Members get nothing against the Rs15,500 except that they become member.

    REPLY

    jkwonders

    In Reply to SImon 8 years ago

    Dear Simon,

    My friends have already travell under this pacakage , If you want to travell under this pacakge revert me.

    Just travell and then make any thought dear for any body.

    Waiting for reply

    GOVINDAN

    8 years ago



    MLM = Money Laundering Mechanism

    The Great Iron Ore Rip-Off: Buy from India for 60 cents, and sell it for around $200 a tonne (landed price) overseas

    As a nation, we are peddling our scarce natural resources that cannot be replenished. Global players are mining iron ore for a song, destroying the natural habitat around the mines and shipping it to metal-hungry destinations and making super-profits. As usual, the powers-that-be are silent 

    As an ex-seafarer, the first cargo I loaded on a ship, way back in 1975, was iron ore from Vishakhapatnam (or Vizag) to Japan. Always interested in matters beyond my purview, I remember that the charterer in this case was the government-controlled monolith, MMTC (Minerals and Metals Trading Corporation), the buyer a Japanese trading house connected with Sumitomo-and that the price achieved for this shipment, delivered at the port of Nagoya, way back then, was around $17 a tonne.

    The price that the Indian Government achieved, through MMTC, was around $10-$11 per tonne -ex-Vizag, loaded onto our ship. The rest was on freight and other costs. Laughingly, it was pointed out that kickbacks were high, around 15%-20%, but were likely to be impacted because the Emergency was on everybody's heads in those days. Even people at MMTC and STC (State Trading Corporation) had to be careful.

    This was for what is known as '60% FE lumps'. A very highly sought-after grade of iron ore that we export from India, and the rate is set in such a way that it permits for variations in quality along a few other parameters, using this as a benchmark.

    60% FE in lumps is about as good as it gets. The Japanese term for it was the equivalent of malai, or "full cream", and we have a lot more in India. In the area, largely, called "Maoist", but that's not the subject of the debate.

    The debate then was whether it was more profitable for the Nation of India to ship this iron ore to the US-East Coast (Norfolk) area-where the price achieved was around $25-$27 a tonne, landed.

    What came in the way, in those days, was not just the freight rate-ships had to go around the Cape, since the Suez was closed. In addition, it was whispered, doing business with Japan was better for some corrupt people, since the Japanese were rumoured to not be averse to the idea of more than a few dollars per tonne as kickbacks, and making "relationships", while the Americans got slightly moralistic about such things then-5% to 7% was what was supposed to be their limit, and you often had to accept it in wheat.

    Which was not a good idea, because India was getting 'free' wheat under the PL-480 scheme in any case in those days, which is a scam many may have forgotten.

    In addition, the Japanese were very keen to provide the funding as well as technology for building a railway line from Vizag into the pristine Aruku Valley area, to get the iron ore out more efficiently, and this was pushed through as a 'people-friendly' step to help connect one of the remotest parts of central India to the rest of the country.

    Of course, nothing is free, so India was going to pay the Japanese back. In iron ore. And remember, west of Hong Kong was a huge swamp called the Pearl River Delta, then. And South Korea? South Korea was still teaching its sailors to work on ships. Under Indians.

    So, we sold our iron ore in Aruku Valley to the Japanese for a song. How much they sell it in further trading, now that China and South Korea are also consumers, would be interesting to learn. Chances are, the onwards sale is at market prices, while the first sale is at the old pre-negotiated prices. We are still paying for that Railway Line, remember?

    Think of it like this-you have a home in a remote part of, say, Maharashtra. You have some great boulders there, which can be extracted, broken down, and made into brilliant granite slabs. But you don't want to sell them or move them, even to the nice Japanese guy who comes to your house, because technically you can't and even if you could, you want to sell it one rock at a time, because the house is in a remote place.

    So now the Japanese guy goes back to the government guy, and makes him a deal-the Japanese will pretend he is loaning money to the government, which will then cover the loan through its public sector banks, and the Japanese guy will then make a road to your house which nobody else can use, not even you, and then he will take all the granite away as soon as he can, for free, in payment for the road he helped build.

    You will be left sucking your thumb, you may have to pay a toll to enter your own house on that nice new road, and if you protest, you will be called Maoist. But then, this is not about them.

    That railway line from Vizag up into one of the prettiest parts of India rapidly being mined out of existence (the natural caverns being formed nearby are used as oil reservoirs, incidentally) now stands as a tribute to Japanese engineering skills. And runs between 40-80 rakes of iron loaded trains to the port cities of Vizag and Gangavaram, from where it heads off mainly towards the hungry steel mills of China, South Korea and Japan. But there are hardly any passenger trains on that route, and the few that operate, have to give way to the iron ore trains. I have been on this route once-and reached the other end 24 hours late, as we kept giving "pass" to iron ore rakes thundering past us.

    To anybody except the most foolish it is clear to those who know this industry that we are as a nation selling our resources. Fair enough, this does not want to become yet another article on the political and sociological, as well as economic aspects of this trade-people have been called 'Maoist' for less. But can we look at the numbers again?

    The international prices of iron ore are shooting upwards, by as much as $20 to $30 in the last few weeks, and anticipated to go up by a similar amount to around $200 per metric tonne in the next few months. This is despite much lower requirements in Japan, and slightly reduced requirements in China, the two top global markets for iron ore. The top three suppliers of iron ore are Australia, Brazil and India.

    The indicative price currently is around $170 per metric tonne for iron-ore lumps with a 60% FE content, cost plus freight landed at Qingdao in China as a benchmark, and freight rates varying from $8 to $16 per metric tonne depending on size of ship as well as market forces on freight rates. The sale price of this kind of iron ore from Australia or Brazil is around $130-$150 per metric tonne, and rising, with some minor amounts for insurance, loading costs, holding costs, and other such expenses.

    The royalty paid to the Indian government by the new iron ore exporters being invited in, like Posco, is Rs27 rupees a tonne for iron ore lumps. That's all. 60 cents. Not even a dollar a tonne. The rest is, apparently, part of the whole loan-loan-loan and more loan cycle, since Posco will help develop the area. At every stage in this financial game, there is a transaction cost, and it is instead of being in percentage points, now into multiples of the costs involved.

    Agreed, there is a cost involved in mining the iron ore, extracting it, and converting it into lumps, which even after allowing for all sorts of cost overruns is not going to exceed $20 a tonne-an extremely high outer estimate. Agreed there is a cost towards "developing" the area, whatever it means. Agreed, some babu somewhere can justify how after 35 years, our export price is down from $15 a tonne to 60 cents a tonne.

    But can anybody justify why the Indian government, the state government, the various public sector entities, the watchdogs, the parliamentary committees, the environmentalists, the media, everybody and more-why can't we get even some percentage of the increase in iron ore prices to the country's account?

    Assuming the price has gone up by $50 a tonne, all other costs remaining the same, shouldn't the nation get at least some part of it-especially when all we appear to be getting is 60 cents a tonne?

    And that is why anybody who disagrees will be called a Maoist, a seditionist and an anti-national. But this article just wants to know-how much of the increased price will we in India get?

    An aside: The same companies who bid for iron ore mines in India, also bid for iron ore mines elsewhere in the world. The higher costs being achieved make it feasible to prospect for and take iron ore out from all new areas. There are more than a few Indian companies in the running for this business, and the royalty that apparently some of them are willing to pay for "futures" is in the $100 plus levels-for future imports into India, when we become an iron ore scarce and deficit region. Already plans are being made to ensure that ports being developed under infrastructure loans are geared up to handle current export and future import of iron ore.

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    COMMENTS

    Rajiv Ahuja

    8 years ago

    Thank God for money life.

    Vinay Isloorkar

    8 years ago

    8.6.11

    Le scam 2G was roughly Rs 1.75 crore! How much will this aaprox?

    REPLY

    malq

    In Reply to Vinay Isloorkar 8 years ago

    Thank you for writing in.

    This is a difficult one to calculate - what value do you put to the minerals, ores and other bulk commodities stolen and then sold? How do you calculate the low royalty charged?

    One benchmark is, as always, the Chinese and how they calculate royalties on their own ore/mineral deposits. In addition, the Chinese, who have enoung minerals and ores of their own, are simply holding on to them for the future, when the prices will be higher.

    As an example, iron ore was at around 6-7 dollars a tonne 25-30 years ago and now achieves 170 dollars a tonne - but the Indian Government still takes royalty only at 24-27 rupees a tonne.

    25-30 years ago, 6-7 dollars was say about 70 rupees at 10 rupees a dollar, and 24 rupees was about 40-50% of the price as royalty.

    Today the international rate is 170 dollars a tonne which is 7000-7500 rupees per tonne but the Government still gets only about 27/- rupees a tonne, which is 0.33 percent? Because the private mine owners and traders in India under-invoice the cost of the iron ore and over-invoice the freight as well as handling costs.

    So how do you calculate the cost of the scam?

    I am working on it, but here again, the end numbers have to be backed by some logic - and as of now, it is very difficult. In addition, it is nobody's contention that this business of mining and minerals and trading and shipping is not a dangerous business.

    MJ

    8 years ago

    @krishna
    did u forgot to mention
    1. Adarsh scty scam
    2. Terrorist attack and India's lethargic handling of the issue !!!
    3. PMs invite to Pak PM to watch cricket match :)

    Ajmal Kasab wouldnt have felt safer anywhere else...

    Mercy petition of top criminals pending for years ???? with no explanable reason....

    krishna

    8 years ago

    2G scam, Cwg scam, now Iron ore scam, All the state govrnements are involved in so many frauds ,scams and corruption, irrespective of the poltical party in power and some central cabinet minsters who work under PM are involved in huge corruption, instead of cleaning the govt of this rutt, our clean PM goes to africa talks about Gandhisam, good governence, and announces Aid to poor african nations what an irony

    krishna

    8 years ago

    I think india needs a big change all this corrupt polticians and corrupt babus should be arrested and sent to some remote island and educated youth should take over and clean this thrash

    MJ

    8 years ago

    What we have is the most qualified DUMB PRIME MINISTER !!!

    Java

    8 years ago

    Very interesting and disturbing story...although it seems to be heavy on conjectures. Has anyone looked at the agreements and contract terms to verify our stupidity?

    REPLY

    malq

    In Reply to Java 8 years ago

    Thank you for writing in. There are more facts available, and shall be placed here soon, while RTI Applications to get hold of details are underway. Typically, the dwell time from first application onwards is 3-5 years, since the crooks will try every trick in the book and more.

    meanwhile, read here too . . . just one aspect of things, and the real reason why Sushma Swaraj is going ballistic as the noose tightens there too:-

    http://en.wikipedia.org/wiki/Belekeri_po...

    Manoj K Singh

    8 years ago

    Good write up! We seem to be a country of blinds....disinterested and ignorant of ways to run an efficient government that is honest and committed.

    REPLY

    malq

    In Reply to Manoj K Singh 8 years ago

    I drove past Belikkeri/Karwar a couple of years ago. Thank you for writing in . . . meanwhile, read here too . . . just one aspect of things, and the real reason why Sushma Swaraj is going ballistic as the noose tightens there too:-

    http://en.wikipedia.org/wiki/Belekeri_po...

    Pradeep

    8 years ago

    this is an eye opener, we as common man can do nothing about this right or do we have any rights to sue our govt for such activities.

    REPLY

    malq

    In Reply to Pradeep 8 years ago

    Thank you for writing in. We as common people can do a lot - to start with, file RTI Applications on the subject with the PMO so that they can not claim that the PMO was unaware of such scams.

    http://en.wikipedia.org/wiki/Belekeri_po...

    Shadi Katyal

    8 years ago

    It is well known that all PSU like MMTC,STC,SAIL etc had been pocketing money by the employees. I suggested otherday that if we evalute the properties held by its employees especialy those who were posted abraod and even in India with power to negotiate had a built in personal margin for them. Many nations refuse to deal and these agencies tried through private companies.
    Govt was/is well aware and it cost India not only on export goods but imports by these PSU are about 30% higher than private imports becaue that 30% is profit not for the entity but for employees.
    Thiws is India and who carews for the nation as long one can loot in daylight with the knowldge and blessings of the higher ups. Everyone has a finger in this pie.
    CHATLA HAI BHAI.

    REPLY

    malq

    In Reply to Shadi Katyal 8 years ago

    WE have to motivate change. I thank you for writing in, Katyal ji, but please file RTI Applications, please ask questions.

    Do read this, for example;-

    http://en.wikipedia.org/wiki/Belekeri_po...

    citizenindia

    8 years ago

    I'd say make auctioning of resources mandatory. This way the give raises revenue . Currently under some pretext of value addition or job creation, you give away things for free and make it sound as if the guy setting up the plant is doing India a favour. All sales should be through e auctions. 3G bought us 1 lac cr revenue. Coal and ore blocks amongst other minerals can get us lakhs of crs more. Don't just let mittal and vedanata and posco and reliance boost their personal wealth.

    REPLY

    malq

    In Reply to citizenindia 8 years ago

    Thank you for writing in. Please be part of the change - please ask more questions.

    Do read this, for example . . . WE have to motivate change. I thank you for writing in, Katyal ji, but please file RTI Applications, please ask questions.

    Do read this, for example;-

    http://en.wikipedia.org/wiki/Belekeri_po...

    Broken Arrow: IT staff can wreak havoc even after leaving the job

    According to a survey undertaken by Venafi, organisations need to quickly come to terms with how crucial encryption keys are to safeguarding the entire enterprise, as well as the heightened need for automated key and certificate management with access controls, separation of duties and improved policies

    Data security and managed encryption services provider Venafi Inc says about 40% of IT staff have admitted that they could hold their employers hostage-even after they've left for other employment-making it difficult or impossible for their bosses to access vital data by withholding or hiding encryption keys. This is due to the lack of oversight and poor management of their organisation's encryption keys.

    In a survey, conducted during the InfoSecurity 2011, Venafi said around 82% of companies now use digital certificates and encryption keys, and 43% admitted to being locked out from their own information, because people had left the organisation or keys were lost, and 76% said they would use automation if they knew it existed.

    When organisations rely on the Internet and its corporate networks to conduct global business and facilitate worldwide communications, they deploy multiple layers of IT security hardware and software technologies-all designed to protect networks from unauthorised intrusion, cyber attacks and regulatory compliance violations.

    However, due to the absence of automated management processes, solutions and practices, many organisations fail to gain complete control of its data encryption keys and certificate inventories.

    Jeff Hudson, chief executive, Venafi, said in a statement, "It (data encryption and management) is no longer rocket science. Yet recently, costly breaches at Sony, Epsilon and elsewhere reinforce the need for both more encryption and effective management."

    The data is based on a survey sample of 500 IT security specialists that was undertaken at the InfoSecurity 2011 event in April.
     
    The survey reveals that organisations are taking huge risks with mission critical and sensitive business data. This risk is reminiscent of the situation Anglo Irish Bank found itself in when ex-employees held the organisation's encryption keys ransom after they left the organisation.

    A third of the survey respondents said that their knowledge of and access to encryption keys and certificates, used for both system authentication and data protection, means they could bring the company to a grinding halt with minimal effort and little to stop them.

    "Astonishingly, they claim that even after they have left, they still could cause havoc with their knowledge of the encryption keys, shared passwords and weak controls. 40% of respondents admitted that they would still have access to vital information and could manipulate it to their own ends-both to their company's financial and reputational detriment," the survey found out.

    Venafi stated that 31% of the respondents said they could still access organisational data because they could easily retain the encryption keys when they left and access the information remotely.

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    COMMENTS

    Rabatan

    8 years ago

    The fat salaries given as demanded to the over-pampered IT and sales people vis-a-vis the otheremployees in big IT companies will play a Fukushima-loke havoc without warning. All round greed both of the owners/management and the so-called IT geniuses (who are otherwise expendable to the civil society) and the wide difference between the really dedivcated and loyal employees' recompense and the wealth given to the IT/Sales liaison MBAs is really going to sound the deathknell of these copmpanies. All good things have to come to an end one day!

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