Former U.S. Cybersecurity Expert to Join eBay

Former U.S. cybersecurity czar Howard Schmidt is heading to eBay,
in a move that signals the auction giant’s interest in
clamping down on online fraud.

eBay spokesman Chris Donlay confirmed that Schmidt will help
protect eBay’s electronic infrastructure, serving as its vice president for
security. The news comes less than two weeks after widespread reports that he might leave the government post.

Schmidt will start at the auctioneer in the next few weeks, Donlay told

“Security has always been important at eBay, but the company is growing quickly and lots of departments are being expanded,” Donlay said. “This seems like the right time to expand security, especially with a high profile person such as Schmidt.”

Although Donlay did not provide details on Schmidt’s duties, one of his priorities is expected to be online auction fraud, which has plagued the e-commerce industry for years, but seems to be almost epidemic of late.

In one recent major case, a woman
was sentenced to four years and nine months in prison after she admitted
selling computers via eBay and never shipping the merchandise to the buyers.

The Internet Fraud Complaint Center (IFCC), a site run by the Federal Bureau
of Investigation and the National White Collar Crime Center, reported that
it referred 48,252 fraud complaints to federal, state and/or local law
enforcement authorities last year. The year before there were 16,775

Moreover, the Federal Trade Commission, who has been cracking down on online
fraud in the last several months, said earlier this week
as many as 57 cases involving criminal or civil violations are currently
pending with at least 37 individuals charged and under prosecution for
alleged crimes.

Schmidt has a long security track record, having served as
Microsoft’s chief security strategist for years before becoming vice
chairman of the federal Critical Infrastructure Protection Board in 2001. He
later helped draft the government’s cybersecurity plan, unveiled in

News of Schmidt’s impending departure from the high-profile government
position came on April 21, with published reports getting hold of an
informal resignation e-mail.

“With the historic creation of the Department of Homeland Security, the
transfer of many of the responsibilities from the Critical Infrastructure
Protection Board to DHS and the release of the strategy, I have decided to
retire after approximately 31 years of public service and return to the
private sector,” Schmidt wrote in the e-mail.

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