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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: jamie lindsay who wrote (9814)	3/3/1998 2:14:00 AM
From: Risky Business	Read Replies (2) \| Respond to of 13949

I predict there will be a "flight to quality" y2k services. If you were a CEO, what companies tools, methodology, would you turn over your information systems to? CHOOSE YOUR Y2k PICKS WISELY! Personally, I would seec an information management resource team, and micro focus on the problem via the soft approach. <G> Regulators brace for blitz of Y2K fraud -------------------------------------------------------------------------------- Rebecca Landwehr Business Journal Staff Reporter The Colorado Division of Securities is bracing for the next wave of financial chicanery to follow today's headlines: Year 2000 Problem fraud. "Whenever an issue is pushed to the front of the news, it creates an opportunity for fraud to follow," said Fred Joseph, deputy commissioner for the Colorado Division of Securities. "I'm surprised we haven't seen any cases yet, but I'm sure it's out there." The Year 2000 problem has the ingredients that make it ripe for fraud opportunities, Joseph said. The high-profile, high-tech issue has anyone with a computer scratching their head and looking for someone to make their problem go away. "It's a highly technological area and while people are aware of the problem, they aren't sure how to address it," said Phil Parrott, chief deputy district attorney for the economic crime unit of the Denver District Attorney's office. "But if they don't understand the problem, they won't understand the solution and a good talker will be able to sell themselves." The Year 2000 problem appears in computer systems programmed to recognize dates with two digits instead of four. These applications will be unable to determine whether a year is 2000 or 1900, causing system failure or incorrect results. Fixing the problem requires rewriting the computer code or replacing the software application altogether. The danger of fraud lies on both the investor and consumer sides of the issue. Local criminal investigators expect scams from those peddling solutions as well as start-ups looking for investor dollars to fund their Y2K remedy. "I've never seen a case with so many potential victims," said Parrott. "There have been similar types of technology scams but never one that had such universal proportions. This is an issue that everyone will face." Opportunists looking for investors to finance phony Y2K solutions providers will likely appear on police radar first, he said. "We're looking for the investment side to break soon because now is the time for anyone putting together a package," said Parrott. "It will sound plausible and it's easy to tout out-of-state contracts creating a convincing case that they are a real investment." As with any investment, a simple background check and a dose of skepticism before investing any cash can prevent a crime. The Colorado Division of Securities has three elements it finds in just about every scam they run across; promise of an outrageously high return, the assurance of low or no risk and a sense of urgency to get an investor's cash. For businesses shopping for a Y2K solution provider, Parrott is wary of anyone pitching a miracle solution at a price that sounds too good to be true. "From everything I've read this is a complicated problem that doesn't carry a cheap solution. That makes it even more attractive when an opportunist shows up with a simple fix for less money." One reason Y2K fraud hasn't hit the police logs is that victims may not be aware of their problems until the millennium arrives. The span of time until the crime is discovered is another benefit to operators of Y2K scams. "We here in the DA's office, we're waiting for the witching hour when people discover their product doesn't work," said Parrott. Although the Better Business Bureau hasn't received any complaints on Y2K companies yet, he agrees that the flood gates will likely open in January 2000. "I don't know how you would find out you were a victim until the year 2000 rolls around," said Patrick Smid, president of the Better Business Bureau for Denver and Boulder. "That's when we expect to hear about the problems." Smid suggests businesses check his system for complaints about potential Y2K vendors. But the best defense business may yield against Y2K fraud could be a comprehensive understanding of its own computer system. "One way for a business to protect itself is to give your computers a rigorous examination before and after the consultant comes in," said Jon Scarpelli, senior vice president of technology for CIBER Inc., an Englewood-based Information Technology company. "Before your consultant walks out the door, make them validate their work and test the systems they were hired to fix. If you know your system, you'll know if they did the job