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video postcom clip free download But when Atlanta-based InterCept acquired iBill for $120 million in 2002, it immediately encountered problems. New rules from Visa made it more complicated and costly to process adult website transactions, and "accounts dropped like flies," says Dugas. Meanwhile MasterCard levied $5.85 million in fines against iBill for an unusually high volume of "charge backs" -- consumer-disputed charges -- though InterCept managed to recoup most of the fine from iBill's previous owners.
In September 2004, iBill lost the contract with its upstream credit-card processor, First Data, which had grown wary of being associated with adult content. Website operators relying on iBill for payments had to wait months for their checks while First Data held the money in escrow. Roger Jacobs, who followed the story of iBill for adult industry publications AVN and XBiz, described low morale and a hemorrhaging of employees during this period.
Lance James of Secure Science and Adam Thomas of Sunbelt Software speculate that the company's troubles may have left them vulnerable to information embezzlement: The breach, they say, has all the markings of an inside job. The files appear to have been generated by exporting an SQL database into a CSV format -- a procedure that would be unusually extravagant for a quick, furtive hack attack. Moreover, at 4.5 gigabytes in size, the larger file would have been tough to download unnoticed over iBill's internet connection.
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"There is not a prohibition against adult content," Gordon said in a statement this week. "The BDA is an open organization that welcomes the participation of all companies interested in using and supporting the format, including those that represent the full spectrum of genres in the content industry."
Because of Blu-ray's late arrival into the marketplace, many are saying that Sony would do well to play nice with the adult industry, if it wants to have a fighting chance against HD DVD. Gordon's stance on adult content may be indicative of Sony's increased awareness of the role that the adult industry can and does play in such battles.
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Editor's note: Since publication of this article, iBill has spoken with Wired News. The company now says that the purportedly stolen database did not originate with iBill, and only three of the more than 17 million entries match past iBill customers. Asked to respond, Secure Science says it no longer believes that iBill was the source of the data. Read the full story.
Seventeen million customers of the online payment service iBill have had their personal information released onto the internet, where it's been bought and sold in a black market made up of fraud artists and spammers, security experts say.
The stolen data, examined by Wired News, includes names, phone numbers, addresses, e-mail addresses and internet IP addresses. Other fields in the compromised databases appear to be logins and passwords, credit-card types and purchase amounts, but credit-card numbers are not included.
The breach has broad privacy implications for the victims. Until it was brought low by legal and financial difficulties, iBill was a top credit-card processor for adult entertainment websites -- providing billing services for such outlets as DominaBDSM and Top-Nude.com.
The transactions documented in the database are dated between 1998 and 2003, spanning a period at the height of iBill's success. |
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