Ok, so I'm not a reactionary when it comes to security. I've generally thought that if you were reasonably careful, you'ld be OK. And my experience has confirmed it. You need the basics: a firewall; virus protection; occasional malware scans; some intelligence regarding what to click on, what attachments to open; some intelligence regarding...oh, wait, I said that already. Unfortunately, malware has now become almost as big a problem as viruses.
Soon, it will become a more serious problem. With a keyboard logger loaded on your computer, I can see your bank account access information, corporate logins, what web sites you visit, and virtually anything else that gets typed on your keyboard. You might think twice about letting your kids download games from just anywhere...
Here's the opening paragraph from yesterday's SANS ((SysAdmin, Audit, Network, Security) Institute's @RISK newsletter:
This will be a bad week for cyber defenders; the vulnerabilities that will be announced this week will affect a very large proportion of business executives. Last week's critical vulnerabilities included an unpatched, important vulnerability in Apple Safari and a very critical vulnerability in Firefox that demands immediate upgrading.
Hey, folks, when SANS cries, it ain't "Wolf!"
For more from SANS:
SANS Institute - @Risk: The Consensus Security Alert
Be careful out there!

