Cyber Security Study: Many consumers less secure than they think

In our latest report on staying safe in cyberspace, 7 online blunders, the top mistake we warn about is assuming your security software is protecting you.

Now, a study just released by the National Cyber Security Alliance, underscores our advice by suggesting that many online consumers think their computers are more secure than they really are.

The study, performed by Zogby International and software maker Symantec, polled 3,000 online users and scanned the computers of 400 of them.

Among the findings:

• 75 percent of respondents said they were using spam filters, while only 52 percent actually had a spam filter installed.
• 81 percent of respondents said they were using a firewall, but only 42 percent indeed had a firewall installed on their computer.
• On the other hand, perceptions nearly matched reality for anti-virus and anti-spyware software.

To avoid becoming a victim of online threats, you need to run effective security software. For lots of free advice on how to protect yourself online, and which mistakes to avoid, visit our new Online Security Guide.

—Jeff Fox

Open-box electronics items: Another shopping option to consider

This blog recently reported on refurbished electronics, returned items inspected and if need be repaired, and sold at reduced prices. We found them to be an opportunity for budget-conscious shoppers, with caveats.

Also worth considering are refurbs’ first cousins, “open-box” electronics items. They, too, can be significantly less expensive than the same items bought new—though they, too, merit some caution. 

Typically, open-box items are goods returned by customers, inspected by the retailer, found to be in working order, and re-sold at a discount, rather than returned to the manufacturer. Though most associated with taped-up boxes on tables and special displays at brick and mortar retailers, open-box electronics are now also offered online. Such Webtailers include such reputable vendors as JR.com and TigerDirect.com, both perennially well-rated in Consumer Reports’ annual Ratings of electronics retailers.  They’re also offered at WarehouseDeals.com, the refurbished and open-box goods site for Amazon.com, also a perennial pick among e-tailers in our surveys.

Online security: How savvy are you about cyber-safety?

Did you know that October is National Cyber Security Awareness Month? A number of organizations, including ConsumerReports.org, are joining forces to help promote safe computing practices and educate consumers about the threats of online fraud and identity theft. (For more information, click on the image at right to go to the National Cyber Security Alliance's web site, StaySafeOnline.org.)

As part of the effort, we've created a new, free Online Security Guide, which includes the following features:

• Reports on viruses, spyware, phishing e-mails, ID theft, and kids safety online.
• Results from a new consumer survey on auction fraud by ConsumerWebWatch, the Internet integrity division of Consumers Union, the non-profit publisher of Consumer Reports.
• Free advice, including: 7 Online Blunders to Avoid, 19 tips to stay safe online, and our 2008 State of the Net findings.
• Software Ratings: Security Suites and Anti-phishing toolbars (available to subscribers only).
• An entertaining, educational musical video about e-mail phishing from ConsumerWebWatch.
• A quiz that tests your ability to tell fake e-mails from real ones.
• Links to our discussion forums where you can discuss with others about online security and privacy issues.

In the next few days, and throughout October, we’ll provide more details and news related to Cyber Security Awareness Month on our Electronics Blog and Online Security Blog.

—Jeff Fox

Claim check—Nikon D90: The first SLR with hi-def video

The 12-megapixel Nikon D90 SLR, $1,000 (body only), claims to capture HD video with a "cinematic" 24 frames per second rate and resolution of 720p (1280 x 720 pixels). But the frame rate is too slow for many uses, and in our tests, resulted in flickering with horizontal panning or horizontal subject movement.

And while it's true that the D90's file resolution is 720p, images recorded at that setting contained far less detail, even in the best lighting conditions, than what most HD camcorders capture at similar settings. Those images were no better than those a VHS tape typically captures. In fact, the D90's video image quality fell short of that produced by the lowest-rated HD camcorder in our Ratings (available to subscribers), the Sanyo Xacti VPC-HD1000. Because the Xacti records video at 60 fps, more than twice the frame rate of the D90, it doesn't display the flickering effect that's noticeable on video taken with the D90.

Another drawback of the D90: When we recorded video, most of its controls, including autofocus, were disabled. So, if your subject goes out of focus, the D90 won't automatically refocus. You can manually refocus, however.

Bottom line. Although the D90 lets you record HD video, its capabilities and performance are middling at best. It isn't a substitute for a decent HD camcorder. We'll report on the D90's still-camera capabilities soon.

Buffalo Tech's Shinobi: An extremely thin external hard drive

Portable external hard drives are my laptop's best friends. Although my personal notebook has a (once-more-than-adequate) 160-GB drive, often times I've found myself running out of digital storage space—especially for the huge high-definition video files I need to transfer from my HD camcorder to my computer for editing.

I already have several "pocket-sized" external hard drives to help manage critical back-ups as well as off-load some of the larger, completely-edited video files from my notebook. And it's a hassle to remember to tote those drives on long, weekend video shoots. But at a recent press event, I saw perhaps one of the smallest USB-powered drives that would be simple to carry—and doesn't skimp on digital storage space.

Buffalo Tech's "Shinobi" (a Japanese term closely tied to "ninjas" and "one skilled in the art of stealth," according to Wikipedia) is a scant 5-mm (0.2-inches) thick and weighs a mere two ounces.

The official press release pictures (Click on them for closer looks.) don't convey how truly "stealthy" the Shinobi is—especially when compared to more conventional USB external drives. But it's about the size and heft of a small stack of business cards, which is a form factor usually associated with external memory devices that use flash memory.

The Shinobi uses a 1.8-inch disk drive, similar to the hard drive found in the super-slim MacBook Air, said a Buffalo spokesperson at the press event. And drive makers (such as Toshiba) are ramping up capacities of both tiny 1.8-inch hard drives as well as solid-state flash memory devices to 250-GB or more, rivaling the storage space found in traditional PCs.

Blu-ray to get boost from new players, lower prices, and 3D?

If you've been considering a high-definition Blu-ray DVD player, this holiday season is shaping up as a good time to buy. More Blu-ray players are steadily arriving, with models from Denon, Insignia, LG Electronics, Panasonic, Pioneer, Samsung, and Sony now in stores (and in our Ratings of high-definition DVD players, available to subscribers). In addition, you can play Blu-ray discs on Sony's PlayStation 3 game consoles, which have an integrated drive. A growing number of notebook and desktop computers either come with, or can accept, Blu-ray drives.

Two reasons for delaying a purchase, high prices and a still-evolving format, will be less of an issue as we head into the holiday buying season. We’re already seeing prices for the most basic players, so-called Profile 1.0 models, heading toward the $200 mark. Sony's BDP-S300, for example, has been selling for $229 at Amazon. Predictions from sites such as DealNews call for some even more aggressive doorbuster specials, such as players for $149, and player/movie bundles for $199. As we've seen previously, prices can often bump back up after the three-day Black Friday shopping period (Thanksgiving weekend), but they rarely return to pre-holiday levels.

The Google Phone, at last

T-Mobile unveiled yesterday the world's first cell phone to run on Google's Android operating system, a modified version of the Linux operating system used on a small, but growing number of computers, set-top boxes, and other devices. Android's claim to fame is that its "open" architecture will encourage a broad community of software developers to create applications that run on the phone. We shall see.

The phone itself, called the T-Mobile G1 and made by HTC, will be available on October 22 at $179, including a 2-year contract. It's a touch-screen model that features a bright, 3.17-in display, a slide-out full QWERTY keyboard, built-in Wi-Fi, and a 3.2-megapixel camera. It's also one of the few phones that supports T-Mobile's fledgling 3G data network. Emphasizing Web connectivity, the phone comes preloaded with a full HTML version of the Safari Web browser and icons for launching—not surprisingly—Google Maps, YouTube, and easy access to Google Mail as well as other POP3 and IMAP e-mail services. You can easily flag, delete or move groups of messages and keep track of group conversations through threaded text messaging.

The phone (click on the image for a closer look) is a tad on the bulky side, measuring 4.60 in. x 2.16 in.  x 0.62 in.; it weighs a hefty 5.6 ounces. The claimed talk time is an unimpressive 5 hours. But the G1 does have an intriguing array of features, including a GPS-assisted internal compass that aligns Google Maps with the surrounding terrain, regardless of the phone's position. The G1 supports T-Mobile Hotspot @Home service that automatically switches the phone from the cell network to "free" VoIP service whenever it's in Wi-Fi range at home or when you're out.

Flat-panel TVs to Black Friday: We're back!

If you've held off buying an LCD or plasma TV in hopes of lower prices this holiday season, it looks like your gambit is going to pay off. According to several analysts, LCD and plasma TV prices once again will be significantly lower this year compared to last. That's especially true for Black Friday, which kicks off the weekend after Thanksgiving, when you might encounter some never-before-seen deals. Among the reasons for the price drops are an oversupply of LCDs and competition between LCD and plasma in more screen sizes.

According to Austin, Texas-based market research firm DisplaySearch, LCD TV prices will drop 15 to 20 percent on average below last year’s prices, while plasma sets could sell for 20 to 25 percent less than at this time last year.

You’ll find even bigger bargains in certain size categories. For example, DisplaySearch predicts the average selling price of 40-inch and larger LCD sets could drop by 25 to 30 percent. As a result, the average price of a 52-inch 1080p set will drop from about $2,800 in the fourth quarter of 2007 to just under $2,000 by the end of 2008, while a 46- or 47-inch 1080p sets will fall from about $1,800 to just over $1,350. The average price for a 40- or 42-inch 1080p set will drop from nearly $1,400 at the end of last year to $991 this year. Those looking for a smaller set could also be in for some bargains, as DisplaySearch sees prices falling about 23 percent for 32-inch TVs, and 21 percent for 26-inch models.

iPhone 3G: Apple recalls faulty chargers

Apple announced a very important recall of the power adapters used to charge its new iPhone 3G. It seems that the metal blades or "prongs" may have a tendency to break off when the adapter is pulled out of the wall outlet, creating a potential electrical shock hazard.

According to Apple's official recall announcement, only some iPhone 3G adapters have this defect. The image above shows the adapters that are affected by this recall. If your adapter has a green dot (see image below), you're ok—there is no problem, and you can continue using the product. (Click on both images for closer looks.)

If you have one of the defective adapters, Apple advises that you immediately stop using the adapter. Apple will provide a new, redesigned adapter starting Oct. 10. You can request a replacement online (https://supportform.apple.com/200809/) or exchange a faulty adapter at any Apple retail store.

In the meantime, here’s how affected iPhone 3G owners can recharge their phones, according to Apple:

"...charge their iPhone 3G by connecting it to their computer with the USB cable that came with their iPhone or by using a standard-sized Apple USB Power Adapter (with fold up prongs) or with a third party adapter designed to work with the iPhone, such as a car charger."

This charger recall is the most recent problem affecting Apple's hot iPhone. Earlier this month, Apple announced a firmware upgrade for the iPhone to fix several issues, including dropped calls, e-mail reliability, and battery life.

Palin's hacked e-mail: Lessons to learn

Republican vice-president candidate Sarah Palin learned a lesson that many of us often forget: The Web isn't safe.

A hacker was able to get into Governor Palin's Yahoo Mail account through the "reset password" feature, which allows users to retrieve or change their login password if the user can confirm their identity with personal information—their birthday, spouse's name, etc. As some news outlets have reported, Palin's cyber-attacker was able to easily fool Yahoo by finding such information about the politician online.

But a word of warning: Celebrities and politicians aren't the only ones who are vulnerable to such hacker tricks. With an increasing number of people posting personal information on Web sites such as Facebook, MySpace and blogs, nearly anyone can fall victim to such online account hijacks. One security expert noted how he used such trickery on a friend (with permission) to successfully gain access to that person's e-mail—and many other online services, such as that person's bank accounts. (Read his account, "How I Stole Someone’s Identity," on Scientific American.)

To avoid becoming a victim like Sarah Palin, follow these simple tips:

DTV coupons: Concerns raised about the program

Did you apply for your two $40 DTV coupon from the NTIA (National Telecommunications and Information Administration)? Have you gotten them yet, or maybe the clearly-marked envelopes containing the $40 debit cards somehow got "lost" in the mail? Or maybe you were denied because of some address snafu?

Or perhaps you got them—but the $40 discount cards expired before you could use them?

Those are the common complaints readers have raised in comments on blog posts regarding the digital TV transition, DTV coupons and digital converter boxes. At a Congressional hearing this week, our parent company, Consumers Union, raised another, broader concern about the coupon program which was meant to offset the set-top converter boxes that older analog TV will need to use after February 2009.)

Living with Apple's new iPods, iTunes

Apple's refresh of its iTunes and iPod line, while not a radical remake, looks like a winner, according to our preliminary tests. As the embedded video shows, we found that the new iPods and iTunes features worked as promised.

As we noted previously, the new Nano received the most radical overhaul, inside and out. The tall, slim design, a throwback to the second-generation Nano, is extremely palm-friendly, and its curved display and rounded edges look very cool.

The built-in accelerometer reorients the display when you tilt the Nano—just like those on the iPhone and Touch—and you can view your albums in cover-flow mode as well as play games. One feature it borrows from a lesser-known MP3 player, the Sandisk Shaker, lets you shuffle your songs by shaking the player. 

The new Touch's more subtle improvements, a built-in speaker and side-mounted volume control, also worked very well. It's a pleasure not having to plug in earphones just to watch a video or play a game. The edges of the new Touch are noticeably thinner than the original model, which makes it feel more comfortable in the hand. Otherwise, it appears and handles the same as the previous Touch.

The jury is still out on the new Genius feature, however, which creates a 25-song playlist based on the type of song to which you’re listening. For it to work properly, Genius requires iTunes users to open an account, and it has to scan your entire library. We tested it on a collection of about 1,000 songs and found it easy to befuddle. It frequently came back saying it was unable to make a playlist because there weren’t enough similar songs. It’s better if you have a large collection of music. Genius playlists can be created and saved on the iPod and then synced back to iTunes. One quibble is you have to enable Genius in iTunes then sync to the iPod to get it to work on the iPod. The Genius feature is available on iTunes, the new iPods, and older Touches and iPhones.

We will be completing our in-depth tests very soon. But our initial impression is that these new arrivals have a lot to offer.

—Mike Gikas

DTV converter boxes: See what you need

Judging by the number of comments we keep receiving about DTV converter boxes on Consumer Reports' Electronics Blog, it seems many consumers are still confused about DTV set-top boxes—and the transition to digital TV, in general.

We produced a new online video guide to DTV converter boxes that should help those who are using their $40 government-issued coupons to shop for DTV boxes. You can watch the 5-minute-long video by clicking on the embedded player at right.

We also have more, free information about the DTV transition—including our latest Ratings of DTV converter boxes—at ConsumerReports.org. You can find further help in the digital TV transition section of Consumer Reports discussion forums on Electronics and Computers.

Have a question about DTV converter boxes or the digital TV transition you'd like to see answered? Leave a comment here on our Electronics Blog.

—Paul Eng

Panasonic Lumix DMC-G1: A new kind of digital camera

Is it an SLR, a point-and-shoot, or neither? Panasonic's new Lumix DMC-G1, introduced today and available in mid-November (price hasn't been announced), defies neat categorization. In fact, it may well define a new class of digital camera.

What differentiates the DMC-G1 from all other cameras is that it combines key SLR features—a large image sensor and interchangeable lenses—with the smaller size and weight of a point-and-shoot. No, the DMC-G1 won't fit in your pocket or purse, but it is considerably smaller and lighter than the smallest SLRs out there—even when outfitted with a lens (details below). So if you've been considering an SLR for its superior performance and flexibility, but have held back because you're put off by the typical SLR's size and weight, the DMC-G1 (and the similar cameras that are sure to follow) may resolve your dilemma.

Extended warranties: Trade group predicts a drop in sales

A smaller proportion of consumers are expected to buy extended warranties for electronics items in the months to come compared with the recent past.

That's not wishful thinking from Consumer Reports, which has long recommended against these add-on warranties as typically unnecessary and overpriced. It's a prediction from the Consumer Electronics Association, a trade group that represents electronics manufacturers and a number of retailers, too.

In a keynote address to the Retail Vision conference, Tim Herbert, the CEA's senior director for market research, said the association predicts that 16 percent of U.S. households will buy or consider buying an extended warranty when purchasing electronics items in the coming 12 months. That's less than half the 36 percent that bought or considered such warranties for electronics items in the year prior to the study's release.

In an interview with Channel Web, a business website, Herbert is quoted as saying the drop is "a testimony to the durability of electronic devices. For the price, these products last a very long time and in the majority of cases they will operate with little or no problems for their useful life." In general, Consumer Reports' repair histories for major electronics goods support that view, showing failure rates in the first few years of life that are typically quite modest; for example, only about 3 percent of flat-panel TV sets fail within the first three years.

Apple Spruces Up iPods, iTunes; Prunes prices, and fixes for iPhone 3G

Apple unveiled significant updates to iPods (Click on the image at right for a closer look) and the iTunes store at its "Let's Rock" event in San Francisco. These include a slimmer, greener Nano with a larger display, a slimmer Touch with a built-in speaker, and a revamped iTunes that adds a cool new music-search feature and the ability to download HD programming. There's also a firmware update for iPhone 3G users that promises to fix dropped calls and other problems reported by its users. Many of the products are available today; others will roll out over the next few weeks. We'll be reporting on these new models and features as they roll through our labs over the next few days. In the meantime, here's what we know now:

iTunes 8.0. With this update, iTunes' 65 million customers will be able to download and view high-definition programming on their computers and Apple TV. Shows in HD will cost $1 more than those in standard definition. What remains to be seen, besides the purported improvement in quality, is how long it will take to download such shows. Also new is Genius, a search feature that takes its cue from Internet radio stations by seeking out songs from similar-sounding artists. How it works: While you're listening to a song that you like on your iPod or iTunes, pushing the Genius button will send it scanning your library for  25 to 100 songs from like-sounding artists. Of course, Genius will also make recommendations from the iTunes store, as well. Genius is available to all iTunes and iPod users who install the free update.

Watch out for Twitter nitwits

Beware: There's a rash of cyberspace attackers trying to plant a "bot" or some other sort of malware on your PC. They've graduated from email-based exploits to the use of "Web 2.0" social networking sites to do their dirty work. Twitter is the most recent example. Here's how it works:

Logging into Twitter, you get a request, maybe in a foreign language, to "follow" another user. But the sender's real intent is to get you to click on an enticing web link in the message, purportedly to view a photo or video. You click on it, and a message pops up telling you that you need a "Flash update" to view the video, with a convenient web link to the file. You run the self-installing file, which... you guessed it, installs a malware program on your PC.

This kind of attack isn't new. What's novel, and what changes the demographic, is the "vector" being a social-networking site. We strongly recommend everyone practice—and promote to others who may not understand the danger—the safe computing practices we outline in our cyber-security section.

We'd add that you should be aware of new "social engineering" tricks like this one, that cloak malware payloads inside a process that seems innocent, but ends in that most perilous of actions: your approving installation of malware.

—Dean Gallea

The LG Decoy and Glimmer: Cell phones with a twist

When you cover the cell-phone market, an industry driven by imitation, it's uplifting to come across models that break from established design templates to make life easier. The LG Decoy and Glimmer, upcoming additions to our cell phone Ratings (available to subscribers), aren't game-changers like the iPhone. But they do have some unique characteristics that are bound to make some users happy. The details:

The LG Decoy, $150 from Verizon with a two-year contract, offers an innovative solution for hands-free users: It comes with its own Bluetooth headset, which conveniently snaps into the back of the phone when it's not in use. (Click on image at right for a closer look. The headset is the piece with the "Bluetooth" symbol.) The phone charges the headset, though only when it's plugged into the AC charger. The headset, which is a little over an inch long, earned good scores for listening and talking quality—comparable to many of the models we recently added to our Ratings of Bluetooth headsets (available to subscribers). Talk time was also relatively short at 2-1/2 hours. A replacement headset costs about $70.

The phone itself (Click on the image at left for a closer look) has an excellent mixture of controls and features for making and taking calls, and display and keypad are very easy to read under most lighting conditions. Voice quality is very good for talking, but only fair for listening—worse than most other CDMA phones. Talk time is an adequate 4-1/2 hours. You can download music and other content via Verizon's V-Cast service, and store that content on memory cards of up to 8GB.

CEDIA gets the Blus: New Blu-ray models debut from major brands

Reflecting the market's inexorable move to high-definition content, a number of manufacturers introduced Blu-ray players at CEDIA. Several are so-called Profile 2.0 models with a feature called BD-Live, which enables you to download Internet content such as movie trailers. If you want Internet connectivity, look specifically for a player that has BD-Live (or can be upgraded to include it), as earlier designs lack this capability.

Here's a rundown of what we've seen at the show so far:

LG launches Netflix-enabled player

LG Electronics surprised audiences when it revealed the price for the previously announced BD300 player: $400, which is $100 less than expected. The BD300 (click on image above for a closer look) is a BD-Live model with the unique ability to stream movies and TV episodes from a Netflix online library of about 12,000 titles (a Netflix subscription is required). The player offers internal decoding of the new Dolby TrueHD high-resolution audio format, and will presumably pass DTS-HD Master audio as bitstream (the specs are a bit unclear). The BD300, which has a USB port for playing back digital music, photos, and videos stored on a flash drive, will be available next month.

Epson, Panasonic add new 1080p front projectors

Epson has joined Sanyo in offering a 1080p front projector for less than $2,000, clearly the new entry-level price point for these models. 

Epson's PowerLite Home Cinema 6100, a 3LCD model with a price tag of $1,999, has a manual lens shift, six color modes, and a 2.1x optical zoom. Sanyo's new projector is the PLV-Z700, mentioned in an earlier blog.

Epson also introduced two other 1080p LCD-based projectors the step-up PowerLite Pro Cinema 7100, a sub-$3,000 projector with ISF certification, and the PowerLite Pro Cinema 7500 UB, a $4,500 LCD model with improved contrast and additional features, plus a spare bulb and ceiling mount. The 6100 has a 2-year parts and labor warranty; the 7100 and 7500 UB come with 3-year warranties.

Meanwhile Panasonic announced the LCD-based PT-AE3000, a 1080p model with a unique feature—called Lens Memory—that lets you lets you project a 2.35:1 aspect ratio (increasingly common in movies) without the use of an anamorphic lens. It will be available in October at a price of $3,500. This projector also has 120Hz "frame creation" technology, which analyzes adjacent frames to interpolate new ones, essentially doubling the frame rate to help reduce motion blur. For 24p signals, the frame rate is quadrupled to to 96 frames per second.

—James K. Willcox