We’ve just been in the throes of setting up communications and systems for taking care of financial interests while we’re away. So, the following comments are based on theory. We’ll report on how things work in the real cruising world in the ensuing months.

For us, communications fall into a number of different categories. In terms of e-mail, which seems essential these days, even though it wasn’t that long ago that we did without, there are two levels. First is the ability for family and friends to stay in touch, and to deal with day-to-day business affairs. E-mails without attachments do not take a lot of bandwidth (i.e. electronic speed) so there are a variety of methods for dealing with these. Files with attachments, and surfing the Internet require much more capacity.

While we’re in New Zealand we have two options that look the best. The fastest are high speed WiFi connections, which are popping up in marinas around the country. Our new laptop has built-in WiFi capability (common with most new computers), so all we should need to do is arrange with the local service provider to get connected at cable modem-type speeds. The second option is an ISDN-speed-like phone service, available from the mobile phone service providers.

We’re assuming the WiFi service providers have not yet made it to the tropical South Pacific, so we’ll have SailMail (SSB system) and an Iridium Satellite phone (2400band – slow!) for text e-mail.

For voice communication, when close to land, the best bet seems to be a GSM-type cell phone. These will work in New Zealand, Tonga, Fiji, and perhaps some of the other islands we’ll be visiting. The drill is to pick up a new "SIM" card in each area with prepaid minutes. We also want simple, always available voice communications when in the more remote areas and at sea, which is where the Iridium phone comes in.

Iridium now has prepaid SIM card as well. The one we’re using has 500 minutes and costs $1.05 per minute, a relative bargain for worldwide coverage.

With the advent of online banking, the world of cruising finance has gotten a lot simpler. Many banks will now pay bills automatically from pre-established authorizations. You can even go online and ask the bank to send out checks from time to time. For regularly required checks, like insurance, property taxes, mortgages, etc., you can set up the schedule in advance. If you use credit cards you can go online to check what has been charged, and to authorize payments by your online banking connection.

The tricky part in all of this is the security end. Obliviously nobody wants to have outsiders gain access to their online banking activities. To get a handle on this we asked our computer guru, Doug Lochner of HLI Systems, for his thoughts. Doug’s comments are below, and eye opening!

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There are numerous issues here…The main thing is realizing that if you use the Internet, someone can eavesdrop on your "conversation" with the server. This is true at home or in port.

I would NOT use an Internet cafe computer to access bank accounts… Even though the connection should be encrypted (SSL via https), there is no guarantee that the computer doesn’t have some form of spyware on it (most of which record all keystrokes!). Most of the hotel computers I’ve ever tested have had some form of spyware, and most of the hotels did NOT know it!

So…you can use your notebook, which means you need to connect it to someone else’s network. Still some risk, but less than using a computer you don’t know about. Make sure your connection is "https:" before typing login info…the S in https tells the server to start an encrypted session.

BEFORE you leave you need to run WINDOWS UPDATE on your laptop (Microsoft just released a slew of security updates). Get it at http://www.microsoft.com/security/bulletins/automaticupdates.mspx.

Also download, install and update Microsoft’s Free AntiSpyware application. Run it and UPDATE the profiles and make sure it completes a clean pass on your notebooks. It is available here: http://www.microsoft.com/downloads/details.aspx?FamilyID=321cd7a2-6a57-4c57-a8bd-dbf62eda9671&displaylang=en (Make sure url is all on one line – if that doesn’t work go to Microsoft.com and look under popular downloads for antispyware beta.)

Obviously PASSWORDS should be LONG and STRANGE…meaning NO words that appear in the dictionary, and use letters and numbers and special characters (example: 2397*tuNtty##). You can easily create a combination that you can remember by associating things like: Emma’s First Mud Pie = Em’s1stMP!

Because of the way passwords and user names are stored (actually, the mathematical HASH is stored, NOT the password) they should be at least 8 characters long, and again contain letters and numbers and special symbols (*&^%$#@!), if allowed.

A password like "Emma802" can be broken, even though encrypted, pretty fast. Em’s1st MP! is much harder, especially if the server allows spaces. I’ve found bank servers lacking in password security – most don’t allow special characters or spaces.

FYI: If you use web email you should access it with https: as well. Wireless networks are very simple to eavesdrop on so make https: a requirement for anything you don’t want shared.

You should review your bank’s stand on unauthorized access to your account via the web. Also you may want to set a web limit or a separate "web account" and give someone authority with the bank to raise the limit. You contact your designated intermediary to get any temporary needed increase in web banking limits. Make certain your bank is FDIC insured – there are numerous financial institutions that are not required to be FDIC insured, and these don’t afford you the same protections.

Because I know how easy the banking system is to hack, whether via an ATM or Internet, I have specific demands I place on our bank. For example, none of our corporate accounts have ATM cards associated with them, and all accounts that have others transfer money into them (like PayPal or online payments) are "dummy" accounts that sweep the money (one-way) into our main account. This avoids potential issues with unauthorized electronic withdrawals and puts the burden of proof squarely on the bank.

It seems bizarre, but according to the banks I’ve talked to a bank-to-bank transfer just goes through. There are no manual CHECKS OR BALANCES in place to make sure it is legit! If a financial institution has your account & routing number they can deposit and withdraw from your account. US Federal law limits your liability on electronic transfers generally to $500. There are a list of important requirements and limitations which should be outlined in your bank’s "disclosure statement". If you have an offshore bank, obviously US banking laws do not apply.

To avoid potential hassles we set up accounts specifically for electronic banking, and limit the amount of funds that are held in those accounts. But, hey, I’m a stickler about these things. 99.99% of people never get burned so they figure all is well…of course, if you’re the 0.01% that gets ripped off, and you have to waste time messing around with your bank convincing them you didn’t get the money, you’re screwed. It is important to know your rights and the proper way to dispute an "unauthorized" charge on your account. Often the burden of proof that a transaction was not authorized falls on you…and it may be hard to prove you didn’t authorize the transaction.

There is good information available at: http://www.fdic.gov/bank/individual/online/safe.html

and http://www.fdic.gov/regulations/laws/rules/6500-3100.html

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Doug’s comments are both enlightening and sobering. As a result, we’re making some changes in the way we do things, both at our land base and when cruising.

The final issue is handling mail (much less of a need these days with the Internet and e-mail). In the past we’ve used PO boxes with a forwarding service. But as we’re on the boat for a period, and then back on land, this is a real hassle changing back and forth. So this time around, we’ve got a neighbor picking up our mail. She’ll hold it for us, and then periodically send it by FedEx – hopefully without most of the junk – when we’re in a "civilized" location.