Category Archives: Assignments

Are there criminals hiding in the cloud? – BBC.co.uk

By Alex Hudson BBC Click

Following the exposure of the Sony PlayStation 3 security flaws – and with so much of our data stored online – are we making it too easy for criminals to get hold of our information?

When over 100 million people’s details were garnered illegally from Sony recently, users were up in arms about their prized information being leaked.
But, according to one study, over two thirds of companies are planning to store at least some of their data in “the cloud” – a term used to describe putting data online rather than on a hard-drive.

With more businesses using the cloud, this sort of leak could become a more regular occurrence.

“While the potential of cloud computing is rapidly being revealed, so too are its vulnerabilities,” Brendan O’Connor, the Australian minister for Home Affairs, told the International Association of Privacy Professionals.

THE SONY CRISIS

Graham Cluley, security consultant

“People need to be more careful with their passwords and make sure that they have different passwords for different online accounts.

“People should also consider lying about some of their details. I have given Facebook a phoney date of birth for instance.”

Sony crisis: The expert panel

And, he believes, criminals “can hide data in clouds” if they are clever about it.
“Rogue cloud service providers based in countries with lax cybercrime laws can provide confidential hosting and data storage services,” he said.

“[This] facilitates the storage and distribution of criminal data, avoiding detection by law enforcement agencies.”

An easy parallel to draw is with the way Swiss bank accounts were rumoured to operate in the past.

While bank customers were offered the utmost of discretion with their financial transactions, that same courtesy could now be offered to those wishing to de-encrypt sensitive data.

Stealing secrets

To safeguard information, details are regularly encrypted to a high level, meaning that – until very recently – supercomputers were required to get any details in a useable form.

But now the internet itself is offering criminals the chance to super-charge their processing power to make decryption quicker, cheaper and easier than ever before.
William Beer, director of Price Waterhouse Cooper’s security division, says “even if credit card details are encrypted, there is software that may be able to decrypt it given enough processing power” once it has been stolen from the cloud itself.

PM David Cameron says cyber-crime is a top priority for national security
“Encryption is often seen as a silver bullet. We need to be very careful because there are many different types of encryption. It can introduce an air of complacency into organisations and what we’re starting to see are criminals actually looking to the cloud.

“It can provide massive amounts of processing power and [this] can actually de-encrypt some of the data. The irony of it is that they are using stolen credit cards to buy that processing power from the cloud providers.”

And this type of activity has actually been tested by German security researcher Thomas Roth.

He used a “brute force” technique that could previously only be possible with super-computers to break into encrypted WiFi networks.

The technique allows 400,000 different passwords to the encryption to be tested per second, quite literally knocking at the door until it caves in. No specialist hacking techniques need to be used.

This was done using a cloud computing service costing just a few dollars per hour.

Even if you have supercomputers, if your encryption is strong enough, it would still take years to break those passwords

Mark Bowerman, Financial Fraud Action UK Roth used Amazon’s Elastic Cloud Computing (EC2) system, which allows users to rent increased computing power by the hour or for as long as is needed – thus the name elastic.
Amazon says it continually works to make sure the services aren’t used for illegal activity and takes all claims of misuse of services very seriously and investigates each one.

While Roth was not doing this for illicit means – and could be done with any cloud system – the idea could be used, in principle at least, for the purpose of de-encrypting credit card details.

He is already experimenting with speeds that could allow one million passwords a second to be tried.

Hacking ‘master key’
What many see as most scary about this idea is that because the criminals using the cloud are using false information, they are very difficult to trace.

That said, there are data standards in relation to private information kept by companies which are particularly strict when financial details are held.
“You’ve got to meet the data security standard – it is the absolute minimum requirement,” says Mark Bowerman, a spokesman for Financial Fraud Action UK.

Credit card information is heavily encrypted when held online
“Beyond that, there are reputational issues to consider. If you are hacked and data is stolen, then it will be a serious concern both reputationally and financially as well.”
So what can be done to protect information yourself?

“Unfortunately, people have the habit of reusing their passwords for multiple different services,” says Rik Ferguson, of digital security company Trend Micro.
“Many people will have to consider that these criminals have both their email address and their common password.

“Once you own someone’s email account, that’s really the master key to everything because you can go through the password reset process of [a number of services] and of course, they come back to that email account. It’s the key to your online life.”
But, says Bowerman, if both you and the companies you trust with your data are careful with it, serious breaches are still very unlikely.

“Even if you have supercomputers, the computing power of hundreds of thousands of computers linked together, if your encryption is strong enough, it would still take years and years to break those passwords,” he says.
“It boils down to how good your encryption is.”

Data security a job for corporations, consumers – SFgate.com

James Temple Saturday, May 7, 2011

Sony and Epsilon have done their level best to destroy the public’s already shaky confidence in corporate handling of consumer data.

In the last few weeks, Sony revealed that several orchestrated attacks on its services may have compromised the personal information for some 100 million user accounts, making it one of the largest known data breaches ever.

That closely followed the news that hackers snatched the names and e-mail addresses for millions of customers of major brands like Target, Best Buy and L.L. Bean, by cracking into the databases of online marketing company Epsilon.

The nature of these attacks bode particularly poorly for consumer confidence, because there’s nothing customers could have done to avoid being victimized, short of not signing up for the services of legitimate, well-known brands.

That underscores an unsettling and little spoken truth about online data: Companies can and certainly should get better at protecting personal information, but any firm that says it will completely safeguard such data is making a promise it can’t keep. Security is an arms race, and the good guys aren’t always in the lead.

“As a defender, you have to secure everything, and the attacker only needs to find one way in,” said Ulf Lindqvist, a program director of SRI International.

It’s all enough to make the average person want to yank out his or her Internet connection and toss that iPhone into the bay. But our fear of and response to online data breaches should only be proportional to the actual risks, and that entails taking a clear-eyed look at what those really are.

raud statistics

The relative novelty of large-scale online and smart-phone attacks means they’re the ones consumers are most likely to read about, but that doesn’t mean they’re the threats the average person is most likely to face. And when you’re worried about the wrong things, you make the wrong choices about how to protect yourself.

To put things into perspective, let’s consider some numbers.

A U.S. Government Accountability Office review of the 24 biggest data breaches reported in the media from January 2000 through June 2005 only turned up evidence of resulting fraud in four of those cases.

In fact, if you’re looking to become a victim of identity theft, a hacker digging up your online data appears to be one of the least effective routes.

The more direct way? Associate with jerks.

Most of the roughly 9 million annual victims of this crime don’t know how their information was accessed. Among those that do, the far biggest group, 16 percent, blamed a person they knew, according to the Federal Trade Commission’s latest survey, from 2006.

Hacking and a common type of online attack known as a phishing scheme occupy the smallest slices of the pie, at 1 percent each, well below a lost wallet.

Also worth remembering: The median value obtained by identity thieves was $500 and the majority of victims, 59 percent, incurred no out-of-pocket expenses. That’s because credit card companies are legally required to swallow these fraudulent charges.

Added up, it means the likely consumer financial impact from these latest high-profile attacks is “probably none,” said Bruce Schneier, a security expert and author.

Which isn’t to say there’s no impact at all. If hackers sell or use any snatched credit card and bank account numbers, then consumers are facing some tedious work.

It typically takes months to straighten this out with law enforcement, credit companies and rating agencies, said Jay Foley, executive director of the Identity Theft Resource Center. It might not be a strain on the wallet – but it’s certainly a pain in the general vicinity.

Foley also, by the way, suspects that online identity theft represents a bigger portion of the problem than is reflected in the FTC stats.

But whether the personal information is in our trash, wallets or smart phones, the critical thing is to take pre-emptive action to protect it, he and others said. In other words, we shouldn’t throw up our hands and submit to the mercy of some shadowy crooks. Because the threats we’re most likely to face are thwarted by some simple steps.

rotect phone, data

For instance, it’s a good idea to add security software to your smart phones – and it’s basically foolhardy not to password-protect the device. Far more likely than a remote hacking, is the possibility of the phone falling out of your pocket.

One in three people in the United States have lost or had their mobile phones stolen, by some estimates. These devices are troves of personal information, with e-mails, banking apps, calendars, notes and more. Yet today less than half of owners bother to set up passwords.

Other commonsense steps: Take your Social Security card, and anything else with the number, out of your wallet. Install passwords and security software on all your devices. Keep your operating systems and applications up to date. Don’t click on e-mails or links from people you don’t know. And in both the real world and online, think twice before giving out sensitive personal information.

But none of this should let businesses off the hook either.

As Lindqvist’s bumper sticker reads, “security is not easy.” But he believes that businesses on the whole can do far better. Too often, companies are much more focused on rapidly rolling out new features than on adequately locking down security, he said.

The short-term negative publicity surrounding major breaches does little to improve corporate behavior, Schneier said. The only things that can really compel change are new laws – or if consumers hit companies where it hurts by refusing to patronize those that fail to safeguard their information.

orporate policies

But it’s not just about building stronger safes or higher fences. In this information economy, Corporate America’s default policy is to gather as much data as possible and cling to it.

That turns them into bright red bull’s-eyes for hackers, for much the same reasons that thieves target banks: It’s where the information is.

Consumers should put up more of a fight before handing theirs over, and companies need to think harder about what data they actually need for their business or technology to work, said Kevin Mahaffey, chief technology officer at Lookout Mobile Security.

“Companies are starting to recognize that it’s akin to nuclear waste,” he said. “If you gather too much, it can be a huge liability.”

E-mail James Temple at jtemple@sfchronicle.com.

http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/05/07/BUHP1JCGMP.DTL

Play by Play: Sony’s Struggles on Breach – WSJ.com

By IAN SHERR And NICK WINGFIELD

<< h/t to Gsimmons for flagging this article >>

On a Tuesday afternoon last month, engineers working for Sony Corp. were baffled when several servers running the company’s PlayStation Network suddenly turned themselves off and then back on.

Sony CEO Howard Stringer apologized to customers for a massive data breach of the company’s online game networks, in the first public comments from Sony’s top executive on the outage. Plus: is another hack attack imminent? We discuss with Dan Gallagher and Arik Hesseldahl

Analysts See Billion-Dollar Repair Bill
Sony CEO Apologizes for Data Breach
Letter from Sony CEO on Data Breach
Sony: Hacker Left Taunting Message

At the time, the unexpected rebooting seemed like an odd malfunction. The next day, however, the engineers found the first evidence that an intruder had penetrated Sony’s systems, prompting the Japanese company to take what it calls “the almost unprecedented step” of shutting down the popular online gaming network.

Sony Chief Executive Howard Stringer issued a public apology this week for what the company later disclosed was a data breach that compromised more than 100 million user accounts on three public networks, and a delay in informing users of the theft. Sony says the loss included users’ names, birthdates and passwords. It also hasn’t ruled out the loss of credit card numbers associated with the Sony PlayStation network.

Some analysts believe the incident, which has drawn the attention of authorities around the world, will cost the company more than $1 billion for measures that include new security and a $1 million insurance policy for any victims of identity theft. The company hasn’t provided its own estimate of the cost. It also hasn’t resumed operating the network, but has said it is in final testing and is expected to do so within days.

“Taken as a whole, the number of customers affected, the PR impact and now the legislative inquiries,” this ranks “at the top” of data breaches to date, said Cynthia Larose, an attorney specializing in privacy matters with Mintz Levin in Boston.

PlayStation Network, which is accessed by owners of Sony game consoles, uses 130 server systems, 50 software programs and has 77 million user accounts, according to a letter that Kazuo Hirai, president and group chief executive of Sony Computer Entertainment Inc., sent Wednesday to a U.S. congressional committee. That letter, and a similar account included in a letter Friday to Sen. Richard Blumenthal (D., Conn.) provide the most detailed accounts of the incident.

Sony’s troubles began in January, after it sued a 21-year-old software wiz named George Hotz for posting software that let gamers reconfigure the company’s popular PlayStation 3 console. The suit enraged a loose community of vigilante technologists that calls itself “Anonymous,” which in early April made an oblique threat against the company. Sony’s PlayStation Network began suffering intermittent outages, which the company later linked to a denial-of-service attack—a common maneuver that attempts to overwhelm a target’s servers with a flood of data traffic. A week later, Sony said it settled with Mr. Hotz, but the denial-of-service attacks continued.

Sony said in the letters that its difficulties in discovering the intrusion that occurred later that month may have been exacerbated by its security teams working very hard to defend against the denial-of-service attacks. It acknowledged, however, that it may never know whether people who participated in the denial-of-service attack were conspirators in the data breach.

Though Anonymous has denied being involved in the data breach, senior Sony executives believe a person or people affiliated with the group are responsible for the data theft, according to someone familiar with their thinking.

On April 19, according to the letters, engineers noticed servers rebooting themselves when they weren’t scheduled to do so. They began combing through logs generated by the machines to find the problem. The network team concluded that “unplanned and unusual activity was taking place on the network,” and took four servers offline, working into the evening investigating the machines. The next day, the company mobilized a larger team to study the four machines, an effort that later led to evidence six more machines were possibly compromised, according to the letters. That afternoon, the network team discovered evidence of an intrusion and that data of some kind had been transferred off the PlayStation Network servers without authorization.

Unable to determine what type of data had been transferred, the team opted to shut the network down. Sony posted a three-sentence notice April 20 on its PlayStation website that said nothing about the data breach. That afternoon, the company retained a security consulting firm and began a two-day process of copying the contents of the servers so they could be analyzed. It later retained a second and ultimately a third outside firm, beefing up manpower as part of the painstaking analysis. The Federal Bureau of Investigation was notified of the intrusion on April 22, with a meeting set up to provide details five days later.

“We’re aware certain functions of the PlayStation Network are down,” wrote Patrick Seybold, a Sony spokesman. “We will report back here as soon as we can.”

By the evening of April 23, according to the letters, the company and its consultants were able to confirm that intruders had used “very sophisticated and aggressive techniques” to obtain unauthorized access to its servers. The intruders hid their presence from system administrators, obtained privileges to access restricted parts of Sony’s systems and deleted log files to hide their activity, Sony says. It took until April 25 to confirm the scope of the data believed to have been taken from its systems, Sony wrote in the letters. The next day, Sony told its customers their personal data had been stolen, urging users to change passwords and check their credit card accounts for fraudulent behavior. It later offered free time on the system and identity theft monitoring services as compensation in the U.S.

The company says it didn’t learn until May 1 of another likely theft at Sony Online Entertainment—another network serving games for PC users—involving nearly 25 million user accounts. That second discovery was made only after the Sony unit rechecked its machines—which earlier showed no evidence of the theft—using information developed by security experts working for Sony, according to the letter sent to Mr. Blumenthal.

“I wish we could have gotten the answers we needed sooner, but forensic analysis is a complex, time-consuming process,” Mr. Stringer said in his statement Thursday.

Sony has provided few specifics about the attackers’ techniques, citing worries that the information could be used to penetrate other similar systems. During a press conference last weekend, however, Sony senior vice president Shinji Hasejima indicated that the intruders exploited a vulnerability in a program called an application server—a flaw not known to Sony—to breach the company’s firewall defensive mechanisms.

The attack “came in as a normal transaction, which could not be detected by the firewall and went out as an ordinary transaction,” Mr. Hasejima said. “It was a very skillful approach.”

Though they deleted most traces of their activity, according to the Sony letter, the attackers did leave a file called Anonymous that included the digital posse’s tagline, “We are Legion.”

In a press release on May 4, Anonymous reiterated that it had not orchestrated the data theft. “Whoever broke into Sony’s servers to steal the credit card info and left a document blaming Anonymous clearly wanted Anonymous to be blamed for the most significant digital theft in history,” the group said. “No one who is actually associated with our movement would do something that would prompt a massive law enforcement response.”

Read more: http://online.wsj.com/article_email/SB10001424052748704810504576307322759299038-lMyQjAxMTAxMDAwNjEwNDYyWj.html#ixzz1LjNFxpZx

UPDATE 4-Sony says 25 mln more users at risk in second data hack – Reuters

http://www.reuters.com/article/2011/05/03/sony-idUSN0224988320110503

* Sony says personal information hacked on PC games system

* Says personal information of 24.6 mln users stolen

* Says debit card records for 10,700 users in Europe taken

* Facebook games also suspended

* Japan mkts shut, shares down 4 pct since revealing breach

(Recasts, adds TOKYO dateline, Sony comment from Tokyo)

By Isabel Reynolds and Liana B. Baker

TOKYO/NEW YORK, May 3 (Reuters) – Sony’s Internet security crisis deepened on Monday with the company revealing hackers had stolen data of another 25 million users of its PC games system in a second massive breach for the consumer electronics giant.

Sony’s latest revelation comes just a day after Sony No. 2 Kazuo Hirai announced measures had been put in place to avert another cyberattack like that which hit its PlayStation Network, hoping to repair its tarnished image and reassure customers who might be pondering a shift to Microsoft’s Xbox.

The attack that Sony disclosed on Monday took place a day before a massive break-in of a separate video game network that led to the theft of 77 million users accounts. Sony revealed the initial attack last week.

The Japanese electronics company said it discovered the break-in of its Sony Online Entertainment PC games network on May 2. The breach also led to the theft of 10,700 direct debit records from customers in Austria, Germany, the Netherlands and Spain and 12,700 non-U.S. credit or debit card numbers, it said.

The PlayStation network lets video game console owners download games and play against friends. The Sony Online Entertainment network, the victim of the latest break-in, hosts games played over the Internet on PCs.

Sony said late on Monday that the names, addresses, emails, birth dates phone numbers and other information from 24.6 million PC games customers was stolen from its servers as well as an “outdated database” from 2007.

A spokesman for the online games unit based in San Diego said the service was taken down at 1:30 am Pacific time on Monday.

Sony spokeswoman Sue Tanaka, asked about the risk other data could be at risk, listed the precautions that the company has taken such as firewalls,

“They are hackers. We don’t know where they’re going to attack next,” Tokyo-based Tanaka said.

The PlayStation Network incident has sparked legal action and investigations by authorities in North America and Europe, home to almost 90 percent of the users of the network, which enables gamers to download software and compete with other members.

On Monday, Sony declined to testify in person in front of a U.S. congressional hearing, but agreed to respond to questions on how consumer private data is protected by businesses in a letter on Tuesday, said a spokesman for Rep. Mary Bono Mack, a Republican Congresswoman from California, who is leading the hearing.

SONY FACEBOOK GAMES DOWN

The incident that Sony disclosed on Monday also forced it to suspend its Sony Online Entertainment games on Facebook.

Sony posted a message on Facebook saying it had to take down the games during the night.

A Sony spokesman said the Facebook games make money from microtransactions and the sale of virtual goods like costumes and weapons.

It was not immediately clear if the data theft included data from players of Sony games including “PoxNora,” “Dungeon Overlord,” “Wildlife Refuge” on Facebook.

Facebook could not immediately be reached for comment.

Sony Online Entertainment is a division of Sony Corp , the global electronics company that operates online games such as “EverQuest” and is separate from the PlayStation video game console division.

The servers for both the Online Entertainment unit and the PlayStation Network are based in San Deigo but are completely separate, said Sony’s Tanaka.

Sony denied on its official PlayStation blog on Monday that hackers had tried to sell it a list of millions of credit card numbers.

The news comes less than a week after Sony alerted customers that a hacker broke into Sony’s PlayStation video game network and stole names, addresses, passwords and possibly credit card numbers of its 77 million customers.

Sony alerted customers a week after discovering the break-in.

Sony executives apologized on Sunday and said it would gradually restart the PlayStation Network with increased security and would offer some free content to users. [ID:nL3E7G101C] (Additional reporting by Edwin Chan in Los Angeles and Alexei Oreskovic in San Francisco; Editing by Andre Grenon, Richard Chang and Lincoln Feast)

New assignment — fun, easy & due Monday

Go to NYTimes.com, CNN.com, MarketWatch.com, BusinessInsider.com, Businessweek, WSJ, and any other reputable business news source that uses standard American English. (No Economist, No FT, No Fox, No USAToday).

Dip/Gov people can also use People’s Daily (in Eng).

Come up with 3 -5 adjectives for:

  • Go Up/ Rise
  • Go Down / Fall
  • Fast
  • Slow
  • Very

That’s it.  No writing assignment this week.  But please do the reading.  We’ll be starting the presentation book soon.

The 10 Commandments of Orgcom

  1. Know who you represent.
  2. Know who you are targeting (audience)
  3. Know your message
  4. Know what you want your target audience to do after reading/hearing your message
  5. Know what your images & graphs represent – TO EVERYONE
  6. Know your stakeholders – all of them
  7. Know how the ENTIRE range of stakeholders will understand your message
  8. Keep your sentence structure simple, direct and grammatically correct
  9. Follow a logical 3-part structure.
  10. Don’t try to sound smart — be smart

China e-commerce giant launches campaign to fight online piracy – People’s Daily

Taobao.com, China’s leading B2C (business-to-consumer) website, announced on Monday that it will launch a major campaign to stop online piracy and counterfeiting. The move comes after the site was labeled as a “notorious market” by selling products that violate intellectual copyright protection.

The campaign, according to the website, will be joined by 89 international brands including LV, Gucci and Apple.

Last year, taobao.com deleted more than 5.7 million products involved in copyright infringement. However, while acknowledging the website’s efforts, the Office of the United States Trade Representative was still not satisfied with the results.

In a February report entitled “Out-of-Cycle Review of Notorious Markets,” the agency listed taobao.com as one of the online retailers that “exemplify key challenges in the global struggle against piracy and counterfeiting.”

“Taobao’s online copyright protection campaign will be launched regularly in the future. Once a case of selling pirated or counterfeited products is confirmed, we will immediately blacklist the seller and ban it from opening an outlet on the website,” Qiao Beirui, a public relations principal with taobao.com, told Xinhua Monday.

According to Qiao, the website will also organize a special team responsible for checking piracy and counterfeiting.

In January, a group opposed to online piracy and counterfeiting, which was set up by more than 20 Internet companies, began operations.

The group has so far received more than 7,000 complaints, all of which occurred at taobao.com and involved more than 400 brands, according to group leader Huang Xiangru.

If left uncontrolled, counterfeit products and piracy on the Internet will severely harm the interests of hundreds of millions of online consumers and eventually damage the credibility of the Internet and the country, experts warned.

In this year’s government work report, Premier Wen Jiabao said that the country would develop e-commerce, online shopping, geographical information and other new services in 2011.

Wen stressed that the government would go to greater lengths to crack down on intellectual copyright infringement and fake and shoddy products.

Urging quicker legislation in the field of e-commerce, many law experts noted that the country’s current legislation and judicial regulations cannot be completely applied to online selling of pirated and shoddy products.

Lawyer Chen Baolong said that stronger supervision and management is of the greatest importance in order to root out online piracy.

“For taobao.com, they should conduct investigations and set up records for all online sellers, follow a register and checkup system and closely monitor the quality of products sold. On the other hand, the police should keep collecting evidence on online piracy each day and impose punishments on violators in a timely fashion,” Chen said.

By the end of 2010, China had some 457 million internet users, the most in the world.

Figures from the China Internet Network Information Center show that 161 million Chinese citizens used the Internet to buy products last year, up 41.6 percent year on year.

Meanwhile, the China Internet Illegal Information Reporting Center received nearly 400,000 complaints last year, 23.8 percent of which pertained to online fraud.

In addition to efforts from the governments and sellers, customers were also advised to exercise caution in online shopping.

“If every consumer can remain clear-headed in front of the temptations of low-price international brands and be fully aware of intellectual copyright and self-protection, all the pirated and counterfeit products will have no way out — even in a virtual world,” Chen said.

Source: Xinhua

Both assignments due WEDNESDAY

There seems to be a lot of confusion and no small degree of distress over the due-date of the upcoming assignments.   In the unlikely event that I am at fault here, we will push BOTH assignments back to Wed.

If you want to submit assignments on Friday, that would be very much appreciated.  But if you want to wait until Wed, that’s ok too.

If you have already submitted work and want to ‘pull’ it back, let me know.

See you on Monday.

-a

China: Foreign Students Hit a Record -NYTimes via AP

http://www.nytimes.com/2011/03/05/world/asia/05briefs-China.html?partner=rssnyt&emc=rss

China’s Ministry of Education is reporting that the number of foreign students in the country reached a record high of more than 260,000 in 2010. Statistics from the ministry carried by the official China Daily on Friday showed that 265,090 students from 194 countries were studying in China. That represented a jump of 8 percent from the 240,000 students in 2009.

Group assignments START tomorrow – not due tomorrow

We will start the group work tomorrow (Friday, March 4).

To prep, look at the info on the Multicultural issue, and also brief yourselves on the Baidu and Huawei are having accessing the US market.