Monday, December 11, 2006

Experts Say Cybercrime Will Become More Sophisticated

London, England (AHN)-A new report from computer security company McAfee suggests that organized "cybercrime" gangs are recruiting IT students to join their illegal operations-and are even helping finance the would-be hackers.

The report, titled "Organized Crime and the Internet," also predicts that cybercrime will become more sophisticated in the coming years, as people become more and more aware of traditional e-mail and so-called "phishing" scams.

Dave Rand of Internet security firm Trend Micro, tells Reuters, "The attacks are becoming more sophisticated." Rand predicts hackers will be scouring social networking sites such as MySpace to gather specific information to commit more focused attacks on people's computers.

After McAfee released the new report on Friday, McAfee security analyst Greg Day said, "A growing number of IT students are being recruited by organized criminals. They see students struggling, and offer them what seems a good career path."

"Places like India and Russia produce a lot of IT students. These places where there are poorer economies lend themselves to this kind of career. Organized criminals are sponsoring the IT education of some students," he said.

Julie Farby - All Headline News Staff Writer

Phishers target bank security upgrades: RSA

There was a spike in phishing activity last month, with fraudsters targeting an increasing number of brands and using more sophisticated tools to try and fool online banking customers, according to the RSA Online Fraud Intelligence Report for November.

According to RSA, which recently became the security division of storage firm EMC, an increasing number of financial institutions have been upgrading their online banking systems in order to comply with US regulations. Phishers have been using the upgrade activity to try and exploit users.

Just over a year ago, five US banking regulators -- under the FFIEC umbrella -- advised financial institutions to "deploy security measures to reliably authenticate their online banking customers". The global nature of the banking industry means that any such regulations in the US are at least partly relevant for financial institutions based in Australia.

RSA claims that some of the most advanced phishing attacks during November tried to exploit banking customers before or during the implementation of these new systems.

"With the enhanced level of protective measures taking hold across the financial industry, fraudsters are stepping up the level of phishing activity prior to the deployment of additional layers of defence.

"And they are doing so by mimicking the very efforts that financial institutions are implementing to better protect their customers. The latest scam involves a phishing e-mail requesting customers to … upgrade to the bank's new security enhancement," said the RSA report.

Citibank Australia was criticised last month for possibly contradicting its own security guidelines by sending an e-mail that asked customers to update their log-in details due to an upgrade to the bank's online security system.

Security experts and even Citibank's own staff had trouble confirming if the offending e-mail was genuine or a phishing attack.

By Munir Kotadia, ZDNet Australia

Don't open that Word file; it may be carrying a Trojan!

A new vulnerability has been identified in Microsoft Word. According to security analysts at MicroWorld Technologies, exploits for the vulnerability are out already, which can successfully thrust Trojan Downloaders into user computers.


Microsoft says that it is investigating the vulnerability that exists in Microsoft Word 2000, 2002 and 2003, Word Viewer 2003, Word 2004 for Mac, and Word v. X for Mac, as well as Microsoft Works 2004, 2005, and 2006.

According to MicroWorld, a specially crafted Word file carrying a Trojan Dropper named 'MSWord.Agent' can push Trojan downloaders into victim's computers. The Trojans deposited in this way can log on to predefined Web sites and bring dangerous malwares like Backdoors and Rootkits into a victim's computer.

"One stream of malware writers are quite enthusiastic about exploring application software vulnerabilities, as they think that it is a lot easier and rewarding than getting into the OS level intricacies," comments Sulabh Mahant, of MicroWorld Technologies.

In the last year, MicroWorld Technologies says that it has detected many vulnerability exploits aimed at MS Word files. While 'Win32.Mdropper' and 'MSWord.1Table.bd' were Trojan Droppers that transported back doors into targeted computers, a recently detected macro virus was primarily acting as a vehicle for password stealing Trojans.

By ICTWorld, 12 December 2006

Friday, December 8, 2006

Computer crime: cyber fraud

Like so many other aspects of our lives, major fraud has gone high tech. In fact, fuelled by excited media comment, computer crime and fraud are regarded as synonymous by many. But it’s important to remember that it’s not the computers that commit crimes - it’s the people that use them, and the cost of their crimes to business is immense.

To address the problem, then, it is essential to look at the human factors involved. The first challenge with combating fraud is calculating the size of the problem. We know that it’s a serious issue for businesses around the world, but it is almost impossible to state exactly how big it actually is. After all, some frauds can remain undiscovered for lengthy periods, or are never reported at all. And, understandably, many companies that have been victims of fraud are reluctant to publicise the fact.

But we do have some close approximations available. The authoritative CSO Magazine eCrime Watch Survey estimated that the cost to US organisations alone was $666 million in 2003. Based on these figures, it’s probably safe to say that a total bill of one trillion dollars a year is a conservative estimate.

It’s also said that the average American company loses six per cent of its revenue to crime, fraud and theft - most of it by electronic means. In the UK, and elsewhere, the figure currently stands at around three per cent.

Although many attacks come from outside the organisations, some are ‘insider jobs’ - carried out by employees who have access to systems within the company’s defences. Something the Sumitomo Mitsui Bank in the City of London found out in 2005. Fraudsters attempted to steal approximately £220 million from the bank by entering the building as cleaning staff and connecting hardware bugs to the keyboard sockets of the bank’s computers. The bugs captured keystrokes to reveal account details and other information.

The human factor

We are used to the idea that technology should be deployed to beat IT-enabled crime. World class firewalls, for example, can help fortify an organisation - rather like thick castle walls that prevent the bad guys from getting in. Inside those walls, Intrusion Detection Systems (IDS) and Intrusion Prevention Systems (IPS) can monitor applications and services and raise the alarm when access is attempted by an unauthorised stranger, or when unusual behaviour is discovered.

But if we use technology to counter IT problems, we also need to use people to counter human crimes. If employees are vigilant, and if they understand what is expected of them, then security will be enhanced. Organisations need to establish a culture in which their people are all jointly responsible for defending the company against attack. That requires everyone to know how to behave responsibly, be alert to potential problems, and understand the best course of action when confronted by a malicious attack.

Set the scene

So how can this kind of culture be established?

The first step is to make it clear why security measures are needed: if this is not widely understood, then employees are far more likely to see precautions as an unnecessary nuisance than a business-critical activity.

The message that effective security is a business enabler and a useful sales tool – something that inspires customer confidence and can help close important deals – needs to be communicated. Unfortunately far too many people are still only aware of what they have to do and not why they have to do it.

It’s also important for people to be aware of the potential cost of security breaches and fraudulent activity that results. Take the UK as an example. The annual cost to industry is around £32 billion with a further £8 billion being spent on fraud prevention. That £40 billion total is equivalent to more than half the annual cost of the country’s National Health Service.

With sums like this involved, fraud prevention and security is clearly a board-level issue and not just something for the IT department to sort out. And that means that top managers need to be visibly engaged in the fight against e-crime.

Train everyone

It’s true that technology can go wrong on its own, but a crime can only be committed if a human being plays an active part. Therefore organisations need to make everyone aware of the consequences of any behaviour that breaches the rules, whether from outside the company or from within it.

For large multi-nationals that incorporate numerous languages and cultures, this is no mean task. Nor is the problem merely one of linguistics and getting lost in translation. It’s likely that most employees won’t speak the language of the security team so the message needs to be free of jargon and tech-speak to make it as effective as possible.

In addition, senior executives need to have a clear view of how far their personal liability extends, particularly with a stricter regulatory regime and greater awareness of the need for exemplary corporate governance. It’s still not unknown for members of the board to regard security as a negative cost centre. They need to be persuaded that it can enhance RoI from all IT investments and boost the bottom line of the business.

Middle managers, particularly those in sales and marketing, also need to understand how an effective security policy helps close deals thanks to greater customer confidence.

The general workforce should also be made aware of risk and encouraged to lock both the company’s electronic and physical doors. There are the obvious measures like checking the alarm is set when they leave the building, and ensuring people don’t leave their passwords lying about. But, in our increasingly mobile age, it also includes protecting laptops, smartphones and PDAs – indeed any device which connects to the network and which is all too easily left behind.

As about 80 per cent of all e-crime is caused by people making a mistake, organisations need to develop programmes aimed at prevention, education and raising awareness. This might involve obligatory Computer-Based Training (CBT) packages to be taken at regular intervals; company-wide security clinics; or even global road-shows to ensure awareness is maintained. Organisations may also wish to consider a 24/7 helpdesk to provide support and advice, and to capture details of any incidents that occur.

It’s also vital that a company’s business processes are designed to re-enforce its security policies. The City of London Police believe that only a quarter of crime is reported. However, organisations can implement policies that force its people to inform the necessary officials if they spot, or are the victim of, an offence. So, if a car is damaged or a laptop stolen, it cannot be replaced or repaired without a Crime Reference Number that will trigger an appropriate system.

There are also a number of formal bodies that organisation can work with to minimise the amount and the impact of fraud, including accredited Computer Emergency Response teams who can help trace anyone illegally trying to access systems, as well as the UK’s High-Tech Crime Unit and its international counterparts. This improves the likelihood of tracking down and successfully prosecuting criminals. Equally importantly, it sends a clear message to the hacking community that they will be relentlessly pursued and the equipment confiscated should they attempt to ’break in’ to that particular organisation’s systems.


However, helping the police with their inquiries really should be the last resort. With the correct 'human factors' in place, such extreme measures should not be necessary.

Source: net-security.org

Technologies of political marketing in operations of information-psychological war

Today, observing fast evolution of the election technologies allowing political forces to bring their candidate to the authority, we get more and more convinced, that success in elections of many well-known representatives of the authority is reached thanks to the successfully generated image of the politician combining a victory will, confidence in own power, pragmatic political program, rigidity toward contenders and "touching" attention to problems and cares of ordinary voters. The modern politician cannot manage without army of own policy-technologists, image-makers, promoters, specialists in PR and political advertising, who promote his image as a trade-mark using all opportunities of modern mass media and communications. Actually at a certain moment of the election company the candidate loses his individual features and becomes a political brand which is presented to the consumer, i.e. society, at the elections.

Well-known political technologist Jacque Seguela, who supervised the elective company of Jacque Chirac (1995), already in 1979 formulated this idea in such words: "A politician unlike a writer is a consumption product" [1]. In this respect it is impossible to disagree with T.Ju. Lebedeva that today immemorial aspiration of leaders to reach authority and to keep it has become more commercial with application of all media arsenal which is available now [2].

In modern elective technologies the brand of politician gets the properties of goods which have to be sold competently to voters. In this process a commercial value of such brand is defined by quantity of votes collected in support of the given candidate. Today political technologies of the candidate image promotion and sale to voters are unified by the capacious concept of political marketing which, however, has one specific only for it feature, i.e. political marketing, unlike the commercial one, deals with a special kind of the goods namely the candidate brand, which has its own consumer (electorate), realization market (elections) and commercial cost.

Today both the sphere of policy and the sphere of business operate under the laws of marketing. In the modern policy marketing is developing to the creations of the complete image of the leader, including both its "packing", and brand designing, and choice of the core campaign topics and its tonality [3]. Unlike the elective technologies, in operations of information-psychological war [4-6] the product of commercial consumption is not an image of the separate leader, but an image of concrete political event, sequence of such events, military campaign or foreign policy direction of the state-aggressor as a whole. In this case on the background of the successful armed campaign, for example, the trade-mark representing the armed intrusion in certain light is formed: for example, in the form of the "peace-making operation" addressed to release distressful people of the country, undergone to an attack, from bloody dictatorship, and the whole world community from a threat of, for example, international terrorism (2003, war in Iraq). The consumer of such commercial product, like an image of the military conflict presented in the market by its own trade mark, remain the society which opinion better than any other indicators reflects the success of this product on a sale.

As example of the political marketing technologies application the success image of "emancipating" war in Iraq (2003 - to the moment) can serve [7], when within several months millions of spectators all around the globe bewitchingly followed the multi-series reports of operations which on the popularity have superseded even well-known "soap operas".

In this case in consciousness of the observers the certain image of war was formed thanks to competent management of information streams, dosage of information from a battlefield and sketchiness of real events representation in mass-media, which gradually transfers from a tragedy of at least one nation to some simplified image, a brand of "the struggle against the international terrorism and dictatorship”. Further promotion and consumption of this product by outer and inner audience took place under the laws of commercial marketing, the same way as of any other goods. Today there are no hesitations that the trade mark of the military conflict in Iraq created by the American experts on psychological war allowed to introduce quickly and effectively in the consciousness of population the ideology of preventive use of armed forces in the interests of narrow group political elites governing the USA now. And the price, which has been paid (and continue being paying) by the citizens who have accepted this ideology (i.e. the consumers of the commercial product, namely an image of the military conflict, promoted in the market by means of its own trade mark) are losses, which armies of the USA have in Iraq and Afghanistan, a growing threat from the countries which not without bases believing, that they will be following objects of aggression, and destruction of the formed in tens of years system of political balances and counterbalances, providing international stability. Another bright example of the political conflict “brand” creation and promotion is the psychological campaign of the USA concerning Iran. Under the same laws of political marketing the technology of country’s foreign policy of promotion is built, i.e. through creation of the trade mark which gives to foreign policy the features of the commercial product ready for consumption. Commercial cost of such mark is expressed in quantity indicators of support of the foreign policy by citizens inside of the country and allies outside it; in declination to own advantage someone hesitating and neutral; in inactivity, confusion, passivity of political contenders and opponents.

References.
1. Seguela J. Ne dites pas a ma mere que je suis dans la publicite. P. Flammarion 1979. p. 175.
2. Lebedeva T. Ju. The way to authority. France: president elections/Editor Ja.N. Zasursky. – M.: Moscow University Press, 1995. – p.10.
3. Lebedeva T. Ju. The way to authority. France: president elections ….. – p.16.
4. Manoïlo A. V., Gestion de la guerre psychologique dans le cadre de la politique informationnelle de l’Etat. – P.: Politique et société, №2’ 2004
5. Manoilo A.V., Petrenko A.I., Frolov D.B., 2003: State information politics under the conditions of information – psychological war. – M.: Hot line – Telecom, 541 p.: fig.
6. Veprintsev V.B., Manoilo A.V., Petrenko A.I., Frolov D.B., 2005: Operations of information-psychological war. Methods, means, technologies: Short encyclopedic handbook. - M.: Hot line - Telecom - 495 p.: fig.
7. RIA Iran News, Information-psychological war: factors, determining format of the modern armed conflict (Andrey Manoilo, 22.07.05 11:33),
http://www.iran.ru/rus/news_iran.php?act=news_by_id&news_id=31796
8. Manoilo A.V., Information-psychological war: factors, determining format of the modern armed conflict. – Kiev: Proceedings of the V International scientific-practical conference “Information technologies and security”, №8, 2005 г., p. 73-80.

By: Andrei Manoilo

Credit card scam

Cyber crime, computer hacking, identity theft -- it all comes down to someone trying to get between you and as much of your money as possible.

But instead of a gun these thieves generally use a keyboard, and often, an Internet connection.

Sarasota attorney John Patterson recently brought a high-powered panel of experts on computer crime to a meeting of the Tiger Bay Club, a panel that had worried-looking Tiger Bay members muttering about firewalls and password managers as they later left the room.

Patterson quickly got the audience's attention pointing out that somewhere between $50 billion and $200 billion a year is lost to Internet-related thieves of one kind or another. Much of the information stolen -- and later used to steal your money -- is remarkably easy to obtain.

For example, Andrew Adkins of the University of Florida Law Center pointed out that our credit card numbers and passwords are usually stored on the cell phones we casually toss onto the table in a restaurant or bar.

Worse, said Adkins who's also director of the Legal Technology Institute at the UF Law Center, those credit card numbers, your name, address and even driver license number is usually embedded on every one of those key cards you're given to open the door to your room when you check into a hotel.

And it doesn't take a lot of expertise to set up a card reader to decode those cards. In other words, the cards should be treated like your money -- because they're certainly a gateway to it.

Right here in Sarasota, panel member John Jorgensen is president of Sylint, a company specializing in cyber security. Jorgensen related that he recently drove around the community with a laptop computer and found 67 wireless computer networks operating so openly he could detect them just driving by -- and 45 of them had no security protection at all.

Not only that, Jorgensen explained, but many small companies that have their computer systems breached and data stolen are reluctant to report that fact because they don't want to news to get out to their customers.

Simply put, Adkins said, "If you don't want to see your private information made public, don't send it on the Internet."

Only about 7 percent of the cyber crime in Florida is actually reported, according to Patterson. This despite the fact Florida has some tough laws with minimum mandatory sentences for cyber crime.

"The question is," he asked, "is reporting cyber crime effective?"

Russell Hayes, a special agent of the Federal Bureau of Investigation's Tampa division, told the Tiger Bay Club there are limitations on the effectiveness of reporting. For example, Hayes pointed out the U.S. Attorney's Office normally only prosecutes cases involving more than $50,000. There have been cases where that figure was as low as $15,000, he added, but only if "very sensitive data" were involved.

That brought a response from panel member Chris Golembe, vice president and a manager of corporate fraud investigation for Wachovia Corporation. Golembe related that Wachovia, a $500 billion company, sees $15 million to $20 million a year tied up in cyber crime.

Golembe admitted his staff investigates cases and "wraps them up with a ribbon," before shopping them around for prosecution.

"Maybe we take them to the FBI, the IRS, Secret Service, the post office or local law enforcement," he explained, in hopes of getting them prosecuted.

"The biggest mistake is waiting until it's too late," Jorgensen opined. "Much of the time companies don't know who is trying to invade their data or how."

He said in some cases his company "sets up a honey pot," in an attempt to attract the criminal back for another try -- "and then we can make life miserable for that perpetrator."

Many of the panel members provided tips on how individuals or small businesses can make themselves less vulnerable to cyber crime.

"If something shows up in your in-box and you're not expecting it -- just delete it," Hayes of the FBI suggested.

"Technology is years ahead of the law -- maybe seven to 10 years ahead," Adkins said.

"Nobody can look out for you like you," he added, especially warning about "phishing."

That's where computer users are asked for their passwords and credit card numbers by what appear to be authentic messages from their banks or credit card companies. Except the messages aren't authentic at all.

For example, Adkins showed a phishing message on IRS letterhead that asked for the receiver's pin number.

"Ask yourself," Adkins pointed out, "why would the IRS want your pin number?"

"So the best defense is self defense," Patterson concluded.

Admitting he's not what he calls "a cyber person," Patterson became interested in information management after being appointed to the Trial Court Technology Committee by the Florida Supreme Court and the Technology Task Force of the Florida Bar.

Detective Jack Carter of the Sarasota Police Department said later that nearly 10 percent of the country's population was involved in some degree of identity theft over the past five years. He suggested the best test of whether that group includes you is to monitor your credit reports.

"Get a credit report and use it as a base and then check them at least annually," he suggested. "After all, a good identity thief can make $5,000 a day in cash and at least that much in merchandise."

He added that it takes the average victim about 175 hours of effort and $1,200 "to get their good name back."

By: Bob Arden

Beware of phishing, useful hints

Someone claiming to be the Internal Revenue Service e-mailed Lynn VanVerth about her $63.80 tax refund - all they needed was a credit card number to secure the transaction.

The genuine IRS, which is actively investigating several similar attempts at fraud, is warning people to be on the lookout for Internet scam artists pretending to represent the federal government.

Though the notification had every semblance of appearing legitimate - including copyright information at the bottom of the linked Web page - Mrs. VanVerth, an accountant for her husband's Computer Troubleshooters franchise in Arnold, wasn't fooled by the latest incarnation of the Internet phishing scam. Phishers, who take their name from hackers' tendency to replace f with ph when typing and not the band, are Internet scam artists looking to trick the unsuspecting into revealing personal information such as Social Security and credit card numbers.

"I know it's fake," Mrs. VanVerth said. "The IRS would never do something like that."

Now phishers are aping government Web sites, such as the IRS, in their latest ploy to fleece the unsuspecting.

Phishers have commonly tried to pass themselves off as banks or sites such as eBay, PayPal or Amazon to swindle personal information. But a recent spate of phishing attempts have been trying to pass themselves off as official government communication.

"People see something (purporting to be) coming from a government agency is more serious and needs more attention," said Jim Dupree, a spokesman for the IRS in Baltimore.

The IRS has investigated 12 phishing scams from 11 countries since November, and Mrs. VanVerth found her suspicious e-mail listed among them. Last month the IRS received examples of nearly 1,300 bogus e-mails from concerned taxpayers.

The Anti-Phishing Work Group, a division of the National Center for Forensic Science at the University of Central Florida, received 20,109 reports of phishing in May, up 15 percent from the previous month and 34 percent more than was reported in January.

The IRS has its own investigative division and will pursue international phishers, said Peggy Thomas, a spokeswoman for the IRS' criminal division.

"If there's a foreign individual that's committing fraud in the U.S. we will work to have them extradited," she said.

The IRS warns customers it does not solicit personal information via the Internet and all such request should be treated with suspicion.

"We aren't just going to send out e-mails blindly seeking personal information..." Mr. Dupree said. "If we need to get in contact with you, you're going to get written correspondence first and then maybe a phone call."

Helpful hints

State Attorney General Joseph Curran and the IRS are warning the public about a new phishing scam in which con artists send bogus IRS e-mails from tax-refunds@irs.gov or admin@irs.gov and sometimes link to a Web site that mimics the IRS.

Be suspicious of e-mails that:

• Urge you to act quickly because your account may be suspended or closed.

• Don’t address you by name, but uses a more generic title, like “Dear Taxpayer.”• Ask for account numbers, Social Security numbers, passwords or other personal information.

If you receive these type of e-mails:

• Do not open any attachments.

• Do not click on any links.

• Delete them immediately.

Suspicious e-mails can be reported to the Attorney General’s Office at 888-743-0023 or to the federal Treasurer Inspector General for Tax Administration at 800-366-4484 or e-mail phishing@irs.gov.

For more information on identity theft, visit www.consumer.gov/idtheft.

By: ANDREW CHILDERS