An Estonian virus writer has been jailed for two and a half years for creating a Windows worm family that launched denial of service attacks on the websites of a local insurance firm and ISP.…

News, via ComputerWorld Robert McMillan of the United States Federal Deposit Insurance Corporation’s assertion of evidence leading the agency to guesstimate on-line banking fraud has led to over $120,000,000 in costs to small businesses who have fallen victim to scams, hacks, cracks and cons. More information, inclusive of linkage to the original post appears after the jump.
From ComputerWorlds’ Robert McMillan: “FDIC: Hackers took more than $120M in three months“
“Ongoing computer scams targeting small businesses cost U.S. companies $25 million in the third quarter of 2009, according to the U.S. Federal Deposit Insurance Corporation. Online banking fraud involving the electronic transfer of funds has been on the rise since 2007 and rose to over $120 million in the third quarter of 2009, according to estimates presented Friday at the RSA Conference in San Francisco, by David Nelson, an examination specialist with the FDIC. The FDIC receives a variety of confidential reports from financial institutions, which allow it to generate the estimates, Nelson said…”
Related Posts
In this month’s Prism Microsystems newsletter I take a look at the differences between financial fraud and IT network and systems anomaly detection.
Have you ever been in a store with an important purchase, rolled up to the cash register and handed over your card only to have it denied? You scramble to think why: “Has my identity been stolen?” “Is there something wrong with the purchase approval network?” “Did I forget to pay my bill?” While all of the above are possible explanations – there’s a very common one you may not think of immediately: anomaly detection. Specifically, if the purchase you have in your hand doesn’t match up with your buying history, your bank might think it’s fraud and refuse the transaction. Even small changes in buying habits can trigger an alert. For example, credit card holders traveling outside the US for the first time may find their card declined in Paris on a European vacation. Buyers that rarely charge items over a couple of hundred dollars in value could find their first large ticket item (like a couch or a piece of jewelry) purchase blocked, at least temporarily.
Tory peer and shadow security minister Baroness Pauline Neville Jones has set out her party's thoughts on cyber war and defence. Unfortunately once the waffle is stripped away there's pretty much nothing there.…
Guessing the answer to common password reset questions is far easier than previously thought, according to a new study by computer science researchers.…
It's good to dream:
IARPA's five-year plan aims to design experiments that can measure trust with high certainty -- a tricky proposition for a psychological study. Developing such experimental protocols could prove very useful for assessing levels of trust within one-on-one talks, or even during group interactions.A second part of the IARPA proposal might involve using new types of sensors and software to gauge human facial, language or body signals that might help predict trustworthiness. Perhaps facial recognition technology that could deduce emotions or facial tics might help, not to mention better lie detectors.
IARPA is the Intelligence Advanced Research Projects Activity, the U.S. intelligence community's answer to DARPA.
This week in Security Levity, I want to talk about 'web reputation' and how it's used to protect users from malicious Web sites, or sites with malicious content for some other reason.

Through the magic of my forgetting to schedule posts, it appears that I missed a couple news posts. My bad.
Have a good day everyone!
cheers,
Dave
Click here to subscribe to Liquidmatrix Security Digest!.
And now, the news…
Tags: News, Daily Links, Security Blog, Information Security, Security News

On 11/03/10 At 11:20 AM
Retro gaming fans are being targeted in a new con designed to infect computers with a Trojan linked to scareware scams.…
PayPal has finally made good on its pledge to restore Cryptome's account many hours after the firm's head of global communications told Register readers it had already done so.…
I realize the openssl s_client tool tries to be upper-layer protocol agnostic, but doesn’t everything that uses SSL do commonName checking (HTTP, SMTP, IMAP, FTP, POP, XMPP)? Shouldn’t this be something openssl s_client does by default, maybe with an option to turn it off for less common situations?
Here it doesn’t complain about connecting to “outflux.net” when the cert has a CN for “www.outflux.net”:
echo QUIT | openssl s_client -CApath /etc/ssl/certs \ -connect outflux.net:443 2>/dev/null | egrep "subject=|Verify"
subject=/CN=www.outflux.net
Verify return code: 0 (ok)
‘Computers. Clicking, typing. Email. I could go on’
Tory peer and shadow security minister Baroness Pauline Neville Jones has set out her party’s thoughts on cyber war and defence. Unfortunately once the waffle is stripped away there’s pretty much nothing there.…
Offloading malware protection to the cloud
The Microsoft Malware Protection Center reported earlier this week a sighting of a malicious PDF file exploiting CVE-2010-0188. Adobe released 9.2.1 and 8.2.1 in February.
Users can pull down the 'help' menu and click on 'check for updates' to ensure that they're running the latest version.
One lesson learned here is don't skip deploying a patch just because no exploits are out for it. it will leave you scrambling later.
Adobe's next scheduled Reader and Acrobat update is due April 13.
If you’re near Manhattan this weekend, stop in to Eyebeam for their MIXER event Friday and Saturday nights (Mar 13 and 14) from 9PM to 2AM. NYC Resistor will be one of the presenting artists with our “Color Commentary Teletype” a restored 1930’s era Model 15 serial printer, along with a sentiment analysis chart recorder! MIXER is a huge party, with music, art, and performances. It’s going to be awesome!
Check out the details at Eyebeam! Now!
Just a quickie today, circle patterns done in canvas. Source after the break as usual.
JPLT.Class.create("JPLT.Circles", JPLT.Object, function() { this.width = 800; this.height = 600; this.minWidth = -this.width/8; this.maxWidth = this.width+this.width/8; this.minHeight = -this.height/8; this.maxHeight = this.height+this.height/8; this.direction = [ {x:5, y:5}, {x:-5, y:5}, {x:5, y:-5}, {x:-5, y:-5} ]; this.position = [ {x:Math.random()*this.width, y:Math.random()*this.height}, {x:Math.random()*this.width, y:Math.random()*this.height}, {x:Math.random()*this.width, y:Math.random()*this.height}, {x:Math.random()*this.width, y:Math.random()*this.height} ]; this.createElement(); this.run(); }, { createElement: function() { var body = document.documentElement || document.body; var element = document.createElement("canvas"); element.width = this.width; element.height = this.height; element.style.position = "absolute"; element.style.top = window.innerHeight/2 - this.height/2; element.style.left = window.innerWidth/2 - this.width/2; body.appendChild(element); this.element = element; }, context: function() { return this.element.getContext("2d"); }, run: function() { if (!this.timer) { this.timer = window.setInterval(this.delegate(this.paint), this.delay); } }, stop: function() { window.clearInterval(this.timer); this.timer = null; }, clear: function() { var ctx = this.context(); ctx.clearRect(0,0,this.width,this.height); }, paint: function(i) { try { this.clear(); for (var i=0; i<4; i++) { var ctx = this.context(); var pos = this.position[i]; var dir = this.direction[i]; pos.x += dir.x; if (pos.x > this.maxWidth || pos.x < this.minWidth) { dir.x = -dir.x; } pos.y += dir.y; if (pos.y > this.maxHeight || pos.y < this.minHeight) { dir.y = -dir.y; } ctx.save(); ctx.strokeStyle = "rgba(0,0,0,0.3)"; ctx.lineWidth = 25; ctx.translate(pos.x, pos.y); for (var r=5; r<this.width; r+=50) { ctx.beginPath(); ctx.arc(0,0,r,0,Math.PI*2,true); ctx.stroke(); } ctx.restore(); } } catch (e) { this.stop(); throw(e); } } } );
On Tuesday, as seems to be the custom, Microsoft released patches and announced a new zero day in Internet Explorer. MSKB 981374 is a remote code execution in IE6 and IE7. Who know that being on IE5 could ever be a good thing.
The KB says Microsoft released details to venders in their Microsoft Active Protections Program (MAPP) and Microsoft Security Response Alliance (MSRA) programs in order to provide protection to customers.
Within one hour Zscaler had protection in place for its customers. Zscaler offers web security company in a SaaS model. I would see them competing with Scansafe, Purewire and MessageLabs as well as any company trying to get you to put security appliances on your network for web security (bluecoat). Strangely, I didn't get email from any of those venders bragging they are protecting their customers against this zero day. If they were protecting their customers would there be any reason not to use it for PR? Its not like they are making a Oracle Unbreakable (or was that Apple Unbreakable) claim.
‘Will be around for a long time’
Retro gaming fans are being targeted in a new con designed to infect computers with a Trojan linked to scareware scams.…
The power of collaboration within unified communications

Sometimes you find yet another reason why people should be made to pass an intelligence test before they’re permitted to engage in social media.
Just saying.
(Thanks to attrition.org for pointing that one out)

How stupid is this? Last week Robert Maley was the CISO for the Commonwealth of Pennsylvania giving a presentation at the RSA conference. He was speaking about a hacking incident at PennDOT from last year.
This week? He’s on the pavement. It would appear that someone in PA overreacted.
From Patriot News/Penn Live:
Danielle Klinger, a spokeswoman for the state Department of Transportation, said the agency is not aware of any hacking or breach that occurred involving scheduling system for its driving test. However, she said that a few weeks ago, “we did discover an anomaly and we have actually turned that over to [the state police] for further investigation. We’re not sure what that anomaly is, but it is being investigated. Unfortunately, I can’t provide any more details on it.”
Maybe Maley didn’t have leave to speak publicly about this incident in question. Which is something that PennDOT appears to have developed an Ostrich complex over. Some myopic nitwit thought it merited removing Maley from his post? They claim however that his talk had nothing to do with his dismissal. I’m not sure I believe that. Timing seems rather odd.
So, what of the alleged hacking incident?
Maley is reported to have said the hacker was later found to be someone with a driving school in Philadelphia who exploited a vulnerability in PennDOT’s system to schedule more driving tests than there were allotted slots.
This situation seems muddy at best. For more on this story read the article at Penn Live from this morning.
(Image used under CC from Olivander)

Robert Carlson bridges both the NYC Resistor and DIYBio worlds – he’s an electrical engineer who turns E. coli into circuits! He famously discovered the Carlson curves, the biotech equivalent of Moore’s Law. They show that biotech is advancing at a pace consistent with digital tech.
Come join us at the NEW NYC Resistor space for an afternoon talk by Rob and discussion afterwards.
DATE: Saturday, March 13
TIME: 2:00pm – 4:00pm
LOCATION: NYCR
Here’s a video of Robert from the Economist that appeared on the DIYBio blog recently: http://diybio.org/2010/01/01/rob-carlson-discusses-diybio-and-open-source-biology-on-the-economist. And an excerpt from his Wired article where he wrote about the emergence of DIYBiology in 2005:
The era of garage biology is upon us. Want to participate? Take a moment to buy yourself a molecular biology lab on eBay. A mere $1,000 will get you a set of precision pipettors for handling liquids and an electrophoresis rig for analyzing DNA. Side trips to sites like BestUse and LabX (two of my favorites) may be required to round out your purchases with graduated cylinders or a PCR thermocycler for amplifying DNA. If you can’t afford a particular gizmo, just wait six months – the supply of used laboratory gear only gets better with time. Links to sought-after reagents and protocols can be found at DNAHack. And, of course, Google is no end of help.
Still, don’t expect to cure cancer right away, surprise your loved ones with a stylish new feather goatee, or crank out a devilish frankenbug. (Instant bioterrorism is likely beyond your reach, too.) The goodies you buy online require practice to use properly. The necessary skills may be acquired through trial and error, studying online curricula, or taking a lab course at a community college. Although there are cookbook recipes for procedures to purify DNA or insert it into a bacterium, bench biology is not easy; the many molecular manipulations required to play with genes demand real skills.
http://www.wired.com/wired/archive/13.05/view.html?pg=2
For the past few months the Digital Economy Bill (DEB) has been quietly making its way through the House of Lords. As is the way of these things, large numbers of amendments have been proposed, their lordships have had a series of mini-debates on each set of issues, and the Government have been busily amending the Bill in an attempt to fix all the things that they didn’t think through properly.
The main thrust of the DEB’s approach to dealing with unlawful file sharing of copyright material has been a “three strikes” policy. That is, should you be detected to be sharing some popular beat combo’s music without permission, then on the first two occasions you’d receive an admonishing letter, and on the third time then you would be subject to “technical measures” (ie: very slow Internet speeds) or disconnection, the latter doubtless annoying the rest of your family as they would be unable to visit DirectGov / keep up their social life / catch-up TV shows / do their homework / avoid being sacked from their work-from-home job!
However, the Government are concerned that this won’t be enough, and that unlawful sharing of copyright material might occur in new ways in future. So in clause 17 of the DEB they set out a scheme for amendment (in ways that would be decided as future circumstances required) of the Copyright, Designs and Patents Act 1988 through secondary legislation.
It is unusual to grant such open ended powers to amend primary legislation, because Parliament would be presented with an unamendable statutory instrument and invited to vote for it — no such SI has been defeated in the House of Lords since 2000, and the time before that was in 1968.
There was an outcry over the breadth of clause 17, and so the Government set out amendments to restrict it — but last week peers voted for an opposition amendment (120A) to have an alternative arrangement altogether, a regime of High Court injunctions that would force ISPs to block websites.
This is such a dumb (and dangerous) idea that it has all the characteristics of a wrecking amendment, added to the Bill just to eat up parliamentary time so that the whole Bill will fall at the dissolution for the upcoming election.
There are so many problems with the new clause that it’s hard to know where to begin.
For an analysis of how the costs regime makes it very likely that ISPs will just block, rather than risking the cost of a court action see this article by Francis Davey (a working barrister).
The next problem is that most ISP blocking is trivial to evade. Although Ofcom reports that 98.6% of UK consumer broadband lines are supplied by ISPs who use the Internet Watch Foundation (IWF) list to block child sexual abuse images, in practice all of the systems are trivial to evade by using https links, by using proxies, or in most cases by running your own DNS server or just hard-coding IP addresses into your HOSTS file.
It suits everyone (IWF, ISPs, Government) to pretend that the IWF list blocking schemes work, but when ISPs are faced with the prospect of being found in contempt of court, they will have to implement something which is actually effective — which can in practice only mean “blackholing” IP addresses so that no traffic can be exchanged.
That will mean that everything else at that address is will be blocked as well — so all of t35.com, smtp.ru or blogger.com would disappear if a foreign company’s view of what was a copyright infringement in their jurisdiction was to differ from that of the UK High Court (for example, Disney’s Snow White is out of copyright in Japan — the term is 75 years from 1937 date of release — but not in the UK — where the term is Walt Disney’s 1967 death + 70 years).
IP address blocking is also relatively simple to evade (as has already been discovered by the citizens of China, Iran and elsewhere), by means of proxies, by IP address agility by the websites, or by means of general purpose anonymity systems such as Tor. When the content industries find that the sites aren’t actually blocked, how realistic (or how draconian) will the High Court be ?
Interestingly, the security services (MI5/MI6) share this concern. If evading blocking systems becomes a mainstream activity (and there’s said to be 6-7 million illegal file sharers in the UK) then it will be used, almost automatically, by subversive groups — preventing the spooks from examining the traffic patterns and comprehending the threat. The amendment says that the court must consider “any issues of national security raised by the Secretary of State”, but it’s unclear how they’ll do that even if Lord Mandelson is prepared to wander down to Strand and say that he’s worried that snooping won’t be so effective in the future.
The final problem is that their Lordships clearly envisaged these injunctions being taken out by major film studios against the latest incarnation of The Pirate Bay or some equally high profile den of wickedness. But what if it turns out that they’re used:
The Earl of Erroll who, although a hereditary peer, is one of the few members of the Upper House with substantial “clue” on Internet matters spoke out clearly against the amendment and in favour of just deleting clause 17. Perhaps in Third Reading, next Monday, the House will listen more carefully to what he has to say — sending this Bill to the Commons in its current form makes a mockery of the Lords’ claim to intelligently revise flawed legislation …
… for the real risk is that the Bill could subsequently go through all substantive Commons stages “on the nod” in a few frantic minutes after the election is called, with the Government accepting all the Lords amendments to avoid a time-consuming game of Parliamentary ping-pong. Wrecking the bill is one thing, wrecking the Internet in the UK is quite another!