(Credit:
U.S. Department of Justice)
A group of Eastern Europeans was charged with hacking into the network of payment processor RBS WorldPay and using counterfeit debit cards at ATMs around the world to steal more than $9 million, the U.S. Justice Department said on Tuesday.
Four of the defendants allegedly collaborated to break into the RBS WorldPay network on November 4, 2008, where they got access to the account numbers for prepaid payroll cards used by employees to withdraw salaries from ATMs, according to the indictment from a federal grand jury in Atlanta. The defendants allegedly reverse-engineered the PINs associated with the accounts from the encrypted data on the network.
The defendants then allegedly raised the account limits on the compromised accounts and provided a network of "cashers" with 44 fake debit cards, according to the Justice Department. The cards allegedly were used November 8, 2008, to withdraw money from more than 2,100 ATMs in at least 280 cities, including in North America, Russia, Ukraine, Estonia, Italy, Hong Kong and Japan, in less than 12 hours.
The cashers were allegedly allowed to keep 30 percent to 50 percent of the stolen money and sent the remainder back to the hackers, according to the 16-count indictment.
"Last November, in just one day, an American credit card processor was hacked in perhaps the most sophisticated and organized computer fraud attack ever conducted," acting U.S. Attorney Sally Quillian Yates of the Northern District of Georgia said in a statement. "Today, almost exactly one year later, the leaders of this attack have been charged. This investigation has broken the back of one of the most sophisticated computer hacking rings in the world."
Indicted on charges of conspiracy, wire fraud, computer fraud, access device fraud, and identity theft charges were: Sergei Tsurikov, 25, of Tallinn, Estonia; Viktor Pleshchuk, 28, of St. Petersburg, Russia; Oleg Covelin, 28, of Chisinau, Moldova; and an unidentified defendant known only as "Hacker 3."
The alleged cashers, indicted for access device fraud, are all from Tallinn, Estonia. They are: Igor Grudijev, 31, Ronald Tsoi, 31, Evelin Tsoi, 20, and Mihhail Jevgenov, 33.
Tsurikov, the Tsois and Jevgenov were arrested earlier this year and Tsurikov faces extradition to the U.S., officials said. Two people in Hong Kong have been arrested for allegedly withdrawing funds from ATMs there.
RBS WorldPay, part of Royal Bank of Scotland, is based in Atlanta.
A story recently surfaced saying malware could plant child porn on innocent people's computers without their knowledge. Just how real is this threat? And how can you keep it from happening to you?
Being accused of possessing child pornography can ruin people's reputations, confront them with overwhelming legal bills and, if convicted, and deprive them of their freedom for years if sentenced to prison time, and perhaps for life, if they're required to register as sex offenders.
That is why, at least in part, a recent case outlined by the Associated Press raised concerns over computer viruses being used to plant child pornography on people's computers. But the innocent have little to fear, according to experts.
The AP story reported about the case of Michael Fiola, a former Massachusetts state employee whose state-owned work computer was found to contain illegal child pornography images. He was fired and charged with possession of child pornography which, had he been convicted, could have landed him in prison for up to five years, according to the AP.
Sexually explicit images of children--who are often being exploited--are not protected by the First Amendment because they may memorialize, celebrate, or encourage sexual crimes against children deemed defenseless victims. Although Fiola avoided a child porn conviction, he reportedly has suffered related indignities, including death threats and friend abandonment. The AP said he and his wife liquidated their savings and spent $250,000 on legal fees.
Ultimately, charges were dropped after Fiola's defense showed that his computer was infected by a virus that was "programmed to visit as many as 40 child porn sites per minute," something that a human couldn't do, even if he or she tried. Other reports about this case indicate that the antivirus software on Fiola's computer was out of date and therefore was not protecting him against malware.
Could it happen to you?
How likely is a case like Fiola's? If viruses are capable of putting illegal content on people's computers, aren't we all at risk of being arrested for serious crimes we never meant to commit? And if it is possible for this to happen, isn't "the virus did it" claim likely to become the mantra of every defense attorney who represents people accused of possessing child pornography?
To help answer these questions, I spoke with security experts, legal scholars, former prosecutors, and Justice Department officials. The consensus? It is indeed possible for malicious software to plant child pornography--or any other type of file, for that matter--on an innocent person's computer, but being possible doesn't mean it's likely. And forensics experts can detect intention.
"It's quite possible for a malware creator to include child pornography as part of the payload on an infected computer," according to Symantec spokeswoman Marian Merritt, but "such payloads are not typical."
Most malware authors, Merritt said, "are motivated by money, and there's no clear indication as to how planting child porn on an unsuspecting person's computer would help generate money for criminals."
One possible motive for remotely using someone else's computer to store child porn is to make it possible to access the contraband without running the risk of it showing up if your PC is seized or searched. Merritt worries that "this could become a possible use for malware, going forward," but Michael Geraghty, executive director of the National Center for Missing & Exploited Children Technology Services Division, said that, while possible, it's not an effective way to store child porn and remain undetected.
"If you put the images on someone else's computer, you might not be able to retrieve them when you want them," Geraghty said. He pointed out that the zombie machine storing the data would have to be turned on and connected for the malware sender to access it. If it weren't online, or the files had been deleted, the files wouldn't be there to retrieve.
Another deterrent, of course, is a potential digital trail between your computer and the one you're using to store it. Although there are ways to evade detection, forensic investigators do have ways to trace Internet Protocol addresses to catch people in the act of uploading and downloading material.
"I've never seen it where child porn was intentionally placed on someone's computer because of a virus," Geraghty said. He has, however, seen cases where "someone was redirected to a site where it could have entered the cache." If someone were to go to a legal adult porn site, it's possible that the browser would "open 100 different windows," including some that could contain child porn. "As a result of that, any images on any of these sites would be cached, and there would be a record that you had been there."
But Geraghty said investigators can tell the difference between someone who deliberately downloaded such images and someone who may have inadvertently downloaded perhaps thousands of images because of a virus or misdirected Web site.
Totality of evidence
"A good forensics expert would try to determine how (the images) got on the computer and who was responsible for putting them there," he said. "That would be determined by looking at the totality of the evidence, not just the fact that there were images there."
Things a good investigator would look into include whether the suspect was sitting at the computer at the time the images were downloaded. Was he using the computer to send e-mail or visit other Web sites at the time? "There is always some type of trail we can follow to determine if the person were likely actively involved in the process of downloading the material," Geraghty said.
Another indicator is the time lapse between image downloads. A virus or Trojan horse is likely to download multiple images at a time, sometimes faster than might be humanly possible to do manually. A person who collects child pornography typically acquires it over a period of time, and a forensic investigation of the computer should reveal that.
Phil Malone, a clinical professor at Harvard Law School and director of its Berkman Center Cyberlaw Clinic, agrees that a good forensic investigator should be able to tell the difference between files placed by a virus and ones deliberately downloaded.
"It's the excuse of the moment for defendants," he said. "Lots of child porn defendants try to blame (images found on their computers) on viruses, but it's almost never true. You can actually figure this out. In the handful of cases that have been problematic, it looks as if everyone moved too quickly. The agency discovered material and immediately jumped to conclusions." Malone added that "good, solid forensics would be able to tell in virtually every case."
Malone agreed with Geraghty, of the National Center for Missing & Exploited Children, that it's fairly common for someone, when viewing adult pornography on a Web site, to inadvertently receive pop-ups that may include images of child porn.
"It's possible to tell if something was opened or saved to a file from the cache," Malone said. Investigators can usually figure out if an image was downloaded intentionally, based on other activity that took place on the computer at the time, he said, adding that it's incumbent on both prosecutors and defense attorneys to launch a thorough investigation that includes analyzing a copy of the hard drive to determine not just which images are stored within, but also how they got there.
Geraghty said it's important to look at other factors. "The computer holds a lot of information about the searches that someone runs. If there were none of those searches and nothing else but some images in the cache, you would question how they got there. You would look for collaborating evidence such as intent to visit the site (and capability) of visiting the site. Did he have knowledge?"
A good investigation will look for exculpatory evidence to see if there are other explanations for the images. That investigation, Geraghty said, should start with making one or more exact copies of the suspect's hard drive and examining those copies to look for evidence of malicious software that could be responsible for the images. Defense attorneys can also gain access to a copy of the drive, but because it may contain illegal child porn images, their experts will probably have to examine the drive at the police station or prosecutor's office; possession of those images--regardless of the reason--is illegal for anyone other than personnel granted immunity.
Burden of proof
"In each case, the prosecution will need to prove (that) the defendant knowingly and intentionally possessed, received, or distributed child pornography," according to Drew Oosterbaan, chief of the Child Exploitation and Obscenity section of the Justice Department. "The proof starts with establishing that the images involved are child pornography and ends with establishing that the person charged is criminally responsible for it. We prove the latter in myriad ways."
Oosterbaan said that when someone is charged with possessing child pornography on his computer, "the computer is, in many ways, a crime scene, and the forensic examination of that computer is critical to meeting the elements of proof in the prosecution." He added that "it's important to remember that in every case, the government carries the burden of proof."
Oosterbaan said he is not aware of any cases in which botnets were used to plant child porn on other people's computers.
A former federal prosecutor now working for a technology company, who requested anonymity, said this may become a bigger issue as we enter the era of cloud computing, in which more and more data is stored on Internet servers instead of hard drives.
"There is no question that perpetrators are going to look for places to hide their criminal activity, including child porn, because they're increasingly aware that if law enforcement comes to their house, they will see the material," the former prosecutor said, adding that companies in the cloud storage business need to be aware that their systems could be used for illegal purposes. "They should reach out to the National Center for Missing & Exploited Children to implement a system to compare uploaded files against hash marks (digital fingerprints) of known child porn images."
As with any other security issue, the best defense is to protect your machine against intrusions. This includes:
- Making sure that your operating system and regularly used software are up-to-date.
- Using good software addressing malware, phishing attacks, and/or spam, and keeping it up to date. Subscriptions to paid programs should be renewed.
- Being cautious about spam and about providing information to sites you navigate to from links within even the most legitimate-appearing e-mails.
Disclosure: I serve without compensation as a board member at the National Center for Missing & Exploited Children, which deals with child porn cases. Still, I don't necessarily agree with all NCMEC policies, nor do I speak on behalf of the organization.
Microsoft on Tuesday issued six security bulletins fixing 15 vulnerabilities, including a critical patch for holes in the Windows kernel and other Windows and Office components that could allow an attacker to take control of a computer.
The critical bulletin affecting the Kernel-Mode Drivers was publicly disclosed and could be used to create a Web page with malware designed to exploit the hole on systems that visit the page, Microsoft said in a blog posting.
"MS09-065, a bug in the Windows kernel, is this month's most serious issue," said Andrew Storms, director of security operations at nCircle. "The vulnerability allows for remote code execution, and the attack code can be embedded inside MS Office files or be hosted on websites. Simply browsing an infected website will compromise unsuspecting users -- not great for all the holiday shoppers looking to get a jump on their shopping. The novelty value of this bug is likely to attract many researchers. A lot of people will try to be the first to publicly post exploit code."
The two other critical bulletins fix holes in Web Services on Devices API and in License Logging Server. Two bulletins ranked "important" fix holes that pose risk of remote code execution if a user opened a maliciously crafted Excel or Word file.
"It is interesting that a new service that helps with the 'user experience' can cause so much harm," saod Jason Miller, data and security team leader at Shavlik Technologies. "The WSDAPI service allows users to easily find devices such as printers and cameras on their network. This vulnerability is also not publicly known at this time."
Software affected by the patches includes Windows 2000, XP, Server 2003, Vista, Server 2008, Office XP, Office 2003, 2007 Microsoft Office System, Office 2004 for Mac, and Office 2008 for Mac, according to the bulletin.
Meanwhile, the Microsoft Malware Protection Center team added two rogue antivirus families to the Malicious Software Removal Tool -- Win32/FakeVimes, which calls itself "Windows System Defender" and "Windows Enterprise Suite," and Win32/PrivacyCenter, which calls itself "Safety Center."
First introduced in beta in April, Panda Cloud Antivirus graduates to a stable, public release and signifies a major security vendor taking aim at the freeware competition--instead of the other way around. Cloud Antivirus was notable on its beta release for being one of the few security options available to users that contained most of its protections in the cloud. This allowed it to protect users while consuming significantly fewer resources than many competing programs.
Panda Cloud Antivirus 1.0 is notable as a free security solution for two reasons: Panda is a reputable security vendor, and the program achieves its goal of freeing up system resources. In a press release, Panda Security CEO Juan Santana described Cloud Antivirus as a game-changer. It's not clear quite yet that that's the case, but at the very least the program looks to fill a niche created by resource-conscious netbooks.
As light on resources as advertised, Cloud Antivirus offers strong reputation-based protection for those who want their security program out of sight and out of mind. A third-party efficacy evaluation wasn't available at the time of writing, but in empirical testing the program only used 9 MB of RAM while idle, and only 56 MB of RAM when scanning. Many other security programs will run scans at 150 MB of RAM or more.
Despite keeping most of its database in the cloud, Panda Security's Senior Research Advisor, Pedro Bustamante, noted during an interview in October that Cloud Antivirus isn't disabled just because the host computer is disconnected from the Internet. "Panda has an offline mode that uses a small cached copy of Collective Intelligence on your local drive, it's only the most recent threats on a real time wild list." Collective Intelligence is the name that Panda gave its cloud system when it was introduced in 2007.
When you open Cloud Antivirus, the main window lets you know whether you're safe or not with a big red or green icon. Cloud Antivirus works as other antivirus solutions do, offering a Quick Scan and a Custom scan for specific folder, files, and drives, but its ancillary features are exceptionally light. The Quick Scan took 13 minutes on my Windows 7 Lenovo T400 laptop.
Dragging an active Cloud Antivirus window, in Windows 7 at least, will turn it translucent.
(Credit: Screenshot by Seth Rosenblatt/CNET)You can opt out of contributing anonymous data to the cloud, but that also opts you out of automatic threat management. There's a network connection proxy option should you need it, and a reporting feature that will show you what kind of threats have been detected and removed from your computer. You can filter the report by All, Last 24 hours, Last Week, or Last Month, and there's a Recycle Bin pane from which you can recover a false positive, should you need it. Unfortunately, the Recycle Bin is hidden behind an obnoxious "flipping" screen that cheesily rotates when you need to access it.
If you're familiar with the minimalist Microsoft Security Essentials, Cloud Antivirus is even simpler. I did notice some odd interface rendering around the minimize and close buttons in Windows XP, but not in Windows 7. There are other more serious concerns about the program. Most notably, it lacks a scheduler, and it removes user input from update functions. Scans are also limited: you can tell the program what to scan, but not what to look for, so forget about toggling heuristics or rootkits. Then again, the point of this kind of security is that it's all wrapped into one.
Keeping in mind its limited feature set, and that we don't have efficacy numbers at the time of reviewing, Panda Cloud Antivirus makes good security choice for those willing to take the plunge.
Apple on Monday released a large security update for Mac OS X that fixes dozens of vulnerabilities and provides protection against potential attacks exploiting a weakness in the protocol used to verify that a domain is legitimate.
There are 43 specific issues addressed in the 2009-006 update, released the same day as Mac OS X v.10.6.2.
It plugs a variety of holes for the Mac OS X v10.5.8, 10.6, 10.6.1, and Mac OS X Server v10.6 and 10.6.1, many of which could lead to arbitrary code execution and allow an attacker to take control of a computer.
Several updates affect Apache and QuickTime. Others target AFP Client, Apple Type Services, Core Graphics, CoreMedia, Dictionary, Disk Images, Dovecot, Directory Service, fetch mail, FTP Server, Help Viewer, Kernel, PHP, QuickDraw Manager and Spotlight.
One update fixes a hole in Adaptive Firewall that could allow a brute force or dictionary attack to guess an SSH log-in password, and another update addresses a vulnerability in Login Window that could allow a user to log in to any account without supplying a password.
Several updates address holes that could allow domain spoofing or man-in-the-middle attacks involving SSL (Secure Sockets Layer) used for encrypting data in transit, including a significant weakness in the X.509 protocol for generating SSL connections.
One of the updates affects the libsecurity feature and is billed as a "proactive change to protect users in advance of improved attacks against the MD2 hash algorithm" that could expose users to spoofing and information disclosure.
"There are known cryptographic weaknesses in the MD2 hash algorithm. Further research could allow the creation of X.509 certificates with attacker controlled values that are trusted by the system," the update says. "This could expose X.509 based protocols to spoofing, man in the middle attacks, and information disclosure. While it is not yet considered computationally feasible to mount an attack using these weaknesses, this update disables support for an X.509 certificate with an MD2 hash for any use other than as trusted root certificate."
That major weakness was revealed by security researcher Dan Kaminsky at the Defcon hacker conference in July. Kaminsky was able to trick a Certificate Authority into providing a certificate verifying authenticity for a domain that belonged to someone else.
The updates can be downloaded from Apple's site.
(Credit:
Microsoft)
Microsoft launched its new Forefront Protection 2010 antimalware for Exchange on Monday.
The company also announced at the TechEd Europe conference in Berlin the availability of Forefront Online Protection for Exchange designed for enterprise customers who want Microsoft to host the security solution.
Forefront Protection 2010 for Exchange incorporates malware engines from Microsoft and various partners, providing 38 times faster malware detection and decreasing spam to the point where only one out of 250,000 spam messages gets through, said Joel Sider, senior project manager for Microsoft's Infrastructure division.
Integration with Exchange provides the ability to scan messages and documents simultaneously, while built-in information protection with Active Directory rights management services give users and IT administrators more control over what e-mail and documents can do and who can receive them, he said.
The announcements were made in conjunction with the scheduled launch this week of Exchange 2010, the new version of Microsoft's e-mail and communications server.
Meanwhile, Microsoft said last month it was delaying the release of its Forefront Endpoint Protection 2010 for Windows desktops until the second half of next year.
The company will be rolling out over the next year all the pieces of its Forefront Protection Suite, formerly code-named "Stirling."
Update at 10:09 a.m. PST with comments from Microsoft.
Nothing has ever changed the world as quickly as the Internet.
Less than a decade ago, "60 Minutes" went to the Pentagon to do a story on something called information warfare, or cyberwar as some people called it. It involved using computers and the Internet as weapons.
Much of it was still theory, but we were told that before too long it might be possible for a hacker with a computer to disable critical infrastructure in a major city and disrupt essential services, steal millions of dollars from banks all over the world, infiltrate defense systems, extort millions from public companies, and even sabotage our weapons systems.
Today it's not only possible, all of that has actually happened. And there's a lot more we don't even know about.
It's why President Obama has made cyberwar defense a top national priority and why some people are already saying that the next big war is less likely to begin with a bang than with a blackout.
"Can you imagine your life without electric power?" Ret. Adm. Mike McConnell asked "60 Minutes" correspondent Steve Kroft...
Read more of "Cyber War: Sabotaging the System" at CBSNews.com.
Microsoft said on Thursday it will issue six patches next week for 15 vulnerabilities, including three critical bulletins affecting Windows and two important Office-related bulletins.
Affected software includes Windows 2000, XP, Server 2003, Vista, Server 2008, Office XP, Office 2003, 2007 Microsoft Office System, Office 2004 for Mac, and Office 2008 for Mac, the company said in an advisory.
November's Patch Tuesday is a contrast to the record number of fixes issued last month--13 bulletins for 34 vulnerabilities.
Updated 2:52 p.m. PST to correct that there will be six patches fixing 15 vulnerabilities.
Google's biggest threat is no longer Microsoft. It is itself.
As the company harvests copious quantities of personal data, it becomes dramatically better at serving customer needs...
...and at freaking them out over privacy concerns.
In other words, Google gets stronger with every Google Doc created, every Google Voice call dialed, and every Gmail e-mail sent. It becomes stronger because data is the heart of the Web's biggest businesses, as Redmonk analyst Stephen O'Grady implies.
But in so doing Google also becomes more threatening to the very consumers it is trying to serve.
Google Dashboard is meant to change this by putting consumer data back in the hands of consumers. It's a move that follows on Google's earlier pledge to "open data" and its Data Liberation Front.
As CNET reports, Dashboard lets people review the personal data Google has stored for them, delete it, and alter future collection policies. It's a great way for Google to mollify concerned users, putting control back in their hands.
Still, it's almost certainly never going to be used by the vast majority of Google users. Ever.
Why? Because for all our hand-wringing over privacy--and for good reason--the reality is that most of us, most of the time, really don't care. Or, rather, if accessing useful services or getting work done more efficiently requires some privacy concessions, we gladly concede.
It's not that we don't value our privacy. It's just that in many contexts, we value other things as much or more. We weigh the risks versus the benefits, and often the benefits trump the privacy risks.
It's the same thing with file formats. For years we've been agonizing over Microsoft's lock-in of customers through proprietary file formats (.pst, .doc, etc.). Now Microsoft is opening up the specifications for file formats like .pst (Outlook file format), and yet it will almost certainly change little to nothing in what products most people use most of the time.
People don't use Microsoft Office because they're forced to. They do so because it's convenient. (Yes, an argument can be made that it's convenient because Microsoft has forced network effects through lock-in.)
This, incidentally, is exactly the reason that Wednesday night I declared a ban on Microsoft Office in our family in favor of Google Docs--and didn't opt for OpenOffice (which we also use). I got sick of having to recover documents and perform other IT tasks related to a locally installed office suite, open source or proprietary. And I find it easier to let Google handle the back-end IT operations.
I wasn't trying to evade lock-in. I was trying to increase personal happiness.
Am I concerned about Google snooping on the documents we write and store in Google Docs? Let's just say I worry more about my time fixing Office than whether Google gleans any information from my 12-year old's seventh-grade essay.
Dashboard leaves Google in the prime position of being able to honestly say that it doesn't control user data, while still delivering increasingly beneficial services based on that data. It will not change the way that the vast majority of consumers use Google, but it just might change the way they think about Google.
A very smart move by Google, one that all data-driven businesses should emulate.
Follow me on Twitter @mjasay.
A zero-day flaw in the TLS and SSL protocols, which are commonly used to encrypt Web pages, has been made public.
Security researchers Marsh Ray and Steve Dispensa unveiled the TLS (Transport Layer Security) flaw on Wednesday, following the disclosure of separate, but similar, security findings. TLS and its predecessor, SSL (Secure Sockets Layer), are typically used by online retailers and banks to provide security for Web transactions.
Ray, who works with Dispensa at two-factor authentication company PhoneFactor, explained in a blog post this week that he had initially discovered the flaw in August and demonstrated a working exploit to Dispensa at the beginning of September.
Read more of "Zero-day flaw found in web encryption" at ZDNet UK.









