December 19, 2011
CNBC's Scott Cohn reports on more than $1.5B in losses as a result of Utah ponzi schemes.
Link ~ Utah: Welcome to Ponziland! - CNBC
Friday, December 23, 2011
Thursday, December 8, 2011
Cyber attacks could wreck world oil supply
December 08, 2011
Cyber attacks could wreck world oil supply
Doha, Hackers are bombarding the world's computer controlled energy sector, conducting industrial espionage and threatening potential global havoc through oil supply disruption.
Oil company executives warned that attacks were becoming more frequent and more carefully planned.
"If anybody gets into the area where you can control opening and closing of valves, or release valves, you can imagine what happens," said Ludolf Luehmann, an IT manager at Shell Europe's biggest company .
"It will cost lives and it will cost production, it will cost money, cause fires and cause loss of containment, environmental damage - huge, huge damage," he told the World Petroleum Congress in Doha.
Continues @ read more ..
Cyber attacks could wreck world oil supply
Doha, Hackers are bombarding the world's computer controlled energy sector, conducting industrial espionage and threatening potential global havoc through oil supply disruption.
Oil company executives warned that attacks were becoming more frequent and more carefully planned.
"If anybody gets into the area where you can control opening and closing of valves, or release valves, you can imagine what happens," said Ludolf Luehmann, an IT manager at Shell Europe's biggest company .
"It will cost lives and it will cost production, it will cost money, cause fires and cause loss of containment, environmental damage - huge, huge damage," he told the World Petroleum Congress in Doha.
Continues @ read more ..
Thursday, December 1, 2011
Cyber Security Bill Approved by House Panel
December 1, 2011
Cyber Security bill approved by House panel
A bill to let U.S. spy agencies share intelligence on cyber threats with private companies was backed by a House of Representatives intelligence panel on Thursday.
In a 17-1 vote, the Permanent Select Committee on Intelligence approved the legislation that would expand a pilot Pentagon program for sharing classified and sensitive threat information with defense contractors and their Internet service providers.
Under the measure, a longer list of companies would be eligible for access to classified data from the National Security Agency and other agencies.
The bill was amended to expand privacy protections for data that companies give the government, including, potentially, data that Internet providers give about their customers. That data could be used only for cyber or national security, according to the amendment.
Some critics have worried that this type of sharing arrangement amounts to government surveillance of private data.
The government would also be barred from searching collected data except to secure cyber networks from attack.
Cyber Security bill approved by House panel
A bill to let U.S. spy agencies share intelligence on cyber threats with private companies was backed by a House of Representatives intelligence panel on Thursday.
In a 17-1 vote, the Permanent Select Committee on Intelligence approved the legislation that would expand a pilot Pentagon program for sharing classified and sensitive threat information with defense contractors and their Internet service providers.
Under the measure, a longer list of companies would be eligible for access to classified data from the National Security Agency and other agencies.
The bill was amended to expand privacy protections for data that companies give the government, including, potentially, data that Internet providers give about their customers. That data could be used only for cyber or national security, according to the amendment.
Some critics have worried that this type of sharing arrangement amounts to government surveillance of private data.
The government would also be barred from searching collected data except to secure cyber networks from attack.
Monday, November 28, 2011
Social Engineering and Financial Fraud Committed Over The Internet ~ What To Look For ...
Social engineering (security)
Social engineering is commonly understood to mean the art of manipulating, Psychological manipulation is a type of social influence that aims to change the perception or behavior of others through underhanded, deceptive, or even abusive tactics.
By advancing the interests of the manipulator, often at the other's expense, such methods could be considered exploitative, abusive, devious, and deceptive. people into performing actions or divulging confidential information.
The people who need to hide their crimes say it is similar to a confidence trick or simple fraud, the term typically applies to trickery or deception for the purpose of information gathering, fraud, or computer system access; in most cases the attacker never comes face-to-face with the global criminals/victims.
Accusers say "Social engineering" as an act of psychological manipulation was popularized by hacker-turned-consultant Kevin Mitnick. Global criminals name the term as associated with the social sciences, but its usage has caught on among computer professionals
Social engineering techniques and terms
All social engineering techniques are based on specific attributes of human decision-making known as cognitive biases. These biases, sometimes called "bugs in the human hardware," are exploited in various combinations to create attack techniques, some of which are listed here:
Pretexting
Pretexting is the act of creating and using an invented scenario (the pretext) to engage a targeted victim in a manner that increases the chance the victim will divulge information or perform actions that would be unlikely in ordinary circumstances.
Continues ..
Social engineering is commonly understood to mean the art of manipulating, Psychological manipulation is a type of social influence that aims to change the perception or behavior of others through underhanded, deceptive, or even abusive tactics.
By advancing the interests of the manipulator, often at the other's expense, such methods could be considered exploitative, abusive, devious, and deceptive. people into performing actions or divulging confidential information.
The people who need to hide their crimes say it is similar to a confidence trick or simple fraud, the term typically applies to trickery or deception for the purpose of information gathering, fraud, or computer system access; in most cases the attacker never comes face-to-face with the global criminals/victims.
Accusers say "Social engineering" as an act of psychological manipulation was popularized by hacker-turned-consultant Kevin Mitnick. Global criminals name the term as associated with the social sciences, but its usage has caught on among computer professionals
Social engineering techniques and terms
All social engineering techniques are based on specific attributes of human decision-making known as cognitive biases. These biases, sometimes called "bugs in the human hardware," are exploited in various combinations to create attack techniques, some of which are listed here:
Pretexting
Pretexting is the act of creating and using an invented scenario (the pretext) to engage a targeted victim in a manner that increases the chance the victim will divulge information or perform actions that would be unlikely in ordinary circumstances.
Continues ..
Who's Who ...
Iraqi dinar Money.com .. source for hundreds of dinar sites .. who are they? who owns them? Dinar Dealers .. A lucrative business .. find out more ... go to the Link
Also read .. Pharming – Redirecting website traffic to bogus sites
Sunday, November 27, 2011
Understanding Cyber Warfare. From Cyber Warfare to Cyber Resistance
November 27, 2011
Understanding Cyber Warfare. From Cyber Warfare to Cyber Resistance
Instruments of warfare have evolved. Gone are the days of battle-axes, machetes, swords, and men charging in strategic formation or lying in trenches awaiting their foe. Instead, guns, bombs, chemical and biological agents, unmanned aircraft and assault vehicles are used as instruments of war. A more significant change from the past has been the robotic nature of the way conflict is waged, supposedly making more “humane” an inhumane act.
The changes witnessed of course parallel technological advances within society, resulting in even more wars and conflicts being waged from behind a computer screen, in a command center, and by remote control. Likewise, the ways in which resistance is carried out will parallel the technological changes and evolving nature of warfare.
The rise of cyber warfare and resistance shed light on where we are heading, with both state and non-state actors on almost equal footing in the knowledge of and potential use for viruses, worms and Trojans. Arguably, some actors operating in the realm of cyber resistance are more advanced in knowledge than the states they are battling. Is Cyber Resistance a weapon for checking the traditional and conventional military power of the state? Will it be the key for checking Israel and its inhumane and disproportionate use of force and weaponry against Palestinians?
Continues ..
Understanding Cyber Warfare. From Cyber Warfare to Cyber Resistance
Instruments of warfare have evolved. Gone are the days of battle-axes, machetes, swords, and men charging in strategic formation or lying in trenches awaiting their foe. Instead, guns, bombs, chemical and biological agents, unmanned aircraft and assault vehicles are used as instruments of war. A more significant change from the past has been the robotic nature of the way conflict is waged, supposedly making more “humane” an inhumane act.
The changes witnessed of course parallel technological advances within society, resulting in even more wars and conflicts being waged from behind a computer screen, in a command center, and by remote control. Likewise, the ways in which resistance is carried out will parallel the technological changes and evolving nature of warfare.
The rise of cyber warfare and resistance shed light on where we are heading, with both state and non-state actors on almost equal footing in the knowledge of and potential use for viruses, worms and Trojans. Arguably, some actors operating in the realm of cyber resistance are more advanced in knowledge than the states they are battling. Is Cyber Resistance a weapon for checking the traditional and conventional military power of the state? Will it be the key for checking Israel and its inhumane and disproportionate use of force and weaponry against Palestinians?
Continues ..
Saturday, November 26, 2011
Forex: Risky Business? .. COMMISSION ADVISORY BEWARE OF FOREIGN CURRENCY TRADING FRAUDS ...
COMMISSION ADVISORY BEWARE OF FOREIGN CURRENCY TRADING FRAUDS
Forex: Risky Business?
Recently, there has been a rise in Forex transactions. Forex trading can involve a high degree of risk and may be more suitable for market professionals rather than the average retail investor. Forex, stands for foreign exchange trading. It usually means the right to buy or sell a certain amount of foreign currency at a fixed price in US dollars. In order words, you are betting on the way exchange rates will change.
Check To See If Brokers And Firms Are Licensed
Brokers and firms that trade Forex must be licensed with the National Futures Association (NFA). To check if the broker or firm that you are working with is licensed, please visit the National Futures Association BASIC Search. Forex may be traded on an exchange that is regulated by the Commodity Futures Trading Commission (CFTC) or off-exchange.
To find out whether firms or counterparties with whom you plan to trade are registered or regulated institutions or entities that are outside the CFTC's jurisdiction, you can check the lists of regulated institutions on the following websites. Some institutions outside the CFTC's jurisdiction do not appear on any of these lists or in other readily-available places:
Federal Reserve Board (www.federalreserve.gov)
Federal Financial Institutions Examination Council (www.ffiec.gov)
Federal Deposit Insurance Corporation (www.fdic.gov)
U.S. Securities and Exchange Commission (www.sec.gov)
The Office of the Comptroller of the Currency (www.occ.treas.gov)
Office of Thrift Supervision (www.ots.treas.gov)
National Credit Union Association (www.ncua.gov)
National Association of Securities Dealers Regulation, Inc. (www.nasdr.com)
All U.S. Government web sites can be located through links at www.firstgov.gov
Your state Attorney General's office and state banking, insurance and securities regulators (which often have their own web sites).
read more @ link
Forex: Risky Business?
Recently, there has been a rise in Forex transactions. Forex trading can involve a high degree of risk and may be more suitable for market professionals rather than the average retail investor. Forex, stands for foreign exchange trading. It usually means the right to buy or sell a certain amount of foreign currency at a fixed price in US dollars. In order words, you are betting on the way exchange rates will change.
Check To See If Brokers And Firms Are Licensed
Brokers and firms that trade Forex must be licensed with the National Futures Association (NFA). To check if the broker or firm that you are working with is licensed, please visit the National Futures Association BASIC Search. Forex may be traded on an exchange that is regulated by the Commodity Futures Trading Commission (CFTC) or off-exchange.
To find out whether firms or counterparties with whom you plan to trade are registered or regulated institutions or entities that are outside the CFTC's jurisdiction, you can check the lists of regulated institutions on the following websites. Some institutions outside the CFTC's jurisdiction do not appear on any of these lists or in other readily-available places:
Federal Reserve Board (www.federalreserve.gov)
Federal Financial Institutions Examination Council (www.ffiec.gov)
Federal Deposit Insurance Corporation (www.fdic.gov)
U.S. Securities and Exchange Commission (www.sec.gov)
The Office of the Comptroller of the Currency (www.occ.treas.gov)
Office of Thrift Supervision (www.ots.treas.gov)
National Credit Union Association (www.ncua.gov)
National Association of Securities Dealers Regulation, Inc. (www.nasdr.com)
All U.S. Government web sites can be located through links at www.firstgov.gov
Your state Attorney General's office and state banking, insurance and securities regulators (which often have their own web sites).
read more @ link
Currency Market Scams ... Foreign Currencies ...
Recently updated material .. Link ~ Currency Market Scams ... Foreign Currencies ...
For Immediate Release – October 6, 2011
SECURITIES COMMISSIONER ORDERS CALIFORNIA FIRM TO STOP PROMOTING INVESTMENTS IN IRAQI DINAR ... Link
For Immediate Release – October 6, 2011
SECURITIES COMMISSIONER ORDERS CALIFORNIA FIRM TO STOP PROMOTING INVESTMENTS IN IRAQI DINAR ... Link
Thursday, November 24, 2011
Pharming – Redirecting website traffic to bogus sites
What is Pharming?
Pharming (pronounced “farming”) is another form of online fraud, very similar to its cousin phishing. Pharmers rely upon the same bogus Web sites and theft of confidential information to perpetrate online scams, but are more difficult to detect in many ways because they are not reliant upon the victim accepting a “bait” message. Instead of relying completely on users clicking on an enticing link in fake email messages, pharming instead re-directs victims to the bogus Web site even if they type the right Web address of their bank or other online service into their Web browser.
Continues ..
Cybercrimes, Internet Fraud Online Web Scams, Cyber Crime Consumer Fraud, Internet Crime, Website Spoofing Phishing Scams
Cybercrimes, Internet Fraud Online Web Scams, Cyber Crime Consumer Fraud, Internet Crime, Website Spoofing Phishing Scams ~ Link
Monday, November 21, 2011
Company, National Equities Holdings, Inc. with $1.4 Million Commodity Pool Fraud
November 16, 2011
Company, National Equities Holdings, Inc. with $1.4 Million Commodity Pool Fraud
CFTC Charges California Residents Robert Cannone, Thomas Breen, and Francis Franco and Their Company, National Equities Holdings, Inc. with $1.4 Million Commodity Pool Fraud
The defendants charged with fraudulent solicitation, misappropriation of customer funds, and false statements
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a complaint in federal court in Santa Ana, Calif., charging defendants Robert J. Cannone of Laguna Niguel, Thomas B. Breen of San Juan Capistrano, Francis Franco of Anaheim, and their company National Equity Holdings, Inc. of Laguna Niguel, with fraudulently operating a $1.4 million commodity futures pool and with registration violations.
The CFTC complaint, filed in the U.S. District Court for the Central District of California, alleges that from at least May 2009 through at least May 2010, the defendants fraudulently solicited and accepted at least $1.4 million from 20 or more individuals to trade commodity futures contracts by participating in a commodity pool called NEH.
The defendants traded only a portion of the pool participant funds in proprietary accounts, sustaining overall and significant losses of approximately $582,631, according to the complaint. Defendants also allegedly misappropriated the majority of the pool participants’ funds to make so-called returns to participants in monthly payments that defendants claimed were the profitable proceeds of their trading.
Continues ...read more ..
Company, National Equities Holdings, Inc. with $1.4 Million Commodity Pool Fraud
CFTC Charges California Residents Robert Cannone, Thomas Breen, and Francis Franco and Their Company, National Equities Holdings, Inc. with $1.4 Million Commodity Pool Fraud
The defendants charged with fraudulent solicitation, misappropriation of customer funds, and false statements
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a complaint in federal court in Santa Ana, Calif., charging defendants Robert J. Cannone of Laguna Niguel, Thomas B. Breen of San Juan Capistrano, Francis Franco of Anaheim, and their company National Equity Holdings, Inc. of Laguna Niguel, with fraudulently operating a $1.4 million commodity futures pool and with registration violations.
The CFTC complaint, filed in the U.S. District Court for the Central District of California, alleges that from at least May 2009 through at least May 2010, the defendants fraudulently solicited and accepted at least $1.4 million from 20 or more individuals to trade commodity futures contracts by participating in a commodity pool called NEH.
The defendants traded only a portion of the pool participant funds in proprietary accounts, sustaining overall and significant losses of approximately $582,631, according to the complaint. Defendants also allegedly misappropriated the majority of the pool participants’ funds to make so-called returns to participants in monthly payments that defendants claimed were the profitable proceeds of their trading.
Continues ...read more ..
Tuesday, November 15, 2011
After Tip, the Claim For Reward ~ Currency Trades and Bank Overcharge
November 16, 2011
After Tip, the Claim For Reward
Whistleblowers alleging that two banks overcharged clients for currency trades could provide an early test of a new U.S. program to encourage tips of possible financial wrongdoing.
The whistleblowers, who are helping the Securities and Exchange Commission in civil investigations into whether Bank of New York Mellon Corp. and State Street Corp. improperly charged customers for currency trades, have filed claims seeking possible bounties from the SEC, according to people familiar with the matter.
The Securities and Exchange Commission seal outside headquarters in Washington, D.C.
The agency's whistleblower program, launched under the Dodd-Frank financial-overhaul act, stemmed from calls for tougher policing of Wall Street following the financial crisis. The plan for the first time offers government bounties to financial insiders and others who tip off the SEC about alleged securities fraud, offering payments of at least $100,000 to those whose information leads to big enforcement penalties.
Continues ...read more ..
After Tip, the Claim For Reward
Whistleblowers alleging that two banks overcharged clients for currency trades could provide an early test of a new U.S. program to encourage tips of possible financial wrongdoing.
The whistleblowers, who are helping the Securities and Exchange Commission in civil investigations into whether Bank of New York Mellon Corp. and State Street Corp. improperly charged customers for currency trades, have filed claims seeking possible bounties from the SEC, according to people familiar with the matter.
The Securities and Exchange Commission seal outside headquarters in Washington, D.C.
The agency's whistleblower program, launched under the Dodd-Frank financial-overhaul act, stemmed from calls for tougher policing of Wall Street following the financial crisis. The plan for the first time offers government bounties to financial insiders and others who tip off the SEC about alleged securities fraud, offering payments of at least $100,000 to those whose information leads to big enforcement penalties.
Continues ...read more ..
Helpless Indian Workers Conned into Smuggling Counterfiet Rupees (an emerging market currency) ...
Wednesday, November 16, 2011 Helpless Indian workers conned into smuggling fake currency
Blue-collar men leaving Gulf nations are lured by free air tickets, claim Indian Intelligence reports
Indian blue-collar workers in the Gulf are being warned not to carry strangers’ luggage or accept free air tickets when travelling home.
Continues ...read more ..
The Dirty Dozen .. Forex Fraud .. Investment Fraud ...
October 15, 2011
The Dirty Dozen .. Forex Fraud .. Investment Fraud.
Many people know their names. Many people are unaware that the group who is now being referred to as the Dirty Dozen have nothing but ill intentions and are ready to provide nothing .. but take everything .. including your freedom. You sign with them and you become the target of an ongoing investigation.
“Buy on the rumor, sell on the news” is a time-honored investment phrase that is oftentimes more confusing than the wisdom it attempts to impart. The meaning relates primarily to company securities that appreciate in expectation of a big news announcement. Early speculation drives ups the price, such that when the real announcement is made, most investors sell on the news to take their profits, often driving the price down, rather than up. “Pump and Dump” stock frauds also follow a similar scenario, but in this case, criminals benefit and investors lose.
Continues ...read more ..
The Dirty Dozen .. Forex Fraud .. Investment Fraud.
Many people know their names. Many people are unaware that the group who is now being referred to as the Dirty Dozen have nothing but ill intentions and are ready to provide nothing .. but take everything .. including your freedom. You sign with them and you become the target of an ongoing investigation.
“Buy on the rumor, sell on the news” is a time-honored investment phrase that is oftentimes more confusing than the wisdom it attempts to impart. The meaning relates primarily to company securities that appreciate in expectation of a big news announcement. Early speculation drives ups the price, such that when the real announcement is made, most investors sell on the news to take their profits, often driving the price down, rather than up. “Pump and Dump” stock frauds also follow a similar scenario, but in this case, criminals benefit and investors lose.
Continues ...read more ..
Monday, November 14, 2011
Links ~ Financial Fraud Articles ~ Victims who lost millions to Madoff's fraudulent investments said "But he seemed so nice"..."we were friends"...
Links ~ Financial Fraud Articles ~ Victims who lost millions to Madoff's fraudulent investments said "But he seemed so nice"..."we were friends"... Victims who lost millions to Madoff's fraudulent investments said "But he seemed so nice"..."we were friends"... "his client list was inpressive" etc... Madoff Scammed His Own Family ... 150-year prison sentence for convicted Ponzi scheme swindler Bernard Madoff ...
Foreign Currency Fraud ~ Court Ordered ~ to Pay More than $4.5 Million for Operating Foreign Currency Ponzi Scheme ...
Your Dream of a Lifetime ...
FBI Agent Explains How To Spot Liars ~ Can you Spot a Liar? It's Difficult Over the Internet ...
Investment fraud ~ Iraqi Dinar ~ Colo. Tells Firm To Stop Promoting Investments In Iraqi Dinar ...
'bout time" ~ IRS Targets Five Illegal Trusts ... bumped by request ...
Madoff trustee adds claims in $2 billion UBS lawsuit
IRS warns of 'Dirty Dozen' tax scams (con artists out in force over the web) Be Careful ...
Trust you instinct and don't hand over your hard earned money to one of the hundreds of con-artists. Investigate First ...
Spyware - "Remember, anyone can pretend to be anybody and that means taking precaution until you know Exactly who is who in cyberland" ...
fbi.gov: Former Principal of AFW Wealth Advisers Sentenced in Manhattan Federal Court to 97 Months in Prison for Multimillion-Dollar Fraud
Investment Fraud ~ You've heard it many times before: If it sounds too good to be true, it probably is. Be Prepared and Be Aware ...
Saturday, October 15, 2011
Financial Fraud, Currency Scams, Iraq Currency Scams
Monopolizing The Currency Market By Creating Multiple Blogs and Forums Which all Link Back To A Master Forum. This generates add revenue for the Master forum. Most of these sites are flagged for unethical as well as illegal activitity including Wire fraud, Mail fraud, and Violations Committed under the unlawful sales of securities pursuant to 11 51 301
One of many more lawsuits under investigation ... http://www.dora.state.co.us/securities/pdf_forms/enforcement/amiraq-verified-petition.pdf
Data Being collected @ http://www.iraqidinarmoney.com/theiraqidinar/
One of many more lawsuits under investigation ... http://www.dora.state.co.us/securities/pdf_forms/enforcement/amiraq-verified-petition.pdf
Data Being collected @ http://www.iraqidinarmoney.com/theiraqidinar/
Thursday, October 6, 2011
Colo. Tells Firm To Stop Promoting Investments In Iraqi Dinar
October 6, 2011
Colo. Tells Firm To Stop Promoting Investments In Iraqi Dinar
DENVER -- A company selling investments in Iraqi money has been ordered to stop by the state of Colorado.
The cease and desist order is for AmIraq Fund, LP, its general partner, BB&M International Corporation, and the managing director and CEO of both, William Burbank, all of Coronado, Calif.
The AmIraq Fund sold investors on buying Iraqi dinar by saying the dinar is currently undervalued, Iraq has great long-term potential and that the dinar will recover post-war, officials said.
Colorado investors were offering one million dinar for $975, securities officials said. The funds were to be held in an Iraqi bank.
"Promoters often offer investors an opportunity to get in on the ‘ground floor’ of a new idea or concept and make a great economic return,"
Securities Commissioner Fred Joseph said. "Unsuspecting investors can be lured into these schemes, especially if the returns sound good. These offerings require careful research and a strong reminder that if it sounds too good to be true, it probably is not true, nor will it be profitable to anyone but the promoter."
Colorado officials alleged that Burbank was offering securities and that he failed to register its security offering.
Burbank agreed to obey the cease and desist order, but neither admitted to nor denied the allegations, state officials said.
link
and more links
Colo. Tells Firm To Stop Promoting Investments In Iraqi Dinar
DENVER -- A company selling investments in Iraqi money has been ordered to stop by the state of Colorado.
The cease and desist order is for AmIraq Fund, LP, its general partner, BB&M International Corporation, and the managing director and CEO of both, William Burbank, all of Coronado, Calif.
The AmIraq Fund sold investors on buying Iraqi dinar by saying the dinar is currently undervalued, Iraq has great long-term potential and that the dinar will recover post-war, officials said.
Colorado investors were offering one million dinar for $975, securities officials said. The funds were to be held in an Iraqi bank.
"Promoters often offer investors an opportunity to get in on the ‘ground floor’ of a new idea or concept and make a great economic return,"
Securities Commissioner Fred Joseph said. "Unsuspecting investors can be lured into these schemes, especially if the returns sound good. These offerings require careful research and a strong reminder that if it sounds too good to be true, it probably is not true, nor will it be profitable to anyone but the promoter."
Colorado officials alleged that Burbank was offering securities and that he failed to register its security offering.
Burbank agreed to obey the cease and desist order, but neither admitted to nor denied the allegations, state officials said.
link
and more links
Friday, August 19, 2011
'Counterstrike' details U.S. intelligence agencies' cyberwar efforts in Iraq ...
08/19/2011
'Counterstrike' details U.S. intelligence agencies' cyberwar efforts in Iraq
The U.S. military has hacked and temporarily disabled Iraqi insurgent and terrorist-based websites, a little-known tactic that's part of a government "counterstrike" capability, according to a new book.
At least two sites were "knocked off the web" before Iraq's March 2010 national election after "the largest interagency meetings held since" the Sept. 11, 2001 terrorist attacks, write New York Times reporters Eric Schmitt and Thom Shanker in "Counterstrike: The Untold Story of America's Secret Campaign Against Al-Qaeda."
The sites, including one sponsored by a "shadowy organization" called the JRTN, "were posting specific operational information that was considered a clear and emerging threat to the security of the vote," they wrote.
At least one site, hosted by a U.S.-based Internet service provider, was shut down after a visit from U.S. lawyers "presenting snapshots of virulent, extremist and violent web pages carried on their server," they wrote. The U.S. provider was not identified.
The book, in chapters called "Terror 2.0" and "The New Network Warfare," sheds light on offensive U.S. cyber operations seldom discussed by U.S. officials. The book's cites tactics such as "overloading," without details.
Pentagon said otherwise
The book's disclosures contrast with the Pentagon's public description of its strategy for blunting cyberattacks, which focuses on improving defenses instead of deterring intrusions or threatening retaliation.
Deputy Defense Secretary William Lynn on July 14 released the Pentagon's "Strategy for Operating in Cyberspace," which outlines five "strategic initiatives." One is to partner with other U.S. agencies and private industry to craft a "whole-of-government" approach.
Left unsaid was that the approach includes a capability to review and approve selective U.S. attacks under a forum known as the "Strategic Operational Planning Interagency Group for Terrorist Use of the Internet," the authors write.
Proposals for attacks are reviewed by what Schmitt and Shanker call a "powerful board of governors assigned to oversee counterstrikes on the Internet," under a "three-way agreement" among the Pentagon, intelligence agencies and the Justice Department "for considering timely attacks on terrorist websites, with the president making the final decision on whether to proceed."
Then-President George W. Bush, in a secret authorization, in effect "declared Iraq an official battle space for America's cyberwarriors," as it became "a real-world laboratory for computer network warfare," they write.
To sow distrust and confusion among jihadists, the United States also uses a technique of "webspoofing" called "false band replacement," where U.S. intelligence officers infiltrate networks to post their own materials.
The agencies have forged an al-Qaida "web watermark" that in effect "makes messages posted on these sites official," Schmitt and Shanker wrote.
One official told them, "We have learned to mimic their watermarks."
The U.S. military also "had the ability to hack into their phones and we would text message guys" telling them "another guy is cheating you out of money," one "senior official" told the reporters.
Radio jam
Pentagon and State officials in Kabul devised an "over-broadcast" technique to jam insurgent pirate radio networks using a strong signal cover to block the adversaries' message and send "counterprogram" coalition messages on adjacent channels.
"The goal is fuzzing out the militants' radio broadcasts so everybody has to turn to another station -- and that station is yours," said a U.S. official. The commercial technology to track, locate and "overbroadcast a signal" costs about $10,000, the official said.
Perhaps the U.S. greatest technological advance in the war on terror is the eavesdropping National Security Agency's supercomputers that can "collect, analyze, sort and store data from a range of communications, in particular cell phone conversations, emails and websites, billions of times faster than humans can."
The NSA computers scan and store the call history of cell phones turned over by thousands of temporary and permanent detainees that pass through U.S. camps in Iraq and Afghanistan or voluntary applicants for government jobs, they write.
"Each of these cell phones can be copied or cloned in seconds" and scanned for any matches to terrorist group members. "It opens the door to a whole command and control network," he told the authors.
http://www.mercurynews.com/books/ci_18718411
'Counterstrike' details U.S. intelligence agencies' cyberwar efforts in Iraq
The U.S. military has hacked and temporarily disabled Iraqi insurgent and terrorist-based websites, a little-known tactic that's part of a government "counterstrike" capability, according to a new book.
At least two sites were "knocked off the web" before Iraq's March 2010 national election after "the largest interagency meetings held since" the Sept. 11, 2001 terrorist attacks, write New York Times reporters Eric Schmitt and Thom Shanker in "Counterstrike: The Untold Story of America's Secret Campaign Against Al-Qaeda."
The sites, including one sponsored by a "shadowy organization" called the JRTN, "were posting specific operational information that was considered a clear and emerging threat to the security of the vote," they wrote.
At least one site, hosted by a U.S.-based Internet service provider, was shut down after a visit from U.S. lawyers "presenting snapshots of virulent, extremist and violent web pages carried on their server," they wrote. The U.S. provider was not identified.
The book, in chapters called "Terror 2.0" and "The New Network Warfare," sheds light on offensive U.S. cyber operations seldom discussed by U.S. officials. The book's cites tactics such as "overloading," without details.
Pentagon said otherwise
The book's disclosures contrast with the Pentagon's public description of its strategy for blunting cyberattacks, which focuses on improving defenses instead of deterring intrusions or threatening retaliation.
Deputy Defense Secretary William Lynn on July 14 released the Pentagon's "Strategy for Operating in Cyberspace," which outlines five "strategic initiatives." One is to partner with other U.S. agencies and private industry to craft a "whole-of-government" approach.
Left unsaid was that the approach includes a capability to review and approve selective U.S. attacks under a forum known as the "Strategic Operational Planning Interagency Group for Terrorist Use of the Internet," the authors write.
Proposals for attacks are reviewed by what Schmitt and Shanker call a "powerful board of governors assigned to oversee counterstrikes on the Internet," under a "three-way agreement" among the Pentagon, intelligence agencies and the Justice Department "for considering timely attacks on terrorist websites, with the president making the final decision on whether to proceed."
Then-President George W. Bush, in a secret authorization, in effect "declared Iraq an official battle space for America's cyberwarriors," as it became "a real-world laboratory for computer network warfare," they write.
To sow distrust and confusion among jihadists, the United States also uses a technique of "webspoofing" called "false band replacement," where U.S. intelligence officers infiltrate networks to post their own materials.
The agencies have forged an al-Qaida "web watermark" that in effect "makes messages posted on these sites official," Schmitt and Shanker wrote.
One official told them, "We have learned to mimic their watermarks."
The U.S. military also "had the ability to hack into their phones and we would text message guys" telling them "another guy is cheating you out of money," one "senior official" told the reporters.
Radio jam
Pentagon and State officials in Kabul devised an "over-broadcast" technique to jam insurgent pirate radio networks using a strong signal cover to block the adversaries' message and send "counterprogram" coalition messages on adjacent channels.
"The goal is fuzzing out the militants' radio broadcasts so everybody has to turn to another station -- and that station is yours," said a U.S. official. The commercial technology to track, locate and "overbroadcast a signal" costs about $10,000, the official said.
Perhaps the U.S. greatest technological advance in the war on terror is the eavesdropping National Security Agency's supercomputers that can "collect, analyze, sort and store data from a range of communications, in particular cell phone conversations, emails and websites, billions of times faster than humans can."
The NSA computers scan and store the call history of cell phones turned over by thousands of temporary and permanent detainees that pass through U.S. camps in Iraq and Afghanistan or voluntary applicants for government jobs, they write.
"Each of these cell phones can be copied or cloned in seconds" and scanned for any matches to terrorist group members. "It opens the door to a whole command and control network," he told the authors.
http://www.mercurynews.com/books/ci_18718411
Sunday, August 14, 2011
FBI sees mortgage fraud growing as economy stumbles
August 13, 2011
FBI sees mortgage fraud growing as economy stumbles
Washington, Mortgage and investment schemes targeting troubled U.S. homeowners jumped in 2010 and may increase further if the economy does not improve, the FBI said on Friday.
The FBI said in an annual report that pending investigations increased 12 percent in the fiscal year ended September 30, 2010, to 3,129 cases. That in turn was a 90 percent jump from the previous fiscal year.
An FBI official said the trend will continue as more borrowers struggle to pay their mortgages.
"If we have continuing high unemployment and increased numbers of foreclosures, what we see is a greater percentage of the population of existing homeowners being vulnerable to these schemes," said David Cardona, FBI deputy assistant director.
The collapse of the housing boom and the resulting financial crisis has led to a wave of foreclosures. In 2010, 2.5 million foreclosures were initiated, with a similar number expected this year.
The FBI said mortgage origination schemes have declined due to the depressed market for home purchases.
Fraud targeting troubled borrowers, however, has increased and includes loan modification scams and foreclosure rescue schemes in which perpetrators convince borrowers they can save their homes through deed transfers and upfront fees.
Cardona said stock market fluctuations have also resulted in more Americans falling for fake investments.
"It's not a dynamic that we think will self-correct. If anything it could get worse," he said
The report listed "hot spots" for mortgage fraud. California, Florida and New York were among the hottest of those, in line with some of the worst unemployment and mortgage default rates in the country.
Since the FBI was tasked with rooting out criminal activity that exacerbated the housing crisis in 2008, it has been criticized as ineffective against powerful executives of companies tied to the housing and financial industry.
"Although we tried mightily we just didn't hit the mark," Cardona said, referring to the aborted investigation of Washington Mutual Bank in early August.
Cardona said the government struggles to prove criminal intent in corporate crime.
One of the biggest cases so far was a $3 billion fraud case involving the privately held mortgage firm Taylor, Bean & Whitaker Mortgage Corp. The chairman of the firm, Lee Farkas, was sentenced to 30 years in prison after being convicted on 14 counts of conspiracy, wire, securities and bank fraud.
Cardona said the FBI is hoping the government can win more high-profile cases through civil probes. He said the FBI is cooperating "closer now than ever" with the Securities and Exchange Commission and Commodity Futures Trading Commission.
"We're going to see a quicker return on investment through civil means than showing criminal intent by some of these high-level officials," he said.
http://news.yahoo.com/fbi-sees-mortgage-fraud-growing-economy-stumbles-215355231.html
FBI sees mortgage fraud growing as economy stumbles
Washington, Mortgage and investment schemes targeting troubled U.S. homeowners jumped in 2010 and may increase further if the economy does not improve, the FBI said on Friday.
The FBI said in an annual report that pending investigations increased 12 percent in the fiscal year ended September 30, 2010, to 3,129 cases. That in turn was a 90 percent jump from the previous fiscal year.
An FBI official said the trend will continue as more borrowers struggle to pay their mortgages.
"If we have continuing high unemployment and increased numbers of foreclosures, what we see is a greater percentage of the population of existing homeowners being vulnerable to these schemes," said David Cardona, FBI deputy assistant director.
The collapse of the housing boom and the resulting financial crisis has led to a wave of foreclosures. In 2010, 2.5 million foreclosures were initiated, with a similar number expected this year.
The FBI said mortgage origination schemes have declined due to the depressed market for home purchases.
Fraud targeting troubled borrowers, however, has increased and includes loan modification scams and foreclosure rescue schemes in which perpetrators convince borrowers they can save their homes through deed transfers and upfront fees.
Cardona said stock market fluctuations have also resulted in more Americans falling for fake investments.
"It's not a dynamic that we think will self-correct. If anything it could get worse," he said
The report listed "hot spots" for mortgage fraud. California, Florida and New York were among the hottest of those, in line with some of the worst unemployment and mortgage default rates in the country.
Since the FBI was tasked with rooting out criminal activity that exacerbated the housing crisis in 2008, it has been criticized as ineffective against powerful executives of companies tied to the housing and financial industry.
"Although we tried mightily we just didn't hit the mark," Cardona said, referring to the aborted investigation of Washington Mutual Bank in early August.
Cardona said the government struggles to prove criminal intent in corporate crime.
One of the biggest cases so far was a $3 billion fraud case involving the privately held mortgage firm Taylor, Bean & Whitaker Mortgage Corp. The chairman of the firm, Lee Farkas, was sentenced to 30 years in prison after being convicted on 14 counts of conspiracy, wire, securities and bank fraud.
Cardona said the FBI is hoping the government can win more high-profile cases through civil probes. He said the FBI is cooperating "closer now than ever" with the Securities and Exchange Commission and Commodity Futures Trading Commission.
"We're going to see a quicker return on investment through civil means than showing criminal intent by some of these high-level officials," he said.
http://news.yahoo.com/fbi-sees-mortgage-fraud-growing-economy-stumbles-215355231.html
Monday, August 8, 2011
U.S. Agents, an Aerial Snoop and Teams of Hackers
"Hacker" used to be a bad word. Now, Hackers are being offered positions with the government to combat cyber crime. So, tell all your homies they could turn their lives around and go legit, roger that .. done deal.
August 7, 2011
U.S. Agents, an Aerial Snoop and Teams of Hackers
Defcon, a convention of computer hackers here, was crawling with hackers, digital security professionals and federal agents.
WHY are federal agents hobnobbing with hackers?
Defcon, a convention of computer hackers here, was crawling with them on Friday. They smiled, shook hands, handed out business cards, spoke on a panel called “Meet the Federal Agent 2.0” and were really, really nice.
Naturally, federal agents have been hanging out at hacker gatherings for years to snoop. “Cloak and dagger,” as one put it.
This time they came with another purpose: to schmooze, impress and, perhaps ultimately, lure. The United States Cyber Command, the Pentagon’s Internet defense arm, “has a work force issue,” said Daron Hartvigsen, special agent with the Air Force Office of Special Investigations. “We have needs that some in this community can solve. We need folks with skills.”
Government agencies especially need computer professionals with cybersecurity skills. At Defcon, these skills were in ample supply — and they can alternately thrill and scare. There were hackers and lockpickers here, problem solvers and troublemakers. There were attendees with mohawks and blue hair, and some with blue mohawks. One wore a cape. A few wore kilts. Most, whether out of fear or conceit, insisted on using their digital names rather than their real ones: Lost, alien, Abstract.
In their midst were Internet crime investigators representing the Army, Navy, Air Force and NASA. The F.B.I. set up a recruiting table at Black Hat, a related conference of security professionals earlier in the week. A National Security Agency official was to speak to next-generation hackers at a two-day event called Defcon Kids on Saturday.
For the federal agents, it seemed less an aggressive recruiting drive than a public diplomacy mission. They took pains to describe themselves as lovable hackers under their crew cuts.
Ryan Pittman, an ex-cop who now works computer crime cases in the Army’s criminal investigations division, said the convention was an opportunity to whittle away the federal agents’ image as “jackbooted thugs.” Ahmed Saleh, a computer crime investigator with NASA, described a job that might be appealing “if you’re a geek and you want to catch the bad guys.”
There seemed to be plenty of receptive hackers. Christine Banek, 29, a software programmer with plum-colored hair, sidled up to Mr. Saleh after the panel and asked if his agency was still hiring. She said she had applied online and had not heard back. “If they were offering, I would totally take it,” she said. Later, she suggested aloud that the government legalize marijuana. Positive drug tests generally disqualify a candidate from a law enforcement position.
It flies. It spies. It is the color of sunshine, and it has googly eyes.
Meet WASP, the Wireless Aerial Surveillance Platform, one of the star attractions of this year’s Black Hat conference.
It’s a remote-controlled plane with a computer in its belly that can fly up to 400 feet above the ground, snoop quietly on wireless networks below and attack one if it wants to. It can also pretend to be a GSM cellphone tower, eavesdropping on calls and text messages that pass through.
The WASP was built by Richard Perkins and Mike Tassey using hobby materials, including a Styrofoam plane body, a plastic propeller and foam tires, along with circuit boards and wires. The materials are all off the shelf, costing $6,190 — a fraction of the cost of a spy plane, with cyberweapons included.
Its creators eschew the term “spy plane.” “There’s a negative connotation to a spy plane,” Mr. Tassey said. “This was done in an attempt to prove a concept.”
What concept?
“That it can be done,” he said.
His sentiment perfectly embodied the ethos of Black Hat, a spirited gathering of technologists who sometimes make scary things to show that they can be made, and at other times break things to show how badly they need to be fixed.
The bird conjured by Mr. Perkins and Mr. Tassey is barely four feet long and becomes an imperceptible, quietly humming little creature when it hovers overhead. It could be deployed over, say, an office building to sniff out information going across its wireless network. Or if the office network is well secured, the plane could follow an employee on a trip to a neighborhood Starbucks.
The WASP could mimic the cafe’s network, luring the unwitting employee and allowing access to a laptop or cellphone. As Mr. Tassey put it, “In Starbucks, no one can hear your laptop scream.”
They sat at tables along the perimeter of a ballroom in the Rio hotel. Lights were low. Laptops burned like campfires. Men and women hunched over the machines, their backs curved like question marks. Their fingers clicked away furiously.
“This is a spelling bee for hackers,” explained Giovanni Vigna, 42, a professor of computer science from the University of California, Santa Barbara. “It’s a way to prove your hacking skills.”
Each team, he said, was given the same type of virtual server, with the same strengths and weaknesses. The teams were charged with defending their servers and attacking those of others. Each time a weak spot was attacked, a flag was awarded. The team with the most flags won. Hence, the name of the contest: Capture the Flag. This was the final round.
Contests are a big deal at Defcon. But they’re not all on computers. Defcon is about celebrating tinkering.
There was a “lockpicking village” where interested parties did exactly that: pick locks. “Most of us see locks as puzzles,” Babak Javadi, 26, one of the organizers, explained. He has been taking apart locks since he was a kid, he said, and now runs a security business, specializing in high-security locks.
There was a barber offering mohawks. There were vendors selling “advanced gaming eyewear,” glasses that sell for up to $189 a pair, designed to reduce the glare of a computer screen and ease eye fatigue. There were vendors selling luggage tags that said “Geek on Board.”
In one hall, a competition was under way to invent a beer-cooling contraption. In another, teams were competing to tamper with so-called tamper-resistant materials.
“You’re doing something you’re not meant to do: That’s the essence of hacking,” said Chris Kuivenhoven, 34, a security engineer from Atlanta. “People can use it for good or bad.”
http://www.nytimes.com/2011/08/08/technology/scenes-from-hacker-gatherings-in-las-vegas.html?_r=1&pagewanted=all
August 7, 2011
U.S. Agents, an Aerial Snoop and Teams of Hackers
Defcon, a convention of computer hackers here, was crawling with hackers, digital security professionals and federal agents.
WHY are federal agents hobnobbing with hackers?
Defcon, a convention of computer hackers here, was crawling with them on Friday. They smiled, shook hands, handed out business cards, spoke on a panel called “Meet the Federal Agent 2.0” and were really, really nice.
Naturally, federal agents have been hanging out at hacker gatherings for years to snoop. “Cloak and dagger,” as one put it.
This time they came with another purpose: to schmooze, impress and, perhaps ultimately, lure. The United States Cyber Command, the Pentagon’s Internet defense arm, “has a work force issue,” said Daron Hartvigsen, special agent with the Air Force Office of Special Investigations. “We have needs that some in this community can solve. We need folks with skills.”
Government agencies especially need computer professionals with cybersecurity skills. At Defcon, these skills were in ample supply — and they can alternately thrill and scare. There were hackers and lockpickers here, problem solvers and troublemakers. There were attendees with mohawks and blue hair, and some with blue mohawks. One wore a cape. A few wore kilts. Most, whether out of fear or conceit, insisted on using their digital names rather than their real ones: Lost, alien, Abstract.
In their midst were Internet crime investigators representing the Army, Navy, Air Force and NASA. The F.B.I. set up a recruiting table at Black Hat, a related conference of security professionals earlier in the week. A National Security Agency official was to speak to next-generation hackers at a two-day event called Defcon Kids on Saturday.
For the federal agents, it seemed less an aggressive recruiting drive than a public diplomacy mission. They took pains to describe themselves as lovable hackers under their crew cuts.
Ryan Pittman, an ex-cop who now works computer crime cases in the Army’s criminal investigations division, said the convention was an opportunity to whittle away the federal agents’ image as “jackbooted thugs.” Ahmed Saleh, a computer crime investigator with NASA, described a job that might be appealing “if you’re a geek and you want to catch the bad guys.”
There seemed to be plenty of receptive hackers. Christine Banek, 29, a software programmer with plum-colored hair, sidled up to Mr. Saleh after the panel and asked if his agency was still hiring. She said she had applied online and had not heard back. “If they were offering, I would totally take it,” she said. Later, she suggested aloud that the government legalize marijuana. Positive drug tests generally disqualify a candidate from a law enforcement position.
It flies. It spies. It is the color of sunshine, and it has googly eyes.
Meet WASP, the Wireless Aerial Surveillance Platform, one of the star attractions of this year’s Black Hat conference.
It’s a remote-controlled plane with a computer in its belly that can fly up to 400 feet above the ground, snoop quietly on wireless networks below and attack one if it wants to. It can also pretend to be a GSM cellphone tower, eavesdropping on calls and text messages that pass through.
The WASP was built by Richard Perkins and Mike Tassey using hobby materials, including a Styrofoam plane body, a plastic propeller and foam tires, along with circuit boards and wires. The materials are all off the shelf, costing $6,190 — a fraction of the cost of a spy plane, with cyberweapons included.
Its creators eschew the term “spy plane.” “There’s a negative connotation to a spy plane,” Mr. Tassey said. “This was done in an attempt to prove a concept.”
What concept?
“That it can be done,” he said.
His sentiment perfectly embodied the ethos of Black Hat, a spirited gathering of technologists who sometimes make scary things to show that they can be made, and at other times break things to show how badly they need to be fixed.
The bird conjured by Mr. Perkins and Mr. Tassey is barely four feet long and becomes an imperceptible, quietly humming little creature when it hovers overhead. It could be deployed over, say, an office building to sniff out information going across its wireless network. Or if the office network is well secured, the plane could follow an employee on a trip to a neighborhood Starbucks.
The WASP could mimic the cafe’s network, luring the unwitting employee and allowing access to a laptop or cellphone. As Mr. Tassey put it, “In Starbucks, no one can hear your laptop scream.”
They sat at tables along the perimeter of a ballroom in the Rio hotel. Lights were low. Laptops burned like campfires. Men and women hunched over the machines, their backs curved like question marks. Their fingers clicked away furiously.
“This is a spelling bee for hackers,” explained Giovanni Vigna, 42, a professor of computer science from the University of California, Santa Barbara. “It’s a way to prove your hacking skills.”
Each team, he said, was given the same type of virtual server, with the same strengths and weaknesses. The teams were charged with defending their servers and attacking those of others. Each time a weak spot was attacked, a flag was awarded. The team with the most flags won. Hence, the name of the contest: Capture the Flag. This was the final round.
Contests are a big deal at Defcon. But they’re not all on computers. Defcon is about celebrating tinkering.
There was a “lockpicking village” where interested parties did exactly that: pick locks. “Most of us see locks as puzzles,” Babak Javadi, 26, one of the organizers, explained. He has been taking apart locks since he was a kid, he said, and now runs a security business, specializing in high-security locks.
There was a barber offering mohawks. There were vendors selling “advanced gaming eyewear,” glasses that sell for up to $189 a pair, designed to reduce the glare of a computer screen and ease eye fatigue. There were vendors selling luggage tags that said “Geek on Board.”
In one hall, a competition was under way to invent a beer-cooling contraption. In another, teams were competing to tamper with so-called tamper-resistant materials.
“You’re doing something you’re not meant to do: That’s the essence of hacking,” said Chris Kuivenhoven, 34, a security engineer from Atlanta. “People can use it for good or bad.”
http://www.nytimes.com/2011/08/08/technology/scenes-from-hacker-gatherings-in-las-vegas.html?_r=1&pagewanted=all
Thursday, July 28, 2011
Madoff trustee in $1 billion settlement with Tremont
July 28, 2011
Madoff trustee in $1 billion settlement with Tremont
NEW YORK, The trustee seeking money for victims of Bernard Madoff's fraud announced a more than $1 billion settlement with Tremont Group Holdings Inc, which he had accused of missing warning signs of the Ponzi scheme.
Thursday's settlement raises the amount of money trustee Irving Picard said he has recovered for Madoff's victims to $8.6 billion, or roughly half the $17.3 billion lost by customers who filed claims. It requires court approval.
Picard has said Rye, New York-based Tremont, which is part of Massachusetts Mutual Life Insurance Co, was the second-largest "feeder fund" group that funneled money to Madoff from its own investors.
He had sued Tremont for $2.1 billion on February 28, accusing it of missing "red flags" and "blindly relying on Madoff to drive their funds' returns" for nearly 15 years.
Tremont and its now-defunct Rye Investment Management unit lost more than $3 billion of client money funneled to Madoff and his firm Bernard L. Madoff Investment Securities LLC, whose liquidation is overseen by Picard.
The Tremont accord covers more than one dozen U.S. and foreign investment funds and their affiliates.
Once the more than $1 billion of settlement payments are released from escrow, Picard will allow more than $3 billion of customer claims related to the Rye Select and Tremont funds against the Madoff firm's bankruptcy estate.
The settlement "gives investors in our funds the potential to recover a substantial portion of their losses" from Madoff's fraud, Tremont spokesman Montieth Illingworth said in a statement. "Bringing this matter to a close, with proofs of claim preserved, was the best outcome."
http://www.newsmeat.com/news/meat.php?articleId=104872686&channelId=2951&buyerId=newsmeatcom&buid=3281
Madoff trustee in $1 billion settlement with Tremont
NEW YORK, The trustee seeking money for victims of Bernard Madoff's fraud announced a more than $1 billion settlement with Tremont Group Holdings Inc, which he had accused of missing warning signs of the Ponzi scheme.
Thursday's settlement raises the amount of money trustee Irving Picard said he has recovered for Madoff's victims to $8.6 billion, or roughly half the $17.3 billion lost by customers who filed claims. It requires court approval.
Picard has said Rye, New York-based Tremont, which is part of Massachusetts Mutual Life Insurance Co, was the second-largest "feeder fund" group that funneled money to Madoff from its own investors.
He had sued Tremont for $2.1 billion on February 28, accusing it of missing "red flags" and "blindly relying on Madoff to drive their funds' returns" for nearly 15 years.
Tremont and its now-defunct Rye Investment Management unit lost more than $3 billion of client money funneled to Madoff and his firm Bernard L. Madoff Investment Securities LLC, whose liquidation is overseen by Picard.
The Tremont accord covers more than one dozen U.S. and foreign investment funds and their affiliates.
Once the more than $1 billion of settlement payments are released from escrow, Picard will allow more than $3 billion of customer claims related to the Rye Select and Tremont funds against the Madoff firm's bankruptcy estate.
The settlement "gives investors in our funds the potential to recover a substantial portion of their losses" from Madoff's fraud, Tremont spokesman Montieth Illingworth said in a statement. "Bringing this matter to a close, with proofs of claim preserved, was the best outcome."
http://www.newsmeat.com/news/meat.php?articleId=104872686&channelId=2951&buyerId=newsmeatcom&buid=3281
Tuesday, July 19, 2011
U.S. Arrests 14 for Roles in PayPal Cyber Attack ...
July 19, 2011 U.S. arrests 14 for roles in PayPal cyber attack
Washington, U.S. authorities on Tuesday arrested 16 people on charges they participated in major cyber attacks, including the crippling of eBay's PayPal website as retribution for dropping WikiLeaks as a client.
FBI agents arrested 14 people in nine states and Washington, D.C., for the PayPal attack, which occurred last December and was allegedly coordinated by the hacking group Anonymous. It was the biggest take down so far tied to the high-profile cyber attack.
Financial institutions like PayPal, Visa and MasterCard withdrew services from WikiLeaks last year after the website published thousands of sometimes embarrassing secret U.S. diplomatic reports that have caused strains between Washington and numerous allies.
Hackers responded with so-called distributed denial-of-service attacks that flooded the companies' websites and rendered them unavailable to legitimate users, according to the indictment filed in California.
PayPal suffered attacks for several days last December.
The 14 individuals were charged with conspiracy, which carries a maximum penalty of five years in prison if convicted, and intentional damage to a protected computer, which carries a maximum sentence of 10 years in prison.
Law enforcement authorities believe Anonymous is mostly made up of hackers believed to be in their teens and early 20s.
"The fact that they have been tracked back and that some of them have been arrested is a significant development," said Mark Rasch, a former chief of the Justice Department's cyber crimes unit and now director of Cybersecurity and Privacy Consulting for the government technology services firm CSC.
In addition, U.S. authorities executed more than 35 search warrants around the country as part of its investigation into coordinated cyber attacks against major companies and organizations, the Justice Department said.
The Justice Department and FBI have been under pressure to crack down on hackers who have stepped up their attacks on corporate and government websites over the last several months in a bid to thwart their activities.
Stewart Baker, a former top official of the Homeland Security department, said the FBI probably gave the case extra attention because of the public taunting the bureau received from Anonymous and related groups.
"It does look like some of these guys (hackers) were just fools. The PayPal attack in particular," said Baker, now at the law firm Steptoe and Johnson LLP. "It looks like these bozos must have just said 'Cool, an attack on PayPal. You can use my machine.'
"I think it makes it a lot less likely that that people will join the next digital lynch mob," he said.
Another related arrest came in New Mexico where an employee for a contractor for AT&T's wireless service faced charges of accessing a computer without authorization by allegedly downloading thousands of documents related to its 4G data network and LTE mobile broadband network.
The data was subsequently downloaded to a file-sharing web site in April and another one of the loosely organized groups of hackers, Lulz Security, subsequently publicized the data breach, the complaint said.
AT&T had no comment on the arrest.
http://www.newsmeat.com/news/meat.php?articleId=102964380&channelId=2951&buyerId=newsmeatcom&buid=3281
Washington, U.S. authorities on Tuesday arrested 16 people on charges they participated in major cyber attacks, including the crippling of eBay's PayPal website as retribution for dropping WikiLeaks as a client.
FBI agents arrested 14 people in nine states and Washington, D.C., for the PayPal attack, which occurred last December and was allegedly coordinated by the hacking group Anonymous. It was the biggest take down so far tied to the high-profile cyber attack.
Financial institutions like PayPal, Visa and MasterCard withdrew services from WikiLeaks last year after the website published thousands of sometimes embarrassing secret U.S. diplomatic reports that have caused strains between Washington and numerous allies.
Hackers responded with so-called distributed denial-of-service attacks that flooded the companies' websites and rendered them unavailable to legitimate users, according to the indictment filed in California.
PayPal suffered attacks for several days last December.
The 14 individuals were charged with conspiracy, which carries a maximum penalty of five years in prison if convicted, and intentional damage to a protected computer, which carries a maximum sentence of 10 years in prison.
Law enforcement authorities believe Anonymous is mostly made up of hackers believed to be in their teens and early 20s.
"The fact that they have been tracked back and that some of them have been arrested is a significant development," said Mark Rasch, a former chief of the Justice Department's cyber crimes unit and now director of Cybersecurity and Privacy Consulting for the government technology services firm CSC.
In addition, U.S. authorities executed more than 35 search warrants around the country as part of its investigation into coordinated cyber attacks against major companies and organizations, the Justice Department said.
The Justice Department and FBI have been under pressure to crack down on hackers who have stepped up their attacks on corporate and government websites over the last several months in a bid to thwart their activities.
Stewart Baker, a former top official of the Homeland Security department, said the FBI probably gave the case extra attention because of the public taunting the bureau received from Anonymous and related groups.
"It does look like some of these guys (hackers) were just fools. The PayPal attack in particular," said Baker, now at the law firm Steptoe and Johnson LLP. "It looks like these bozos must have just said 'Cool, an attack on PayPal. You can use my machine.'
"I think it makes it a lot less likely that that people will join the next digital lynch mob," he said.
Another related arrest came in New Mexico where an employee for a contractor for AT&T's wireless service faced charges of accessing a computer without authorization by allegedly downloading thousands of documents related to its 4G data network and LTE mobile broadband network.
The data was subsequently downloaded to a file-sharing web site in April and another one of the loosely organized groups of hackers, Lulz Security, subsequently publicized the data breach, the complaint said.
AT&T had no comment on the arrest.
http://www.newsmeat.com/news/meat.php?articleId=102964380&channelId=2951&buyerId=newsmeatcom&buid=3281
Thursday, June 16, 2011
Copyright aspects of hyperlinking and framing ...
See ...
Copyright aspects of hyperlinking and framing
While hyperlinking among webpages is an intrinsic feature of the web, some websites object to being linked to from other websites; some have claimed that linking to them is not allowed without permission.
Contentious in particular are deep links, which do not point to a site's home page or other entry point designated by the site owner, but to content elsewhere, allowing the user to bypass the site's own designated flow, and inline links, which incorporate the content in question into the pages of the linking site, making it seem part of the linking site's own content unless an explicit attribution is added.
Methods of website linking
This article pertains to methods of hyperlinking to/of different websites, often used in regard to search engine optimization (SEO). Many techniques and special terminology about linking are described below.
A reciprocal link is a mutual link between two objects, commonly between two websites to ensure mutual traffic.
For example, Trish and Roger have websites. If Roger's website links to Trish's website, and Trish's website links to Roger's website, the websites are reciprocally linked.
Website owners often submit their sites to reciprocal link exchange directories, in order to achieve higher rankings in the search engines. Reciprocal linking between websites is an important part of the search engine optimization process because Google uses link popularity algorithms (defined as the number of links that lead to a particular page and the anchor text of the link) to rank websites for relevancy.[citation needed]
Resource Linking
Resource Links are a category of links, which can be either one-way or two-way, usually referenced as "Resources" or "Information" in navbars, but sometimes, especially in the early, less compartmentalized years of the Web, simply called "links". Basically, they are hyperlinks to a website or a specific webpage containing content believed to be beneficial, useful and relevant to visitors of the site establishing the link.
In recent years, resource links have grown in importance because most major search engines have made it plain that—in Google's words-- "quantity, quality, and relevance of links count towards your rating."[1]
The engines' insistence on resource links being relevant and beneficial developed because many artificial link building methods were employed solely to "spam" search-engines, i.e. to "fool" the engines' algorithms into awarding the sites employing these unethical devices undeservedly high page ranks and/or return positions.
Despite cautioning site developers (again quoting from Google) to avoid "'free-for-all' links, link popularity schemes, or submitting your site to thousands of search engines (because) these are typically useless exercises that don't affect your ranking in the results of the major search engines[2] -- at least, not in a way you would likely consider to be positive,"[3] most major engines have deployed technology designed to "red flag" and potentially penalize sites employing such practices.
Forum signature linking
Forum signature linking is a technique used to build backlinks to a website. This is the process of using forum communities that allow outbound hyperlinks in a member's signature.
This can be a fast method to build up inbound links to a website; it can also produce some targeted traffic if the website is relevant to the forum topic. It should be stated that forums using the nofollow attribute will have no actual Search Engine Optimization value.
See also:
Backlink: incoming links
Deep linking: linking directly to a page within another website.
Inline linking: linking directly to content within another website.
Page Rank
http://www.justice.gov/criminal/cybercrime/reporting.htm#ip
Copyright aspects of hyperlinking and framingWhile hyperlinking among webpages is an intrinsic feature of the web, some websites object to being linked to from other websites; some have claimed that linking to them is not allowed without permission.
Contentious in particular are deep links, which do not point to a site's home page or other entry point designated by the site owner, but to content elsewhere, allowing the user to bypass the site's own designated flow, and inline links, which incorporate the content in question into the pages of the linking site, making it seem part of the linking site's own content unless an explicit attribution is added.
Methods of website linking
This article pertains to methods of hyperlinking to/of different websites, often used in regard to search engine optimization (SEO). Many techniques and special terminology about linking are described below.
A reciprocal link is a mutual link between two objects, commonly between two websites to ensure mutual traffic.
For example, Trish and Roger have websites. If Roger's website links to Trish's website, and Trish's website links to Roger's website, the websites are reciprocally linked.
Website owners often submit their sites to reciprocal link exchange directories, in order to achieve higher rankings in the search engines. Reciprocal linking between websites is an important part of the search engine optimization process because Google uses link popularity algorithms (defined as the number of links that lead to a particular page and the anchor text of the link) to rank websites for relevancy.[citation needed]
Resource LinkingResource Links are a category of links, which can be either one-way or two-way, usually referenced as "Resources" or "Information" in navbars, but sometimes, especially in the early, less compartmentalized years of the Web, simply called "links". Basically, they are hyperlinks to a website or a specific webpage containing content believed to be beneficial, useful and relevant to visitors of the site establishing the link.
In recent years, resource links have grown in importance because most major search engines have made it plain that—in Google's words-- "quantity, quality, and relevance of links count towards your rating."[1]
The engines' insistence on resource links being relevant and beneficial developed because many artificial link building methods were employed solely to "spam" search-engines, i.e. to "fool" the engines' algorithms into awarding the sites employing these unethical devices undeservedly high page ranks and/or return positions.
Despite cautioning site developers (again quoting from Google) to avoid "'free-for-all' links, link popularity schemes, or submitting your site to thousands of search engines (because) these are typically useless exercises that don't affect your ranking in the results of the major search engines[2] -- at least, not in a way you would likely consider to be positive,"[3] most major engines have deployed technology designed to "red flag" and potentially penalize sites employing such practices.
Forum signature linking
Forum signature linking is a technique used to build backlinks to a website. This is the process of using forum communities that allow outbound hyperlinks in a member's signature.
This can be a fast method to build up inbound links to a website; it can also produce some targeted traffic if the website is relevant to the forum topic. It should be stated that forums using the nofollow attribute will have no actual Search Engine Optimization value.
See also:
Backlink: incoming links
Deep linking: linking directly to a page within another website.
Inline linking: linking directly to content within another website.
Page Rank
http://www.justice.gov/criminal/cybercrime/reporting.htm#ip
Thursday, June 9, 2011
China and the US: Sizing up for cyber war? Critics think the tough talk is a smokescreen for censorship ...
June 9, 2011
China and the US: Sizing up for cyber war?
Senior US officials call cyber attacks 'acts of war', but critics think the tough talk is a smokescreen for censorship.
As senior US officials warn that cyber attacks on vital systems would be considered "acts of war" eliciting a real world military response, one professor at the National Defence University surmises that battles of the future might be fought by guys hunched over keyboards in dark basements, rather than strapping lads toting M-16s.
In light of recent cyber attacks on Google apparently launched from China, online tensions - the possible precursors to outright conflict - have been spreading from chat rooms, to Gmail accounts and into the meeting rooms of military decision makers in recent weeks.
"We operate in five domains: air, land, sea, outer space and cyberspace," says Dan Kuehl, a professor of information operations at the National Defence University in Washington. "An ever increasing amount of what we do has dependencies on cyberspace; a guy typing on a computer is one of the new faces of war," Kuehl told Al Jazeera, stressing that he is not speaking for the US government or his elite military university.
"A response to a cyber-incident or attack on the US would not necessarily be a cyber-response. All appropriate options would be on the table," Pentagon spokesman Colonel Dave Lapan said recently.
Tough talk and phishing trips
One US defence official told The Wall Street Journal newspaper: "If you shut down our power grid, maybe we will put a missile down one of your smokestacks," in rhetoric likely aimed at China. For its part, the Chinese government categorically denied any involvement in the cyber attacks, which Google reported to the US state department and media outlets last week.
The reason for this sort of digital tough-talk is related to basic military strategy. "There is value in ambiguity," Kuehl said. "You don't want your adversary to think 'I can go up to that red line but I can't cross it'. You want them to think 'I won't do anything in the first place'," for fear of old fashioned physical reprisal.
Phishing attacks recently launched against Google's mail service targeted the personal e-mail accounts of some senior US officials, along with Chinese journalists, human rights activists and South Korea's government.
These attacks are similar in form to the scam e-mails most people receive from, say, the widow of a Nigerian millionaire who asks the user to open a message so they can claim their $14m reward for being a nice person. Once the message is opened, the victim's computer is compromised.
"This was a pretty straight forward phishing attack, other than the more sophisticated social engineering where the e-mail seems to come from someone who you know,” says Richard Stiennon, the chief research analyst at IT-Harvest and author of Surviving Cyberwar, referring to recent actions against Gmail.
"The Chinese have the early advantage in executing cyber warfare. If you have a large information gathering operation, knowing even the personal data of officials can be valuable," he told Al Jazeera. If data is stolen from personal accounts it is likely dumped into massive data banks for processing, crossing referencing and analysis.
WikiLeaks documents indicate that US diplomats are concerned about China's government recruiting top hackers to launch cyber war campaigns.
"There is a strong possibility the PRC [People's Republic of China] is harvesting the talents of its private sector in order to bolster offensive and defensive computer network operations capabilities," said a secret state department cable from June 2009.
Tampering with logistics
Since 2002, cyber intruders, apparently from China, have exploited vulnerabilities in the Window's operating system to steal login credentials in order to gain access to hundreds of US government and defence contractor systems, according to a 2008 cable.
China, for its part, says it is ready for online conflict should it arise. "Of late, an internet tornado has swept across the world... massively impacting and shocking the globe. Behind all this lies the shadow of America," said a recent article published in the Communist-Party controlled China Youth Daily newspaper, signed by Ye Zheng and Zhao Baoxian, who are scholars with the Academy of Military Sciences, a government linked think-tank.
"Faced with this warm-up for an internet war, every nation and military can't be passive but is making preparations to fight the internet war," the article said.
That attacks apparently came from China does not, onto itself, implicate the Chinese government. Internet or IP addresses which delineate where a computer is physically located can be compromised, allowing users in one country to take over a computer somewhere else to launch attacks.
"How do you know where to strike back? You don't," says Bruce Schneier, a technology expert and author of several books who The Economist magazine describes as a "security guru".
"You don't have nationality for cyber attacks, making retaliation hard," he told Al Jazeera.
But the nature of the Chinese state, where information is closely controlled, most corporations are linked to the Communist Party apparatus and dissidents are crushed, means the government likely had some knowledge of what was happening, Stiennon says.
And, even if the Google attack was carried out by rogue hackers, American defence planners haven't been taking any chances. One possible scenario involves a Chinese move to re-take Taiwan - an island which China views as a renegade - despite the US and UN considering it a sovereign country.
"The Chinese have looked at their biggest potential military adversary, the US, and decided that their biggest weaknesses are that they are far away and dependent on computers," says Kuehl from the defence university. He thinks likely Chinese strategies are twofold: The obvious "degrading enemy military apparatuses in the theatre of war" and "preventing the enemy from getting there". Cyber attacks, targeting battle ship deployments and logistics, would play decisively in the latter.
"The threat, from a military perspective, isn't data denial, it is data manipulation," Kuehl says. "What do you do when the data on your screen is wrong and air traffic controls, money, deployment orders and personnel have all been tampered with?"
Misdirection and censorship
Regardless of China's broader aims or involvement from the Chinese government in recent cyber mischief against Google, there is nothing new or impressive about recent cyber attacks, even though the international media has focused on them, Schneier says. "Millions of these kinds of attacks happen all the time," he says. To him, recent phishing operations against Google are not even worthy of a blog post, as such events happen so frequently.
Chris Palmer, the technology director with the Electronic Frontier Foundation advocacy group, thinks recent rhetoric about cyber war is a "smokescreen to limit freedom of speech on the internet".
"If I was being cynical, this campaign [about cyber security] is being launched by defence contractors to drum up a threat and get money from it," Palmer told Al Jazeera.
The US state department's tough talk about physical reprisals is not the way to defend American infrastructure from attacks, he says. The solution is much simpler: Taking sensitive data off the internet entirely.
Gaining access to military documents or networks controlling physical infrastructure like water treatment plants and nuclear facilities "should be like Mission Impossible, requiring a physical presence". In the film, Tom Cruise has to sneak into a heavily guarded room to physically access a computer with secret information.
In the 1980s and early 1990s, power plants, for example, ran on private networks where the censors would talk to the controllers, Palmer says. "Now things that are supposed to be private have become virtually private, going over the same lines as internet traffic." As getting online became cheaper, and operating private networks became more costly and cumbersome compared to using the standard internet, companies began using the regular net.
"Not being on the internet costs more for dollars and opportunity cost," he says. "The design and the reality don't match anymore, but the design was supposed to be private." And this semi-public link to the broader net leaves vital systems potentially open to attack.
While military contractors propose new products to defend against online threats, commercial cyber crime - where companies seek data on competitors and rivals try to steal industrial secrets - may be a bigger issue than fears of nation to nation conflicts spilling onto the internet.
"The [US] defence department, just like everyone else, is struggling with the rapid rise of cyber threats," says Richard Stiennon, the security analyst. "It is all new. They don't have a basis in international law or jurisdictional avenues from which to build a cyber response."
And, the need for better international norms for governing cyber conflict is one of the few points of agreement between analysts. "The big thing here is that there is nothing magic about cyberspace," Schneider says."Everything that is true is still true when you put the word 'cyber' in front of it."
Some may say that international laws are often worth little more than the paper on which they are printed. And, sadly, the ability to exert force still determines the international pecking order. But, it may still be better to have an unenforceable framework for online conflict than none at all.
As Bruce Schneier puts it, "I think a UN conference on cyber war would be a great thing to do".
http://english.aljazeera.net/indepth/features/2011/06/201168204035985818.html
China and the US: Sizing up for cyber war?
Senior US officials call cyber attacks 'acts of war', but critics think the tough talk is a smokescreen for censorship.
As senior US officials warn that cyber attacks on vital systems would be considered "acts of war" eliciting a real world military response, one professor at the National Defence University surmises that battles of the future might be fought by guys hunched over keyboards in dark basements, rather than strapping lads toting M-16s.
In light of recent cyber attacks on Google apparently launched from China, online tensions - the possible precursors to outright conflict - have been spreading from chat rooms, to Gmail accounts and into the meeting rooms of military decision makers in recent weeks.
"We operate in five domains: air, land, sea, outer space and cyberspace," says Dan Kuehl, a professor of information operations at the National Defence University in Washington. "An ever increasing amount of what we do has dependencies on cyberspace; a guy typing on a computer is one of the new faces of war," Kuehl told Al Jazeera, stressing that he is not speaking for the US government or his elite military university.
"A response to a cyber-incident or attack on the US would not necessarily be a cyber-response. All appropriate options would be on the table," Pentagon spokesman Colonel Dave Lapan said recently.
Tough talk and phishing trips
One US defence official told The Wall Street Journal newspaper: "If you shut down our power grid, maybe we will put a missile down one of your smokestacks," in rhetoric likely aimed at China. For its part, the Chinese government categorically denied any involvement in the cyber attacks, which Google reported to the US state department and media outlets last week.
The reason for this sort of digital tough-talk is related to basic military strategy. "There is value in ambiguity," Kuehl said. "You don't want your adversary to think 'I can go up to that red line but I can't cross it'. You want them to think 'I won't do anything in the first place'," for fear of old fashioned physical reprisal.
Phishing attacks recently launched against Google's mail service targeted the personal e-mail accounts of some senior US officials, along with Chinese journalists, human rights activists and South Korea's government.
These attacks are similar in form to the scam e-mails most people receive from, say, the widow of a Nigerian millionaire who asks the user to open a message so they can claim their $14m reward for being a nice person. Once the message is opened, the victim's computer is compromised.
"This was a pretty straight forward phishing attack, other than the more sophisticated social engineering where the e-mail seems to come from someone who you know,” says Richard Stiennon, the chief research analyst at IT-Harvest and author of Surviving Cyberwar, referring to recent actions against Gmail.
"The Chinese have the early advantage in executing cyber warfare. If you have a large information gathering operation, knowing even the personal data of officials can be valuable," he told Al Jazeera. If data is stolen from personal accounts it is likely dumped into massive data banks for processing, crossing referencing and analysis.
WikiLeaks documents indicate that US diplomats are concerned about China's government recruiting top hackers to launch cyber war campaigns.
"There is a strong possibility the PRC [People's Republic of China] is harvesting the talents of its private sector in order to bolster offensive and defensive computer network operations capabilities," said a secret state department cable from June 2009.
Tampering with logistics
Since 2002, cyber intruders, apparently from China, have exploited vulnerabilities in the Window's operating system to steal login credentials in order to gain access to hundreds of US government and defence contractor systems, according to a 2008 cable.
China, for its part, says it is ready for online conflict should it arise. "Of late, an internet tornado has swept across the world... massively impacting and shocking the globe. Behind all this lies the shadow of America," said a recent article published in the Communist-Party controlled China Youth Daily newspaper, signed by Ye Zheng and Zhao Baoxian, who are scholars with the Academy of Military Sciences, a government linked think-tank.
"Faced with this warm-up for an internet war, every nation and military can't be passive but is making preparations to fight the internet war," the article said.
That attacks apparently came from China does not, onto itself, implicate the Chinese government. Internet or IP addresses which delineate where a computer is physically located can be compromised, allowing users in one country to take over a computer somewhere else to launch attacks.
"How do you know where to strike back? You don't," says Bruce Schneier, a technology expert and author of several books who The Economist magazine describes as a "security guru".
"You don't have nationality for cyber attacks, making retaliation hard," he told Al Jazeera.
But the nature of the Chinese state, where information is closely controlled, most corporations are linked to the Communist Party apparatus and dissidents are crushed, means the government likely had some knowledge of what was happening, Stiennon says.
And, even if the Google attack was carried out by rogue hackers, American defence planners haven't been taking any chances. One possible scenario involves a Chinese move to re-take Taiwan - an island which China views as a renegade - despite the US and UN considering it a sovereign country.
"The Chinese have looked at their biggest potential military adversary, the US, and decided that their biggest weaknesses are that they are far away and dependent on computers," says Kuehl from the defence university. He thinks likely Chinese strategies are twofold: The obvious "degrading enemy military apparatuses in the theatre of war" and "preventing the enemy from getting there". Cyber attacks, targeting battle ship deployments and logistics, would play decisively in the latter.
"The threat, from a military perspective, isn't data denial, it is data manipulation," Kuehl says. "What do you do when the data on your screen is wrong and air traffic controls, money, deployment orders and personnel have all been tampered with?"
Misdirection and censorship
Regardless of China's broader aims or involvement from the Chinese government in recent cyber mischief against Google, there is nothing new or impressive about recent cyber attacks, even though the international media has focused on them, Schneier says. "Millions of these kinds of attacks happen all the time," he says. To him, recent phishing operations against Google are not even worthy of a blog post, as such events happen so frequently.
Chris Palmer, the technology director with the Electronic Frontier Foundation advocacy group, thinks recent rhetoric about cyber war is a "smokescreen to limit freedom of speech on the internet".
"If I was being cynical, this campaign [about cyber security] is being launched by defence contractors to drum up a threat and get money from it," Palmer told Al Jazeera.
The US state department's tough talk about physical reprisals is not the way to defend American infrastructure from attacks, he says. The solution is much simpler: Taking sensitive data off the internet entirely.
Gaining access to military documents or networks controlling physical infrastructure like water treatment plants and nuclear facilities "should be like Mission Impossible, requiring a physical presence". In the film, Tom Cruise has to sneak into a heavily guarded room to physically access a computer with secret information.
In the 1980s and early 1990s, power plants, for example, ran on private networks where the censors would talk to the controllers, Palmer says. "Now things that are supposed to be private have become virtually private, going over the same lines as internet traffic." As getting online became cheaper, and operating private networks became more costly and cumbersome compared to using the standard internet, companies began using the regular net.
"Not being on the internet costs more for dollars and opportunity cost," he says. "The design and the reality don't match anymore, but the design was supposed to be private." And this semi-public link to the broader net leaves vital systems potentially open to attack.
While military contractors propose new products to defend against online threats, commercial cyber crime - where companies seek data on competitors and rivals try to steal industrial secrets - may be a bigger issue than fears of nation to nation conflicts spilling onto the internet.
"The [US] defence department, just like everyone else, is struggling with the rapid rise of cyber threats," says Richard Stiennon, the security analyst. "It is all new. They don't have a basis in international law or jurisdictional avenues from which to build a cyber response."
And, the need for better international norms for governing cyber conflict is one of the few points of agreement between analysts. "The big thing here is that there is nothing magic about cyberspace," Schneider says."Everything that is true is still true when you put the word 'cyber' in front of it."
Some may say that international laws are often worth little more than the paper on which they are printed. And, sadly, the ability to exert force still determines the international pecking order. But, it may still be better to have an unenforceable framework for online conflict than none at all.
As Bruce Schneier puts it, "I think a UN conference on cyber war would be a great thing to do".
http://english.aljazeera.net/indepth/features/2011/06/201168204035985818.html
Friday, June 3, 2011
London Cyberwar ~ MI6 hits al-Qaida in 'Operation Cupcake' ...
June 3, 2011MI6 hits al-Qaida in 'Operation Cupcake'
LONDON, Britain's cyberwar against al-Qaida took a sweet turn when intelligence officials hacked into a Web site, subbing bomb-making plans with a cupcake recipe.
The cyber operation was undertaken by MI6 and and Britain's Government Communications Headquarters to disrupt efforts by al-Qaida in the Arabian Peninsula to recruit so-called lone wolf terrorists with the English-language Inspire magazine, The Daily Telegraph said.
The British publication did not indicate when the cyberattack on Inspire occurred. British and U.S intelligence had planned separate operations after learning the magazine was about to launch in June 2010, developing a number of cyber countermeasures, including computer viruses.
When visitors tried to download the Webazine, instead of getting instruction about how to "Make a Bomb in the Kitchen of Your Mom" by "The AQ Chef," they got garbled computer code that was a Web page of recipes for "The Best Cupcakes in America."
Among other things, the substituted text produced by Main Street Cupcakes in Hudson, Ohio, included recipes for a mojito cupcake and a rocky road cupcake, the Telegraph said.
The text was supposed to be a recipe for making a lethal pipe bomb with household items, intelligence officers said.
The cyberattack also deleted an article called, "What to Expect in Jihad," by now-deceased al-Qaida leader Osama bin Laden, and his deputy, Ayman al-Zawahiri, the Telegraph said.
Inspire is produced by the radical preacher Anwar al-Awlaki, a leader of al-Qaida in the Arabian Peninsula who lived in Britain and the United States, and an associate.
Read more: http://www.upi.com/Top_News/World-News/2011/06/03/MI6-hits-al-Qaida-in-Operation-Cupcake/UPI-86971307102683/#ixzz1OECeCoUA
Saturday, May 14, 2011
Beware ~ Cyber Scams Rife at Social Networks
May 14, 2011Cyber scams rife at social networks: Microsoft
Social networks are "lucrative hot beds" for cyber scams as crooks endeavor to dupe members of online communities, according to a Microsoft security report released on Thursday.
"Phishing" attacks that use seemingly legitimate messages to trick people into clicking on booby-trapped links, buying bogus software, or revealing information rocketed 1,200 percent at social networks last year, it said.
"We continue to see cyber criminals evolve attack methods such as a significant rise in social network phishing," Microsoft malware protection center manager Vinny Gullotto said in the Security Intelligence Report.
Phishing using social networking as a "lure" represented 84.5 percent of all such trickery in December as compared with 8.3 percent at the start of 2010, according to the report.
Microsoft analyzed data gathered from more than 600 million computer systems worldwide from July through December of last year for the semi-annual study.
"The popularity of social networking sites has created new opportunities for cyber criminals to not only directly impact users, but also friends, colleagues and family through impersonation," the report said.
"These techniques add to an existing list of social engineering techniques, such as financial and product promotions, to extort money or trick users into downloading malicious content."
Social engineering is a reference to fooling people to access machines or data instead of trying to hack into networks using software skills.
Microsoft noticed a "polarization" of cyber criminal behavior and a surge in the use of "marketing-like" deception tactics to steal money from people.
"On one side, highly sophisticated criminals skilled at creating exploits and informed with intelligence about a target’s environment pursue high-value targets with large payoffs," the report said.
"On the other side, there are cyber criminals using more accessible attack methods, including social engineering tactics and leveraging exploits created by the more skilled criminals, to take a small amount of money from a large number of people."
Criminals used malicious software to trick people with false advertisements, fake security software, and pay-per-click schemes that generate cash when Internet links are activated, according to Microsoft.
Detections of software crafted to infect machines with pop-up advertisements meanwhile rose 70 percent from the middle of last year to the end of December, the report indicated.
"With more consumers and devices coming online every day, cyber criminals now have more opportunities than before to deceive users through attack methods like adware, phishing and rogue security software," said Graham Titterington of Britain-based analyst firm Ovum.
"It’s becoming increasingly difficult for consumers to decipher legitimate communications and promotions given the sophistication of tools criminals are using."
Rogue security software, referred to as "scareware," was one of the most common ways for cyber criminals worldwide to bilk people out of money and steal information from computers.
The ploy seeks to dupe Internet users by pretending to find viruses and other problems on computers and then offering to sell a program to fix the situation. The software being hawked is a virus.
Computer users were advised to guard against threats by keeping programs updated, using reputable security software, and not clicking links or opening files without making certain they are safe.
http://www.gorkhapatra.org.np/gopa.detail.php?article_id=50089&cat_id=27
Friday, May 13, 2011
White House to unveil cyber-security strategy
Related article ~ May 26-27 ~ Internet Titans to Meet, Advise G8 ...
May 13, 2011
White House to unveil cybersecurity strategy
The White House plans to unveil its policy proposals next week for international cooperation in cyberspace.
The White House said Friday that it plans to release a policy document -- "US International Strategy for Cyberspace" -- at an event on Monday.
"This first-of-its-kind policy document offers our comprehensive vision for the future of international cooperation in cyberspace," the White House said in a statement.
It said the document outlines the US agenda "for partnering with other nations and peoples to ensure the prosperity, security, and openness that we seek in our increasingly networked world."
The State Department said Secretary of State Hillary Clinton, who has made Internet freedom one of her priorities, will deliver keynote remarks at the event.
"The strategy lays out a comprehensive, principled vision for the future of cyberspace," the State Department said.
It said Clinton's remarks "will address the role of cyberspace in advancing the full range of US interests and the importance of international cooperation in advancing cyberspace as a foreign policy priority."
The White House said other top officials attending the event will include John Brennan, President Barack Obama's counter-terror chief, Attorney General Eric Holder, Commerce Secretary Gary Locke and Homeland Security Secretary Janet Napolitano.
The announcement came a day after the White House proposed draft legislation aimed at toughening the defenses of government and private industry against the growing danger from cyberattack.
Obama has identified cybersecurity as a top priority of his administration and the White House legislation joins some 50 cyber-related bills introduced during the last session of Congress.
The White House bill would require critical infrastructure such as the power, financial and transportation sectors to come up with plans to better protect their increasingly Internet-connected computer networks.
The White House is hoping for action by Congress on the bill this year.
http://www.newsmeat.com/news/meat.php?articleId=98678276&channelId=2951&buyerId=newsmeatcom&buid=3281
White House to unveil cybersecurity strategy
The White House plans to unveil its policy proposals next week for international cooperation in cyberspace.
The White House said Friday that it plans to release a policy document -- "US International Strategy for Cyberspace" -- at an event on Monday.
"This first-of-its-kind policy document offers our comprehensive vision for the future of international cooperation in cyberspace," the White House said in a statement.
It said the document outlines the US agenda "for partnering with other nations and peoples to ensure the prosperity, security, and openness that we seek in our increasingly networked world."
The State Department said Secretary of State Hillary Clinton, who has made Internet freedom one of her priorities, will deliver keynote remarks at the event.
"The strategy lays out a comprehensive, principled vision for the future of cyberspace," the State Department said.
It said Clinton's remarks "will address the role of cyberspace in advancing the full range of US interests and the importance of international cooperation in advancing cyberspace as a foreign policy priority."
The White House said other top officials attending the event will include John Brennan, President Barack Obama's counter-terror chief, Attorney General Eric Holder, Commerce Secretary Gary Locke and Homeland Security Secretary Janet Napolitano.
The announcement came a day after the White House proposed draft legislation aimed at toughening the defenses of government and private industry against the growing danger from cyberattack.
Obama has identified cybersecurity as a top priority of his administration and the White House legislation joins some 50 cyber-related bills introduced during the last session of Congress.
The White House bill would require critical infrastructure such as the power, financial and transportation sectors to come up with plans to better protect their increasingly Internet-connected computer networks.
The White House is hoping for action by Congress on the bill this year.
http://www.newsmeat.com/news/meat.php?articleId=98678276&channelId=2951&buyerId=newsmeatcom&buid=3281
Friday, April 29, 2011
Currency Market Scams ... Foreign Currencies ...
Monopolizing The Currency Market
Monopolizing a market is done by creating multiple blog spots and/or Forums which all link back to a Master Forum. This generates add revenue for the Master forum. Most of these sites are flagged for unethical as well as illegal activitity including Wire fraud, Mail fraud, and Violations Committed under the unlawful sales of securities pursuant to 11 51 301
One of the many lawsuits under investigation ... http://www.dora.state.co.us/securities/pdf_forms/enforcement/amiraq-verified-petition.pdf
Data Being collected @ http://www.iraqidinarmoney.com/theiraqidinar/
___
Foreign Exchange Investment Fraud ~ Link ~ Crimes of Persuasion
__
Foreign Exchange Scam
The Washington State Department of Financial Institutions is warning consumers about potential scams regarding Iraqi Dinar currency exchange services. While foreign exchange scams are not new, the sudden popularity with the Dinar and resulting consumer complaints to our banking partners is concerning. Consumers can read about the investment-related risks in our previously-released consumer alert ...
“Forex: Risky Business?” at link Several websites have recently begun advertising investment opportunities in Iraqi Dinars, the currency of Iraq. These websites are asking the consumers to send a check, wire, money order, or pay cash upon delivery of the Dinars.
Continues ..
Monopolizing a market is done by creating multiple blog spots and/or Forums which all link back to a Master Forum. This generates add revenue for the Master forum. Most of these sites are flagged for unethical as well as illegal activitity including Wire fraud, Mail fraud, and Violations Committed under the unlawful sales of securities pursuant to 11 51 301
One of the many lawsuits under investigation ... http://www.dora.state.co.us/securities/pdf_forms/enforcement/amiraq-verified-petition.pdf
Data Being collected @ http://www.iraqidinarmoney.com/theiraqidinar/
___
Foreign Exchange Investment Fraud ~ Link ~ Crimes of Persuasion
__
Foreign Exchange Scam
The Washington State Department of Financial Institutions is warning consumers about potential scams regarding Iraqi Dinar currency exchange services. While foreign exchange scams are not new, the sudden popularity with the Dinar and resulting consumer complaints to our banking partners is concerning. Consumers can read about the investment-related risks in our previously-released consumer alert ...
“Forex: Risky Business?” at link Several websites have recently begun advertising investment opportunities in Iraqi Dinars, the currency of Iraq. These websites are asking the consumers to send a check, wire, money order, or pay cash upon delivery of the Dinars.
Continues ..
Monday, April 18, 2011
South Korea bank probed over "cyber-attack" 3 day shutdown ...
April 18, 2011 S. Korea bank probed over "cyber-attack" shutdown
SEOUL: Regulators launched an inquiry Monday into South Korea's largest banking network in terms of branches, after a suspected cyber-attack left many customers unable to access their money for three days.
A system crash that started on April 12 left customers of the National Agricultural Cooperative Federation, or Nonghyup, unable to withdraw or transfer money, use credit cards or take out loans.
Financial Supervisory Service and central bank officials visited the bank's Seoul headquarters Monday to investigate whether it had complied with computer security rules.
The bank's services were partially restored after three days, but some -- including an advance cash service -- were still unavailable Monday. Some 310,000 customers have filed complaints and nearly 1,000 called for compensation.
The major technical glitch also temporarily deleted records of some of Nonghyup's 5.4 million credit card customers, leaving the firm unable at present to bill customers or settle payments to retailers.
Nonghyup, which has about 5,000 branches, said it suspected the problem was caused by cyber-attackers, who entered commands to destroy computer servers and wipe out some transaction histories.
"The latest incident was conducted internally...the meticulously designed commands entered through a laptop computer owned by a subcontractor company were carried out to simultaneously destroy the entire server system," Nonghyup official Kim You-Kyung told a briefing.
The bank pledged full compensation for any damages and stressed there was no leak of personal data.
It was the second major glitch at a financial firm this month, after Hyundai Capital said a hacker broke into its computer system and stole customer data.
Hyundai Capital, which has about 1.8 million customers, said it lost data on 420,000 customers such as names, residential registration numbers and mobile phone numbers.
About 13,000 passwords also appeared to have been hacked from customers' loan accounts, said Hyundai Capital which is also under investigation by regulators.
Consumer rights groups said they may file class action suits against the two firms.
"We have already enough people to qualify to file suits, but laws are not favourable to consumers in a case like this," Cho Nam-Hee, chief of the Korea Finance Consumer Federation, told AFP.
Cho said the level of protection that financial firms must by law maintain on its online systems is relatively low, and courts usually impose fairly light punishments.
http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1123478/1/.html
Friday, April 15, 2011
Internet Poker Entrepreneurs Charged With Fraud, U.S. Says
April 15, 2011 Internet Poker Entrepreneurs Charged With Fraud, U.S. Says
Founders of Internet gambling companies PokerStars, Full Tilt Poker and Absolute Poker were among 11 people charged by the U.S. in a case that seeks at least $3 billion in forfeitures and penalties.
A revised indictment issued yesterday includes charges of bank fraud, money laundering and illegal gambling. It is the latest in a series of criminal cases against Internet gambling companies brought by U.S. Attorney Preet Bharara in Manhattan.
PokerStars, based on the Isle of Mann, Ireland’s Full Tilt Poker and Absolute Poker of Costa Rica are the leading online poker sites doing business with U.S. customers, according to the indictment. The charging documents name two principals from each company and others who allegedly worked with them to illegally process payments.
“These defendants concocted an elaborate criminal fraud scheme, alternately tricking some U.S. banks and effectively bribing others to assure the continued flow of billions in illegal gambling profits,” Bharara said today in a statement. “To circumvent the gambling laws, the defendants also engaged in massive money laundering and bank fraud.”
Prosecutors allege that after the U.S. enacted a law in 2006 barring banks from processing payments to offshore gambling websites, PokerStars, Full Tilt and Absolute Poker worked around the ban to continue operating in the U.S.
_$5.1 Billion Market
The Internet poker market was $5.1 billion last year, 7.1 percent higher than 2009, according to U.K.-based H2 Gambling Capital, which supplies data on the industry. The global online gambling market now is about $30 billion.
None of the poker company principals indicted are in the U.S. and they haven’t been arrested, Bharara’s office said. Those charged include Isai Scheinberg and Paul Tate of PokerStars; Raymond Bitar and Nelson Burtnick of Full Tilt Poker; and Scott Tom and Brent Beckley of Absolute Poker.
Michele Clayborne, a spokeswoman for Full Tilt, didn’t immediately return a voice-mail message left at her office seeking comment. An e-mail sent to Absolute Poker’s spokesman, David Clainer, was returned as “undeliverable” and a telephone number posted on the company’s website was inoperable.
Jennifer Roberts, a spokeswoman for PokerStars, didn’t immediately return a voice-mail left at her office after regular business hours.
_Tricked Banks_
The poker companies named in the indictment are accused of using fraudulent means to circumvent federal laws and “trick” banks into processing the payments on their behalf.
In one instance, after U.S. banks and financial institutions detected and shut down multiple fraudulent bank accounts used by the betting websites in late 2009, Scheinberg and Bitar developed a new processing strategy that didn’t involve lying to banks, prosecutors said.
They allegedly concealed the money they received from gamblers by disguising it as payments to hundreds of non- existent online merchants purporting to sell items online such as jewelry and golf balls.
Of the billions of dollars in payment transactions that the poker companies tricked the U.S. banks into processing, about one-third of the funds went directly to the poker companies as revenue for so-called “rake” charges to players on almost every poker hand played online, prosecutors said.
PokerStars, Full Tilt and their payment processors persuaded the principals of a few, small local banks facing financial difficulties to engage in such processing in return for multimillion dollar investments in the banks, the U.S. said.
Civil Complaint
The indictment and a related civil complaint filed by Bharara’s office seek at least $3 billion in money laundering penalties and forfeiture from the poker companies and the defendants.
A federal judge has seized about 76 bank accounts in 14 countries which the U.S. says contained the proceeds of the charged offenses. A judge has also ordered the seizure of five domain names used by the poker companies to operate their illegal online businesses in the U.S., Bharara’s office said.
In September, Sportingbet Plc (SBT) agreed to forfeit $33 million in proceeds that the company provided to U.S. customers. The U.K. Internet gambling company said it would maintain a permanent restriction on providing Internet gambling services to U.S. customers unless the law changes, according to the agreement reached with Bharara’s office to avoid prosecution.
The same month, a Canadian charged with laundering $350 million for foreign Internet gambling companies was sentenced to six months of house arrest after pleading guilty to processing offshore bets of U.S. citizens. Douglas Rennick, who faced as long as 12 months in prison, also was ordered by U.S. District Judge Sidney Stein in New York to forfeit $17 million.
http://www.bloomberg.com/news/2011-04-15/internet-poker-entrepreneurs-charged-with-fraud-money-laundering-by-u-s-.html