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Sat, 02/18/2012 - 11:36

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Securing Corporate Data in a Law Office's Computer Network

Thu, 02/16/2012 - 17:52
Note: An excellent article, and a serious subject... When is the last time your law firm had a Cyber TSCM sweep? Ever? Contact me, I can help. ~JDL

law.com

The dramatic rise in electronic economic espionage against U.S. corporations came into full view with a report on the trend issued by the U.S. government last November. That same month, the Federal Bureau of Investigation held a meeting in New York City with some of the weaker links in the online spy game: law firms.

It’s an issue that should be getting the attention of in-house counsel, especially as they share sensitive--and potentially valuable--data with outside counsel.

Rich with client information, law firms are often much less equipped to fend off cyberattacks than the corporations they represent. Ergo “a hacker can hit a law firm and it’s a much, much easier quarry,” Mary Galligan, head of the cyber division in the FBI’s New York City office told Bloomberg. Likewise, in a series of blog posts on this issue currently running in Forbes, cybersecurity expert Alan Paller says: “The important files relating to clients’ international activities are usually much easier to find in the law firms’ files than in the corporate files.”

Digital risk consultancy Stroz Friedberg has advised both law firms and corporate clients on this growing problem. Firms need to take a risk-oriented approach to protecting client information, says company co-president Eric Friedberg, a former federal prosecutor and an expert in cybercrime response. At the same time, he says, there are important questions in-house counsel can ask about how their files will be protected (seeCounsel’s Dozen list below).

“Attackers go where the money is,” says Friedberg. These days, law firms should assume that hackers will infiltrate their network, and they should identify which digital assets are most at risk and put the most security around those areas, he says.


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Chinese Telecoms May Be Spying on Large Numbers of Foreign Customers

Thu, 02/16/2012 - 13:35
theatlantic.com
A U.S. Congressional probe is investigating whether China's state-linked firms, which built much of the communications infrastructure in several Asian countries, is using its access for snooping.

Two Chinese telecommunications giants are under scrutiny by a US congressional committee. The outcome of the probe could have revealing implications for Central Asian states, which have used these companies to modernize their telecom sectors.
US legislators have expressed concern that Huawei and ZTE act as front companies for the Chinese government, and represent a grave "cyber-security threat." The chairman of the House Permanent Select Committee on Intelligence, Michigan Republican Mike Rogers, asserted during a congressional hearing last October that China is engaged in the "brazen and wide-scale theft of intellectual property from foreign commercial competitors."
"Attributing this espionage isn't easy, but talk to any private sector cyber analyst, and they will tell you there is little doubt that this is a massive campaign being conducted by the Chinese government," he added.

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Texas constable admits ordering bugging

Wed, 02/15/2012 - 17:56
chron.com


DALLAS (AP) — A small-town Texas constable told the FBI he secretly bugged other officials' offices after they were accused of illegally forcing motorists to forfeit their cash, according to a search warrant affidavit.The affidavit, based on interviews conducted by FBI agents and Texas Rangers, quotes Shelby CountyConstable Fred Walker as saying he authorized the installation of hidden surveillance cameras and digital recorders even though he didn't have legal authority. It also includes a statement from a witness who claims Walker helped organize a scheme to sell drugs seized from suspects.It's just another chapter in a longtime drama in Tenaha, a town of 1,160 near the Louisiana border, where seizures of cash from motorists stopped for traffic violations along U.S. Highway 59 — a well-known drug route that runs from the U.S.-Mexico border to Canada — have led to lawsuits and a federal criminal investigation.Walker, 53, was Tenaha's city marshal at the time the alleged bugging occurred. He was elected constable in 2010.In a brief phone interview, Walker said he knew nothing about the affidavit, filed in U.S. District Court in Lufkin on Feb. 6. When asked if he arranged to have offices bugged, he hung up.Walker's attorney, Bassey Akpaffiong of Houston, said prosecutors have told him to expect an indictment. Akpaffiong said Walker was never involved in selling drugs and never told the FBI he authorized the installation of secret listening devices.Malcolm Bales, U.S. attorney for the Eastern District of Texas, declined to comment.More...

Caught spying

Wed, 02/15/2012 - 14:27
thestandard.com.hk

Bosses are being warned about breaking the law by using hidden miniature cameras to spy on staff.

For the use of "pinhole" cameras is in sharp focus after Privacy Commissioner Allan Chiang Yam-wang took a subsidiary of Sun Hung Kai Properties to task for snooping.

Chiang found after an investigation that management subsidiary Hong Yip Service Co breached the privacy ordinance by its "unlawful and unfair collection of personal information."

But Chiang said he will not be penalizing the company as it has dismantled the eye-spy gear.

And Hong Yip bosses continue to claim they were not spying on employees by mounting a camera outside a changing room at a housing estate, and that it was to pick up trespassers in the car park. Still, two security guards had been fired as a result of their snooping.

"Covert monitoring is generally regarded as highly privacy-intrusive," Chiang said. "Employers should not adopt covert monitoring unless it is justified by special circumstances." Reasons can include matters like the theft of confidential data - but only as a last resort.

Warning against secret monitoring of employees, Chiang said overt devices such as CCTV cameras offer a legal alternative that in most cases is just as effective as secret cameras.
More...

Traveling Light in a Time of Digital Thievery

Tue, 02/14/2012 - 14:43
Note: Having recently traveled to China, I can attest to Mr. Lieberthal's concerns....Do yourself (and your company) a favor, Just accept the fact that you "will" be collected against...and take Mr. Lieberthal's advice...very seriously.  JDL

nytimes.com

SAN FRANCISCO — When Kenneth G. Lieberthal, a China expert at the Brookings Institution, travels to that country, he follows a routine that seems straight from a spy film.
He leaves his cellphone and laptop at home and instead brings “loaner” devices, which he erases before he leaves the United States and wipes clean the minute he returns. In China, he disables Bluetooth and Wi-Fi, never lets his phone out of his sight and, in meetings, not only turns off his phone but also removes the battery, for fear his microphone could be turned on remotely. He connects to the Internet only through an encrypted, password-protected channel, and copies and pastes his password from a USB thumb drive. He never types in a password directly, because, he said, “the Chinese are very good at installing key-logging software on your laptop.”
What might have once sounded like the behavior of a paranoid is now standard operating procedure for officials at American government agencies, research groups and companies that do business in China and Russia — like Google, the State Department and the Internet security giant McAfee. Digital espionage in these countries, security experts say, is a real and growing threat — whether in pursuit of confidential government information or corporate trade secrets.


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The reality of digital espionage and defending against it

Tue, 02/14/2012 - 14:30
fiercecio.com


The New York Times has an article that talked about the reality of digital espionage and spying conducted against companies and government officials in the United States. As was widely reported late last year, things came to a head when Chinese hackers succeeded in infiltrating the U.S. Chamber of Commerce, siphoning at least six weeks' worth of email belonging to four Chamber employees.The Times article quoted Joel F. Brenner, a former top counterintelligence official in the office of the director of national intelligence who summed up the situation this way: "If a company has significant intellectual property that the Chinese and Russians are interested in, and you go over there with mobile devices, your devices will get penetrated."The best defense against potential digital snooping or espionage, it appears, entails leaving one's mobile phone and laptop at home. Only loaner devices devoid of company data should be brought to high risk countries, and which are also promptly wiped clean upon return. And if that's not adequate, security vendor McAfee goes a step further: If any employee's device was inspected at the Chinese border, the device will never again be allowed to plug into McAfee's network, reports the Times.More...

Nortel faced corporate espionage from China-based hackers for more than a decade

Tue, 02/14/2012 - 13:47
thestar.com


Fallen telecommunications giant Nortel was the subject of international industrial espionage for more than a decade, according to reports obtained by the Wall Street Journal.Hackers thought to be based out of China downloaded research and development reports, business plans and employee emails from Nortel’s corporate computer network since 2000.The corporation, now in the process of selling itself off bit by bit after filing for bankruptcy in 2009, was breached by the hackers when seven passwords of top Nortel executives were stolen.The hackers also placed spyware so deep into some employee computers it escaped detection. The Journal reports that some of those computers may have been moved to the companies that bought up Nortel assets.Parts of the company now belong to Avaya Inc., Ciena Corp, Telefon AB L.M. Ericsson and Genband Corp.Nortel did not take the threat of a security breach seriously, said Brian Shields, a former senior advisor in security systems at Nortel who conducted an internal investigation into the matter.Shields told the Journal that Nortel that the hackers “had access to everything… They had plenty of time. All they had to do was figure out what they wanted.”His report says Nortel also failed to determine whether its products were compromised by hackers, and did not disclose the security breach to investors or the buyers snapping up parts of the firm.More...

Businesses bugged by end point security risks

Tue, 02/14/2012 - 13:14
news.techeye.net


Businesses are not doing enough to protect against software security flaws according to a report, effectively leaving the doors wide open to cyber criminals.The latest Yearly Report from security outfit Secunia has shown that more should be done in the software industry to ensure that patching strategies are in place, with end point vulnerabilities on the rise.The problem is  stemming from third party non-Microsoftprograms, with the number of vulnerabilities on end points increasing from 45 percent in 2006 to 78 percent last year.  Third party programs are considered to be more difficult to keep updated, but the report highlighted how the majority of vulnerability disclosures were released on the day of discovery by firm responsible. Despite this the report showed that there are considerably more problems emanating from third party software than from operating systems.   Operating systems accounted for 12 percent of vulnerabilities, while Microsoft programs were accountable for just 10 percent.However this still meant an increase to over 800 vulnerabilities according to the Secunia report, meaning that the number has increased threefold in just a few years.   Of these over half were considered to be ‘Highly’ or ‘Extremely’ criticalMore...

Chinese espionage cases touch DuPont, Motorola

Thu, 02/09/2012 - 10:31
reuters.com


Feb 8 (Reuters) - U.S. prosecutors expanded a criminal case over the alleged theft of industrial secrets from chemical giant DuPont, securing an indictment against a Chinese company on economic espionage-related charges.A Northern California grand jury indicted Pangang Group for conspiracy to commit economic espionage and other charges including conspiracy to steal trade secrets, according to court documents unsealed on Wednesday.Pangang, a state-owned steel manufacturer in Sichuan province, allegedly worked with a California businessman and others to obtain several valuable trade secrets from DuPont, the indictment says.Separately, a former engineer for Motorola Inc was found guilty on Wednesday of stealing trade secrets from the company but cleared of economic espionage for China.The latest developments in the two cases come as Chinese Vice President Xi Jinping is scheduled to visit the United States next week on a range of economic, trade, regional and global issues.More...

Chinese espionage cases touch DuPont, Motorola

Thu, 02/09/2012 - 10:31
reuters.com


Feb 8 (Reuters) - U.S. prosecutors expanded a criminal case over the alleged theft of industrial secrets from chemical giant DuPont, securing an indictment against a Chinese company on economic espionage-related charges.A Northern California grand jury indicted Pangang Group for conspiracy to commit economic espionage and other charges including conspiracy to steal trade secrets, according to court documents unsealed on Wednesday.Pangang, a state-owned steel manufacturer in Sichuan province, allegedly worked with a California businessman and others to obtain several valuable trade secrets from DuPont, the indictment says.Separately, a former engineer for Motorola Inc was found guilty on Wednesday of stealing trade secrets from the company but cleared of economic espionage for China.The latest developments in the two cases come as Chinese Vice President Xi Jinping is scheduled to visit the United States next week on a range of economic, trade, regional and global issues.More...

HTC devices bugged and exposing Wi-Fi passwords

Tue, 02/07/2012 - 13:20
technobloom.com


A news report released today shows that some HTC devices might actually be exposing your Wi-Fi network password without you knowing about it, but the company said today that a fix is on the way.  The bug was noticed yesterday and allows some applications with basic Wi-Fi permissions to see the password and the name of your network, or SSID.  An alert from the US Computer Emergency Readiness Team was issued yesterday.  In the event that your HTC device was bugged an attacker could be using an application can potentially retrieve and store the information available to hack into the user’s home network.More...

Anons' FBI Phone Snooping Casts Long Shadow on Cybersecurity

Sun, 02/05/2012 - 01:35
technewsworld.com

Members of Anonymous managed to tap into an FBI conference call recently, after which they put a recording of the call on the open Web. The news has raised concern in many corners of the security industry. "The odds are that cybersecurity at the FBI and Scotland Yard is on par with, or superior to, security at most corporations," Abrams said.
The hacker community Anonymous on Friday landed another blow in its war with the United States Federal Bureau of Investigation (FBI).It posted an internal memo from the law enforcement agency about an upcoming international call to discuss hackers. Anonymous also put up a recording of the call itself onYouTube.The attacks are part of a concerted hacker effort against the FBI."The information was intended for law enforcement officers only and was illegally obtained," the FBI said in a statement sent to TechNewsWorld by spokesperson Jenny Shearer. "A criminal investigation is underway to identify and hold accountable those responsible." The recorded call was a conversation between the FBI and Scotland Yard regarding tracking Anonymous members and other digital activists. It also involved other details about the efforts against such groups.
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Bugging equipment found in Mexico lawmaker offices

Mon, 01/30/2012 - 11:36
philstar.com

MEXICO CITY (AP) — A search of several Mexican lawmakers' offices turned up recording equipment, leading legislators to believe they have been spied on for years, a congressman said Wednesday.
Congressman Armando Rios said security personnel found microphones and other devices that seemed to have been installed years ago.

"Some of the equipment has newer technology, but other devices are from a long time ago, which leads us to believe they were installed years ago," said Rios, a member of the leftist Democratic Revolution Party, or PRD

Rios said the offices of key committees and of several lawmakers from different political parties were bugged.

"What is at stake is the vulnerability of the legislature, of one of the powers of the union," Rios said.

Congress president Guadalupe Acosta, also of the PRD, on Tuesday filed a complaint with federal prosecutors, who opened an investigation.

Acosta wouldn't identify the lawmakers who were being spied on or who he thinks was behind the espionage. Rios blamed the government of President Felipe Calderon, who belongs to the conservative National Action Party, or PAN.
Interior Secretary Alejandro Poire denied Rios' accusations and said the government has done nothing illegal.

Mexico's main intelligence agency allegedly spied on the government's political opponents during the 71 years of rule by the Institutional Revolutionary Party, or PRI.

After PAN candidate Vicente Fox won the 2000 presidential election, he announced that the agency, the Center for National Security and Investigation, would no longer spy on political opponents. But in 2008, under Calderon, the agency hired a private company to monitor the activities of legislators.

Legislators complained they were being spied on but the government said it was simply collecting public information.

More...

DARPA-Funded Hacker's Tiny $50 Spy Computer Hides In Offices, Drops From Drones

Sun, 01/29/2012 - 09:46
forbes.com


Even more embarrassing than a student discovering your GPS tracking device on his car, as the FBI found out last year, is having to ask him to give the expensive piece of equipment back.So security researcher Brendan O’Connor is trying a different approach to spy hardware: building a sensor-equipped surveillance-capable computer that’s so cheap it can be sacrificed after one use, with off-the-shelf parts that anyone can buy and assemble for less than fifty dollars.At the Shmoocon security conference Friday in Washington D.C., O’Connor plans to present the F-BOMB, or Falling or Ballistically-launched Object that Makes Backdoors. Built from just the hardware in a commercially-available PogoPlug mini-computer, a few tiny antennae, eight gigabytes of flash memory and some 3D-printed plastic casing, the F-BOMB serves as 3.5 by 4 by 1 inch spy computer. And O’Connor has designed the cheap gadgets to dropped from a drone, plugged inconspicuously into a wall socket, thrown over a barrier, or otherwise put into irretrievable positions to quietly collect data and send it back to the owner over any available Wifi network. With PogoPlugs currently on sale at Amazon for $25, O’Connor built his prototypes with gear that added up to just $46 each.“If some target is surrounded by bad men with guns, you don’t want to have to retrieve this, but you also don’t want to have to pay four or five hundred dollars for every use,” says O’Connor. “The idea is that it’s as close to free as possible. So you can throw a bunch of these sensors at a target and get away with losing a couple nodes in the process.”More...

Todd Haley's Bugging Allegations

Sat, 01/21/2012 - 14:31
bleacherreport.com
It's no surprise that former Kansas City Chiefs head coach Todd Haley is in the news right now—he is one of the hottest free agent coaching commodities on the market right now—what is odd, however, are the reasons he is showing up right now. 
Reports by the Kansas City Star, which include allegations by Haley, tell of the levels of paranoia and anxiety on Arrowhead drive.Haley, the most high profile former staffer named in the report, tells of his fears that his phones, both in his office, and his private cell phone, may have been tapped. He spoke of his concerns that his office, and conference rooms at the facility were bugged and monitored for audio.Others spoke of the levels of secrecy in Arrowhead stadium, which forbid non-football staffers from visiting certain parts of the complex, and which require staff with a view of the practice fields to close their blinds during team practices. They spoke of, on occasion, having meetings and phone calls interrupted by security staff charged with enforcing the rule. Haley claimed that he stopped speaking on the telephone altogether during his last year in Kansas City because his concerns were so severe. However, all of this begs the question, is there any substance to Haley's claims, or are these merely the rantings of a disgruntled former employee, who is becoming increasingly out-of-touch with reality?What do these claims say about Haley, and what, if anything, do they do to his chances of being hired? Join me after the jump, as we take a look.More...

Alleged spy fed false info in sting to hurt credibility

Sat, 01/21/2012 - 14:25
vancouversun.com

Authorities fed an alleged Canadian naval spy fabricated information as part of a classic "sour milk" counter-intelligence ploy to taint the credibility of secrets the man is suspected of passing to Russia, Postmedia has learned."This was done by the book - sour the milk so that you con-fuse the other side," Michel Juneau-Katsuya, a former spy service counter-intelligence officer with sources close to the Halifax case, revealed in an interview Friday.Once naval officials suspected there was a spy in their midst, deliberately flawed information was baited and designed to eventually be discovered by its foreign recipients, casting doubt on the usefulness of any other classified data related to the case.Juneau-Katsuya said the deception is believed to have worked, and now "they don't know what is true and what is not [and] will have to be suspicious of pretty much everything [given to] them."While military and RCMP investigators are still gathering details, Juneau-Katsuya said he believes Russia may have been after North Atlantic Treaty Organization [NATO] secrets."When you talk about Halifax, you talk about the Atlantic and the Arctic. And when you talk about the Atlantic and Arctic, you talk NATO. And when you talk NATO, you talk Russia," he said.
More...

10 Sites Skewered by Anonymous, Including FBI, DOJ, U.S. Copyright Office

Fri, 01/20/2012 - 11:53
techland.time.com

By the time East Coasters were finishing dinner last night, 10 websites had fallen to what hacktivist group Anonymous calls its “low orbit ion cannon,” or LOIC — a public domain software tool named after a weapon in a popular sci-fi real-time strategy game that’s designed to stress test whether a network can handle a distributed denial of service attack.According to Anonymous, 10 well-known governmental and corporate sites with ties to the entertainment industry were assaulted and knocked offline in retaliation for the FBI shutting down Megaupload.com, one of the world’s largest file-sharing sites. The FBI had closed Megaupload.com earlier Thursday afternoon, accusing the company of more than $500 million in revenue losses stemming from copyright violations, and arresting four people in connection with the indictment.(MORE: Anonymous Claims DOJ, RIAA, MPAA Sites Hit for Megaupload Bust)Dubbing its DDoS spree “OpMegaupload,” Anonymous claims it took down usdoj.govand justice.gov (the U.S. Department of Justice), universalmusic.com (Universal Music Group),RIAA.org (the Recording Industry Association of America), MPAA.org (the Motion Picture Association of America), copyright.gov (the U.S. Copyright Office), hadopi.fr (France’s copyright-enforcement agency), wmg.com (Warner Music Group), bmi.com (Broadcast Music, Inc.) andfbi.gov (the Federal Bureau of Investigation). The DOJ’s website was first to fall, about an hour after the Justice Department announced its indictment of Megaupload.com.More...

Facebook names $2m 'Koobface' hacking gang

Tue, 01/17/2012 - 09:59
telegraph.co.uk
Facebook has publicly identified a gang of five alleged cyber criminals it believes are behind Koobface, a piece of malicious software that has hijacked hundreds of thousands of Facebook users’ computers and made millions for its creators.
After an investigation by Facebook and several independent security researchers, the gang behind Koobface have been named as a group of Russians operating relatively openly in central St Petersburg.According to their own social networking profiles, the five men have enjoyed a luxurious lifestyle. On one group holiday, they visited Spain, Nice and Monte Carlo, before ending the trip at a casino in Germany, according to Sophos, a British security firm involved in the investigation.The gang were “living the life of the rich and famous”, Sophos said.Facebook said it has known the identities of the gang for some time, but has decided to name them publicly after being frustrated by the lack of law enforcement action against them. The Telegraph has chosen not to name them for legal reasons.“We’ve had a picture of one of the guys in a scuba mask on our wall since 2008,” said Ryan McGeehan, manager of investigations at Facebook.More...

Cyber-Crimes Pose 'Existential' Threat, FBI Warns

Thu, 01/12/2012 - 17:28
huffingtonpost.com

Despite the increased frequency and severity of online crime and espionage in 2011, many American corporations and consumers are still not taking the threat seriously, the FBI's top cyber official said Thursday.

The risk posed by criminal hackers is "existential, meaning it could eliminate whole companies," said Shawn Henry, the FBI's executive assistant director. If hackers were able to tamper with critical infrastructure such as the power grid, "it could actually cause death," Henry said in remarks at the International Conference on Cyber Security in New York.

To highlight the growing threat, Henry cited several recent FBI investigations, such as one involving a smaller company that went out of business after hackers stole $5 million from accounts, another concerning a larger firm that "virtually overnight" lost a decade of research and development worth $1 billion, and still another regarding hackers who encrypted millions of records of a health services company and demanded money for the password.

"We've seen the number and sophistication of the attacks by these cyber actors increase dramatically," Henry said.

"Hundreds of millions of dollars have been stolen, primarily through the financial services sector, just in the last couple years," he said. An organized crime ring in Eastern Europe, for example, earned about $750,000 per week from cyber theft, he added.

More...

Note: Does your company have a Cyber TSCM / Cyber Counterespionage plan in place? Contact me, I can help. ~JDL
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