December, 2016


5
Dec 16

DDoS, IoT Top Cybersecurity Priorities for 45th President

Addressing distributed denial-of-service (DDoS) attacks designed to knock Web services offline and security concerns introduced by the so-called “Internet of Things” (IoT) should be top cybersecurity priorities for the 45th President of the United States, according to a newly released blue-ribbon report commissioned by President Obama.

commish“The private sector and the Administration should collaborate on a roadmap for improving the security of digital networks, in particular by achieving robustness against denial-of-service, spoofing, and other attacks on users and the nation’s network infrastructure,” reads the first and foremost cybersecurity recommendation for President-elect Donald Trump. “The urgency of the situation demands that the next Administration move forward promptly on our recommendations, working closely with Congress and the private sector.”

The 12-person, non-partisan commission produced a 90-page report (PDF) and recommended as their very first action item that the incoming President “should direct senior federal executives to launch a private–public initiative, including provisions to undertake, monitor, track, and report on measurable progress in enabling agile, coordinated responses and mitigation of attacks on the users and the nation’s network infrastructure.”

The panel said this effort should build on previous initiatives, such as a 2011 program by the U.S. Department of Commerce called the Industry Botnet Group.

“Specifically, this effort would identify the actions that can be taken by organizations responsible for the Internet and communications ecosystem to define, identify, report, reduce, and respond to attacks on users and the nation’s network infrastructure,” the report urged. “This initiative should include regular reporting on the actions that these organizations are already taking and any changes in technology, law, regulation, policy, financial reimbursement, or other incentives that may be necessary to support further action—while ensuring that no participating entity obstructs lawful content, applications, services, or nonharmful devices, subject to reasonable network management.”

The report spans some six major imperatives, including 16 recommendations and 63 associated action items. The second major imperative focuses on IoT security concerns, and urges the federal government and private industry to embark upon a number of initiatives to “rapidly and purposefully to improve the security of the Internet of Things.”

“The Department of Justice should lead an interagency study with the Departments of Commerce and Homeland Security and work with the Federal Trade Commission, the Consumer Product Safety Commission, and interested private sector parties to assess the current state of the law with regard to liability for harm caused by faulty IoT devices and provide recommendations within 180 days,” the panel recommended. “To the extent that the law does not provide appropriate incentives for companies to design security into their products, and does not offer protections for those that do, the President should draw on these recommendations to present Congress with a legislative proposal to address identified gaps, as well as explore actions that could be accomplished through executive order.”

Meanwhile, Morning Consult reports that U.S. Federal Communications Commission Chairman Tom Wheeler has laid out an unexpected roadmap through which the agency could regulate the security of IoT devices. The proposed certification process was laid out in a response to a letter sent by Sen. Mark Warner (D-Va.) shortly after the IoT-based attacks in October that targeted Internet infrastructure company Dyn and knocked offline a number of the Web’s top destinations for the better part of a day.

Morning Consult’s Brendan Bordelon notes that while Wheeler is set to step down as chairman on Jan. 20, “the new framework could be used to support legislation enhancing the FCC’s ability to regulate IoT devices.” Continue reading →


2
Dec 16

Visa Delays Chip Deadline for Pumps To 2020

Visa this week delayed by three years a deadline for fuel station owners to install payment terminals at the pump that are capable of handling more secure chip-based cards. Experts say the new deadline — extended from 2017 — comes amid a huge spike in fuel pump skimming, and means fraudsters will have another three years to fleece banks and their customers by installing card-skimming devices at the pump.

Until this week, fuel station owners in the United States had until October 1, 2017 to install chip-capable readers at their pumps. Under previous Visa rules, station owners that didn’t have chip-ready readers in place by then would have been on the hook to absorb 100 percent of the costs of fraud associated with transactions in which the customer presented a chip-based card yet was not asked or able to dip the chip (currently, card-issuing banks eat most of the fraud costs from fuel skimming). The chip card technology standard, also known as EMV (short for Europay, MasterCard and Visa) makes credit and debit cards far more expensive and difficult for thieves to clone.

This week, however, Visa said fuel station owners would have until October 1, 2020 to meet the liability shift deadline.

A Bluetooth-based pump card skimmer found inside of a Food N Things pump in Arizona in April 2016.

A Bluetooth-based pump card skimmer found inside of a Food N Things pump in Arizona in April 2016.

“The fuel segment has its own unique challenges, which we recognized when we first set the chip activation date for automated fuel dispensers/pumps (AFDs) two years after regular in-store locations,” Visa said in a statement explaining its decision. “We knew that the AFD segment would need more time to upgrade to chip because of the complicated infrastructure and specialized technology required for fuel pumps. For instance, in some cases, older pumps may need to be replaced before adding chip readers, requiring specialized vendors and breaking into concrete. Furthermore, five years after announcing our liability shift, there are still issues with a sufficient supply of regulatory-compliant EMV hardware and software to enable most upgrades by 2017.”

Visa said fuel pump skimming accounts for just 1.3 percent of total U.S. payment card fraud.

“During this interim period, Visa will monitor AFD fraud trends closely and work with merchants, acquirers and issuers to help mitigate any potential counterfeit fraud exposure at AFDs,” Visa said.

Avivah Litan, a fraud analyst with Gartner Inc., said the deadline shift wasn’t unexpected given how many U.S. fuel stations are behind on costly updates, noting that in some cases it can cost more than $10,000 per pump to accommodate chip card readers. The National Association of Convenience Stores estimates that station operators will spend approximately $30,000 per store to accommodate chip readers, and that the total cost to the fuel industry could exceed $4 billion.

“Some of them you can just replace the payment module inside the pump, but the older pumps will need to be completely removed and replaced,” Litan said. “Gas stations and their unattended pumps have always been an easy target for thieves. The fraud usually migrates to the point of least resistance, and we’re seeing now the fraudsters really moving to targeting unattended stations that haven’t been upgraded.” Continue reading →


1
Dec 16

‘Avalanche’ Global Fraud Ring Dismantled

In what’s being billed as an unprecedented global law enforcement response to cybercrime, federal investigators in the United States, United Kingdom and Europe today say they’ve dismantled a sprawling cybercrime machine known as “Avalanche” — a distributed, cloud-hosting network that for the past seven years has been rented out to fraudsters for use in launching countless malware and phishing attacks.

The global distribution of servers used in the Avalanche crime machine. Source: Shadowserver.org

The global distribution of servers used in the Avalanche crime machine. Source: Shadowserver.org

According to Europol, the action was the result of a four-year joint investigation between Europol, Eurojust the FBI and authorities in the U.K. and Germany that culminated on Nov. 30, 2016 with the arrest of five individuals, the seizure of 39 Web servers, and the sidelining of more than 830,000 web domains used in the scheme.

Built as a criminal cloud-hosting environment that was rented out to scammers, spammers other ne’er-do-wells, Avalanche has been a major source of cybercrime for years. In 2009, when investigators say the fraud network first opened for business, Avalanche was responsible for funneling roughly two-thirds of all phishing attacks aimed at stealing usernames and passwords for bank and e-commerce sites.  By 2011, Avalanche was being heavily used by crooks to deploy banking Trojans.

The U.K.’s National Crime Agency (NCA), says the more recent Avalanche fraud network comprised up to 600 servers worldwide and was used to host as many as 800,000 web domains at a time. Continue reading →