ITIC Corp » The time for business is now!
Home   About   Blog   Report & Survey Highlights   Surveys   Case Studies   Q&A   Services

June 23, 2011, 12:04pm

Hackers have had a bonanza in April, May and June
(so far). Nary has a day gone by without news of yet another major attack.
Here’s a partial list of some of the most publicized hacks of the last
10 weeks:

  • RSA
    Security
    : On April 1, in a move akin to raiding Fort Knox,
    RSA’s Secure ID technology (one of the industry’s gold standards in security
    software) was hacked. RSA executives described the hack as “very
    sophisticated.” They characterized it as an advanced persistent threat
    (APT)-type targeted attack. It used a routine tactic – a phishing Email that
    contained an infected attachment that was triggered when opened.
  • Epsilon:  This Irving, TX –based company handles
    customer email messaging for over 150 firms, including large banks and
    retailers like Best Buy, JPMorgan Chase, Citigroup and L.L.Bean. In April,
    millions of consumers learned that Epsilon’s networks were breached when they
    received Emails from their banks and credit card companies informing them that
    the hack might have exposed their names and Email addresses to the hackers.
    Epsilon released a statement assuring consumers that only Email addresses and
    names were compromised and that no sensitive data was disclosed.
  • Sony:
    Sony’s
    PlayStation gaming network suffered a series of massive security attacks in
    April/May that affected more than 100 million online accounts and shuttered the
    site for days. Sony executives estimate the hacks cost the Japanese electronics
    firm $170 million.
  • Lockheed
    Martin:
    On May 21, the aerospace giant released a statement
    saying its internal information systems network had been penetrated by what it
    called a “significant and tenacious” attack. The company declined to
    divulge details other than stating that “no customer, program or employee personal
    data had been compromised.”
  • Public
    Broadcasting System:
    the PBS website was hacked in mid-May
    and the perpetrators planted an erroneous story stating that deceased rapper Tupac
    Shakur was alive in New Zealand. The group that claimed credit for the hacking was
    apparently unhappy about PBS’ recent “Frontline” investigative news program on
    WikiLeaks.
  • Google:
    At least 84 instances of malware have been discovered in the company’s Android
    Market app store in the last three months. In March Google removed 50
    applications from the store that contained malicious code embedded in
    legitimate applications. Over the Memorial Day weekend Google was forced to
    pull an additional 34 smart phone applications off Android Market because of
    suspected malware infections. Google’s security woes don’t stop there. In early
    June, Google disclosed that Chinese hackers targeted the email accounts of top
    U.S. officials and hundreds of other prominent people in a fresh computer
    attack certain to intensify growing concern about the security of the Internet.
    The victims, including government and military personnel, Asian officials,
    Chinese activists and journalists, were tricked into sharing their Gmail
    passwords with “bad actors” based in China, according to a Google
    blog post. The attack’s goal was to read and forward the victims’ email.
  • Apple
    (yes, Apple!):
    The Mac OX X 10.x OS has been under attack for
    the last month from the malicious Mac Defender/Mac Guard malware. A few days
    ago, Apple engineers released a fix and 24 hours later the hackers struck again
    with a new virus variant called Mindinstall.pkg which is specifically designed
    to bypass Apple security.

June 23, 2011, 12:01pm

It’s time for corporations to wise up and use the latest, most effective weapons to safeguard and secure their data.
High tech devices, software applications, Emails, user accounts, social media and networks – even those presumed safe — are being hacked with alarming alacrity and ease.
Security tools, encryption and updating your networks with the latest patches are certainly necessary, but they are not enough. Corporations must arm themselves with the latest security tools and devices in order to effectively combat the new breed of malware, malicious code and ever more proficient hackers. I’m referring to the new breed of continuous monitoring tools that identify, detect and shut down vulnerabilities before hackers can find and exploit them.
In the late 1980s – the “early days” of computer networking hacking was a means to an end. The modus operandi of hackers, (usually white males in their teens and twenties) was to perfect their skills, perform a high profile penetration, claim it was a mistake and then land a well paying job with a legitimate security company. Many of today’s hackers are professionals who operate within an organized ring. Hacking is the means and the end. It’s an extremely lucrative business.
“The hackers have upped their game,” says Stu Sjouwerman, founder and CEO of KnowBe4, a Clearwater, FL company that trains corporate knowledge workers on how to avoid spam, phishing, spear phishing and social engineering hacks. “Hackers have gone completely professional. They’ve graduated from identity theft to full-fledged Internet bank robbery or cyber heists. There are now highly organized computer security “Mafias” in Eastern Europe, Russia, the Ukraine and Romania that employ highly qualified computer science majors who do nothing but hack. Most companies are woefully ignorant and unprepared to deal with the new threats,” Sjouwerman asserts.
On June 1, 2010 The National Institutes of Standards and Technologies (NIST) published new guidelines that require enterprises to engage in continuous monitoring of their networks. These guidelines are based on a wealth of real-world experience, and highlight the necessity of using new tools to facilitate implementation, says Major General John P. Casciano, USAF-Retired served as director of intelligence, surveillance and reconnaissance, deputy chief of staff, air and space operations, Headquarters U.S. Air Force, Washington, D.C. He is currently President and CEO of GrayStar Associates LLC, and consults on Cyber Security issues.
“ In the dynamic and ever- changing network, continuous monitoring simply can’t be performed manually; it must be supported by software that provides powerful new weapons with which to successfully defend and thwart attacks,” Casciano says.
Continuous monitoring encompasses both a new approach as well as new products and tools is a preventive and prescriptive measure. It Continuous monitoring enables organizations to detect threats as they occur, and most importantly to identify vulnerabilities that can be mitigated or plugged in advance of a cyber “intrusion” or “attack.” The NIST guidelines are based on a wealth of real-world experiences. These include “routine” attacks launched on individuals’ online social media accounts like Facebook and Twitter. Each day the headlines deliver yet another sobering call for corporations and consumers alike to wise up and defend their data.
We all know that there is no such thing as a 100% hack proof network, application or device. Hacks from malware (phishing, Trojans, bots, worms, zombies et al) to exploits that result in forgotten back doors to targeted corporate espionage are facts of 21st Century computing life.
Hackers are more organized and the attacks themselves are becoming more sophisticated and more pernicious. They use the Internet as a superhighway to circumnavigate the globe faster than you can say “Magellan.” What’s worse, the hackers are aided and abetted by corporations with lax, porous and often outdated computer security measures. Consumers too, are often the hackers’ best helpmates particularly when they don’t keep their anti-virus and firewalls up-to-date and don’t check the privacy settings on the many social networking sites they frequent!
Security experts warn that malware is proliferating at the astounding rate of 73,000 new threats cropping up on a daily basis; a 26% increase over the 2010 statistics. Even if we apply the 10/90 rule: 10% of all malware and rogue code is responsible for 90% of the damage, the upswing in security threats is alarming.
Unfortunately, corporations and consumers tend to get complacent in the absence of a data breach that directly impacts them or their organizations. It’s easier to rationalize and downplay the very real security threats and delay implementing the necessary proactive measures. It takes headlines or more recently those messages appearing with alarming regularity in our personal Email boxes to give us all a much needed jolt. Computer, cell phone/smart phone, notebook, tablet and networking security are fragile, ephemeral and fluid. Meaning the risks are always present and exploits are always lurking and waiting to happen.
This is War: Continuous Monitoring, the Latest Weapon in the Ongoing Security Battle
In response to the growing cyber-threat, United States Senators John Kerry and John McCain have introduced a bi-partisan online privacy bill designed to protect and control personal information. If the legislation passes it will prohibit the collection and sharing of private data by businesses that have no relationship to the consumer for purposes other than advertising and marketing.
The 2010 Verizon Data Breach Investigations Report, released last July and based on a first-of-its kind collaboration with the U.S. Secret Service, found that breaches of electronic records last year involved more insider threats, greater use of social engineering and the continued strong involvement of organized criminal groups.
The report cited stolen credentials as the most common way of gaining unauthorized access into organizations in 2009, pointing once again to the importance of strong security practices both for individuals and organizations. Organized criminal groups were responsible for 85 percent of all stolen data last year, the report said.
The stories behind the statistics are even more alarming. Hackers collaborating via the Web and forming their own online communities to exchange data and perfect hacks, And now they’re moving from V2P: virtual to physical, with entire communities – most prominently in Eastern Europe devoted to the pursuit of career cracking. The city of Râmnicu Vâlcea, population 120,000 and located three hours outside of Bucharest in the Transylvania Alps has been dubbed “Hackerville” by global law enforcement agencies. The town is brimming with cyber crooks that specialize in targeted corporate malware attacks and Ecommerce scams. Business is so profitable that the town is home to luxury car dealerships and apartment buildings and upscale restaurants, shops and nightclubs. The town’s reputation as a malware maelstrom has become so notorious that it was the subject of a feature article in the March issue of Wired Magazine.
The real lesson of the Verizon Business Data Breach Report and even Hackerville is that the overwhelming majority of data breaches can be thwarted if companies establish and follow good computer security practices and back these up with the latest technical weapons. Astoundingly, only four percent of breaches assessed in the Verizon Business Data Breach report required difficult and expensive protective measures. The report further claimed that 87% of attacks could be prevented using simple, proactive measures.

The 2010 Verizon report concluded that being prepared remains the best defense against security breaches. For the most part, organizations still remain sluggish in detecting and responding to incidents. Nearly two-thirds of breaches — 60% — continue to be uncovered by external parties and then only after a considerable amount of time. And while most victimized organizations have evidence of a breach in their security logs, they often overlook them due to a lack of staff, tools or processes.
Casciano maintains that any corporation that is serious about creating and maintaining a secure environment needs to deploy continuous monitoring tools. Right now there are two types of continuous monitoring devices: “those that address what’s going on in the enterprise and identify vulnerabilities and those that enable companies to plug holes and correct vulnerabilities in advance so the attack is not effective,” Casciano says. There are several companies that address this emerging market segment. Veteran security firm ArcSight which was acquired in 2010 by Hewlett-Packard Co. and the Einstein Program developed by the Dept. of Homeland Security produce products that enable businesses to identify the potential weak spots in their networks. Other companies like RedSeal in San Mateo, CA and the Security Content Automation Protocol (SCAP) address the rapidly emerging secure product class of both identifying and closing the holes in the network.
RedSeal’s Systems Network Advisor v4.1 and Vulnerability Advisor v4.1, for example, are near real-time risk management solutions that use network and vulnerability data to determine risk and provide prioritized remediation recommendations. RedSeal security packages allow organizations to assess and strengthen their cyber defenses. Unlike systems that detect attacks once they occur, RedSeal identifies holes in the security infrastructure that create risk – before they are discovered by hackers.
Casciano says organizations must utilize both types of continuous monitoring. The products in the first group (HP’s ArcSight and the Einstein Program) provide business with “tactical warnings and a snapshot in time of the activities within the IT enterprise” so that management can react to specific events. The second class of products (RedSeal and SCP) “exposes the strengths and weaknesses of the entire IT enterprise, identifies potential avenues of attack and enables management to take defensive actions well in advance of an attack,” Casciano notes.
Ultimately though, computer security products represent only half the solution. The other 50% is human element. Companies and their IT departments must construct strong computer security policies and procedures, disseminate them to the entire staff and employee population and enforce them. In an age where hackers’ ranks are swelling and successful penetrations are increasing, corporations would be wise to arm themselves with the continuous monitoring tools to thwart cyber terrorists.
Ask yourself: “What have you got to lose?”


May 6, 2011, 1:27pm

Cisco Pulls the Plug on Flip
Following two consecutive fiscal quarters, Cisco Systems shocked the industry three weeks ago with the news that it will cease to manufacture its popular Flip video camera and will lay off the division’s 550 workers, substantially reducing its consumer businesses.
Also within the past two weeks, Cisco unveiled a voluntary retirement program aimed at workers 50 years old whose age plus tenure at the company equals 60; these workers have from May 10 through June 24 to opt in. This is the first time in two years that Cisco instituted such a cost cutting policy.
Cisco recently hired Gary Moore as Chief Operating Officer to fine tune its re-focused initiatives.
Then yesterday (May 5) Cisco, headquartered in San Jose, CA announced more dramatic actions to get back on track. With its heretofore unchallenged dominance in networking switches and routers, now under attack by Arista, Hewlett-Packard, Juniper Networks and others, Cisco announced it is reorganizing and streamlining its management operations and structure. In the past year, Cisco (like many high tech Titans) has seen a number of key executives defect to rivals. Longtime CEO John Chambers acknowledged in an April memo that the departures had slowed decision-making and caused lapses in operational execution. The net result: confusion among customers, dissension among company investors and lots of worry on Wall Street.
Yesterday’s initiatives are aimed at simplifying and re-focusing the company’s focus around its core competencies in switches and routers, even as Cisco eyes transitioning those products to the cloud. Going forward, Cisco will re-organize operations around specific geographic areas and customer segments. Chambers believes this will enable mid and lower level managers to make decisions autonomously and respond more swiftly to customers and changing market dynamics.
“It’s time to simplify the way we execute our strategy, and today’s announcement is a key step forward,” Chambers said in a prepared statement.

Cisco identified five areas of growth that are crucial to its success. They include: routing, switching and services; video; collaboration and Web-conferencing offerings; data-center virtualization and cloud computing, which are technologies that help companies outsource and streamline computing operations; and architectures for business transformation.
Cisco also unveiled some management changes. Senior vice presidents Pankaj Patel and Padmasree Warrior—who is also Cisco’s chief technology officer—were named to co-lead Cisco’s engineering group.

What the Moves Mean

Cisco has grown rapidly in the past decade, in large part through a flurry of well timed and targeted acquisitions. Unlike HP and Oracle, which are known for gobbling up very large competitors, Cisco’s Chambers prefers to acquire small and midsized firms that can boost Cisco’s presence in a particular market arena. This strategy has served Cisco well. It’s issued far fewer pink slips to employees than either HP or Oracle who have cut tens of thousands of workers in the past several years as they’ve absorbed industry giants. At the same time though, Cisco’s stock has been stagnant. As of today Cisco’s stock is at $17.62 which is at the bottom of its 52-week range of $16.52 to $26.80. On the plus side its profit margin is still a healthy 17.89% and its operating margin is a robust 21%. However, return on assets is only 7%, although return on equity is a respectable 17.38%. Chambers has always been fiscally responsible and it shows in the balance sheet. Cisco has $40.23 billion in cash and just $15.24 billion in debt.

Cisco will report its fiscal third-quarter earnings report next week. Wall Street, investors and competitors will be watching closely. It is imperative that Cisco jumpstart its momentum in switches and routers and repel rivals. Cisco must also score a big win with its cloud initiative. It’s no secret that nearly all the top tier high tech vendors are aiming for a dominant position in this emerging market. Financial analysts are openly wondering how long Chambers can hold out before he’s forced to lower prices on Cisco’s networking gear. Cisco must also executive and defend its position in its stated five core product/technology priorities: switches and routers; cloud computing and data centers; “architectures” (network design) and video.
As we said at the beginning of this article, all of the executive personnel and product changes underscore increasingly cutthroat, competitive market conditions. To stand still and do nothing is to fall by the wayside and effectively be shut out of the race.


PHP Fatal error: Allowed memory size of 33554432 bytes exhausted (tried to allocate 1224 bytes) in D:\webs\iticco\wp-includes\plugin.php on line 836