Computer Hacking Archive

  • 34-year-old used high-tech ‘trojan’ type computer virus
  • Victims had no idea they were being spied on

 

A perverted computer expert took thousands of intimate pictures of his neighbours after infecting their computers with a virus that allowed him to spy on them through their webcams.

Police in Zaragoza, Spain, arrested the 34-year-old man and confiscated his computer hard drive which contained images of hundreds of people who had absolutely no idea they were being spied on.

He had gained access to their computers through wi-fi (wireless) networks before infecting them with a trojan-type virus which he had designed.

iSpy: The man used an advanced computer virus which allowed him to take pictures of his neighbours with their computer webcamsiSpy: The man used an advanced computer virus which allowed him to take pictures of his neighbours with their computer webcams

As almost all modern laptops, and many desktops, now come with a built in web cams it meant he could spy on them in their own homes, quietly watching them going about their daily business.

 Pictures were taken of unwitting computer owners while they were in the bathroom or in the bedroom.

Some of the pictures were of couples having sex.

The man took thousands of intimate pictures of his neighbours who had no idea they were being spied on (file picture for illustration purposes only) 

The man took thousands of intimate pictures of his neighbours who had no idea they were being spied on (file picture for illustration purposes only)

The man was also able to obtain the sensitive information such as passwords.

Investigators said the man, who they described as someone with high technical expertise and few friends, had used a very advanced computer virus.

Child pornography was also discovered on the man’s hard drive.

Source:  http://www.dailymail.co.uk/news/article-2319087/Cyber-pervert-took-intimate-pictures-neighbours-using-webcams-laptops.html

Hackers attack website of Czech UniCredit Bank

Posted March 25, 2013 By National Cyber Security
UniBank

PRAGUE (Reuters) – Hackers attacked the website of UniCredit Bank’s Czech unit late on Monday, causing a five-minute outage, but no customer data was compromised, a spokesman said.

The cyber assault was not a distributed denial of service attack – when servers are overwhelmed with a flood of digital requests – of the kind that crippled the websites of major Czech companies and institutions last week, Petr Plocek said.

“We are still continuing our analysis to reach a conclusion on the precise details of the attack,” he said on Tuesday.

News website E15 reported the assault had been carried out by the Czech hacker group named Czechurity.

Hackers attacked the websites of the Czech central bank, several top commercial banks and the Prague Stock Exchange on Wednesday last week, slowing or shutting down online services in a wave of distributed denial of service attacks.

The country’s Cyber Security Council was due to meet later on Tuesday to debate measures to combat such attacks.

Source: http://news.yahoo.com/hackers-attack-website-czech-unicredit-bank-105731289–finance.html

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Students team up to stop computer hackers at UMaine competition

Posted March 25, 2013 By National Cyber Security
Student Computer hackers

ORONO, Maine — Computer giant Apple Inc. was attacked by hackers who infected employees’ computers, the Twitter account of Burger King was hit with online graffiti and a “MiniDuke” virus infiltrated government and agency systems worldwide — and that was just the last month.

“Cybersecurity is one of those topics people hear about a lot but no one knows a lot about,” Matthiew Morin, a junior at Champlain College in Burlington, Vt., said at the end of the 2013 Northeast Collegiate Cyber Defense Competition, held at the University of Maine. “They hear, ‘Oh, this big corporation was hacked’ [and] everybody needs to reset their passwords. There is a lot of stuff that goes on behind the scene.”

Morin, a junior computer networking and information services student, was Champlain’s team captain in the competition that pit one university against another in a cyberattack showdown.

“There are lots of this that happens that doesn’t make the press,” George Markowsky, organizer of the event and associate director of the UMaine School of Computing and Information Science, said Sunday of computer hacking. “We’re training the next generation of cyberprofessionals.”

Ten teams from all over the northeast fought off a team of expert hackers brought in from around the nation for the annual three-day intensive competition.

Rochester Institute of Technology in Rochester, N.Y., took the top honors, with SUNY Institute of Technology in Rome, N.Y., and Massachusetts-based Worcester Polytechnic Institute ranking second and third.

Rochester also earned the right to participate in the 2013 National Collegiate Cyber Defense Competition in San Antonio, Texas, April 19-21.

The University of Maine team, which was missing two of its eight members, ranked sixth, after coming in third last year and second in 2010.

In the competition, a fake online sales company was created for each school, and then the Red Team, a team of 13 individuals skilled in cyberattack and computer hacking, attacked them, trying to access their data.

“We sold chemicals for some green energy company and everything was sold online,” UMaine senior Joe Aiken said. “If the system was down we couldn’t make sales and went out of business.”

The team took control of the company’s “vulnerable network and then tried to defend from hacking,” he said.

It’s the quiet hacker who gets in and gets out without anybody noticing that is the most troublesome, the UMaine computer science major said.

“It’s subtle,” Aiken said. “You don’t realize they’re there. That is what makes it really challenging.”

“We’re hard on you guys and that’s on purpose,” Red Team leader Daryl Johnson, a professor at Rochester Institute of Technology, which spearheaded the first competition in 2008, said to the group of 80 or so students. “These are all things that happen in the real world.”

In the six years since the competition began, there have been “enormous” changes in how information is shared on the Internet, Johnson said. And the list of those hacked includes federal agencies, congressional offices, financial institutes, universities and many others, he said.

Breaking into a system was once a bragging right for hackers, but things have changed and “all they are now interested in is money,” Johnson said.

As business and industries move to electronic means to move information and money, there is an increased need for trained people to protect the data, Markowsky said, and the competition is a great way to give students firsthand cybersecurity experience.

“There is a limit to what you can do in the classroom,” he said.

The competition began Friday and gave students hours upon hours of direct competition, as the Red Team did all it could to thwart their online systems.

“It [the competition] gives you a firsthand look at what is going on in the industry,” Morin said.

Keynote speaker Raphael Mudge, a Washington, D.C.-based security engineer, founder of Strategic Cyber LLC and cybersecurity author, said it’s not always hackers that take down systems. He told the students a story about an IT person at a U.S. Air Force base, which he did not name, who made a small mistake in 2005 that shut down the entire base.

“This does happen in real life,” he said.

“People will click things” and sometimes that leads to problems when they inadvertently give hackers easy access to their systems, Mudge said.

Determining when “someone clicks something bad — that’s your job,” Mudge told the students.

Writers from the Washington Post and Reuters contributed to this story.

Source: http://bangordailynews.com/2013/03/10/news/bangor/students-team-up-to-stop-computer-hackers-at-umaine-competition/

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Gift card

Two California men have been charged in an indictment unsealed today in Boston with remotely hacking into merchants’ computerized cash registers in order to obtain fraudulent gift cards, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, United States Attorney Carmen M. Ortiz for the District of Massachusetts and Resident Agent in Charge Holly Fraumeni of the United States Secret Service (USSS) Manchester, N.H. Office

Shahin Abdollahi, aka “Sean Holdt,” 46, of Lake Elsinore, Calif ., and Jeffrey Thomas Wilkinson, 35, of Rialto, Calif ., were both charged with one count of conspiracy to commit computer intrusion and wire fraud, and one count of wire fraud.

According to the indictment, Abdollahi owned Subway franchises in Southern California from 2005 to 2008, and later operated a California company called “POS Doctor,” which sold and installed point-of-sale (POS) computer systems to Subway restaurant franchises around the country.  POS systems are a type of computerized checkout register that allows merchants to manage customer purchases made by credit, debit and gift cards.

The indictment alleges that beginning in approximately 2011, Abdollahi and Wilkinson conspired to remotely hack into POS systems in Subway restaurant franchises around the country.  According to the indictment, members of the conspiracy hacked into at least 13 Subway POS systems that Abdollahi sold through POS Doctor and fraudulently added at least $40,000 in value to Subway gift cards.  Abdollahi and Wilkinson allegedly used the fraudulent gift cards to make purchases at Subway, and Wilkinson also allegedly sold fraudulent gift cards to others using eBay and Craigslist.

The case was investigated by the USSS and is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant United States Attorney Adam J. Bookbinder of the District of Massachusetts.

The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Source: http://7thspace.com/headlines/43424/usdoj_two_california_men_charged_in_boston_with_computer_hacking_in_connection_with_gift_card_fraud_scheme.html

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DRDO

BEIJING, March 17 (Reuters) – China and the United States should avoid “groundless accusations” against each other about cyber-security and hacking into each other’s computer systems, newly installed Premier Li Keqiang said on Sunday.

Li’s comments, at the close of China’s annual meeting of parliament and a day after he assumed the premiership, come amid a war of words between Beijing and Washington over cyber-attacks and national security.

A U.S. computer security company said last month that a secretive Chinese military unit was likely behind a series of hacking attacks mostly targeting the United States.

Responding to a reporter at a news conference, Li said he “sensed the presumption of guilt” in the question.

“I think we should not make groundless accusations against each other, and spend more time doing practical things that will contribute to cyber-security,” Li said.

“This is a worldwide problem. In fact, China itself is a main target of such attacks,” he said. “China does not support, indeed we are opposed to, such activities.”

U.S. Treasury Secretary Jack Lew will press China to investigate and stop cyber-attacks on U.S. companies and other entities when he visit China this week, a senior U.S. official said on Friday.

President Barack Obama also raised U.S. concerns about computer hacking in a phone call with Chinese President Xi Jinping on Thursday, the same day Xi took office.

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matthew-keys-170

Matthew Keys, a deputy social media editor at Reuters, has been indicted by the Department of Justice for his alleged involvement with Anonymous, a computer hacking group. Politico reports that Keys is charged with providing Anonymous members with log-in information to Tribune Company computer servers.

According to a DOJ release, Keys began working with Anonymous when he worked for Fox 40, a Tribune Company network:

Keys identified himself on an Internet chat forum as a former Tribune Company employee and provided members of Anonymous with a login and password to the Tribune Company server. After providing log-in credentials, Keys allegedly encouraged the Anonymous members to disrupt the website. According to the indictment, at least one of the computerhackers used the credentials provided by Keys to log into the Tribune Company server, and ultimately that hacker made changes to the web version of a Los Angeles Times news feature.

Keys’ employment status is currently unknown, but a Reuters employee said his desk was being disassembled and his security pass was deactivated.

The three counts Keys faces each carry a maximum sentence of 10 years in prison and fines up to $250,000.

Source: http://www.mediabistro.com/fishbowlny/reuters-social-media-staffer-indicted-for-allegedly-aiding-computer-hacking_b78779

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Woods reported to be hacking victim

Posted March 24, 2013 By National Cyber Security
Wood Computer hack

Add Tiger Woods to the list of celebrities and public figures whose personal information has been published online by a computer hacker or hackers, according to reports Wednesday.

Woods joins a list of hacking victims that includes the likes of Michelle Obama, Mitt Romney, Kim Kardashian, Paris Hilton, Al Gore, Kanye West, Mel Gibson, Donald Trump and pro wrestler Hulk Hogan. Such information includes social security numbers, credit card bills and other personal financial information.

The information was made public on a website with an address suffix for the former Soviet Union. It was linked to a now-deactivated Twitter account in Russia.

The New York Daily News reviewed the site and reported it revealed Woods has an American Express balance of $14,826 and good credit standing.

Hogan was revealed on Tuesday to be one of the victims.

“We are aware of the problem and are taking all the necessary steps necessary to work with appropriate law enforcement agencies to bring whoever may have done this to the light of day,” Hogan’s lawyer David Houston told the Daily News.

Source: http://msn.foxsports.com/golf/story/tiger-woods-hulk-hogan-reported-among-celebrity-computer-hacking-victims-031313

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Lawmakers: Tougher computer hacking laws may be needed

Posted March 24, 2013 By National Cyber Security
Computer Lawmaker

The U.S. Congress may need to create stiffer penalties for criminal computer hacking to deter the growing number of attacks on U.S. government agencies and businesses, some lawmakers said Wednesday.

Congress may revisit the Computer Fraud and Abuse Act (CFAA), the oft-amended law first passed in 1984, in an effort to counter widespread cyberattacks on U.S. computers, said Representative Jim Sensenbrenner, a Wisconsin Republican and chairman of the House of Representatives Judiciary Committee’s crime subcommittee.

Congress needs to respond to the recent reports of attacks from China and other countries, Sensenbrenner said during a subcommittee hearing.
hackers

“The United States has been the subject of the most coordinated and sustained computer attacks the world has ever seen,” he said. “The systematic and strategic theft of intellectual property by foreign governments threatens one of America’s most valuable commodities: our innovation and hard work.”

Lawmakers didn’t provide concrete ideas at the hearing on how they would update the CFAA. Several indicated they will work on cybersecurity legislation in the coming months.

A real need?

While some lawmakers called for stronger computer hacking laws, others questioned whether there’s a need. Hearing participants didn’t mention the controversial Massachusetts prosecution of activist hacker Aaron Swartz, who committed suicide earlier this year, but some lawmakers’ questions and witness statements seemed to refer indirectly to the case.

The CFAA is “remarkably vague,” said Orin Kerr, a professor at the George Washington University Law School in Washington, D.C. Some courts have ruled that an employee who violates his employer’s computer-use policy violates the law, and the U.S. Department of Justice has suggested that an Internet user who violates a website’s terms of use is also acting illegally, he said.

“The lower courts are deeply divided on the statute’s scope, with some courts concluding that the law is remarkably broad,” he said. “As a result of this confusion, the meaning of the law presently varies depending on which part of the country you happen to be in. This situation is intolerable.”

Kerr called on Congress to step in and clarify the CFAA. “The law should both punish what should be punished and ensure that innocent conduct is not criminalized,” he added.

Robert Holleyman, president and CEO of BSA, a software trade group, called for updates to the law and for appropriate prosecutions. “It is important for laws and law enforcement to be strengthened in appropriate proportions, so that innocent and minor infractions are not over-penalized, but serious crimes are effectively deterred,” he said.

Holleyman also called for more congressional focuson cybersecurity research and development, for legislation to make cyberthreat information-sharing easier and for a national data breach notification law.

Representative John Conyers, a Michigan Democrat, introduced a national data breach notification law on Wednesday.

Lawmakers also debated whether there should be mandatory minimum sentences under the CFAA. President Barack Obama’s administration is not calling for mandatory minimums as it has in the past. Jenny Durkan, U.S. attorney for the Western District of Washington, didn’t explain the reasoning behind the change in policy, other than saying judges need

Representative Bobby Scott, a Virginia Democrat, said mandatory minimum rules are unnecessary and sometimes “violative of common sense.”

Sensenbrenner disagreed. “Does the administration oppose mandatory minimums as a matter of principle, or don’t they think that the crimes that we’re talking about here deserve a mandatory minimum?” he said.

Source: http://www.techhive.com/article/2030771/lawmakers-tougher-computer-hacking-laws-may-be-needed.html

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My Friend, Alleged Computer Hacker Matthew Keys

Posted March 24, 2013 By National Cyber Security
Computer Hack

It’s not every day you open an email and it’s about someone you know that begins with: The United States of America vs. Matthew Keys.

Matthew is my friend from when he worked in Sacramento, Calif. He was the web editor for the local Fox TV affiliate. I am the news director for the local news radio station KFBK. We shared a love of news and social media. The U.S. Attorney in Sacramento handed down the indictment against Keys on Thursday. Imagine me at work and seeing your friend’s name listed on an indictment in an email from the U.S. Attorney’s Office.

Keys currently works as a deputy social media editor for Reuters in New York City. They immediately contacted me for comment. I was reluctant, but told Reuters reporter Alistair Barr that I was friends with Matthew and have always known him to be accurate in his successful news Twitter feed @TheMatthewKeys. I added: “I trust him.”

The calls, texts and emails came in quickly, from New York to San Francisco. Wow! Did you hear about Matthew? Many of us in the Sacramento news community were very proud of Matthew. He went from leaving a local, small TV affiliate here to working in New York City for the international news service Reuters. He was an inspiration to other journalists of what they could achieve with hard work.

But the indictment is serious. Three felony hacking counts for allegedly using the codes from the Tribune Company job he was fired from to help others to hack into The Los Angeles Times webpage. Keys is facing up to 10 years in prison and fines of $250,000 for each charge. As the Atlantic Wire wrote, it would have been better for Keys to assault and pop the former boss who fired him in the face with his fist than hack into a company computer. Assault in New York City is a $5,000 fine. Cyber crimes? Keys is facing up to 25 years and $750,000 in penalties.

Yet Matthew tweeted Thursday he’s OK. He also tweeted me that it was okay that the Reuters story did not include my positive comments about him I gave to their reporter.

On Friday, Keys was placed on paid suspension from Reuters.

Matthew is my 21st-century social media friend — not the kind of friend you go out and have drinks or dinner with but one you kept in touch with 3,000 miles away via Twitter, DMs, Facebook and email. I got into the social media game with him after he started and we would counsel each other over the past three years, ruminating about the downside of the changing news industry where we are all required to work more for less to asking each other who we trust on social media. We were able to keep close and connected via our exchanges on social media rather than having a conversation, which we did a few times.

I trust Matthew Keys — as far as his news reporting abilities. To his nearly 25,000 Twitter followers, he is respected as an aggressive, worldwide news tweeter armed with at least two or three computers at his fingertips to bring breaking news in real time to a hungry news audience. Keys was a social media phenom, often working tirelessly 24/7 without sleep, tweeting out breaking news such as the Gabrielle Giffords shooting and the Japanese earthquake. He brought you comments from journalists worldwide and audio links to TV and radio stations on the scene of breaking news. And he did this before other major news agencies started doing it. And as many of us who knew him as @ProducerMatthew, he was usually way ahead of The New York Times, Associated Press or Washington Post on breaking news.

Keys has always been accurate. When I’ve asked him to keep a confidence on a sensitive matter he always agreed. He has never broken my trust. I found myself in the odd position of having to write up his story and report it on my radio station.

Yet, already, Keys’ case is being compared to Aaron Swartz, the whiz kid computer expert who hanged himself when he came under investigation from the Feds for downloading articles from MIT’s servers. Swartz committed suicide at age 26; same age as Keys.

I do not know if Keys is guilty or not. I do know we are all trying to comprehend and navigate the new age of social media and computer laws and what we can and cannot do. We all agree we cannot hack although I’ve known people who have.

Some are already describing Keys with that cliche of “disgruntled employee.” Aren’t many of us disgruntled today with either lack of finding jobs or if you have one, disgruntled by all the extra work we have to do now in reduced workplaces without extra pay?

I hope Keys does not live up to that cliche. He will be back in Sacramento in April for arraignment before a U.S. Attorney.

Source: http://www.huffingtonpost.com/judy-farah/my-friend-alleged_b_2885813.html
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Probe ordered into ‘hacking of DRDO computers’

Posted March 24, 2013 By National Cyber Security
DRDO

Reports suggesting that the computers of highly-sensitive Defence Research and Development Organisation (DRDO) have been hacked have created a flutter in the Government which today ordered a probe into the issue.

According to media reports, Chinese hackers have had access to some sensitive information.
When asked about it, Defence Minister A K Antony said, “Intelligence agencies are investigating the matter at this stage and I do not want to say anything else.”
The Minister was asked if the DRDO computer networks containing sensitive information were hacked and if information was compromised.

The Defence Minister later asked Defence Secretary Shashikant Sharma to inquire into the matter and submit a report, Ministry sources said here.

Commenting on the issue, DRDO spokesperson Ravi Gupta said, “As per available information, no incidence of breach of security of  DRDO’s computers has come to notice.

Appropriate measures are in place for safety and security of computer systems.”
In the past also, such incidents have occurred and the Defence Ministry has taken several actions to stop the hacking of sensitive information pertaining to armed forces.

Recently, the Navy had to take action against some of its officers in the Eastern Command after their networks were hacked as they did not follow the standard operating procedures.

Source: http://www.deccanherald.com/content/318623/probe-ordered-hacking-drdo-computers.html

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Li Rejects U.S. Hacking Allegations Against China as Groundless

Posted March 22, 2013 By National Cyber Security
Hacking

Premier Li Keqiang said the U.S. should stop making “groundless accusations” against China regarding cybersecurity and focus on taking “practical” action over the issue.

Hacking is a “worldwide problem and in fact China itself is a main victim of such attacks,” Li said at his first press briefing since his appointment by the National People’s Congress March 15. “China does not support — in fact it is opposed to – - hacking attacks,” he said.

Cybersecurity has vaulted to the top of the U.S. agenda as President Barack Obama seeks to curb attacks on corporate networks that U.S. intelligence agencies and security firms such as Mandiant Corp. have traced to China. Obama told his Chinese counterpart Xi Jinping last week that the issue will be a key part of bilateral talks, and Treasury Secretary Jacob J. Lew will discuss the concerns during a visit to Beijing this week, a senior U.S. administration official said March 15.

“I think we should not make groundless accusations against each other and spend more time doing practical things that will contribute to cybersecurity,” Li said yesterday. “In your question I sensed the presumption of guilt,” he said in response to a reporter who asked, “Will China stop the cyber- hacking against the U.S. since it has now become an issue of American national security?”

Great Importance

Li also said China’s new government will, as in the past, “attach great importance to our relationship with the United States, a relationship between the world’s largest developed country and the world’s largest developing country.” China “will work with the Obama administration to work together to build a new type of major country relationship,” he said.

White House officials are increasing their public efforts to hold China accountable for hacking. During a phone call on March 14, Obama and Xi committed to discussions on hacker threats as part of regular conversations on security and economic matters, according to Ben Rhodes, deputy U.S. national security adviser.

National Security Adviser Thomas Donilon last week said that China is waging a campaign of cyber espionage against U.S. companies that is threatening to derail Obama’s second-term effort to improve ties. He called on the Chinese government to recognize the scope of the hacking issue, take steps to halt computer espionage and start a “constructive dialogue” with the U.S. on standards for conduct in cyberspace.

Hacking Group

A report published last month by Mandiant said China’s military may be behind a computer-hacking group that has attacked at least 141 companies worldwide since 2006.

China’s military has never supported hacking and it’s inaccurate and unprofessional to accuse it of Internet attacks, the Ministry of Defense said after the report. The Chinese government has repeatedly said it opposes cyber-attacks.

Foreign Ministry spokeswoman Hua Chunying said last month that China is concerned that some countries want to make the Internet a “new battleground,” without naming the nations. At a regular briefing last week, Hua said China will work with the international community, including the U.S. to “protect peace, safety, openness and cooperation in cyberspace.”

Yang Jiechi, who was elevated March 16 to state councilor from foreign minister, said at a March 9 press briefing that articles blaming China’s government and military for computer hacking are on “shaky ground” and such stories serve political motives.

Source: http://www.bloomberg.com/news/2013-03-17/li-rejects-u-s-hacking-allegations-against-china-as-groundless.html

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NSA-Sponsored Contest Seeking Student Computer Hackers

Posted March 22, 2013 By National Cyber Security
NSA-Sponsored

In an attempt to reach the next generation of cybersecurity personnel, officials from Carnegie Mellon University and the US National Security Agency (NSA) are launching a computer-hacking competition for high school students.

The online game, which has been dubbed “Toaster Wars,” features a space robot that crash-lands on Earth, according to the project’s official website. The competition is free, open to any individual or group of American students in the sixth through twelfth grades, and is scheduled to run from April 26 through May 6, the Associated Press (AP) explained.

Carnegie Mellon computer science professor David Brumley told the AP’s Kevin Begos the game was created in order to be enjoyable and challenging, but also created with the goal of enticing students into the field of computer security – something NSA representatives say there is a vast need for.

“America increasingly needs professionals with highly technical cyber skills to help keep the country safe today – and to help the country meet future challenges and adapt with greater agility,” Vanee Vines, a spokeswoman with the Maryland-based bureau – which has been tasked with protecting the US from cyberattacks – told Begos via email.

“When it comes to national security, there is no substitute for a dedicated, immensely talented workforce. We need the best and brightest to help us outthink and defeat our adversaries’ new ideas,” she added. “The government has a huge number of concerns,” Brumley said. “Computer security isn’t growing fast enough to keep up with all the threats. If you call any business, they’re going to say we can’t hire enough security people.”

The “Toaster Wars” competition was announced by Carnegie Mellon “just days after the Obama administration’s national security adviser called for China to take ‘serious steps’ to stop cyber theft and after a top officer at the US Cyber Command warned that the federal government and the private sector need to be more aggressive in building the country’s cyber defenses,” Begos said.

While the organizers of the competition note that they are fully aware that much of what hackers learn about the trade doesn’t occur in the classroom, they emphasize that learning things outside of a controlled environment could lead to legal repercussions. The “Toaster Wars” webpage notes computer security is a difficult field to break into, and anyone interested in the career field might have problems trying to hone their skills without breaking the law.

As for the game itself, Brumley compared it to a “capture-the-flag” style video game. There are different bits of encrypted data hidden throughout the game, and players will have to use computer forensics, cryptography, web exploitation, binary exploitation and other methods to find the information needed to achieve victory.

The contest itself was designed to attempt to keep user’s interest and make it more exciting – and Brumley told the AP that the organizers are attempting to secure corporate sponsors in order to offer cash prizes to the winners.

Source: http://www.redorbit.com/news/technology/1112804865/nsa-carnegie-mellon-toaster-wars-student-hacker-competition-031713/

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Hacker Case Leads to Calls for Better Law

Posted March 21, 2013 By National Cyber Security
Hacker case

Matthew Keys, the 26-year-old deputy social media editor at Reuters charged with assisting computer hackers, has emerged as the latest lightning rod in the continuing battle between proponents of Internet freedom and the Justice Department.

A federal indictment of Mr. Keys filed in California on Thursday met an online cacophony of protests against the 1984 computer crime law under which he was charged, the Computer Fraud and Abuse Act.

The indictment says that Mr. Keys, who previously worked as a Web producer at KTXL Fox 40, a Sacramento-based television station that, like The Los Angeles Times, is owned by the Tribune Company, provided a user name and password to hackers associated with the group Anonymous. Those hackers then changed a headline on a Times online article from “Pressure Builds in House to Pass Tax-Cut Package” to “Pressure Builds in House to Elect CHIPPY 1337,” a reference to another hacking group.

Each of the three charges against Mr. Keys could result in fines of as much as $250,000, with possible prison terms of as many as five years in one count and as many as 10 in the other two. The Tribune Company spent more than $5,000 to update its systems in response to the attack, the indictment says.

The aggressive tactics by prosecutors come amid an uptick in prominent cyberattacks in recent months. Last week, President Obama met with chief executives to discuss online security, which has become a hot issue on Capitol Hill.

In Mr. Keys’s case, the scale of the potential punishment relative to the actual harm caused — the vandalism to the Web site was quickly fixed — raised comparisons to the potential sentence in the indictment of Aaron Swartz, a 26-year-old computer programmer and Internet freedom advocate. Accused of breaking into a university system to download an archive of scholarly papers, Mr. Swartz committed suicide in January.

“Anyone horrified by the amount of jail time” Mr. Keys faced should join in calling for Congressional reform of the computer fraud act, Trevor Timm, an advocate and blogger at the Electronic Frontier Foundation, a nonprofit that supports an open Internet, wrote in a Twitter post on Thursday.

Still, it is not clear that an overhaul of the fraud act would change the damage charges Mr. Keys is facing. Orin S. Kerr, a former computer crimes prosecutor who now is a legal scholar at George Washington University, said that the part of the fraud act covering damage to a computer, which Mr. Keys was accused of violating, was more straightforward than the part involving authorized access, which Mr. Swartz was charged with violating; some scholars, including Mr. Kerr, have called those provisions overbroad.

Moreover, several legal specialists said that even if Mr. Keys were convicted on all three charges, they most likely would be collapsed into a single offense for purposes of calculating a sentence since they involved the same basic conduct. The sentencing guidelines would then be consulted in light of Mr. Keys’s previous criminal history, if any, and the economic harm caused by the vandalism — including any overtime or outside consultants piad to audit the system after the intrusion was discovered.

Mark Eckenwiler, a former deputy chief of the Justice Department’s computer crime section, said that statutory maximums cited in department news releases are “purely theoretical” in most cases, and that it would be inappropriate for the department to speculate at the start of the case about what an eventual sentence would be.

“The truth is that a lot of first-time offenders may well come in the very bottom band” of the sentencing guidelines, he said.

Nevertheless, Mr. Keys’s defense team stoked the furor. “I think hackers are the new Communists for the D.O.J.,” Tor Ekeland, a Brooklyn-based lawyer representing Mr. Keys, said in an interview. He maintained his client’s innocence and said that he intended to “vigorously litigate” the charges.

Jay Leiderman, a criminal defense lawyer in Ventura, Calif., known for representing computer hackers affiliated with Anonymous, is also representing Mr. Keys.

The case against Mr. Keys struck a particular nerve because of his outsize, and outspoken, online presence. A popular and at times volatile figure in the world of social media, Mr. Keys is in many ways emblematic of the new-media landscape. The writer of what was described by Time magazine as one of the 140 best Twitter feeds, Mr. Keys quickly used his feed to discuss the indictment and assure his nearly 25,000 Twitter followers that he was “fine.”

Mr. Keys is among a coterie of young journalists adept at social media who see their stars rise quickly and often are snapped up by major media organizations, said Sree Sreenivasan, chief digital officer at Columbia.

“At a young age you can have more influence than at any time in journalistic history,” Mr. Sreenivasan said, adding, “and the mistakes you make at a younger age are more visible than ever before.”

A Thomson Reuters spokesman said on Friday that Mr. Keys had been suspended with pay. “Any legal violations, or failures to comply with the company’s own strict set of principles and standards, can result in disciplinary action,” the company said in a statement, adding that Mr. Keys joined Reuters in 2012; the apparent crimes occurred in December 2010.

Supporters of Mr. Keys echoed criticism that reached a high pitch in January, when online activists accused prosecutors of trying to bully Mr. Swartz into pleading guilty. An article in Slate was posted on Friday under the headline “Has the Justice Department Learned Anything from the Aaron Swartz Case?”

Last week Attorney General Eric Holder Jr. was questioned at a Congressional oversight hearing on whether there had been prosecutorial misconduct in the Swartz case. Mr. Holder called the case tragic but defended prosecutors’ conduct, noting that they had offered Mr. Swartz several versions of a plea deal that would involve only a few months of prison time.

“I don’t look at what necessarily was charged as much as what was offered in terms of how the case might have been resolved,” Mr. Holder said.

Mr. Kerr, the former prosecutor, said the Justice Department had noted the maximum statutory punishments in news releases in part for their deterrent effect — to dissuade others from committing similar crimes — and not because they were realistic. “It’s mostly for show,” Mr. Kerr said.

Anonymous, the global collective of loosely organized “hacktivists” who have used computer attacks to protest political causes, has recently faced particular scrutiny. In August, Higinio O. Ochoa III, a member of an offshoot of Anonymous, was sentenced to two years in prison after he pleaded guilty to defacing Web sites and stealing confidential data when he tapped into several law enforcement computers. In 2011, hackers associated with the group targeted the Sony Corporation’s PlayStation online network, costing the company around $171 million.

“They’re an organization that should be taken seriously, and anyone who is thinking about their network and their security should consider them a force to be reckoned with,” said Edward Schwartz, chief security officer for RSA, the security arm of the EMC Corporation.

“There are three categories of hackers: Russian criminals trying to rob us blind; the Chinese who are trying to steal our secrets; and then there’s Anonymous, and a lot of them are like merry pranksters,” said Chester Wisniewski, a senior security adviser at the electronic security firm Sophos. He added: “We’re treating them all the same.”

According to the F.B.I., Mr. Keys went by the name “AESCracked” and in Internet chat rooms offered hackers access to the Fox 40 computer systems and e-mail addresses. “That was such a buzz having my edit on the LA Times,” a user named “sharpie” suspected of being associated with Anonymous wrote, according to the indictment. Mr. Keys is said to have responded, “Nice.”

When compared with recent attacks by Chinese hackers on media organizations including The New York Times, Mr. Keys’s apparent crime is “nothing,” said Josh Shaul, chief technology officer at Application Security Inc., a New York-based provider of database security software. “It’s like someone handed you the keys to a building and you used them to get in.”

Source: http://www.nytimes.com/2013/03/18/technology/outcry-over-computer-crime-indictment-of-matthew-keys.html?pagewanted=all&_r=0

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Top Government Spy Agency Seeks High School Computer Hackers

Posted March 20, 2013 By National Cyber Security
Computer Hackers Meet For Annual Congress

PITTSBURGH (AP) — Bored with classes? Carnegie Mellon University and one of the government’s top spy agencies want to interest high school students in a game of computer hacking.

Their goal with “Toaster Wars” is to cultivate the nation’s next generation of cyber warriors in offensive and defensive strategies. The free, online “high school hacking competition” is scheduled to run from April 26 to May 6, and any U.S. student or team in grades six through 12 can apply and participate.

David Brumley, professor of computer science at Carnegie Mellon, said the game is designed to be fun and challenging, but he hopes participants come to see computer security as an excellent career choice.

At a glance of its webpage, the contest seems lightweight.

“When a robot from space crash lands in your backyard, it’s up to your hacking skills to fix him and uncover the secrets he carries,” the webpage says. But, it adds, students “will learn how to identify security vulnerabilities and perform real-world attacks” on computer. And there is the small tag that reads: “Sponsorship provided by the NSA.”

National Security Agency representative Vanee Vines said the U.S. has a great need for cyber security professionals.

“America increasingly needs professionals with highly technical cyber skills to help keep the country safe today — and to help the country meet future challenges and adapt with greater agility,” Vines said in an email to The Associated Press. “When it comes to national security, there is no substitute for a dedicated, immensely talented workforce. We need the best and brightest to help us outthink and defeat our adversaries’ new ideas.”

The NSA, based in Maryland and part of the Defense Department, is responsible for code breaking, monitoring overseas communications, and protecting the U.S. from cyberattack. Last month, then-Defense Secretary Leon Panetta said cyber attacks are “the battlefield of the future,” and security experts said massive amounts of data and corporate trade secrets, likely worth hundreds of millions of dollars, were being stolen from government and corporate computers.

“The government has a huge number of concerns,” Brumley said. “Computer security isn’t growing fast enough to keep up with all the threats. If you call any business, they’re going to say we can’t hire enough security people.”

Carnegie Mellon released news of the hacker contest just days after the Obama administration’s national security adviser called for China to take “serious steps” to stop cyber theft and after a top officer at the U.S. Cyber Command warned that the federal government and the private sector need to be more aggressive in building the country’s cyber defenses.

“Toaster Wars” organizers acknowledge that world-class computer hackers don’t get such skills just by going to class, but they also note that getting such know-how on one’s own carries some legal concerns.

“Computer security is a difficult field to get into,” the webpage says. “Those who are interested may find it hard to hone their skills legally.”

Brumley described the contest as a capture-the-flag-type game. Pieces of information, called flags, are encrypted or hidden somewhere difficult to find. The game includes computer forensics, cryptography, web exploitation and binary exploitation, described as “the art of bending a computer program to your will.”

Organizers say aspiring young hackers probably don’t want to sit around and protect a server from outside attacks so the contest was developed to keep their interest.

“We do both offense and defense. We think that brings an additional level of excitement,” Brumley said. “That’s how you get intuition on how to solve problems.”

Brumley said he is seeking corporate sponsors and hopes to offer a cash prize to the winners.
Source: http://washington.cbslocal.com/2013/03/16/top-government-spy-agency-seeks-high-school-computer-hackers/

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Lawmakers: Tougher computer hacking laws may be needed

Posted March 20, 2013 By National Cyber Security
computer hacking laws

The U.S. Congress may need to create stiffer penalties for criminal computer hacking to deter the growing number of attacks on U.S. government agencies and businesses, some lawmakers said Wednesday.

Congress may revisit the Computer Fraud and Abuse Act (CFAA), the oft-amended law first passed in 1984, in an effort to counter widespread cyberattacks on U.S. computers, said Representative Jim Sensenbrenner, a Wisconsin Republican and chairman of the House of Representatives Judiciary Committee’s crime subcommittee.

[ ROUNDUP: 4 Internet privacy laws you should know about ]

Congress needs to respond to the recent reports of attacks from China and other countries, Sensenbrenner said during a subcommittee hearing.

“The United States has been the subject of the most coordinated and sustained computer attacks the world has ever seen,” he said. “The systematic and strategic theft of intellectual property by foreign governments threatens one of America’s most valuable commodities: our innovation and hard work.”

Lawmakers didn’t provide concrete ideas at the hearing on how they would update the CFAA. Several indicated they will work on cybersecurity legislation in the coming months.

While some lawmakers called for stronger computer hacking laws, others questioned whether there’s a need. Hearing participants didn’t mention the controversial Massachusetts prosecution of activist hacker Aaron Swartz, who committed suicide earlier this year, but some lawmakers’ questions and witness statements seemed to refer indirectly to the case.

The CFAA is “remarkably vague,” said Orin Kerr, a professor at the George Washington University Law School in Washington, D.C. Some courts have ruled that an employee who violates his employer’s computer-use policy violates the law, and the U.S. Department of Justice has suggested that an Internet user who violates a website’s terms of use is also acting illegally, he said.

“The lower courts are deeply divided on the statute’s scope, with some courts concluding that the law is remarkably broad,” he said. “As a result of this confusion, the meaning of the law presently varies depending on which part of the country you happen to be in. This situation is intolerable.”

Kerr called on Congress to step in and clarify the CFAA. “The law should both punish what should be punished and ensure that innocent conduct is not criminalized,” he added.

Robert Holleyman, president and CEO of BSA, a software trade group, called for updates to the law and for appropriate prosecutions. “It is important for laws and law enforcement to be strengthened in appropriate proportions, so that innocent and minor infractions are not over-penalized, but serious crimes are effectively deterred,” he said.

Holleyman also called for more congressional focus on cybersecurity research and development, for legislation to make cyberthreat information-sharing easier and for a national data breach notification law.

Lawmakers also debated whether there should be mandatory minimum sentences under the CFAA. President Barack Obama’s administration is not calling for mandatory minimums as it has in the past. Jenny Durkan, U.S. attorney for the Western District of Washington, didn’t explain the reasoning behind the change in policy, other than saying judges need to have sentencing discretion and the administration’s priorities lie elsewhere.

Representative Bobby Scott, a Virginia Democrat, said mandatory minimum rules are unnecessary and sometimes “violative of common sense.”

Sensenbrenner disagreed. “Does the administration oppose mandatory minimums as a matter of principle, or don’t they think that the crimes that we’re talking about here deserve a mandatory minimum?” he said.

Source: http://www.networkworld.com/news/2013/031313-lawmakers-tougher-computer-hacking-laws-267675.html?page=1
http://www.networkworld.com/news/2013/031313-lawmakers-tougher-computer-hacking-laws-267675.html?page=2

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