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from Financial Regulatory Forum:

Cybersecurity should be a compliance issue, says expert

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By Emmanuel Olaoye, Compliance Complete

WASHINGTON, Aug. 27 (Thomson Reuters Accelus) - In March this year, a group of Islamic hackers announced that they were launching the latest phase of their denial of service attacks against the largest U.S. banks. The group, which called itself the Izz ad-Din al-Qassam Cyber Fighters, targeted the websites of banks including Bank of America, Wells Fargo, and PNC Bank.

Within days, customers of those banks were complaining of difficulties in accessing the institution's websites.

The attacks highlighted the problems financial institutions are having with a particular type of cyber attack: Distributed Denial of Service attacks, and a reminder of looming responsibility for financial-firm compliance departments.

Hackers use DDoS attacks to overwhelm a financial institution's network connection with the Internet with traffic. The Depository Trust Clearing Corporation has named DDoS attacks as one of the three types of attacks that pose a systemic risk to the financial system.

from Jack Shafer:

The spy who came in for your soul

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Using EFTPOS (electronic funds transfer system at point of sale) in a store in Sidney, Dec. 11, 2012.  REUTERS/Tim Wimborne

Leaks to the press, like hillside rain tugged seaward by gravity, gather momentum only if the flow is steadily replenished.

from Thinking Global:

Seeking to avert cyber war

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Amid the buzz in Washington about new North Korean nuclear threats, President Barack Obama late last week summoned 15 of America’s top financial leaders to the White House to discuss what his administration considers to be threats that are more pervasive, more persistent and less manageable ‑ cyber risks.

“The president scared the hell out of all of us, and we’re not easy to frighten,” said one member of the group, which included Goldman Sachs’s Lloyd C. Blankfein, JPMorgan Chase’s Jamie Dimon and Bank of America’s Brian T. Moynihan. “This isn’t like the nuclear threat, where it was really governments facing down governments. The American financial sector is a new battleground, and we’re going to have to invest millions of shareholders’ dollars to protect ourselves from what are essentially national actors.”

from The Great Debate:

Protecting against cyber-attacks

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Last year, Congress failed to forge a workable framework for cybersecurity to protect the United States against a fast-growing national security and economic threat. Our cyber-networks remain dangerously vulnerable to outside attack and are the repeated targets of foreign governments intent on stealing the fruits of our intellectual and business efforts. Congress must address this crucial issue.

The threat to our critical infrastructure, national security and economic prosperity was laid out in a February report by Mandiant, a respected U.S. computer security firm. An elite unit of Chinese hackers affiliated with China’s People Liberation Army, the report concluded, is likely behind a wave of attacks on U.S. government and business computer systems.

from Ian Bremmer:

America’s way or Huawei

If you watched the third presidential debate this week, you got the sense that in the U.S.-China relationship, there are only good guys and bad guys, and all the bad guys are in China. The Americans are the valiant defenders of well-paying jobs; the Chinese are the ones who make tires so cheap it hurts the Americans. The Americans have a currency so free it’s the envy of the world; China’s is so manipulated it stunts competition the world over. But the squabbling isn’t limited to what you heard at the debate or just the two governments. It’s also happening between governments and private companies.

For years, Huawei, a Chinese telecom giant, has been trying to break into the U.S. market. Huawei wants to provide communication infrastructure to the U.S., but the U.S. wants to make sure Huawei, founded by former members of the People’s Liberation Army, isn’t actually a spy organization. Huawei claims to be just like any other Silicon Valley tech giant. U.S. intelligence agencies, despite finding no evidence of spying, view Huawei’s technology as too vulnerable to hackers. The House Intelligence Committee classified Huawei as a national security threat. State capitalism and the challenge it poses have expanded enough that the government is officially worried about them.

from MediaFile:

Video streaming, file sharing — bad for network security, good for security business

Palo Alto Networks, the network security company, that modernized the firewall with its web application inspection took a look at what people do at work by analyzing Internet traffic in over 2,000 organizations.

Seems a lot of people watch videos.

In fact, Palo Alto's semi-annual application usage and risk report says the bandwidth used by streaming video more than tripled to 13 percent from 4 percent in December 2011.

from Compass:

The elephants in the Davos ski lodge

The epic global shifts of 2011 transformed the political, economic, and social landscape from Shanghai to Sao Paolo, Washington to Cairo. No leader (not even Vladimir Putin) is safe from the vagaries of social unrest; no economy (not even China’s) is unaffected by contagion from an over-leveraged, under-managed euro zone. No country (not even the United States) is immune from the threat of asymmetric attacks—anything from a terrorist bomb to cyber-warfare.

Volatility will be the rule, not the exception in 2012. What I call the emerging Archipelago World of fragmenting power, capital, and ideas is inherently unstable— as vulnerable to old conflicts and new threats as it is open to the dynamic entrepreneurship of rising powers and corporations remaking the map of the world.

from MediaFile:

Tech wrap: Yahoo finds interclick, pays $270 million for it

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CORRECTION: The original headline falsely stated that Yahoo will pay $240 million for interclick. The correct amount is $270 million.

Yahoo will pay $270 million for interclick as it tries to revive its ailing online advertising business, even as the search and advertising giant continues to scout for potential bidders. Yahoo is paying $9 per share, or about a 22 percent premium, for the online advertising technology firm. "It's not a transformational acquisition, but it helps Yahoo in a market they are not strong in ... they have to take some steps to keep pushing forward," BGC Partners analyst Colin Gillis said. Among the parties interested in Yahoo are private equity firms Silver Lake, TPG Capital, Bain Capital, Blackstone, Kohlberg Kravis Roberts, Providence Equity Partners, Hellman & Friedman, Carlyle Group, and Russian technology investment firm DST Global, apart from rivals Microsoft and Google.

from Reuters Investigates:

Do you want the NSA to be the cyber-police?

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Today's special report looks at what the U.S. government is and is not doing to fight cyber attacks. Read it in multimedia PDF format here.

It seems every day brings news of another data breach, from defense firms to banks and even the U.S. Senate.

from Davos Notebook:

Cybersecurity goes prime time at Davos

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DAVOS/- Michael Fertik is the founder and CEO of Reputation.com, an online privacy and reputation management company. He is a member of the World Economic Forum Agenda Council on Internet Security and recipient of the WEF Technology Pioneer 2011 Award. The opinions expressed are his own. -

The World Economic Forum (WEF) has named cybersecurity one of the top five risks in the world. In its Global Risks 2011 report, the WEF's Risk Response Network nominated cybersecurity alongside planetary risks posed by demography, resource scarcity, trepidation about globalization, and, of course, WMDs. This is heady stuff. Cybersecurity has officially gone prime time. This week in Davos, I'll be moderating and contributing to panel sessions on this topic.

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