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A year ago, we talked about reaching for Terabit Ethernet, the next power-of-10 increase in speed over the state of the art today. Now, researchers have demonstrated one way to do that. In a paper published in the Feb. 16 edition of Optics Express, the researchers detail their approach for de-multiplexing signals at high speeds, claiming that they were able to achieve 640Gbps over fiber-optic lines with no errors. The material they used in the chip is chalcogenide, and Australian researchers were talking about the high-speed networking possibilities of the material last summer. Calling it "just a piece of scratched glass," they said it could potentially be cheap to produce.

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When ethical hackers track down computer criminals, do they risk prosecution themselves? Security researchers at this week's Usenix conference in Boston believe this is a danger, and that ethical hackers have to develop a uniform code of ethics for themselves before the federal government decides to take action on its own. One such researcher introduced himself by saying "Hi, I'm Dave Dittrich, and I'm a computer criminal." Dittrich, senior security engineer and researcher at the University of Washington's Information School, has not been unlucky enough to be prosecuted. But ten years ago, he took actions to disrupt distributed denial-of-service attacks which he says could have been construed as criminal, he says. Working within the University of Washington Network, Dittrich says he "copied files from one host in Canada that was caching malicious software and logs of compromised hosts," allowing him to gain a fuller understanding of the nascent distributed denial-of-service tools, and to inform the operators of infected Web sites that a problem existed.

U.S. lawmakers plan to introduce privacy legislation that would limit how Internet service providers can track their users, despite reports that no U.S. ISPs are using such technologies except for legitimate security reasons. Representative Rick Boucher, a Virginia Democrat, and three privacy experts urged lawmakers Thursday at a hearing before the House Energy Commerce subcommittee to pass comprehensive online privacy legislation in the coming months. Advocates of new legislation focused mainly on so-called deep packet inspection (DPI), a form of filtering that network operators can use to examine the content of packets as they travel across the Internet. While DPI can be used to filter spam and identify criminals, the technology raises serious privacy concerns, Boucher said. "Its privacy-intrusion potential is nothing short of frightening," he added. "The thought that a network operator could track a user's every move on the Internet, record the details of every search and read every e-mail ... is alarming."

Individuals have been at risk of having their personal information stolen and used to commit identity-related crimes long before the emergence of the Internet. What the Information Age has changed, however, is the method by which identity thieves can access and exploit the personal information of others. One method in particular leaves hundreds of thousands, and in some cases tens of millions, of individuals at risk for identity theft: large scale data breaches by skilled hackers. In this method, criminals remotely access the computer systems of government agencies, universities, merchants, financial institutions, credit card companies, and data processors, and steal large volumes of personal information on individuals. Such large scale data breaches have revolutionized the identity theft landscape as it relates to fraud on existing accounts through the use of compromised credit and debit card account information. Large scale data breaches would be of no more concern than small scale identity thefts if criminals were unable to quickly and widely distribute the stolen information for subsequent fraudulent use (assuming, of course, that the breach would be quickly detected). Such wide-scale global distribution of stolen information has been made possible for criminals with the advent of criminal websites, known as "carding forums," dedicated to the sale of stolen personal and financial information. These websites allow criminals to quickly sell the fruits of their ill-gotten gains to thousands of eager fraudsters

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Purdue University last month reported its seventh data breach in the past four years. But Purdue is hardly alone. According to my records, over 300 publicized privacy incidents have occurred at U.S. institutions of higher learning since 2001, with at least 53 colleges and universities experiencing multiple breaches (see table at end of article). The regular stream of university data-breach reports has prompted Adam Dodge, assistant director for information security at Eastern Illinois University, to devote a blog - Educational Security Incidents - to the topic. When I last covered the issue four years ago (see "Security breaches challenge academia's 'open society' "), universities were the leading sector for publicized breaches. The same is true today. What's going on? Why haven't things changed? John Correlli of Los Angeles-based JMC Privacy Consulting Group has some answers. Correlli recently published a detailed analysis of the topic, "Breaches in the Academia Sector." Correlli identifies the top three root causes of university breaches: unauthorized access, usually inside jobs; accidental online exposures; and stolen laptops. "Privacy governance in academia is far too frequently thrown into the laps of the IT folks, who are then told, implicitly or explicitly, that privacy isn't a priority until it's a problem," Correlli told me.

The global economic crisis has become the biggest near-term U.S. security concern, sowing instability in a quarter of the world's countries and threatening destructive trade wars, U.S. intelligence agencies reported on Thursday. The director of national intelligence's annual threat assessment also said al Qaeda's leadership had been weakened over the last year. But security in Afghanistan had deteriorated and Pakistan had to gain control over its border areas before the situation could improve. "The financial crisis and global recession are likely to produce a wave of economic crises in emerging market nations over the next year," said the report. A wave of "destructive protectionism" was possible as countries find they cannot export their way out of the slump. "Time is our greatest threat. The longer it takes for the recovery to begin, the greater the likelihood of serious damage to U.S. strategic interests," the report said. The report represents the findings of all 16 U.S. intelligence agencies and serves as a leading security reference for policymakers and Congress. Besides reviewing adversaries, it also considered this year the security impact of issues including climate change and the economy. It said a quarter of countries have already experienced at least "low-level" instability, such as government changes, linked to the economy.

A Microsoft-led group set up three years ago has backed away from its original goal of pushing for comprehensive U.S. privacy legislation. Originally, the Consumer Privacy Legislative Forum was set up to bring a diverse array of consumer companies, technology vendors and even advocacy groups together and help drive privacy legislation. But now the group has been renamed the Business Forum for Consumer Privacy and is instead being billed as "an organization focused on fostering innovation in consumer privacy governance," according to the group's new mission statement. The Forum has released a white paper at the International Association of Privacy Professionals conference held in Washington this week. "What the organization is doing is developing the framework that would make new governance possible," said Martin Abrams, an adviser to the Forum who is executive director with the Centre for Information Policy Leadership at Hunton & Williams, an international law firm. Two of the Forum's original members, Symantec and the Center for Democracy and Technology, say they have dropped out. Eastman Kodak has also dropped out, according to Abrams. He was not authorized to say who the current members are, but the group appears to include Microsoft, Hewlett-Packard, eBay and Google. U.S. consumers are covered by a patchwork of state and federal laws that are confusing for companies, and which often force consumers to work hard to protect their own data. Many of the Forum's members would like to change things, but it appears that coming up with legislative proposals was too much.

Cloud services are now vulnerable to malicious use, a security company has suggested, after a techie worked out how Amazon's EC2 service could be used as a BitTorrent file harvester and host. Amazon's Elastic Compute Cloud (EC2) is a web service software developers can use to access computing, compilation and software trialling power on a dynamic basis, without having to install the resources locally. Now a developer, Brett O'Connor, has come up with a step-by-step method for using the same service to host an open source BitTorrent application called TorrentFlux. Getting this up and running on Amazon would require some technical know-how, but would be within the reach of a moderately experienced user, right down to following O'Connor's command line low-down on how to install the public TorrentFlux app straight to Amazon's EC2 rather than a user's local machine. Finding an alternative way of using BitTorrent matters to hardcore file sharers because ISPs and admins alike are increasingly keen to block such bandwidth-eating traffic on home and business links, and O'Connor's EC2 guide was clearly written to that end - using the Amazon service would make such blocking unlikely. "I created a web-based, open-source Bittorrent 'machine' that liberated my network and leveraged Amazon's instead," says O'Connor. He then quips "I can access it from anywhere, uploading Torrent files from wherever, and manage them from my iPhone." However, security company GSS claims the guide shows the scope for possible abuse, using EC2 to host or 'seed' non-legitimate BitTorrent file distribution. "This means, says Hobson, that hackers and other interested parties can simply use a prepaid (and anonymous) debit card to pay the $75 a month fee to Amazon and harvest BitTorrent applications at high speed with little or no chance of detection," said David Hobson of GSS. "The danger here is that companies may find their staff FTPing files from Amazon EC2 - a completely legitimate domain -

As they play in the global information economy, U.S companies stash away more data than they can handle effectively. The six-part 2009 New Data Center series opens with a look at how they're coping with the escalating problem.

Monster.com is advising its users to change their passwords after data including e-mail addresses, names and phone numbers were stolen from its database. The break-in comes just as the swelling ranks of the unemployed are turning to sites like Monster.com to look for work. The company disclosed on its Web site that it recently learned its database had been illegally accessed. Monster.com user IDs and passwords were stolen, along with names, e-mail addresses, birth dates, gender, ethnicity, and in some cases, users' states of residence. The information does not include Social Security numbers, which Monster.com said it doesn't collect, or resumes. Monster.com posted the warning about the breach on Friday morning and does not plan to send e-mails to users about the issue, said Nikki Richardson, a Monster.com spokeswoman. The SANS Internet Storm Center also posted a note about the break-in on Friday. USAJobs.com, the U.S. government Web site for federal jobs, is hosted by Monster.com and was also subject to the data theft. USAJobs.com also posted a warning about the breach. Monster.com has been checking for misuse of the stolen information but hasn't yet found any, it said. It has made changes since discovering the break-in but won't discuss them because it doesn't discuss security procedures publicly and because it is still investigating the incident, Richardson said. She also would not disclose the volume of data stolen, but said the company decided it would be prudent to alert all of its users via its Web site.

A New Zealand man has found confidential United States military files on an MP3 player he bought at an op shop in the US. Chris Ogle, 29, from Whangarei, bought the player from an Oklahoma thrift shop for $NZ18 ($A14.50), and found the files when he hooked it up to his computer, TV One News reported on Monday night. The 60 files on the player contained the names and personal details of American soldiers, including ones who served in Afghanistan and Iraq. There was also information about equipment deployed to bases and a mission briefing. "The more I look at it, the more I see and the less I think I should be," Ogle said. Victoria University strategic studies director Peter Cozens said one of the first rules of military endeavour was to not give the opposition information that could compromise your position. "This is just slack administrative procedures which are indeed a cause of embarrassment. It's the sort of thing which ought not really be in the public domain, he said. Ogle said the player never worked as a music player and he would hand it over to the US Defence Department if asked.

The whole idea of privacy has become a joke. On one hand we have consumers who will give away their personal details to random Web sites (as well as to Mrs. Sikiratu Seki Adam, "a widow to Late Saheed Baba Adams") at the drop of a virtual hat, and on the other we have businesses losing personally identifiable information and transaction data with wild abandon … yes, I'm talking about you Heartland Payment Systems. (Heartland lost data on more than 100 million transactions although it is hardly alone - check out the data loss database at the Open Security Foundation). This widespread carelessness has compromised the privacy of tens of millions of consumers and businesses. While carelessness is the cause, what has allowed it to go unchecked are a number of factors: The Internet making transactions easier and faster; the systems we use on the Internet (particularly Windows PCs) being as secure as the First Little Pig's house of straw; organizations not taking security seriously enough; naive consumers; and inadequate regulation of the companies that hold private data. What got me thinking about this privacy void was a letter my wife received from Nordstrom Bank yesterday. My wife has a Nordstrom credit card and the company sent us, for what seems like the 1,000th time, its latest privacy policy. This version was one page of small text that more or less says what every other privacy notice from financial services companies say (we average about one of these "revised" policies every couple of weeks).

Do you know where your friends are? If not, Google wants to help you find them. Today, Google introduced Latitude, a new opt-in feature that lets smartphone and laptop users share their location with friends and allows those friends to share their locations in return. Although not pinpoint accurate, Latitude can display your general location based on information from GPS satellites and cell towers. Latitude works on both mobile devices and personal computers. What Latitude can do Once you and your friends have opted in to Latitude, you can see your friends' Google icon displayed on Google Maps. Clicking on their icon allows you to call, email or IM them, and you can even use the directions feature on Google Maps to help you get to their location. Google says Latitude works in 27 countries and with many mobile platforms including iGoogle with your computer. The list of compatible phones are: *Android-powered devices, such as the T-Mobile G1 *iPhone and iPod touch devices (coming soon) *most color BlackBerry devices *most Windows Mobile 5.0+ devices *most Symbian S60 devices (Nokia smartphones) *many Java-enabled (J2ME) mobile phones, such as Sony Ericsson devices (coming soon)

A group of U.S. companies, led by technology giants Microsoft, Hewlett-Packard and eBay, is set to outline recommendations for new federal data-privacy legislation that could make life easier for consumers and lead to a standard federal breach-notification law. The recommendations, which were developed by a group of industry players called the Consumer Privacy Legislative Forum, are set to be released at an upcoming privacy conference six weeks from now, according to Peter Cullen, Microsoft's chief privacy officer. The companies have been working for the past three years to encourage the adoption of federal consumer data-privacy laws and to answer the question of what federal legislation should look like, Cullen said in an interview. Other forum members include Google, Oracle, Procter & Gamble and Eli Lilly. One idea is that laws should make it easier for consumers to understand what they're getting into when they share their personal data with Web sites, Cullen said. "The whole focus on consent really puts an unfair burden on the consumer," he said. "My mom doesn't know what an IP address is." The recommendations will cover rules around data use and the ability of consumers to correct inaccurate data. And they will cover data breach notification, which is now covered by a patchwork of state laws. Simplifying breach-notification laws by creating a single federal standard is important, Cullen said Wednesday while speaking at a discussion of privacy policy in San Francisco. "It's not that there is no privacy law. There's actually too much privacy law," he said. "If you think about data-breach notification laws just as an example, there are 38 state laws, many of them very different." "We need to think about much more of a framework approach." Congress has passed some laws covering consumer data privacy, such as the 1996 Health Insurance Portability and Accountability Act (HIPAA), but existing laws do not comprehensively cover consumer privacy in general.

Yesterday, the U.S. Supreme court announced its refusal to hear appeals against the banning of the Child Online Protection Act (COPA), effectively killing the bill. The American Civil Liberties Union called it "a clear victory for free speech," having fought the bill for ten years claiming it infringed on a website's freedom of speech. I've always advocated that it is the responsibility of parents to monitor their children's online activity. There are a ton of Web filtering and parental control applications available, many for free such as Blue Coat's K9 Web Protection. Especially with the country in the shape it's in now, my personal opinion is that the government has more pressing issues to attend to than babysitting children online. COPA was first passed in 1998, and made it illegal to display any pornographic material on a Web site without an access code or proof of age message. However, state courts began challenging the bill immediately, claiming it was unconstitutional and violated the First Amendment. Instead, it was ruled that parental controls should be used by individual families to block unwanted content, rather than the government determining what can and cannot be seen by all. (COPA was killed, not COPPA - Children's Online Privacy Protection Act)

Salesmen and parents know the technique well. It's called the takeaway, and as far as Keith Mularski is concerned, it's the reason he kept his job as administrator of online fraud site DarkMarket. DarkMarket was what's known as a "carder" site. Like an eBay for criminals, it was where identity thieves could buy and sell stolen credit card numbers, online identities and the tools to make fake credit cards. In late 2006, Mularski, who had risen through the ranks using the name Master Splynter, had just been made administrator of the site. Mularski not only had control over the technical data available there, but he had the power to make or break up-and-coming identity thieves by granting them access to the site. And not everybody was happy with the arrangement. A hacker named Iceman -- authorities say he was actually San Francisco resident Max Butler -- who ran a competing Web site, was saying that Mularski wasn't the Polish spammer he claimed to be. According to Iceman, Master Splynter was really an agent for the U.S. Federal Bureau of Investigation. Iceman had some evidence to back up his claim but couldn't prove anything conclusively. At the time, every other administrator on the site was being accused of being a federal agent, and Iceman had credibility problems of his own. He had just hacked DarkMarket and three other carder forums in an aggressive play at seizing control of the entire black market for stolen credit card information. ....In the end they would regret that decision. Iceman was right

A Harvard University fellow has developed a browser extension that stops advertising networks from tracking a person's surfing habits, such as search queries and content they view on the Web. The extension, called Targeted Advertising Cookie Opt-Out (TACO), enables its users to opt out of 27 advertising networks that are employing behavioral advertising systems, wrote Christopher Soghoian, who developed it, on his Web site. Soghoian, a fellow at the Berkman Center for Internet and Society at Harvard and a doctoral candidate at Indiana University, modified a browser extension Google released under an Apache 2 open-source license. Google's opt-out plugin for Internet Explorer and Firefox blocks cookies delivered by its Doubleclick advertising network. A cookie is a small data file stored in a browser that can track a variety of information, such as Web sites visited and search queries, and transmit that information back to the entity that placed the cookie in the browser. Google's opt-out plugin comes as the company announced plans last week to target advertisements based on the sites people visit. Targeted advertising is seen as a way for advertisers to more precisely find potential customers as well as for Web site publishers to charge higher advertising rates. But the behavioral advertising technologies have raised concern over how consumers get enrolled in the programs, what data is being tracked and how the data is protected.

It's unclear whether a report being prepared for President Barack Obama on federal information security preparedness will support recent calls for the creation of a new cybersecurity office within the White House, two lawmakers said last week. Instead, the report may recommend a more collaborative and cooperative strategy among federal agencies on the issue of cybersecurity without a single agency or department in charge, they said. Members of the U.S. House Cybersecurity Caucus met with Melissa Hathaway, acting senior director for cyberspace for the National Security Council and Homeland Security Council. Hathaway, who is conducting a 60-day review of federal cybersecurity preparedness on behalf of the president, Thursday presented a status report to members of the caucus. Speaking with reporters after the briefing, Rep. James Langevin (D-R.I.), co-chair of the caucus, and Rep. Yvette Clarke (D-N.Y.), chairwoman of a subcommittee within the Committee on Homeland Security, said it was unclear yet what Hathaway might recommend. Rather than "include another structure" within the White House, there may be a call for an increase in staffing within the White House Office of Management and Budget (OMB) in a bid to improve its current role of overseeing government cyberaffairs, said Langevin. Chances are "there will not be one king," he said. Langevin co-chaired a commission at the Center for Strategic and International Studies, a bipartisan think tank, that has called for the creation of a centralized cybersecurity office in the White House to be named the National Office for Cyberspace. The new office could combine the National Cyber Security Center (NCSC) and the Joint Interagency Cyber Task Force, two existing agencies that are handing cybersecurity today. The U.S. Government Accountability Office (GAO) has also called for a new office dedicated to cybersecurity within the White House. Calls have been prompted by what is perceived as the inability of the U.S. De

Web sites that strip personally identifiable information about their users and then share that data may be compromising their users' privacy, according to researchers at the University of Texas at Austin. They took a close look at the way anonymous data can be analyzed and have come to some troubling conclusions. In a paper set to be delivered at an upcoming security conference, they showed how they were able to map out the connections on public social networks such as Twitter and Flickr. They were then able to identify people who were on both networks by looking at the many connections surrounding their network of friends. The technique isn't 100 percent effective, but it may make some users uncomfortable about whether they should allow their data to be shared in an anonymous format. Web site operators often share data about users with partners and advertisers after stripping it of any personally identifiable information such as names, addresses or birth dates. Arvind Narayanan and fellow researcher Vitaly Shmatikov found that by analyzing these "anonymized" data sets, they could identify Flickr users who were also on Twitter about two-thirds of the time, depending on how much information they have to work with. "A lot of the time people will share information online and they'll expect that they are anonymous," Narayanan said in an interview. But if their identity can be ascertained on one social network, its possible to find out who they are on some other network, or at least make a "strong guess," he said.

A 10-month cyberespionage investigation has found that 1,295 computers in 103 countries and belonging to international institutions have been spied on, with some circumstantial evidence suggesting China may be to blame. The 53-page report, released on Sunday, provides some of the most compelling evidence and detail of the efforts of politically-motivated hackers while raising questions about their ties with government-sanctioned cyberspying operations. It describes a network which researchers have called GhostNet, which primarily uses a malicious software program called gh0st RAT (Remote Access Tool) to steal sensitive documents, control Web cams and completely control infected computers. "GhostNet represents a network of compromised computers resident in high-value political, economic and media locations spread across numerous countries worldwide," said the report, written by analysts with the Information Warfare Monitor, a research project of the SecDev Group, a think tank, and the Munk Center for International Studies at the University of Toronto. "At the time of writing, these organizations are almost certainly oblivious to the compromised situation in which they find themselves." The analysts did say, however, they have no confirmation if the information obtained has ended up being valuable to the hackers or whether it has been commercially sold or passed on as intelligence. Although evidence shows that servers in China were collecting some of the sensitive data, the analysts were cautious about linking the spying to the Chinese government. Rather, China has a fifth of the world's Internet users, which may include hackers that have goals aligning with official Chinese political positions.