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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 -

It's been four years since data broker ChoicePoint acknowledged the data security breach that put it in the middle of a media firestorm and pushed data protection to the top of the infosecurity community's priority list. Since then, the business world has made plenty of progress hardening its data defenses -- thanks in part to industry standards like PCI DSS and data breach disclosure laws (click to see state-by-state map) now in place. But the latest data breach to grab headlines illustrates how vulnerable organizations remain to devastating network intrusions. Heartland Payment Systems, the Princeton, N.J.-based provider of credit and debit processing, payment and check management services, admitted Tuesday it was the victim of a data breach some quickly began citing as the largest of its kind. The company discovered last week that malware compromised card data across its network, after Visa and MasterCard alerted Heartland to sinister activity surrounding processed card transactions. The Shadow of ChoicePoint The Heartland breach comes roughly four years after ChoicePoint announced -- as required by California's SB 1386 data breach disclosure law -- that conmen stole personal financial records of more than 163,000 consumers by setting up fake business requests. Since then, much bigger incidents have occurred, most notably the TJX data breach that exposed more than 45 million debit and credit card holders to identity fraud. Heartland President and CFO Robert H.B. Baldwin Jr. said Tuesday that 100 million card transactions occur each month on the compromised systems used to provide processing to merchants and businesses. As of Tuesday, the Privacy Rights Clearinghouse estimated that a total of 251,164,141 sensitive records had been compromised since early 2005. Up to 15 separate cases have been reported since Jan. 1, 2009.

Government Information Security Podcasts Credit Eligible As a GovInfoSecurity.com annual member, this content can be used toward your membership credits and transcript tracking. Click For More Info Heartland Breach -- What it Means to Banking Institutions: James Van Dyke, Javelin Strategy & Research January 29, 2009 The Heartland Payment Systems data breach - it's the first major security incident of 2009. But how big is it really? What are the key takeaways for banking institutions left explaining this breach to their customers? In an exclusive interview, James Van Dyke, Founder and President of Javelin Strategy & Research, discusses the implications of the Heartland case, offering insight on: Conclusions we can draw from the Heartland breach; How banking institutions should communicate with their customers; Vulnerabilities we should watch to avoid the next big breach. Van Dyke is founder and president of Javelin Strategy & Research. Javelin is the leading provider of independent, quantitative and qualitative research for payments, multi-channel financial services, security and fraud initiatives. Javelin's clients include the largest financial institutions, card issuers and technology vendors in the industry.

Government Information Security Podcasts As a GovInfoSecurity.com annual member, this content can be used toward your membership credits and transcript tracking. Click For More Info Insights on the Insider Threat: Randy Trzeciak of Carnegie Mellon's CERT February 25, 2009 We all know the risk of the insider threat is high, but what are the specific vulnerabilities for which organizations should be particularly vigilant? In an exclusive interview, Randy Trzeciak of Carnegie Mellon's CERT program discusses recent insider threat research, including: Patterns and trends of insider crimes; Motives and means displayed in real insider cases; What employers and staffs can do to prevent and detect crimes. Trzeciak is currently a Senior Member of the Technical Staff for the Threat and Incident Management Team in the CERT Program at Carnegie Mellon University's Software Engineering Institute. He is a member of a team in CERT focusing on insider threat research, including insider threat studies being conducted with the US Secret Service National Threat Assessment Center, DOD's Personnel Security Research Center (PERSEREC), and Carnegie Mellon's CyLab.

Should responsibility for defending against cyberattacks be moved from the Dept. of Homeland Security to the military? Air Force Gen. Kevin Chilton suggested as much at a Congressional hearing where he warned of U.S. vulnerability to cyberwarfar "across the spectrum." Such attacks "potentially threaten not only our military networks, but also our critical national networks," Chilton told a House Armed Services subcommittee, the Washington Post reported. As head of Strategic Command, the general isn't responsibel for defending civilian networks, just government computers. [Stratcom's responsibility is] "to operate and defend the military networks only and be prepared to attack in cyberspace when directed. I think the broader question is, who should best do this for the other parts of America, where we worry about defending power grids, our financial institutions, our telecommunications, our transportation networks, the networks that support them." Well, that's where the 60-day interagency overview of cybersecurity comes in. At the end of that, Chilton said, responsibility for protecting private sector networks may well fit under Stratcom's duties. So what impact in having the military at the center of cybersecurity? Importantly, it brings offensive ops into the defense game. And where the military is involved, can NSA be far behind? No. Operational control over both [offensive and defensive ops], Chilton said, has been delegated to Lt. Gen. Keith B. Alexander, the head of the National Security Agency. … NSA, according to Chilton, already has a role in information security, and the agency's support "has been instrumental in our efforts to operate and particularly to defend our networks," he said. Combining oversight of cyber defense and offense made sense, Chilton said, "because they're so interconnected. . . . As you consider offensive operations, you want to make sure your defense are up."

Consumers save their e-mail and documents on Google's data centers, put their photos on Flickr and store their social lives on Facebook. Now a host of companies including Amazon and Microsoft wants government agencies to similarly house data on their servers as a way to cut costs and boost efficiency. But federal officials say it's one thing to file away e-mailed jokes from friends, and another to store government data on public servers that could be vulnerable to security breaches. The push toward "cloud computing," so named because data and software is housed in remote data centers rather than on-site servers, is the latest consumer technology to migrate to the ranks of government. Companies such as Amazon and Salesforce, which do not typically sell services to the government, want a piece of the business. Google opened a Reston office last year to sell applications such as Google Docs to federal employees. Silicon Valley-based Salesforce, which has focused on selling to corporations, established a team dedicated to government contracting. Microsoft spent $2.3 billion in 2007 to build data centers for cloud computing, and IBM, Sun Microsystems and HP want to provide the government cloud.

Too many companies leave themselves vulnerable to employees' ignorance or purposeful flouting of the rules when it comes to information security, suggests a survey conducted by (ISC)2. Focused on the 'basics' of policy management, the survey revealed that organisations are becoming confident in their ability to comply with the policies and procedures set out to secure their organisations. Analysis of the results, however, reveal education efforts to be immature, with most concerns relating to accountability and company-wide understanding of what is required. The survey questioned 737 information security professionals last month about their organisation's efforts in policy and awareness management. A great majority, 80 percent, said their company's ability to comply with security policy was satisfactory, good or very good, leaving only 20 percent saying they were dissatisfied. However, this confident stance was tempered by concerns from nearly half of the respondents over a lack of training (48 percent) and poor employee understanding of policy (46 percent); a lack of defined accountability (42 percent); and an unsupportive company culture (48 percent). These obstacles to compliance with policy were cited by significantly more respondents than other issues of traditional concern, including a lack of budget, which only 22 percent were concerned about, and the ability to procure the latest technology, which concerned only 19 percent of respondents. "The challenges are shifting from the systems to the people," says John Colley, CISSP, managing director for EMEA (Europe, Middle East, Africa) for (ISC)2. "The relatively little concern expressed over budgets suggests security continues to be viewed as a business imperative, even in the current economic climate. Unfortunately, security requirements are not yet well understood, or worse flouted, often with management support, in order to get a job done. There is a colossal task ahead to ensure all emplo

Ignorant People are a big security risk.

Cyber espionage, attacks, breaches, viruses - they are all among the concerns President Barack Obama cited Friday when he announced he will create a new White House office of cyber security, with that cyber czar reporting to the National Security Council as well as to the National Economic Council. The nation's vulnerability to cyber attacks has long been a concern. The Center for Strategic and International Studies said in a December report that the U.S. Defense Department alone has said its computers are probed hundreds of thousands of times each day. These publicly known cases of hacks, thefts and viruses at government, military, utilities and educational sites are just some examples

When the director of IT at a Boston-based, midsize pharmaceutical firm was first approached to participate in a data leakage audit, he was thrilled. He figured the audit would uncover a few weak spots in the company's data leak defenses and he would then be able to leverage the audit results into funding for additional security resources. "Data leakage is an area that doesn't get a lot of focus until something bad happens. Your biggest hope is that when you raise concerns about data vulnerability, someone will see the value in allowing you to move forward to protect it," the IT director says. But he got way more than he bargained for. The 15-day audit identified 11,000 potential leaks, and revealed gaping holes in the IT team's security practices. (Read a related story on the most common violations encountered.) The audit, conducted by Networks Unlimited in Hudson, Mass., examined outbound e-mail, FTP and Web communications. The targets were leaks of general financial information, corporate plans and strategies, employee and other personal identifiable information, intellectual property and proprietary processes. Networks Unlimited placed one tap between the corporate LAN and the firewall and a second tap between the external e-mail gateway and the firewall. Networks Unlimited used WebSense software on two servers to monitor unencrypted traffic. Then it analyzed the traffic with respect to company policy. Specifically, Networks Unlimited looked for violations of the pharmaceutical firm's internal confidentiality policy, corporate information security policy, Massachusetts Privacy Laws (which go into effect in 2010), Health Insurance Portability and Accountability Act (HIPAA), and Security and Exchange Commission and Sarbanes-Oxley regulations. Auditor Jason Spinosa, senior engineer at Networks Unlimited, says that while he selected the criteria for this audit, he usually recommends that companies take time to determine their policy settings based on their risk

The U.S. Department of Justice's indictment of Albert Gonzalez on Monday seems to have all the elements of a Hollywood crime drama: A hacker gains access to millions of credit and debit card numbers and has the power to take down a nation. Too bad for Tinseltown, the attack itself was about as sexy and a pile of routers. According to the indictment, Gonzalez, 28, gained a foothold into the systems of credit card processors such as Heartland Payment Systems ( HPY - news - people ) and retailers like OfficeMax ( OMX - news - people ), Barnes & Noble ( BKS - news - people ) and TJX Cos. ( TJX - news - people ) using an amateur hacking technique called "wardriving," which uses wireless access points to find vulnerable networks from which to launch attacks. Once connected to those private networks, Gonzalez used a well-known technique called "SQL injection" to trick Web applications into forking over private information that gave him deeper access into networks. Even though it sounds complicated, techies liken this kind of hack to simply turning the front doorknob to get into a house.

U.S. authorities announced what they believed to be the largest hacking and identity theft case ever prosecuted on Monday in a scheme in which more than 130 million credit and debit card numbers were stolen. Three men were indicted on charges of being responsible for five corporate data breaches in a scheme in which the card numbers were stolen from Heartland Payment Systems, 7-Eleven Inc and Hannaford Brothers Co, federal prosecutors said in a statement. The suspects also hacked two unidentified corporate victims, the U.S. attorney's office in New Jersey said in the statement. Prosecutors allege Albert Gonzalez, 28, of Miami, and two unnamed Russian coconspirators targeted large corporations by scanning the list of Fortune 500 companies and exploring corporate websites before setting out to identify vulnerabilities. The suspects would seek to sell the data to others who would use it to make fraudulent purchases, the statement said.

Did we need more proof that a chain is only as strong as its weakest link?

A secure Web mail company that challenged hackers to break into the company's Web mail system is paying out a US$10,000 prize, just days after launching the contest. A team of hackers managed to hack into StrongWebmail CEO Darren Berkovitz's Web mail account, using what's known as a cross-site scripting (XSS) attack, the company confirmed Monday. "They did it using an XSS script that took advantage of a vulnerability in the backend webmail program," StrongWebmail said in a statement. StrongWebmail launched the contest at the end of May as a way of promoting the voice-based identification technology sold by its parent company, Telesign. Hackers were given Berkovitz's e-mail address and password and challenged to break into the account. The company thought this would prove difficult because StrongWebmail requires a special password that is telephoned to the user before e-mail can be accessed.

From a municipal network lockout to illegal access of Barack Obama's cell phone records, 2008 had no shortage of headlines about bad acts by company employees - both those currently employed and former workers. Here we look at five embarrassing breaches that brought publicity to companies they would probably prefer to forget. The incidents taught each company a lesson about security holes in their systems, and also shed light on just how vulnerable sensitive information continues to be to illegal and malicious access.

The website for the popular children's television show "Curious George" was compromised this week to serve malware to visitors, according to researchers at web security vendor Purewire. The site, which is run by the Public Broadcasting Service (PBS), was propagating malware from at least Monday until Thursday, Nidhi Shah, research scientist at Purewire, told SCMagazineUS.com on Friday. It is not clear how hackers were able to break into the site, but it is possible that they obtained the credentials to an FTP account or exploited an SQL injection vulnerability, Shah said.

"In dire economic times such as these, companies are scouring their internal functionalities seeking ways to run "leaner and meaner." Operations and personnel that do not ostensibly contribute to profit are at risk. And nowhere are employees more vulnerable than in New York City, the nation's center for financial services, an industry particularly devastated. Because the influence of privacy on profit is not immediately apparent, managers searching for excisable fat will doubtless be attracted to the privacy function, concluding that it makes no contribution to the bottom line. But although many view privacy solely as a legal concept, it often provides important commercial benefits. Where privacy does indeed contribute to profit, chopping away at privacy will be counterproductive, slicing off meat and bone, rather than fat. If management is not educated to this fact, the privacy function will be at unnecessary risk. There are 11 reasons why privacy may benefit the bottom line, which should be raised with management."

The software vendor's commissioned research will be revealed during a panel discussion with leaders from the California Office of Privacy Protection, Intel, and MySpace. Wednesday, Jan. 28, 2009, is Data Privacy Day, and to mark the occasion, Microsoft is participating in a panel discussion in San Francisco with privacy experts from the California Office of Privacy Protection, the Center for Democracy and Technology, Intel (NSDQ: INTC), and MySpace. Better this week than last, when Heartland Payment Systems and Monster.com disclosed major malware-driven data breaches that promise privacy headaches or worse for affected account holders. It is such incidents that worry Peter Cullen, Microsoft (NSDQ: MSFT)'s chief privacy strategist, because of the impact they can have on consumer trust. "Trust is becoming increasingly important," he said. That's why Data Privacy Day exists. Microsoft and other organizations recognize that without trust, the online economy only gets worse for everyone. Cullen explained that Data Privacy Day represents a global opportunity for organizations and individuals to come together to discuss how to better educate consumers about data privacy issues. One way to advance the discussion, Cullen said, was to commission some research, which Microsoft did in two cities, in California and Texas. "We wanted to understand how different segments of consumers, from teens to professionals to boomers, thought about privacy," he said. "There were some rather interesting results that came out of this." "Our hypothesis is that across these three segments, there would be different ways of thinking about these things," said Cullen. "We were really surprised to learn there's a large degree of similarity in the way people think about privacy."

Ignorance may be bliss, but it can also be expensive. Insufficiently knowledgeable computer users are downloading and paying for fake security software in increasing numbers, creating massive revenue for cybercriminals. "More and more people are acclimating to the Internet and they feel they can make these important security decisions," said Sean-Paul Correll, security evangelist and threat researcher for Panda Security. "They don't feel the need to call their tech-savvy grandson."