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Computers, Web

Convicted Hacker Left in Charge of Prison Computer System


In a twist of Alanis Morrissettian irony, a man serving a six-year prison sentence for stealing millions of dollars through online credit card fraud recently succeeded in (surprise!) hacking into his prison's computer network, effectively paralyzing the entire system. The really incomprehensible part, though, is that officials at Ranby Prison, close to Retford, Nottinghamshire, England, gave him access to the computer.

Apparently in dire need of an internal TV station at the facility, officers decided against hiring a third party (e.g., not a convicted hacker) to set up the system. They instead opted to keep the operation in (the Big) house, delegating the duty to one Douglas Havard. So, as convicted hackers are wont to do, Havard, left unguarded, worked his way into the prison's hard drive, and set up a labyrinth of passwords to lock everyone else out of the system. And, just a week ago at this very same prison, an inmate actually got his hands on a master key.... Yeah.

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Web

Dan Brown Clue Seekers Foiled by Online Scam


People following clues that could reveal parts of the plot for best-selling author Dan Brown's upcoming book, 'The Lost Symbol,' didn't find what they were looking for Tuesday. Instead, they were led to a Web site that installed a fake anti-virus program on their PCs.

According to Wired, the scam is the result of a promotion on NBC's 'Today' show, in which host Matt Lauer reveals clues about 'The Lost Symbol' throughout the week. On the promotion's first day, this Tuesday, Lauer visited a research facility called 'Death Star' and asked viewers to identify the facility, which apparently is "a big part of the book." Naturally, these viewers googled 'death star research.' There's just one problem: an Eastern European cybercrime group was watching.

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Computers, Web

Government Web Sites Suffer Independence Day Attack

On July 4th, as U.S. citizens celebrated the War of Independence, unknown cybercriminals launched a concentrated attack on several Federal Web sites. According to Associated Press reports, the unusually sophisticated attack affected Treasury Department, Secret Service, Federal Trade Commission (FTC), and Transportation Department Web sites.

Sources familiar with the situation believe the elaborate assault to be an orchestrated denial-of-service attack, which typically involves flooding a particular Web site with traffic in order to force it offline. Ben Rushlo of Keynote Systems, a Web site monitoring firm that watches 40 government sites, said that the Transportation Department site was completely down for two days, while the FTC site was still being affected as late as Tuesday night. Other similar attacks also affected South Korean government sites over the weekend, but officials are uncertain whether or not the attacks were related.


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Computers, Web

U.S. and E.U. Join Forces to Fight Cybercrime

Cybercrime spans the entire globe, and, until now, there's been little collaboration between nations when it comes to combating international networks of hackers.

The Wall Street Journal reports on the newly formed European Electronic Crime Task Force -- a Rome-headquartered effort between the United States and the European Union. The group is backed by the muscle of the U.S. Secret Service, an Italian cybercrime police unit, and the Italian post office Poste Italiane SpA (PISA). What does a mail system have to do with fighting crime, you ask? Well, many people use PISA to deposit paychecks and pay bills, both online and in person. The Wall Street Journal reports that the post office does more business in its banking and insurance divisions than it does mailing letters and packages.

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Web

Scammers Busted for iTunes and Amazon Music Fraud

A group of English ne'er-do-well scammers, have been arrested by the Metropolitan police (also referred to as Scotland Yard) for international music fraud.

After uploading a few songs they allegedly recorded to iTunes and Amazon, the group commenced to repeatedly create and buy its own songs with 1,500 stolen credit cards. An unnamed police source told the Times Online, "We will not know why they did what they did until we have conducted all the interviews." Over a five-month period, the 10 individuals spent $750,000 and racked up $300,000 in royalties, according to the Guardian.

Sixty officers from the Metropolitan police's e-crime unit arrested the seven men and three women from all over England. The group is being held on suspicion of fraud and money laundering. The case was cracked during a parallel investigation with the FBI, after it was established that the criminal network was uploading music.

According to Detective Chief Inspector Terry Wilson, the e-crime unit will continue its work against criminals and will actively develop international partnerships with business and law-enforcers around the world.

We see examples of cybercrime regularly around here, like when a repairman was arrested after tricking Apple into sending him thousands of iPod shuffles, which he'd sell for a profit. Fraud, whether committed as part of a complex digital heist or simple plan, seems inescapable; there's no shortage of people trying to make a quick buck. [From: Guardian and The Times Online via Slashdot]

Computers

Many Data Breaches Perpetrated by Organized Crime

The notion of hackers as lonely, overweight tech-geeks who reside in their parents' basement is now an antiquated, and false, stereotype, according to a recent story on cybercrime from The Washington Post. Bryan Sartin of Verizon Business, a firm that investigates data breaches, told the Post that his group investigated 100 incidents involving 285 million compromised consumer records in 2008. Fifty-percent of those incidents shared the same perpetrators, many of whom Sartin claimed are actively involved in Russian and Eastern European organized crime syndicates.

Instead of targeting a company's known security flaws and weaknesses, the new breed of Eastern European hackers will first identify their targets, 95-percent of which are banks and financial institutions, and will then develop a method of infiltration. In one of 2008's largest US cyberattacks, hackers targeted RBS WorldPay, an Atlanta company that focuses on payroll cards and payment processing. The Euro-hackers artificially increased the spending limits on ATM and credit cards, and then distributed the cards to "money mules" who eventually withdrew millions of dollars during a single 24-hour period. According to Sartin, the same hacking crew was responsible for a similar incident at a ski resort in Vermont, and a breach of the Texas-based OmniAmerican Bank. Another organization, based out of Russia, successfully hacked over 300 companies in the U.S. and abroad, according to the report.

Well aware of the problem, the FBI and the Secret Service released a cybercrime warning in February, providing banks and retailers with a list of popular techniques used by hackers. The government agencies also taught the institutions how to identify an already perpetrated, but theretofore unrecognized, breach. Shawn Henry of the FBI's cybercrime division told the Post that, even as attacks grow bolder and more sophisticated, progress is being made in the war against hackers. He said that the FBI is seeking help from victims and foreign law enforcement, and that the bureau's "commitment is steadfast." Everyone with a bank account certainly hopes so. [From: The Washington Post]

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Web

Demand Remains High for Stolen Personal Data



While few businesses have made it through the current financial crisis unscathed, certain "entrepreneurs" continue to be successful: scam artists and con men. It can be difficult to stay abreast of such crooks' rapidly changing ploys, such as the recent phishing scam that promised expedited government stimulus checks, so we all need to exercise extreme caution whenever we are asked for personal information.

According to the security software firm Symantec, the demand for credit card and Social Security numbers, along with other forms of personal information, remains high, while new phishing scams continue to emerge. Some troubling statistics back up their assertions. From 2007 to 2008, Web sites hosting phishing scams increased by 66-percent. According to another study by Gartner, Inc., five million U.S. citizens lost money to phishing scams between September 2007 and September 2008, a 40-percent increase over the previous year.

For protection, consumers need to not only keep their anti-virus software up-to-date, but to also be wary of enticing new "opportunities." One scam which recently hit the Net preys on people's fears of the recession and the housing slump by offering bank-related benefits, such as low-interest loans and mortgage refinancing. According to Symantec, such scams comprise 75-percent of the phishing e-mails they investigated.

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Computers

Computer Consultant Allegedly Siphoned $1M From Utah Bank


When consultant jobs are few and far between, you have to make the most out of the ones you can get. Take, for instance, Zeldon Morris. When the Family First Credit Union in Orem, Utah hired the Provo man to fix some bugs in a recent computer upgrade, Morris decided to take some liberties with a few of the accounts, according to Provo's Daily Herald.

According to recently submitted court documents, Morris made false deposits via several electronic transfers into his personal and business accounts from June of 2008 to January of 2009 -- all to the tune of over $1 million. He allegedly used the money to remodel his home, pay off his two car notes, and cover a few mortgage payments. (At least he's propping up Sallie Mae!)

All of this came to the attention of the credit union last month when Morris' business partner, Eunyong Lee, blew the whistle after seeing some suspicious transactions and suspecting that they were related to fraud. Many technology business analysts have been predicting that, as the recession gets worse, more IT professionals will turn to fraud as a means of making money. Court documents say that Family First Credit Union would not have discovered Mr. Morris' scheme if it had not been for Mr. Lee. With that in mind, who knows what other scams we'll hear about long after they've been committed?

Morris was arrested last Wednesday, and arraigned the following day, entering a plea of not guilty. The alleged swindler has been charged with one count of bank fraud. [From: Daily Herald]

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Computers

2008 Trumps 2007 as Worst Year for Internet Crime



Ah, yes. It was about this time last year when we were looking at an FBI report indicating that 2007 was the worst year on record for Internet fraud. Crime was up 25-percent from 2006, and we sure thought it couldn't get any worse. Sadly, it sure did -- 33-percent worse, to be specific.

Have you ever been the victim of ID theft?



Yes, the 2008 report has been released by the FBI's Internet Crime Complaint Center, or IC3. The report mentions 275,000 complaints of Internet fraud, a significant jump from the 206,884 complaints logged in 2007. As if that weren't bad enough, the average amount of money lost per complaint also rose by nearly a third, up to $931 from $680. All told, that's over $250 million dollars stolen electronically in 2008. While many of these thefts were targeted individuals, don't forget about massive security breaches at places like Heartland Payment, which allowed millions of credit card numbers to fall into the wrong hands. Not a good year by any means. And, if we had to guess, 2009 isn't going to be any better. [From: IT World]

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Computers, Advice

New Version of Conficker Virus Can Update Itself



Just as Microsoft has decided it's done playing games, and has put a price on the head of the hackers behind Conficker, the elusive cyber-criminals have upped the ante. A new version of the malware, dubbed Conficker B++, is spreading like wildfire, thanks to a newly unplugged security hole and self-updating features.

Have you ever been the victim of a computer virus?



The new version allows the virus to download updates that could potentially give it new abilities and ways of spreading. It also skips the download of Antivirus XP, a fake security program that once lured victims into handing over credit card information and later became a dead giveaway of a Conficker infection.

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Computers

Attacks on Federal Computers Increase by 40%


Last year, the federal government's computer systems saw a 40-percent increase in cyberattacks, reports USA Today.

From 2007 to 2008, reported incidents of attacks on governmental computer systems rose from 3,928 to 5,488, according to a report by the U.S. Computer Emergency Readiness Team. While these numbers could conceivably be a result of more thorough tracking techniques, Joel Brenner of the Office of the Director of National Intelligence conceded to USA Today, "We're seeing ... a dramatic, consistent increase in cyber crime (and) intelligence activities." Still, only 1-percent of federal entities are equipped with up-to-date tracking methods.

While some of these cyberattacks are likely to have been perpetrated by foreign spies, according to Director of National Intelligence Dennis Blair, many of them likely spring from criminal entities, wishing to wreak havoc on the government rather than learn about its workings. In response to these reports, President Obama has launched an assessment of federal systems security. Maybe he can kill two birds with one stone and, for the assessment, hire on those certainly unemployed hackers that broke into the government's employment site. [From: USA Today]

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Computers

F-Secure Third Security Firm to Be Hacked


If you're a company that specializes in online security and anti-virus solutions, here's a tip: Make sure your Web site doesn't get hacked. Unfortunately, this is exactly what happened to security firm F-Secure's Web site last week. The same hacker also hit the sites of Russian firm Kaspersky, and the Portugal-based BitDefender -- all within a week, and all using the same method.

While no sensitive data was retrieved, and excuses were made (hey, it's just a low-level server with only statistical marketing data!), at least F-Secure owns up to it: "It is slightly embarrassing as a security company that we have had the breach," David Frazer, a spokesman for F-Secure, told CNET. "We certainly, as a security company, want to ensure that all of our servers are patched to the levels that they should be."

Even if no personal or sensitive data was stolen, there's the issue of face here. Who wants to trust a security company that can't keep their own site secure? It's all about image and perception, and frankly, people will likely see this breach as worse than it actually is. [From: CNET]

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Computers

Hackers Steal $9-Million From ATMs, 'Ocean's 11'-Style


If you're one of the many who envision hackers and identity thieves as pitiful, grubby men, slouched behind their computers in their parents' basements, peering at their computer screens with beady, glazed eyes, then the group of hackers that stole $9 million from global ATMs this past November might just put a new image in your mind.

According to Network World, these cyber criminals are more cat burglar than catatonic, having composed an attack plan worthy of a Hollywood screenplay.

In the first stage of their attack, the thieves hacked into electronic payment processing service RBS WorldPay, where they obtained the information contained in 100 units of the company's "payroll card," a sort of debit card where cash is directly "loaded" by an employer. Having accessed those 100 cards, the hackers then performed another hack, allowing them to "load" imaginary money onto the cards. With all that information, and money in the bank, the hackers simply made physical copies of those cards, most likely using one of the several legal, relatively cheap card printing machines.

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Computers

Nigerian 419 Scammer Busted on Facebook Chat

http://www.tahomaaudubon.org/Content/Pictures/Picture.ashx?PicId=61200

Those tricky Nigerian scammers are at again. This time, they are impersonating people on Facebook, according to AlleyInsider, and (surprise, surprise) they're asking for money. The formula of their scam hasn't changed -- it just has a more personal twist these days.

While Facebook is pretty secure, hackers -- if they try hard enough -- can still hack into your account and get your info. Pay attention to how this scam works, and what it looks like. Below are excerpts from an actual online conversation between a Facebook member (and friend of AlleyInsider) and a scammer posing as an old friend in need. Evan is the actual member, while the Nigerian scam artist is posing as Calvin.
Calvin: hey
Evan: holy moly. what's up man?
Calvin: i need your help urgently
Evan: yes sir
Calvin: am stuck here in london
Evan: stuck?
Calvin: yes i came here for a vacation
Calvin: on my process coming back home i was robbed inside the hotel i loged in
Evan: ok so what do you need
Calvin: can you loan me $900 to get a return ticket back home and pay my hotel bills
Evan: sure thing man
Evan: ok one question
Calvin: are you sending it now?
Evan: what was the name of our high school mascot?
Evan: hello?
Evan: cal?
Calvin: Shawnee Mission Northwest High '01
Evan: what? i know
Calvin: it seems you dont to help
Evan: what of course i do want to help
Calvin: am in a hot sits here and you asking me silly question
Evan: what is hot sits
Calvin: am dead here
Evan: i hope you die there
YOU HACKER
good luck finding someone stupid
bye now

It is simple. If someone asks you for money, verify that he is who he claims to be. A simple phone call would probably help. [From: AlleyInsider]

Have you ever been the victim of an online scam?



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Computers

Monster.com's Database Breached, Leaking Job-Seekers' Personal Info



It was about 18 months ago that Monster.com's databases were hacked, compromising the personal information of roughly 1.2 million registrants (most of whom had signed up looking for a job, not for a new way to have their phone numbers stolen0. The job-seeker's site, of course, pledged to fix the hole right away, but, sadly, didn't do a particularly good job of it, as we're hearing that the company has been breached again. At least this time, Monster.com is being proactive and has made news of the breach public from the get-go.

The company has indicated that the database containing its millions of registrants' personal information has been compromised, leaving their private info swinging in the cold. Names, birth dates, phone numbers and other information have all been accessed, and, while it's unclear just how many accounts were accessed illegally, it could possibly be all of them.

While the folks at Monster.com are being somewhat forthcoming about the leak in general, they still aren't actually e-mailing individual users to tell them about it, meaning, as usual, it's up to you to keep an eye on your credit report. [From: The Register]

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