Cyber-Crimes Pose 'Existential' Threat, FBI Warns

huffingtonpost.com

Despite the increased frequency and severity of online crime and espionage in 2011, many American corporations and consumers are still not taking the threat seriously, the FBI's top cyber official said Thursday.

The risk posed by criminal hackers is "existential, meaning it could eliminate whole companies," said Shawn Henry, the FBI's executive assistant director. If hackers were able to tamper with critical infrastructure such as the power grid, "it could actually cause death," Henry said in remarks at the International Conference on Cyber Security in New York.

To highlight the growing threat, Henry cited several recent FBI investigations, such as one involving a smaller company that went out of business after hackers stole $5 million from accounts, another concerning a larger firm that "virtually overnight" lost a decade of research and development worth $1 billion, and still another regarding hackers who encrypted millions of records of a health services company and demanded money for the password.

"We've seen the number and sophistication of the attacks by these cyber actors increase dramatically," Henry said.

"Hundreds of millions of dollars have been stolen, primarily through the financial services sector, just in the last couple years," he said. An organized crime ring in Eastern Europe, for example, earned about $750,000 per week from cyber theft, he added.

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Note: Does your company have a Cyber TSCM / Cyber Counterespionage plan in place? Contact me, I can help. ~JDL

Cyber Attacks May Be Revealed to Investors as SEC Rules Push Disclosures

Note: This was bound to happen as more and more companies become victims of Cyber Espionage. Has your company become a victim of Cyber Espionage? And, more importantly, does your company have a Cyber TSCM / Cyber Counterespionage strategy in place to mitigate this risk? 
Contact me, I can help. ~JDL

bloomberg.com

China-based hackers rifled the computers of DuPont Co. (DD) at least twice in 2009 and 2010, hunting the technological secrets that made the company one of the world’s most successful chemical makers.

It’s not something investors would have learned from DuPont’sregulatory filings, or from those of other companies victimized by hackers. The 10-K’s DuPont submitted to the U.S. Securities and Exchange Commission over the period don’t identify hacking as even a significant risk, much less reveal what two U.S. intelligence officials later said was a successful case of industrial espionage.

Over the next three months, as publicly traded companies file 10-K’s, investors may see new admissions of corporate networks being hacked after the SEC said companies can’t continue to hold back the details of those incidents.

As cyberspies from China, Russia and other countries ransack the computer networks of one major U.S. and European firm after the next, the SEC in October offered its new interpretation of disclosure requirements as applied to cybercrime. The amount of information that’s forthcoming will depend on whether company lawyers determine the incidents had, or will have, a material effect on the enterprise.

Daniel Turner, a spokesman for Wilmington, Delaware-based DuPont, said, regarding the previously-reported hack, “We let our disclosures speak for themselves.”

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Police group members react to Anonymous hacking

news10.net
SACRAMENTO, CA - A day after Anonymous hacked into California Statewide Law Enforcement Association's website, CSLEA members are still learning about the security breach.

Plus, the CSLEA homepage is still down.

RELATED STORY: Thousands affected after Anonymous hacks police union website

The well-known international hacking group released the names, home addresses, and phone numbers of public safety professionals, many of them police officers. It also exposed credit card information on purchases made in their online gift shop.

Anonymous claimed on their post that they have 2,500 names and passwords, and in some cases, credit card numbers. The hacker group justified releasing the information asserting, "California law enforcement officers are notorious for brutality."

Union president Alan Barcelona said CSLEA had information taken in November. All members who had their information breached then were contacted by phone or letter. The letter, dated Nov. 10, "confirms that credit card information of customers of the CSLEA online store had been compromised"

It stated, "Fortunately, most of the credit cards that were compromised had expired." And, it went on to state, "Additionally, all of the information which was previously maintained on the site has been purged."

Teresa Dobbins, an employee of the Department of Justice, never got word of the breach in November. And she wasn't informed that her personal information, including her email address, phone number, and home address, were leaked onto the web New Year's Day, until News 10 contacted her.

"If they were aware of it, they should have tried to notify me before the media did," Dobbins said.

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