Category Archives: Cyber Attacks

Senator Seeks Answers from President on White House Cyber Attack

Chairman of the Senate Committee on Commerce, Science and Transportation, John Thune, has sent an open letter to President Obama to address the cyber attack on the White House’s unclassified computer system in late-2014. The breach, allegedly by Russian hackers, was according to Senator Thune “more extensive than previously known,” and accessed “a great deal of sensitive information, such as schedules, policy discussions, and e-mails sent and received by” Mr. Obama, “including exchanges with ambassadors.” Following increased attacks across Executive Branch departments and agencies, Mr.…

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Target to Change Security Policies and Pay $10 Million to Settle Data Breach Lawsuit

U.S. District Court Judge Paul Magnuson has indicated that he will grant preliminary approval of a 97-page settlement agreement between Target and class-action plaintiffs.  Under the settlement, Target will pay $10 million to compensate injured customers, with court documents suggesting as much as $10,000 for a victim. In total, 42 million shoppers had their credit or debit information stolen, and 61 million had personal data stolen from November 27 through December 18, 2013. The settlement also requires Target to change its security policies within 10…

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Hackers Charged with Stealing 1 Billion E-mail Addresses

The U.S. Department of Justice has unsealed indictments against three hackers for having broken into eight email service providers (ESPs), stealing 1 billion email addresses and names, and receiving $2,000,000 for the sale of products to those email addresses through a “spam” sales scheme. According to the indictments filed with the U.S. District Court for the Northern District of Georgia, Canadian David-Manuel Santos Da Silva and Viet Quoc Nguyen and Giang Hoang Vu from Vietnam used an email phishing scheme beginning in 2009 to gain…

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SEC, FINRA and the U.S. Senate Prepare for Cyberattacks in 2015

Two major government agencies have issued reports addressing security of brokerage and advisory firms, and two U.S. Senators have declared their intention to expand cyber-security laws into automobiles.  In February, the SEC released two major publications (here and here) regarding risks for brokerage and advisory firms, as well as adjusters.  The Financial Industry Regulation Authority (FINRA), a private corporation managed by financial industry insiders and billed as the self-appointed “regulator” for NYSE and NASDAQ, has issued a report to assist broker-dealer firms with…

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Third Circuit Reviews FTC’s Authority To Enforce An “Unreasonable Failure” To Protect Against A Cyber Attack

Today, the Third Circuit heard oral argument in a case that may have a profound impact on the Federal Trade Commission’s enforcement authority over corporate cybersecurity.  The question presented to the Court of Appeals is whether the FTC can pursue an enforcement action against a company under Section 5 of the FTC Act if the FTC believes that a cyber-hack occurred due to the company’s “unreasonable failure” to protect consumer data. The FTC alleges that Wyndham Worldwide did not “employ reasonable and appropriate measures to…

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Cyber-Attack Class Actions Are On The Rise

After a barrage of media coverage over the release of The Interview, Sony Pictures now finds itself in federal court defending against seven class action lawsuits filed less than a month after the North Korean government hacked its computer system.  Sony became aware of this “unprecedented” attack, in which it reportedly lost over 100 terabytes of data, on the morning of November 24th.  The first class action complaint, Corona v. Sony Pictures Entm’t, Inc., was filed on December 15, 2014 —…

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Cyber Attack Immobilizes Dutch Government Websites

As reported by the BBC, most of the Dutch government’s websites were rendered inoperable after a successful distributed denial of service (DDoS) cyber-attack on Tuesday, when servers were flooded with traffic, rendering the sites virtually inoperable.  A number of private sites were also breached, and the attack also affected communications provider Telford.  As the BBC noted, these attacks “highlighted the vulnerability of public infrastructure.” An official from the Dutch Government Information Service, Rimbert Kloosterman, remarked that the complexity and size of the government’s websites had…

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Department of Homeland Security Must Assess Cyber Risks to Building Access and Control Systems

The U.S. Government Accounting Office (GAO) issued a report this month calling on the Department of Homeland Security (DHS) and General Services Administration (GSA) to develop and implement a strategy to address cyber risks to building and access control systems, including the computers that monitor and control building operations such as elevators, electrical power, and heating, ventilation, and air conditioning.  As these systems are increasingly connected to other information systems and the Internet, there is greater vulnerability to cyber attacks, which, the report explains, “could…

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Digital Cloning: Hacking Your Fingerprints

While your biometrics may be as unique as a snowflake, they can still be digitally captured, copied and used to gain access to your “secure” computer network and data storage facilities.  Using standard photos taken during a press event in October and commercially available software, a 31-year-old member of Europe’s largest association of hackers successfully re-created a digital fingerprint of German defense minister Ursula von der Leyen.  The digital print could then be used not only to fool security software, but with the increasing sophistication…

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Hacker Gains Control of German Steel Mill Operations

The  German Federal Office for Information Security (BSI) has issued a report revealing that a sophisticated hacker was able to take control of a steel mill’s computerized production system, forcing an unscheduled shut-down that caused “massive damage” to the physical plant. By using targeted emails, known as “spear phishing,” employees were tricked into opening messages that extracted login names and passwords and transmitted that information to the hacker without detection. The hacker, in turn, used the data to gain limited control of the…

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