Google's Gmail and Yahoo's Mail were also targeted by a large-scale phishing attack, perhaps the same one that harvested at least 10,000 passwords from Microsoft's Windows Live Hotmail, according to a report by the BBC. Microsoft , for its part, said late yesterday that it had blocked all hijacked Hotmail accounts, and offered tools to help users who had lost control of their e-mail. The BBC also said it has seen a list of some 20,000 hijacked e-mail accounts; the list included accounts from Gmail, Yahoo Mail, AOL, Comcast and EarthLink. Gmail was the target of what Google called a large-scale phishing campaign, the company told the BBC . "We recently became aware of an industry-wide phishing scheme through which hackers gained user credentials for Web-based mail accounts including Gmail accounts," a Google spokesperson told the news network.

The latter two are major U.S. Internet service providers. "As soon as we learned of the attack, we forced password resets on the affected accounts," the Google spokesperson also told the BBC. "We will continue to force password resets on additional accounts when we become aware of them." Neither Google's or Yahoo's U.S. representatives responded to e-mails from Computerworld seeking confirmation that their Gmail and Yahoo Mail services were targeted by phishers, or answers to questions about how many accounts had been compromised and what the firms are doing to help users. Late Monday, Microsoft said it was blocking access to all the accounts whose details had been posted on the Web last week. "We are taking measures to block access to all of the accounts that were exposed and have resources in place to help those users reclaim their accounts," the company said on its Windows Live blog . Microsoft posted an online form where users who have been locked out of their accounts can verify their identity and reclaim control, and also pointed users to a support page from October 2008 that spells out steps users can take if they think their accounts have been hijacked. Neowin.net, the site that first reported the Hotmail account hijacking early Monday, today added that it had seen the same list of compromised accounts as the BBC. "Neowin can today reveal that more lists are circulating with genuine account information and that over 20,000 accounts have now been compromised," said the Windows enthusiast site . "[The] new list contains e-mail accounts for Gmail, Yahoo, Comcast, EarthLink and other third-party popular Web mail services." Microsoft has acknowledged that log-on credentials for "several thousand" Hotmail accounts had been obtained by criminals, probably through a phishing attack that had duped users into divulging their usernames and passwords. After a slump earlier this year, phishing attacks are on the upswing, according to the Anti-Phishing Working Group (APWG). Its most recent data - for the first half of 2009 ( download PDF ) - noted that the number of unique phishing-oriented Web sites had surged to nearly 50,000 in June, the largest number since April 2007 and the second-highest total since the industry association started keeping records. Yesterday, Dave Jevans, the chairman of APWG, called the Hotmail phishing attack one of the largest ever, but cautioned that the usernames and passwords may have been harvested over several months, and not by a single, defined attack.

The Department of Homeland Security is looking to hire 1,000 cybersecurity professionals in the next three years according to the agency's secretary Janet Napolitano. NetworkWorld 8 Extra: 12 changes that would give US cybersecurity a much needed kick in the pants "This new hiring authority will enable DHS to recruit the best cyber analysts, developers and engineers in the world to serve their country by leading the nation's defenses against cyber threats," Napolitano stated. The department now has the authority to recruit and hire cybersecurity professionals across DHS over the next three years in order to help fulfill its mission to protect the nation's cyber infrastructure, systems and networks, she said. DHS his the focal point for the security of cyberspace - including analysis, warning, information sharing, vulnerability reduction, mitigation, and recovery efforts for public and private critical infrastructure information systems.

The need for DHS to bolster its security realm is a hot topic. The hiring authority, which results from a collaborative effort between DHS, the Office of Personnel Management and the Office of Management and Budget, lets DHS staff up to 1,000 positions over three years across all DHS agencies to fulfill critical cybersecurity roles—including cyber risk and strategic analysis; cyber incident response; vulnerability detection and assessment; intelligence and investigation; and network and systems engineering. A Government Accountability Office report this year said that while DHS established the National Cyber Security Division to be responsible for leading national day-today cybersecurity efforts that has not enabled DHS to become the national focal point for security as envisioned. The group told the GAO there also needs to be an independent cybersecurity organization that leverages and integrates the capabilities of the private sector, civilian government, law enforcement, military, intelligence community, and the nation's international allies to address incidents against the nation's critical cyber systems and functions. The GAO said the Defense Department and other organizations within the intelligence community that have significant resources and capabilities have come to dominate federal efforts. The cybersecurity jobs announcement comes on the same day that the FBI said fraudsters are targeting social networking sites with increased frequency and users need to take precautions, the FBI warned.

One technique involves the use of spam to promote phishing sites, claiming there has been a violation of the terms of agreement or some other type of issue which needs to be resolved. The FBI said fraudsters continue to hijack accounts on social networking sites and spread malicious software by using various techniques. Other spam entices users to download an application or view a video. Once the user responds to the phishing site, downloads the application, or clicks on the video link, their computer, telephone or other digital device becomes infected, the FBI stated. Some spam appears to be sent from users' "friends", giving the perception of being legitimate.

Meanwhile legislators are trying to encourage cooperation among universities and businesses to develop technology needed to carry out a strategic government effort to fight cyber attacks. The Cybersecurity Research and Development Amendments Act of 2009 was approved recently by the House Committee on Science and Technology's Research and Science Education Subcommittee. A US House subcommittee is recommending a bill that calls for a university-industry task force to coordinate joint cybersecurity research and development projects between business and academia. The legislation would set up a scholarship program that pays college bills for students who study in fields related to cybersecurity. In return the students would agree to work as cybersecurity professionals within the federal government for a period equal to the number of years they received scholarships. They would also get summer internships in the federal government.

If there aren't any jobs there, they would work for state or local governments in the same capacity or teach cybersecurity courses.

IBM is trying to hit Microsoft where it hurts, with a new offering designed to lure customers away from Windows 7. The top 7 roadkill victims on the journey to Windows 7 IBM Tuesday said it is teaming up with Canonical to provide cloud- and Linux-based desktop packages in the United States at half the cost of upgrading to Windows 7. It's called the IBM Client for Smart Work package, which was initially launched last month in Africa, as it was designed for emerging markets. Despite announcing the product Tuesday, IBM and Canonical say it won't be widely available from its full lineup of partners until 2010. That gives the industry's dominant operating system vendor a significant head start, with Microsoft's Windows 7 set for general availability on Thursday. But IBM sees an opportunity to extend the product to the United States "to help companies avoid the higher licensing, hardware upgrades and migration costs associated with Microsoft Windows 7," as IBM said in an announcement.

But IBM says the Client for Smart Work package, which is based on IBM's productivity and collaboration software, will give customers a less expensive alternative to Windows by taking advantage of existing PCs or low-cost netbooks and thin clients. "Independent market estimates range up to $2,000 for the cost of migrating to the Windows 7 operating system for many PC users," IBM argues. "New PC hardware requirements account for a significant portion of the added expense." IBM claims its package will help businesses save as much as 50% vs. IBM says Client for Smart Work will consist of the following components, some of which are already available: "Word processing, spreadsheets and presentations from IBM Lotus Symphony, which is a free-of-charge download on the Web; Email from IBM Lotus Notes or the cloud-based LotusLive iNotes launched earlier this month, which starts at $3 per user, per month; Cloud-based, social networking and collaboration tools from LotusLive.com from $10 per user, per month; and Ubuntu, an open platform for netbooks, laptops, desktops, and servers." "Since the IBM Client for Smart Work is based on http://www.eclipse.org/ ">Eclipse, Linux and open Web standards, it can integrate with any third-party software," IBM says. "This gives companies the freedom to use technologies of their choice, extend their functions and preserve existing investments." IBM Client for Smart Work is already being sold as a hosted virtual desktop by partners such as Web hosting provider Midas Networks and desktop virtualization vendor Virtual Bridges.   IBM and Canonical say there will be hundreds of partners offering IBM Client for Smart Work in the United States, but not until 2010. Partners will include systems integrators, virtual desktop providers and others. Windows on software costs. Follow Jon Brodkin on Twitter: www.twitter.com/jbrodkin

Apple patched 58 vulnerabilities in its Mac operating systems today, the most since May 2009, including several in the QuickTime media player that it had fixed separately in early September. Today's security update was the sixth from Apple this year, and the second that included patches for Snow Leopard , launched in late August. "Seems a little large, but really, it's par for the course for Apple," said Andrew Storms, director of security operations at nCircle Network Security, referring to the number of individual bugs quashed in today's 2009-006 update. Apple apparently also retired Mac OS X 10.4, aka Tiger, from security support; none of the patches affect that operating system, which debuted in April 2005. Apple traditionally stops providing security updates for its oldest still-supported OS several months after the release of a new edition. In May, Apple patched a record 67 vulnerabilities ; it addressed 55 in February, 33 in September, and 19 in two separate August updates. "Thank goodness Apple didn't release it tomorrow," Storms said.

More than half of the vulnerabilities patched today, 32 out of the 58, were accompanied by the phrase "may lead to arbitrary code execution," which is Apple's way of saying that a flaw was critical and could be used by attackers to hijack a Mac. Microsoft, which unlike Apple sets a regular schedule for its security updates, is slated to deliver six updates Tuesday that will patch 15 vulnerabilities. Apple does not assign ratings or severity scores to the bugs it patches, unlike other major software makers, such as Microsoft and Oracle. Storms said several were worth particular attention, including the four that patched critical vulnerabilities in the version of QuickTime originally packaged with Mac OS X 10.6, aka Snow Leopard . "Those were the vulnerabilities Apple patched in QuickTime 7.6.4," said Storms, noting that Apple issued a separate QuickTime update for Mac OS X 10.4 and 10.5, Tiger and Leopard, respectively, on Sept. 9, just 12 days after debuting Snow Leopard. Apple plugged holes in 37 different components of Mac OS X, ranging from AFP Client and the open-source Apache Web server software to CoreGraphics, the Help Viewer and the Spotlight desktop search engine. Apple delivered Snow Leopard's first security update on Sept. 10 to fix nine flaws in Adobe's Flash Player that it had plugged in late July, but was unable to squeeze into Snow Leopard before its launch.

Storms said that one of today's patches, which Apple labeled as affecting the Libsecurity component, had been patched a month ago by Microsoft in that company's regular October security update. Five other vulnerabilities were also Snow Leopard-only: A pair of bugs in the CoreMedia component's parsing of H.264 movie files, one in ImageIO's handling of TIFF files, and vulnerabilities in the kernel and launch services were patched in today's update. Apple credited Dan Kaminsky, of IOActive, and the Microsoft vulnerability research team for reporting the flaw, which was in the parsing of X.509 certificates. Last month, Microsoft said that proof-of-concept code had been published "which would allow an attacker to exploit this vulnerability in limited scenarios," but said it had not seen active attacks. It could be used to spoof the digital certificate of a Web site, perhaps in league with identity theft attacks. "While it is not yet considered computationally feasible to mount an attack using these weaknesses, this update disables support for an X.509 certificate with an MD2 hash for any use other than as trusted root certificate," Apple said in the accompanying advisory.

Several open-source components of Mac OS X were also patched in Apple's update today, including the Apache Web server, Fetchmail, IPSec, LibXML, OpenLDAP, OpenSSH, PHP, RADIUS and Subversion. "I looked up the release dates of those to get an idea of Apple's response time," Storms said. "Apache was patched in June; Fetchmail, LibXML and Subversion in August; and PHP and RADIUS in September." Storms and other security experts have been critical of Apple's sometimes-lethargic patching pace for open-source pieces it includes in Mac OS X. "To harp on the fact again, if Apple is going to distribute open-source code and applications, they need to close that loophole faster," said Storms. "Some of those, like PHP and LibXML were pretty important to get patched, and they were fairly fast, for them, this time. Snow Leopard users, however, won't see the security update separately, since the patches were rolled into the Mac OS X 10.6.2 upgrade also released today. But OpenSSH's bug was patched more than a year ago." The security update can be downloaded from the Apple site or installed using Mac OS X's integrated update service.

Popular online finance service Mint launched a new feature on Thursday that uses Twitter's real-time information stream to keep you up-to-date on the latest financial news and tips. Money Tweets embraces the functionality of Twitter Lists and Twitter search to bring you posts from trusted news sources, tips from popular money management gurus and the hottest money-related discussions happening online. Called Money Tweets, Mint's newest addition is a great example of how businesses and services can exploit Twitter as a source for topical links to important news stories and helpful information.

Money Tweets breaks down the information into five categories: personal finance topics, tweets about Mint, tweets from Mint, Mint's Question of the Day, and popular discussions. Topical tweets are broken down into five money-related categories: saving, investing, budgeting, loans, and retirement. Topics Mint has gathered more than twenty popular finance-related Twitter accounts to keep you informed about the latest news and tips to help keep your finances on track. Selected Twitter accounts include those from popular finance sites, personalities, and news outlets like CNBC, the Financial Times, The Motley Fool, SmartMoney, TopStocksMSN, The Wall Street Journal, StockTwits, and personal finance columnist and author Liz Pulliam Weston. At the top of the page is a graph that shows trending patterns for popular money-related topics over the past 24 hours or the past week.

Popular One of the more interesting sections in Money Tweets is the Popular section, which tracks the hottest financial news on Twitter in real time. Underneath the graph are the latest tweets relating to that subject. In my tests, the popular section had trouble switching between topical tweets. But this feature still has some bugs to work out. Clicking on the Goldman Sachs topic gave me appropriate posts related to that subject, but when I tried switching away to another topic the list of tweets didn't change. When I was looking at tweets related to the government bailout, a post related to Motorola's new Droid smartphone popped up.

You will also end up with the occasional misplaced tweet. Minty Tweets and Questions If you're wondering about what the latest tweets from Mint are, or who's talking about Mint on Twitter, Money Tweets has a section for that as well. These are usually topical questions that you may find interesting, such as "Now that the economy is recovering, what is the first thing you are going to buy?" To play along, you can either answer the daily question right from Mint (you will be redirected to Twitter.com to approve the post) or answer using your favorite Twitter client by adding the '#mintqotd' hashtag at the end of your message. You can also get interactive, by answering Mint's Question of the Day. Room for Improvement Money Tweets is an interesting way to keep an eye on the financial world by pulling in real-time information.

That way you'd have the option to pull Mint's recommended Twitter sources into your own Twitter feed. But I'd like to see Mint make this feature even better by turning their Topics categories into Twitter lists. It would also be nice if Mint would add a feature that let you retweet particularly interesting posts you find on Money Tweets. For the most part, Money Tweets is a great way to keep on top of financial information and money-related discussions happening online. Those are small complaints though. Check it out at mint.com/twitter.

Connect with Ian on Twitter (@ianpaul).

A Miami man who for three years had evaded prosecution in connection with the theft and reselling of VoIP services is being extradited to Newark from Mexico today and is set to be arraigned in a New jersey federal courthouse on Friday. He had been free on $100,000 bail. Edwin Pena, 26, had been arrested in June, 2006, on multiple computer and wire fraud charges, and then allegedly fled the country about two months later. Pena was apprehended in Mexico in February and federal prosecutors have been working to get him extradited back to the U.S. since then, according to Assistant U.S. Attorney Erez Liebermann . "He's been a fugitive for over three years," said Liebermann, who is prosecuting the case. "We're looking forward to proceeding with the prosecution." Pena faces 20 charges that include conspiracy to commit computer intrusion and conspiracy to commit wire fraud charge.

According to a criminal complaint filed in U.S. District Court in New Jersey, Pena and co-conspirator Robert Moore of Spokane, Wash., sold more than 10 million minutes of VoIP service that had been stolen from 15 telecommunications providers. The U.S. alleges that from November 2004 to May 2006 Pena and a cohort hacked into the computer networks of VoIP service providers and routed calls made by customers of Pena's VoIP service through them. Prosecutors have contended that the lost minutes were valed at $1.4 million to the providers victimized in the alleged scam. In the fall of 2007, Moore pleaded guilty to conspiracy to commit computer fraud and began a two-year prison sentence. Federal investigators contend that Pena was the mastermind behind the scheme and Moore hacked the systems.

Voice-over-IP systems route telephone calls over the Internet or other IP-based networks. The complaint alleges that once Moore found unsecured networks, he would then e-mail Pena the key information needed to access vulnerable networks. Moore scanned telecommunications company networks around the world, searching for unsecured ports - the criminal complaint said that between June 2005 and October 2005, Moore ran more than 6 million scans of network ports within the AT&T network alone. Once the networks were accessed, prosecutors allege that Pena ran brute force attacks to find the proprietary codes needed to identify and accept authorized calls coming into the networks. According to court documents, Pena gained more than $1 million from the scheme.

He allegedly would used the codes to surreptitiously route his clients' calls through the systems. Some was spent to buy real estate in Miami, a 40-foot boat and luxury cars, including a BMW M3 and a Cadillac Escalade.

It may be "a year or two" before Oracle releases a no-cost Express Edition (XE) of its 11g database, according to Andrew Mendelsohn, the company's senior vice president of database server technologies. Oracle took the same approach with the current 10g Express Edition, according to Mendelsohn, who oversees database development at the vendor. That's because Oracle is going to wait until after the first patch set ships for 11g Release 2, which was launched in July, Mendelsohn said in a brief interview following a speech at Oracle's OpenWorld conference in San Francisco on Monday.

Developers and ISVs (independent software vendors) prize XE because it includes many core features, and allows them to prototype, deploy and distribute applications without any licensing costs. Users with greater needs would need to upgrade to a paid database version such as Standard Edition. However, XE is limited to 4GB of user data, 1GB of memory and a single CPU, and is available on only 32-bit Windows or Linux systems. Some Oracle database administrators believe there is a deliberate reason for the protracted rollout. "It's an approach that ensures that adoption is nil," said Paul Vallée, founder of the Pythian Group, a database management outsourcing company in Ontario, Canada. "I don't think they're interested in adoption. ... I think they have to have it out there just for maybe a check box, just to maybe say they have a free edition." IBM and Microsoft also offer certain versions of databases at no cost. Oracle is attempting to buy Sun Microsystems for US$7.4 billion, but the deal is on hold while European officials conduct an antitrust review.

Oracle simply isn't "gunning for market share in the free database segment," Vallée added. "If they were, the strategy would be to release this exactly the way it is and then sell support and commit to patch sets for it." That is essentially the model Sun Microsystems has used for the open-source MySQL database. Instead, Oracle wants lower-end customers to use a paid version of the database, such as Standard Edition One, said Pythian Group CTO Alexander Gorbachev. It's unclear how the arrival of MySQL will affect XE, or any other aspect of Oracle's database strategy, Vallée said. A Standard Edition One processor license costs $5,800, according to Oracle's latest price list. Oracle plans to increase investment in MySQL, CEO Larry Ellison said during a keynote Sunday.

Federal IT officials doubt that agencies can enforce the Obama administration's accountability and transparency rules as they spend funds allocated by the American Recovery and Reinvestment Act of 2009, according to a survey that will be released on Monday. The majority of respondents - 62% - said either that they don't know if agencies can enforce the ARRA transparency requirements (33%) or they don't believe agencies can meet these rules (29%). States scramble to track federal stimulus bucks The survey was commissioned by Serena Software, a provider of business process modeling software that sells tools designed to meet specific federal regulations. Only 38% of respondents said they believe federal agencies can enforce the transparency requirements of ARRA, according to an e-mail survey of 200 defense and civilian agency IT officials.

It was conducted in September. Three-quarters of respondents said their agency had put a medium-to-high level of importance on reaching transparency goals. Survey respondents agree that meeting ARRA's transparency goals is important. Meeting these requirements will take time, survey respondents said. Another 31% believe they could meet the requirements within a year, and 27% believe they can meet the requirements within two years.

Less than half of survey respondents - 43% - said they believe their agencies could meet the transparency requirements today. Agencies say they need new automated tools to meet the transparency rules. Half of the 64% said they have funds available in their budget to purchase these tools. More than half of respondents - 64% - said they could benefit from automated tools. A lack of automated tools to meet transparency rules may be one reason that federal agencies are taking their time to award ARRA funds. Only 11% of survey respondents said their agency had obligated or spent more than 80% of their ARRA money. "We've been working with federal agencies on process automation, transparency and accountability issues since before the new administration came into office," says Dave Dantus, federal director for Serena Software. "We had a strong suspicion that there was a gap between what [the Office of Management and Budget] and the administration were expecting and what agencies were able to deliver in terms of reporting and transparency." Dantus said that a significant number of agencies are using e-mail and spreadsheets to meet ARRA transparency rules, rather than automated tools such as those provided by Serena. "It's not easy to track or report on ARRA funds with e-mail and spreadsheets," Dantus says. "Certainly, this is an opportunity for our company." Serena Software is a privately held software company with $300 million in revenues.

More than half of the survey respondents - 51% - said their agency had obligated or spent less than 20% of their ARRA funds. The company's Business Mashups software allows users to quickly automate processes without having to write software code. Dantus says Serena Software has more than 200 federal customers that use its software to comply with regulations regarding information assurance, financial controls and requests for information.

Apple will probably drop its exclusive deal with AT&T next year and offer its iPhone to Verizon subscribers as well, a Wall Street analyst said today. But the Cupertino, Calif. company will make up the shortfall in volume, Brian Marshall, of Broadpoint AmTech, said in a research note to clients today. "AT&T's 'sweetheart' carrier subsidy (~$450) for the iPhone would not be attainable at Verizon," said Marshall in the note. "[But] diverse carrier support is a key element in driving global penetration of the iPhone. The move will mean the end of Apple's "sweetheart" deal with AT&T, which pays Apple about $450 for each iPhone it sells.

We believe the chances are high the iPhone will find its way onto the Verizon network in the second half of 2010." If Apple does drop its exclusive arrangement with AT&T, it wouldn't be the first time that the iPhone has been marketed, and supported, by more than one carrier in a market. On Monday, for example, Canada's TELUS announced it would start selling the iPhone 3GS on Nov. 5. But a move to Verizon will affect Apple's ability to squeeze dollars out of U.S. carriers; AT&T currently subsidizes iPhone sales to the tune of $450 per unit, Marshall estimated. "Apple will probably get $300 from Verizon per iPhone," Marshall said in a follow-up telephone interview today. "That's the ballpark figure for smartphone subsidies." If Apple sells iPhones to Verizon's subscribers, Marshall expects that AT&T will strike a similar subsidy deal, meaning it too will pay Apple around $300 per phone. During Apple's quarterly earnings call last week, Tim Cook, the company's chief operating officer, confirmed that Apple would soon expand its distribution deals in the U.K. and Canada beyond the exclusive arrangements it has with O2 and Rogers, respectively. In the long run, however, that will put more money, not less, in Apple's pocket. If Verizon matches AT&T's ability to move users, and attract new ones, to the iPhone, the former will have sold about 14 million of the devices by the end of 2011. "That's a huge incremental upgrade in sales for Apple.

Marshall pegged the additional revenue to Apple at around $7 billion. "Verizon has a 30% larger post-paid base than AT&T, 81 million versus about 63 million for AT&T," said Marshall. And it's additive for the most part." AT&T will lose sales if Verizon enters the iPhone market in the U.S. - to the tune of about a half million units per quarter - but the increase from Verizon will more than make up for AT&T's decline. "Everyone is dissatisfied with AT&T on the iPhone, not only on voice, but data as well, especially in congested cities like New York and San Francisco," said Marshall, echoing complaints that go back more than two years to the launch of the original iPhone in the summer of 2007. "If Verizon starts selling the iPhone, AT&T is going to have an issue on their hands." AT&T seems to see the same writing on the wall as Marshall. Other analysts, however, have countered that Verizon's move into handsets powered by Google's Android mobile operating system makes it less likely it will forge a deal with Apple and the iPhone. Last week, AT&T Mobility CEO Ralph de la Vega hinted that his company expects its rumored three-year exclusive deal with Apple will end next year . "iPhone sales won't go away at AT&T, but the majority will be sold by Verizon," argued Marshall, if Apple does bring Verizon into the fold. For its part, Verizon remains puzzled why Apple went with AT&T in the first place.

When Apple launched the iPhone, most analysts credited AT&T's willingness to bow to Apple's demands over the iPhone, including those that prevented the carrier from selling music or add-on applications, both traditionally carrier money makers, as a deciding factor for its selection as Apple's iPhone partner. On Monday, Verizon CEO Ivan Seidenberg told analysts that Apple "wasn't interested" in striking a deal with his company two years ago. "I have no thoughts on why they did what they did," he said.

In a move designed to avoid the time and costs associated with a protracted legal battle, Certegy Check Services Inc. has offered to settle a class-action lawsuit ?filed on behalf of 8.5 million people whose personal data was compromised by an insider theft that the company disclosed last July. It currently is under review by a U.S. District Court judge in Tampa. The 52-page settlement was proposed by St. Petersburg, Fla.-based Certegy on Jan. 9 but just came to light this week.

Certegy, a check-processing company that is a subsidiary of Fidelity National Information Services Inc., said last summer that a rogue database administrator had? illegally accessed and then sold the personal data of about 2.3 million consumers to data brokers. If accepted, Certegy's proposed settlement would give qualifying members of the plaintiffs class one year's worth of free credit monitoring services, plus up to two year's worth of free bank account monitoring services for individuals whose banking information might have been compromised in the incident. The company later upped the number of compromised accounts to 8.5 million in filings made to the U.S. Securities and Exchange Commission in August. In addition, consumers who can show that they were victimized by identity theft as a result of the breach will be eligible for certain "out-of-pocket" costs, such as those resulting from bank overdraft fees, according to a copy of the settlement sent to Computerworld by Certegy. For instance, Certegy has capped the total amount of money it will pay for identity theft claims to $4 million, which will be disbursed on a first-come, first-served basis.

But there are several caveats to that particular offer. Claims have to be filed within 90 days of the discovery of an identity theft incident or before March 31, 2011, - whichever comes first. And the maximum amount that an individual can recover is $20,000.

Last week's article covered the topic of protecting data in databases from the inside out. This week's article takes look at data masking, which another way to protect sensitive data, especially as it is being copied and used in the development and testing of applications.  Data masking is the process of de-identifying (masking) specific elements within data stores by applying one-way algorithms to the data. That is, watching every action involving data as it happens, and promptly halting improper actions. The process ensures that sensitive data is replaced with realistic but not real data; for example, scrambling the digits in a Social Security number while preserving the data format.

If you don't think this is important, consider what happened to Wal-Mart a few years ago. The one-way nature of the algorithm means there is no need to maintain keys to restore the data as you would with encryption or tokenization. 10 woeful tales of data gone missing Data masking is typically done while provisioning non-production environments so that copies of data created to support test and development processes are not exposing sensitive information. Wired.com reports that Wal-Mart was the victim of a serious security breach in 2005 and 2006 in which hackers targeted the development team in charge of the chain's point-of-sale system and siphoned source code and other sensitive data to a computer in Eastern Europe. Wal-Mart at the time produced some of its own software, and one team of programmers was tasked with coding the company's point-of-sale system for processing credit and debit card transactions. Many computers the hackers targeted belonged to company programmers. This was the team the intruders targeted and successfully hacked.

According to Gartner, more than 80%t of companies are using production sensitive data for non-production activities such as in-house development, outsourced or off-shored development, testing, quality assurance and pilot programs. Wal-Mart's situation may not be unique. The need for data masking is largely being driven by regulatory compliance requirements that mandate the protection of sensitive information and personally identifiable information (PII). For instance, the Data Protection Directive implemented in 1995 by the European Commission strictly regulates the processing of personal data within the European Union. U.S. regulations such as the Gramm-Leach-Bliley Act (GLBA) and the Health Insurance Portability and Accountability Act (HIPAA) also call for protection of sensitive financial and personal data. Multinational corporations operating in Europe must observe this directive or face large fines if they are found in violation.

Worldwide, the Payment Card Industry Data Security Standard (PCI DSS) requires strict security for cardholder data. That means companies must address their use of cardholder data for quality assurance, testing, application development and outsourced systems - and not just for production systems. In order to achieve full PCI compliance, organizations must protect data in every system that uses credit card data. In the Wal-Mart case discussed above, the retailer failed to meet the PCI standard for data security by not securing data in the development environment. A lack of processes and technology to protect data in non-production environments can leave the company open to data theft or exposure and regulatory non-compliance.

Many large organizations are concerned about their risk posture in the development environment, especially as development is outsourced or sent offshore. Data masking is an effective way to reduce enterprise risk. And while encryption is a viable security measure for production data, encryption is too costly and has too much overhead to be used in non-production environments. Development and test environments are rarely as secure as production, and there's no reason developers should have access to sensitive data. Many database vendors offer a data masking tool as part of their solution suites. An alternative solution is to use a vendor-neutral masking tool.

These tools, however, tend to work only on databases from a specific vendor. Dataguise is one of the leading vendors in the nascent market of data masking. So, even if someone has copied data to a spreadsheet on his PC, dgdiscover can find it. The dataguise solution has two complementary modules. dgdiscover is a discovery tool that searches your environment (including endpoints) to find sensitive data in structured and unstructured repositories. This can be a valuable time-saving tool as data tends to be copied to more places, especially as virtual environments grow and new application instances can be deployed on demand. dgdiscover also can be used to support audits and create awareness of data repositories.

Dgmasker works in heterogeneous environments and eliminates the common practice of having DBAs create masking techniques and algorithms. The second dataguise module is dgmasker, a tool that automatically masks sensitive data using a one-way process that can't be reverse engineered. The tool preserves relational integrity between tables/remote databases and generates data that complies with your business rules for application comparability. Instead, dgmasker obfuscates the real data so that it cannot be recovered by anyone - insider or outsider - who gains access to the masked data. In short, you have all the benefits of using your actual production data without using the real data.

Data masking is an effective tool in an overall data security program. Each of these technologies plays an important role in securing data in production environments; however, for non-production environments, data masking is becoming a best practice for securing sensitive data. You can employ data masking in parallel with other data security controls such as access controls, encryption, monitoring and review/auditing.

While it used to be common for every enterprise to have its own data center for delivering and receiving Web traffic, a new study from security vendor Arbor Networks suggests that this is no longer the case. For instance, Arbor estimates that Google alone accounts for 6% of all Internet traffic in the world. 12 cool ways to donate your PC's spare processing power Arbor Chief Scientist Craig Labovitz says that there are several reasons for this migration of traffic from individual enterprise data centers to "hyper giants" such as Google, Facebook and Microsoft, including the rising costs and recourse demands of maintaining a data center and the aggressive efforts by large companies to buy up video, mail and other Web service companies. In its Internet Observatory report, Arbor notes that consolidation of content providers has led to the rise of  "a small number of very large hosting, cloud and content providers" that generate and consume an estimated 30% of all Internet traffic. Additionally, he says companies that built their own data centers years ago found them quickly outdated and that they didn't have the money to properly upgrade them. "Until a few years ago, there had been an overabundance of data centers," he says. "The data centers built five years ago are now out of date and there are entire generations of data centers where there's no way to upgrade them." The solution for companies, he says, has been to consolidate their infrastructure through virtualization or to outsource many of their IT operations to the cloud. "Starting with outsourced Web e-mail, we have seen a large migration of Web traffic out of small enterprise data centers and toward these large players," Labovitz explains. "The cost of data centers had started to affect companies' bottom lines and that has set the stage for what's starting to happen in the transit market." Arbor says that another consequence of content providers and content delivery networks becoming larger has been the decreasing importance to Tier-1 transit providers such as Verizon Business, AT&T and Level 3 in delivering Web traffic.

This price competition drove down IP wholesale market prices and forced many Tier 1 networks to pursue higher-value product offerings such as CDN, cloud computing and a greater focus on private enterprise offerings." Arbor conducted its study of global traffic patterns by analyzing nearly 3,000 peering touers across nine Tier-1, 48 Tier-2 and 33 consumer and content providers in four different continents. And because these companies have lost some of their profitability in the transit market, Arbor says that they've turned themselves more toward value-added services. "Over time, IP connectivity services became indistinguishable from one provider to the next," says Arbor in its research brief. "In response, providers started competing chiefly on price. Arbor said that at its peak, "the study monitored more than 12 terabits-per-second of offered load and a total of more than 256 exabytes of Internet traffic."

Video game rental service Gamefly launched its GameCenter App in the App Store Thursday. While the app doesn't allow users play the games themselves, it does serve as a pocket library for gaming information, as well as a quick way to research, rent, and buy games. "We designed GameCenter to provide iPhone and iPod touch users with a complete one-stop destination for video game information," said Sean Spector, GameFly's co-founder and SVP of business development and content. This free application gives iPhone and iPod touch users access to data on over 5,000 video games, as well as news, videos, screen shots, release dates, user reviews, and cheats.

The current version of the GameCenter app features news and information for several platforms including the PC, PS2, PS3, Wii, Xbox 360, Nintendo DS, and PSP. So far, there are no Mac or iPhone tabs, but Spector says the company may address this in future updates. The GameCenter app is designed to be easily navigable. The tabs can be customized through the game's settings tab, so you only get the news and information you want. Tapping the Games tab will give you a list of platforms on the top. When you tap on a game title, you are directed to the game's individual page that gives the user a game description, game specs, game controls, cheats and codes, and the ability to rent the game through GameFly. By tapping a platform name you can immediately view the most popular games complete with images, user rating, and release dates.

The most helpful user reviews are also highlighted on the game's page next to reviews from GameFly's partner IGN. The News tab can also be sorted by platform and the individual stories can be expanded to full screen. The developers clearly intended for the user to be able to perform everything in the app, from viewing videos embedded in news stories to renting or buying games to sharing game news and information with your friends. Stories are fed to the GameCenter App through leading games sites including Shacknews.com. You can share GameCenter content via in-app Facebook, Twitter, and e-mail. While the scale of the information contained on the app is definitely useful for gamers, and is much more intuitive than your average gaming site on the mobile platform, the app will perhaps be most appreciated by existing GameFly members. You can also invite friends to download the app themselves.

To encourage the use of the GameFly rental service, anyone who downloads the app is also granted access to a fifteen-day free GameFly membership. For a free app, GameFly's GameCenter has a remarkably large amount of information and is definitely worth a look.

Extreme Networks this week unveiled an extension to its edge switching portfolio with three new modules for its BlackDiamond 8800 chassis. The modules include a redundant management switch module (MSM), a 24-port Gigabit Ethernet fiber module, and a 48-port Gigabit Ethernet 1000Base-T card. The modules transform the chassis into the BlackDiamond 8500-series, a wiring closet switch optimized for automating the discovery and service provisioning of devices at the edge of the enterprise network, and enabling resiliency and security.

The MSM is called the 8500-MSM24. It features eight optional 1G/10G ports for connection to a redundant MSM and other switches. The 24-port fiber card is called the 8500-G24X-e. The Gigabit Ethernet ports are small form-factor pluggable transceivers. The MSM is the brains of the switch, running Extreme's XOS operating system and handling the provisioning of network access, security, service levels and failover procedures. The 48-port 1000Base-T card is called the 8500-G48T-e. It features RJ45 interfaces. This is designed to protect chassis investments and ensure consistent operation and management from edge to core. The modules fit into the BlackDiamond 8810/8806 chassis and use the same power supplies, fan trays, accessories and ExtremeXOS operating system as that switch.

The BlackDiamond 8500 will go up against Cisco's Catalyst 4506 and 4506E switches, and HP's ProCurve 5400zl. The BlackDiamond 8500-series modules will be available this quarter. Extreme claims twice the per slot switching capacity - 48Gbps vs. 24Gbps – at lower cost: $25,965 in a 144 Gigabit Ethernet port configuration vs. $26,292 for HP, and between $33,000 and $40,000 for Cisco. The MSM has a list price of $4,995. The 24-port Gigabit fiber module has a list price of $6,995, and the 48-port Gigabit Base-T module has a list price of $3,995.

Google's Gmail and Yahoo's Mail were also targeted by a large-scale phishing attack, perhaps the same one that harvested at least 10,000 passwords from Microsoft's Windows Live Hotmail, according to a report by the BBC. Microsoft , for its part, said late yesterday that it had blocked all hijacked Hotmail accounts, and offered tools to help users who had lost control of their e-mail. The BBC also said it has seen a list of some 20,000 hijacked e-mail accounts; the list included accounts from Gmail, Yahoo Mail, AOL, Comcast and EarthLink. Gmail was the target of what Google called a large-scale phishing campaign, the company told the BBC . "We recently became aware of an industry-wide phishing scheme through which hackers gained user credentials for Web-based mail accounts including Gmail accounts," a Google spokesperson told the news network.

The latter two are major U.S. Internet service providers. "As soon as we learned of the attack, we forced password resets on the affected accounts," the Google spokesperson also told the BBC. "We will continue to force password resets on additional accounts when we become aware of them." Neither Google's or Yahoo's U.S. representatives responded to e-mails from Computerworld seeking confirmation that their Gmail and Yahoo Mail services were targeted by phishers, or answers to questions about how many accounts had been compromised and what the firms are doing to help users. Late Monday, Microsoft said it was blocking access to all the accounts whose details had been posted on the Web last week. "We are taking measures to block access to all of the accounts that were exposed and have resources in place to help those users reclaim their accounts," the company said on its Windows Live blog . Microsoft posted an online form where users who have been locked out of their accounts can verify their identity and reclaim control, and also pointed users to a support page from October 2008 that spells out steps users can take if they think their accounts have been hijacked. Neowin.net, the site that first reported the Hotmail account hijacking early Monday, today added that it had seen the same list of compromised accounts as the BBC. "Neowin can today reveal that more lists are circulating with genuine account information and that over 20,000 accounts have now been compromised," said the Windows enthusiast site . "[The] new list contains e-mail accounts for Gmail, Yahoo, Comcast, EarthLink and other third-party popular Web mail services." Microsoft has acknowledged that log-on credentials for "several thousand" Hotmail accounts had been obtained by criminals, probably through a phishing attack that had duped users into divulging their usernames and passwords. After a slump earlier this year, phishing attacks are on the upswing, according to the Anti-Phishing Working Group (APWG). Its most recent data - for the first half of 2009 ( download PDF ) - noted that the number of unique phishing-oriented Web sites had surged to nearly 50,000 in June, the largest number since April 2007 and the second-highest total since the industry association started keeping records. Yesterday, Dave Jevans, the chairman of APWG, called the Hotmail phishing attack one of the largest ever, but cautioned that the usernames and passwords may have been harvested over several months, and not by a single, defined attack.

Top Chinese e-commerce site Alibaba.com aims to announce an Indian joint venture this year as the company expands its global footprint, it said Friday. A deal in India, where Alibaba.com recently surpassed 1 million registered members, would be the latest in the site's efforts to grow abroad. "I've got a lot of confidence in India," said Jack Ma, CEO of Alibaba Group, the parent company of Alibaba.com. Alibaba.com is in talks with an Indian reseller about forming a joint venture, CEO David Wei told reporters at a briefing.

Alibaba.com is a platform for small and medium businesses to trade everything from lumber and clothes to iPods and PC components. Alibaba.com already works with Indian publishing company Infomedia 18, its likely joint venture partner, to promote its platform in the country. Its main member base is in China, but the site also has 9.5 million registered users in other countries and facilitates many cross-border trades. The site also has a joint venture in Japan and recently launched a major U.S. advertising campaign to attract more users there. Ma said Alibaba knows it needs to "do something" in Latin America as well. Ma and other top Alibaba executives visited the U.S. early this year for meetings with potential partners including Amazon.com, eBay and Google.

When asked if the company would also seek to expand in Eastern Europe, Ma said, "I will be there." Alibaba will not hold a majority stake in joint ventures it forms, instead taking a share similar to the 35 percent it has in its Japan operation. "Our global strategy means partner with local people," Ma said. "We want partners and we want partners to control their business." Users place total orders of more than US$200 million each day on the Alibaba.com international platform, Wei said. About 50 percent of those orders go to Chinese exporters, he said.

Microsoft still does not acknowledge a weakness in its Internet Explorer browser that was pointed out seven weeks ago and enables attackers to hijack what are supposed to be secure Web sessions. If Microsoft doesn't fix the problem, Apple can't fix it on its own, Apple says. The company says it is still evaluating whether the weakness exists, but Apple, which bases its Safari for Windows browser on Microsoft code, says Safari for Windows has the weakness and the Microsoft code is the reason.

Apple has fixed the problem for Safari for Macs. Once our investigation is complete, we will take appropriate action to help protect customers," a Microsoft spokesperson said via e-mail. "We will not have any more to share at this time." The weakness can be exploited by man-in-the-middle attackers who trick the browser into making SSL sessions with malicious servers rather than the legitimate servers users intend to connect to. Black Hat's most notorious incidents: a quiz "Microsoft is currently investigating a possible vulnerability in Microsoft Windows. Current versions of Safari for Mac, Firefox and Opera address the problem, which is linked to how browsers read the x.509 certificates that are used to authenticate machines involved in setting up SSL/TLS sessions. The attacks involve getting certificate authorities to sign certificates for domain names assigned to legitimate domain-name holders and making vulnerable browsers interpret the certificates as being authorized for different domain-name holders. In July two separate talks presented by researchers Dan Kaminski and Moxie Marlinspike at the Black Hat Conference warned about how the vulnerability could be exploited by using what they call null-prefix attacks.

For instance, someone might register www.hacker.com. In that case, the authority would sign a certificate for bestbank.hacker.com, ignoring the sub-domain bestbank and signing based on the root domain hacker.com, Marlinspike says. In many x.509 implementations the certificate authority will sign certificates for any request from the hacker.com root domain, regardless of any sub-domain prefixes that might be appended. At the same time, browsers with the flaw he describes read x.509 certificates until they reach a null character, such as 0. If such a browser reads bestbank.com\0hacker.com, it would stop reading at the 0 and interpret the certificate as authenticating the root domain bestbank.com, the researcher says. An attacker could exploit the weakness by setting up a man-in-the-middle attack and intercepting requests from vulnerable browsers to set up SSL connections. Browsers without the flaw correctly identify the root domain and sign or don't sign based on it.

If the attacking server picks off a request to bestbank.com, it could respond with an authenticated x.509 certificate from bestbank.com\0hacker.com. The user who has requested a session with bestbank would naturally assume the connection established was to bestbank. The vulnerable browser would interpret the certificate as being authorized for bestbank.com and set up a secure session with the attacking server. Once the link is made, the malicious server can ask for passwords and user identifications that the attackers can exploit to break into users' bestbank accounts and manipulate funds, for example, Marlinspike says. These certificates use an asterisk as the sub-domain followed by a null character followed by a registered root domain. In some cases attackers can create what Marlinspike calls wildcard certificates that will authenticate any domain name.

A vulnerable browser that initiated an SSL session with bestbank.com would interpret a certificate marked *\0hacker.com as coming from bestbank.com because it would automatically accept the * as legitimate for any root domain. Such a wildcard will match any domain, he says. This is due to "an idiosyncrasy in the way Network Security Services (NSS) matches wildcards," Marlinspike says in a paper detailing the attack. The differences between what users see on their screens when they hit the site they are aiming for and when they hit an attacker's mock site can be subtle. A Microsoft spokesperson says Internet Explorer 8 highlights domains to make them more visually obvious, printed in black while the rest of the URL is gray. "Internet Explorer 8's improved address bar helps users more easily ensure that they provide personal information only to sites they trust," a Microsoft spokesperson said in an e-mail. The URLs in the browser would reveal that the wrong site has been reached, but many users don't check for that, Marlinspike says.

Marlinspike says the null character vulnerability is not limited to browsers. "[P]lenty of non-Web browsers are also vulnerable. Outlook, for example, uses SSL to protect your login/password when communicating over SMTP and POP3/IMAP. There are probably countless other Windows-based SSL VPNs, chat clients, etc. that are all vulnerable as well" he said in an e-mail.

India's auction of 3G and WiMax licenses is now scheduled to be held in December, according to a notice on the Web site of the country's Department of Telecommunications. Bidding for 3G licenses will start Dec 7, with the WiMax auction scheduled to start two days after the 3G auction is complete, according to the notice. The auction was originally scheduled for January of this year, but was postponed after disagreement within the government on the minimum cost of the licenses. Both Indian and foreign companies are allowed to bid for the licenses, but foreign companies will have to set up joint ventures with Indian investors to run services in the country.

The Ministry of Communications will license four slots for 3G in each of India's 22 service areas, with a fifth slot reserved for two government-run telecommunications companies. A group of ministers, set up to resolve the dispute over pricing the licenses, has named Indian rupees 250 billion (US$5 billion) as the minimum revenue from the auction of the 3G and WiMax licenses in the country, India's Minister of Communications, A. Raja said last month. A telecommunications company bidding for 3G licenses in all 22 circles will have to pay at least Indian rupees 35 billion, according to the new minimum pricing proposed by the Indian government. Two companies, Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd., were allotted 3G spectrum ahead of the auction, and have started offering services. By the pricing announced last year, they would have to pay about rupees 20 billion. The government said last year that these companies would have to pay license fees equal to the highest bid in each service area.

The final date for applications from bidders is Nov 13.

There's no question that software piracy is a global problem with a heavy financial impact. A May 2009 report by the Business Software Alliance and IDC estimated that 20% of software programs installed in the U.S. last year were unauthorized copies. But just how heavy it is is a matter of debate. Worldwide, the figure is 41%, with an estimated financial impact of $53 billion - a figure based on the retail value of the pirated PC software.

If it were, the BSA's global loss figure of $53 billion would drop sharply, they maintain. "Obviously, not every piece of pirated software will be replaced immediately with legitimate software if underlicensing is addressed or sources of pirated stuff dry up," acknowledges Dale Curtis, the BSA's vice president of communications. But critics of the study say it fails to account for the possibility that pirated software could be replaced with Linux or other open-source options. But he says that over the years, IDC has found "a very strong correlation between piracy rates and software sales. One country that wasn't included is Canada - and that doesn't sit right with Michael Geist, a professor at the University of Ottawa. "What the BSA did not disclose is that the 2009 report on Canada (whose piracy rate declined from 33% to 32% in the study) were guesses since Canadian firms and users were not surveyed. In country after country, as the piracy rate falls, legitimate sales go up." A second criticism of the report is that its country-by-country figures are partly based on the results of an annual survey that in 2009 covered 24 countries. While the study makes seemingly authoritative claims about the state of Canadian piracy, the reality is that IDC . . . did not bother to survey in Canada," Geist wrote in a May 27 blog post.

Further, he says Canadian users were surveyed the previous year, and "there is no reason to assume large changes in results from one year to the next." Ivan Png, a professor of information systems and economics at the University of Singapore, says the BSA and IDC should explain how they applied the results from the 24 countries surveyed to all of the other countries not surveyed. "IDC should make the methodology transparent," Png says. Curtis responds that the study "is not a guess, nor is it a scientific measurement, nor is it based primarily on a survey of software users, as Geist suggests." A survey of 6,200 users is only a piece of the model, Curtis says.

Facebook launched a new applications feature late Tuesday that will let you test the latest tools the social network is working on. Here's a breakdown of the five features you can try out: Desktop Notifications (Mac OS X only): A Mac OS X growl notification app that sits on your menu bar and alerts you when someone writes on your Facebook Wall or sends you a message. Called Facebook Prototypes, it's similar to Google Labs as it allows you to try out new features that, as Facebook says, are "not quite ready for prime time, are a bit esoteric, or don't quite fit." There are five new features currently available, most of which were created during a recent Facebook Hackathon event-an all-night coding session where Facebook techies work on projects they don't have time to develop during regular business hours.

You can also update your Facebook status within the application or navigate directly to your profile, News Feed, or Compose Message window. With one click, your friends can add the event to their personal calendar program like Google Calendar, Microsoft Outlook, or iCal. Enhanced Event E-mails: Adds an iCal file to event notifications sent to your Facebook friends via regular e-mail. For this feature to work, your friends must have event e-mail notifications enabled in their Facebook account settings. Click on the tag and Facebook will try to find other News Feed posts with similar attributes.

Similar Posts: Adds a "Similar Posts" tag under posts in your News Feed, such as status updates, shared links, and videos. Photo Tag Search: Integrated into the Facebook photo dashboard, Photo Tag Search lets you search photos posted by you and your friends for up to fifteen people at once. Plug your name and your friends' names into the search bar, and Facebook will show you all the photos where all of you are tagged. Say you want to find a photo of you and three friends. This feature will only find photo tags for people you're connected to on Facebook. Click on it, and your News Feed will show the most recent Facebook posts your friends have been commenting on.

Recent Comments Filter: Places a "comments" button on the column to the left of your News Feed. The Prototype applications include several great features, and while some of them are a little rough, they do add great functionality to your Facebook experience. Sometimes it inexplicably asks you for your login credentials, but it's a great little program if you want to stay on top of Facebook without logging on to the service. If you're on Mac OS X, I highly recommend trying out the Desktop Notifications app. To activate the prototypes, click on the Facebook Applications page and then click on 'Prototype' in the left hand column.

Connect with Ian Paul on Twitter (@ianpaul).

Four months after it modified Windows 7 to stop the Conficker worm from spreading through infected flash drives, Microsoft has ported the changes to older operating systems, including Windows XP and Vista, the company announced on Friday. Conficker copied a malicious "autorun.inf" file to any USB storage device that was connected to an already-infected machines, then spread to any other PC if the user connected the device to that second computer and picked the "Open folder to view files" option under "Install or run program" in the AutoPlay dialog. In April, Microsoft altered AutoRun and AutoPlay, a pair of technologies originally designed for CD-ROM content, to keep malware from silently installing on a victim's PC. The Conficker worm , which exploded onto the PC scene in January, snatching control of millions of machines, used several methods to jump from PC to PC, including USB flash drives.

Microsoft responded by changing Windows 7 so that the AutoPlay dialog no longer let users run programs, except when the device was a nonremovable optical drive, like a CD or DVD drive. Four months ago, Microsoft promised to make similar changes in other operating systems - Windows XP, Vista, Server 2003 and Server 2008 - but declined to set a timeline. After the change, a flash drive connected to a Windows 7 system only let users open a folder to browser a list of files. On Friday, Microsoft used its Security Research & Defense blog to announce the availability of the updates for XP, Vista and the two Server editions. Links to the download are included in a document posted on the company's support site.

Microsoft issued the updates almost three weeks ago, on Aug. 25, but did not push them to users automatically via Windows Update, or the corporate patch service Windows Server Update Services (WSUS). Instead, users must steer to Microsoft's download site, then download and install the appropriate update manually. The Windows XP update weighs in at 3MB, while the one for Vista is about 7MB. The AutoRun and AutoPlay changes debuted in the Windows 7 Release Candidate (RC), which was available for public downloading from May 4 to Aug. 20 . Windows 7 is set to go on sale Oct. 22.

Symantec this week is taking the wraps off the 2010 editions of its flagship antimalware consumer software, Norton AntiVirus and Norton Internet Security, adding a new type of malware detection and analysis it calls Quorum.

Quorum is the underlying technology used for reputation analysis to determine if a file a user encounters on the Web is harmful or harmless, according to Dan Nadir, director of Symantec's product management group, consumer division.

If a file is known to include malware, it will be blocked or eradicated. If a file is suspicious, a pop-up may recommend a user avoid that file, Nadir says. "But the majority of the time, this won't come into play because we will block or allow - this middle ground is when we're not 100% sure," he says.

Quorum's reputation analysis draws from a knowledge base that includes traditional antivirus signatures (these don't go away in Norton AntiVirus 2010 and Norton Internet Security 2010); Symantec's existing Sonar technology for behavioral analysis; a real-time database of malware information gleaned from millions of Symantec software users; and cloud-based analysis.

"We have access to a very high volume of data, about 30 million users," Nadir says. "We're monitoring network traffic using intrusion-prevention systems and URL reputations for untrustworthy sites."

This array of information is combined to make a rapid determination of good or bad files at the user's desktop through Quorum, Nadir says. "Think of the system as a judge. Quorum is adding other information, based on a collaborative vote, so to speak, so it can make a decision."

Norton AntiVirus 2010 is the more basic antimalware package for the desktop. Norton Internet Security adds capabilities that include firewall and antiphishing defense, plus Identity Safe for protection and management of personal profile information and passwords. Both packages include some new tools, such as System Insight, which can inform users about CPU and memory utilization over time.

While Quorum is not yet a technical feature in Symantec's corporate antimalware line, the security firm has a long history of introducing innovations into its consumer products, which are then added into upcoming corporate products.

Available for Windows 7, XP and Vista, Norton AntiVirus 2010 costs $39 and Norton Internet Security costs $69. Both will be available Sept. 9.

Microsoft has acquired the office.com domain from a Brussels-based company, according to searches of Internet registration records.

The domain, which was previously registered to the ContactOffice Group, a company that hosts an online productivity and collaboration suite, was transferred to Microsoft's control on Tuesday, searches of WHOIS revealed.

Office.com currently presents a message from ContactOffice telling its users of a domain change to office.contactoffice.com, a secondary address that the European firm has had in its possession since 1999.

"As of Friday, July 31, 2009, Office.com will no longer be available," said Tom Graham, a ContactOffice employee, in the message still live on the site. Also, if you use POP or IMAP with Office.com you will need to change your settings to pop.contactoffice.net and imap.contactoffice.net respectively," Graham added.

ContactOffice did not respond to e-mails asking it to confirm the sale of the site; Microsoft was not available for comment early Thursday.

Long Zheng, who first reported on the domain name change on his Windows blog I Started Something, speculated that Microsoft will use the new domain for the upcoming online versions of its popular Word, Excel, PowerPoint and OneNote applications.

Microsoft touted Office Web last month, promising that consumers would be able to access the scaled-down applications for free. Workers at companies with Software Assurance plans in place will also be able to use Office Web free of charge.

A public beta round for Office Web is slated for later this year; the final version is to launch simultaneously with Office 2010, which is scheduled to ship sometime in the first half of 2010.

Under the dark cloud of recent zero-day attacks, Microsoft is quickly working to update its enterprise patching tools to incorporate short-term, quick fix technologies to thwart malware that is already actively exploiting vulnerabilities.

Microsoft's goal is to add its Fix-it technology, introduced in January, into its overall patch management toolbox, which is anchored by Patch Tuesday. The idea is to streamline blockers for zero-day attacks into current patching best practices.

The Fix-it code provides immediate protection and can act as a placeholder until a patch is developed and tested. Fix-its are MSI files that once installed turn off vulnerable ActiveX controls by changing registry settings in the OS. MSI files allow administrators to install, maintain and remove software from the OS.

"We want to figure out how better to integrate Fix-it into the rest of the Microsoft patching story," says Paul Schottland, product unit manager in the product quality and online organization within Microsoft's support and services group. The group has been doing the majority of the work on the Fix-it technology.

Microsoft has released more than 300 Fix-its since January, mostly to correct issues that vex non-techies such as replacing an IE shortcut deleted from the desktop or fixing issues with the sound system.

But more recently, the majority of Fix-its have been for security vulnerabilities.

"The path we would like to take is a sort of best practices across the industry," said Schottland. "The path we are heading down is making sure the IT industry collectively can say this is a new tool and this is how it fits into the overall enterprise that we manage."

Microsoft plans to publish a white paper next month outlining that strategy.

Schottland says Fix-it technology is not applicable to every security vulnerability but works well when certain features need to be turned on or off rather than fixes that have multiple configuration options.

Earlier this week, Microsoft issued Fix-it "kill-bits" for an ActiveX vulnerability in Office Web Components. A patch is still being developed, according to Microsoft. The company also issued kill-bits for two other zero-day attacks exploiting ActiveX controls.

On Tuesday, Microsoft issued its first ever patch – MS09-032 – made up of a collection of "kill-bits" from previously released Fix-it code.

While the kill-bits are effective, the problem for companies is getting them deployed in an automated manner. Fix-it technology today is mostly done manually at each machine via Microsoft's Web site. The technology is mostly designed for consumers, although some vendors are beginning to provide corporate users with tools to centrally manage rollout of Fix-it code.

Microsoft for its part is recommending its System Center Configuration Manager or the group policy features associated with Active Directory for rolling out Fix-it code via a network. Schottland's group is working with the Microsoft Security Response Center and the Windows Update team to develop an enterprise solution for rapid deployment.

Microsoft is already allowing IT administrators to download the Fix-it MSI files and push them out from within their own networks as an install that does not require end-user action.

"They can use log-in scripts, Group Policy or Configuration Manager," he says. OEMs are also getting rights to distribute the MSI packages.

Those rights are in sharp contrast to patches, whose distribution is tightly controlled by Microsoft to ensure the integrity of the software. MSI files will be digitally signed, however, just like patches.

Schottland also says some Fix-it tools are coming out with more diagnostic capabilities but they require PowerShell, which runs on XP, Vista and Server 2003 and ships as part of Windows Server 2008 and Windows 7.

"Will [Fix-it] be another avenue into applying some security fixes? Absolutely," says Schottland.

Some experts say Microsoft is applying its efforts in the right places.

"This is a tailor made problem for group policy to solve," says Darren Mar-Elia, CTO and founder of SDM Software, which develops Group Policy tools. "Group Policy was designed originally to push out registry settings." He says the newer Group Policy Preferences introduced with Windows Vista and Windows Server 2008 make the process easier. Mar-Elia outlined the Group Policy options in a blog post Thursday.

The unsolved issue, however, is one of logging and reporting of success or failure of installation.

"We have some free PowerShell commandlets that let you find out if policy processing worked, but it does not verify the results," said Mar-Elia. SDM is working on a tool to add that verification.

Still others say Microsoft is on the right track toward protecting users.

"Microsoft is new to this, but I think they are doing the right thing," says Eric Schultze, CTO of Shavlik Technologies. "In the days of old they just waited for Patch Tuesday. It's great they now have a way to turn around a fix in 24 hours. The question is can they make it easier for IT admins to roll out. I think they will do that."

Schultze says Shavlik customers are already asking it to provide packages they can install via Shavlik patch management tools and Shavlik is pushing out Fix-it packages via its software.

"It is kind of a slippery slope. We start to become vulnerability management instead of patch management," he says.

But IT administrators are turning to whomever they trust as they scramble to deal with the rising trend of zero-day attacks. Microsoft has reported five since February.

Wolfgang Kandek, the CTO of Qualys, says the security vendor has 60 zero-day exploits listed in its database. He says other vendors have more than 100.

"I don't think the zero-day trend will end anytime soon," says Amol Sarwate, manager of vulnerabilities research lab of Qualys.

Kandek says the interesting trend here is how these recent zero-day attacks are targeting ActiveX, a technology that allows code from a Web page to execute locally. Java Applets implement a similar concept although many feel they are less powerful and less dangerous because they don't command the same sort of OS control as ActiveX.

Google also is developing technology called Native Client for its recently unveiled Chrome OS that allows code to execute locally to boost the performance of Web-based applications. Google engineers admit the technology can be "ambitious and risky" and are working on security such as sandboxing and prohibiting certain actions.

Some say Microsoft's action of disabling Active X is a quick fix.

"They are going to have to get around to fixing the underlying code," says Paul Henry, security analyst for security vendor Lumension. "Disabling is not the solution."

Henry says the problem involves more than just Microsoft. He notes that Mozilla is instructing users to disable the Just-in-time (JIT) JavaScript compiler in Firefox 3.5 as Mozilla works to fix a vulnerability that is the focus of a zero-day attack. Adobe patched a zero-day PDF bug last month.

Henry says efforts are pointed in the right directions, but "I wish we were running in that direction."

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Three years ago, Carnegie Mellon University opened the Data Center Observatory – an answer to the ever-rising operational costs in IT. Administrative expenses were spiraling out of control because individual research groups within the university were running their own IT infrastructure, characterized by short periods of heavy use followed by many hours sitting idle and wasting energy.

The solution was to build an administered utility that provides computational and storage resources to the university community. Besides improving administrative efficiency, the DCO helped control power and cooling costs while letting researchers focus on what they do best rather than worry about maintaining their own mini data centers.

"We didn't have the name cloud computing [at the time] but as it turns out that's exactly what I was pitching to the university," says Greg Ganger, a professor of electric and computer engineering and director of Carnegie Mellon's Parallel Data Lab, a storage systems research center.

So far, the DCO houses 325 computers connected to 12 network switches, 38 power distributors and 12 remote console servers. More than 1,000 cables and 530TB of storage are in use, while environmental conditions are monitored by 13 sensor nodes. Most equipment is donated by vendors or bought with grants.

Two thousand square feet in size, the DCO is being built in zones, with two out of four zones online at this time.

The DCO gets the "observatory" part of its name because it was designed not only to provide real data center resources but also to serve as a test bed for systems researchers looking to "understand the sources of operational costs and to evaluate novel solutions," according to Carnegie Mellon. A windowed wall, and LCD display showing electrical usage and other statistics gives people walking by a sense of what's happening inside the Data Center Observatory.

Building the DCO was not without its challenges, however. Besides "playing Tetris with the room" to figure out how best to place equipment, Ganger found that convincing researchers to share was not always easy.

"We learned how hard it is to get people in the same space," says Ganger, who described the project at a recent event hosted by Schneider Electric and in an interview with Network World. "Each group had its own operating system that they had to have, and their own set of libraries and unique setups. Early on it was clear we had to use virtual machines."

Rather than use the expensive VMware virtualization tools, Ganger opted for the open source Xen and KVM platforms. About a third of DCO machines have been virtualized, making it easier to increase and decrease resources provisioned to each research group. Overall, virtualization has been very useful but raised some interesting concerns, he says.

Virtual machines need lots of memory, Ganger notes. If VMs can be suspended when they are not in use, it's easier to provide memory to the VMs that need it. But suspending a VM can harm the application running inside it, if the application wasn't written specifically for a VM, Gagner says.

"If they have open network connections that are active, those connections will break [when the VM is suspended]," Ganger says. "We're trying to figure out how to have the capability to get stuff out of the way so it's not taking up memory."Ganger and his team designed the Data Center Observatory in partnership with the Schneider Electric-owned APC, which supplied In-Row Cooling and Hot Aisle Containment technologies, allowing potential capacity of 40 racks and 774 kilowatts of power.

Figuring out how to efficiently cool such large densities of equipment took lots of planning.

"As a person who comes from a software systems background, it never occurred to me how much was involved in constructing a room like this, the power and cooling issues, the scale of the power and scale of computing involved," Ganger says.

Although the phrase "cloud computing" was not in vogue when Ganger started building the Data Center Observatory, he now considers the DCO to be essentially a private cloud for Carnegie Mellon researchers.

"I think of [a cloud] as an infrastructure that's managed by some other group … that you can count on for providing the hardware resources you need to do your work," he says.

Though originally designed for internal usage, the DCO has become part of public clouds such as Open Cirrus, a cloud computing research test bed created by HP, Intel and Yahoo; and a university collaboration project known as the Open Cloud Testbed. Carnegie Mellon is also part of the Internet2 consortium and the National LambdaRail network.

These cloud experiments are in the early stages, but Ganger expects them to become more important as time goes on. "Eventually, [becoming part of the larger, public cloud] is going to be the right answer," he says. "Eventually cloud computing is going to be something that is understood well enough that the interfaces are standardized, and people agree it's the right way to do it, and it handles all the different modes of computation you want to handle."

As the public cloud matures, researchers across the country may have access to machines in the DCO, and Carnegie Mellon researchers will increase utilization of external data center resources. But Ganger says the software layer that assigns resources will have to become more sophisticated, with the ability to dynamically provision compute and storage capacity to each user without overburdening any specific data center that's attached to the cloud.

"Two years from now, I would like to be at the point where that kind of resource flexibility is there," he says, "but right now it's not, right now we're just spinning the thing up."

With the first flu pandemic in 41 years officially declared today by The World Health Organization (WHO), companies are again being urged to make sure that business continuity plans are in place and they're prepared for the outbreak.

As the number of H1N1 influenza cases neared 30,000 worldwide, the WHO raised the pandemic warning level from phase five to six - its highest alert.

That prompted Gartner Inc. ot tell its clients to review their procedures for dealing with a pandemic, such as identifying critical-skill employees and their replacements - and emphasizing good hygiene. Otherwise, it said, companies should stay the course.

"It's hard to advise clients to take huge additional actions at this time," said Roberta Witty, a vice president of research at Gartner Inc. "Continue to do what you're already doing until we start seeing many more infections, sick people and deaths."

On June 3, all 50 states, the District of Columbia and Puerto Rico were reporting cases of H1N1 infection, according to the U.S. Centers for Disease Control (CDC). While nationwide, flu surveillance systems indicate that the overall number of cases is decreasing, H1N1 outbreaks are ongoing in parts of the country, some of them intense, the CDC said in a aemstnt.

Dr Margaret Chan, director-general of the WHO, said in a statement that the pandemic, at least in its early days, will be moderate. "As we know from experience, severity can vary, depending on many factors, from one country to another," she said. "On present evidence, the overwhelming majority of patients experience mild symptoms and make a rapid and full recovery, often in the absence of any form of medical treatment."

The WHO urged countries not to close borders or restrict travel and trade. The WHO also said it is in close talks with flu vaccine makers "to ensure the largest possible supply of pandemic vaccine in the months to come."

Gartner's Witty said corporations do not need to take any added measures to combat the flu pandemic. "I think what the [WHO and CDC] are saying is two things: one, this is the flue season in the southern hemisphere, so we need to watch that region. Two, this virus mutates, and ... the avian flu can attach to it, which could mean during the next fall flu season, we may see more avian flu cases through swine flu transmission."

Gartner is urging corporations to:

* Visit the CDC's pandemic flu Web site to find out what the U.S. government recommends to ensure workforce safety and continuous business operations.

* Download the ">FFIEC's Pandemic Flu Exercise of 2007 After Action Report and disseminate their findings across your organization.

* Emphasize the need for personal hygiene to inhibit the spread of the virus.

* Identify existing and potential critical skills shortages and start staff cross-training, testing and certification. Make sure that cross-trained personnel can access needed applications. This requires the longest lead-time and can be disruptive.

* Determine which business operations are sustainable, at what level, and likely durations of downtime for normal business operations with staff absentee rates of 40%. Test for various combinations of leaders and skilled staff.

* Testing should begin now to isolate and correct any possible problem areas to make sure work continues smoothly.

To date, there have been 27,737 cases of swine flue confirmed/a> in 74 countries, accounting for 141 deaths, according to the WHO. Unlike past flu outbreaks, the most severe cases of H1N1 have been recorded in people under 25 years of age.

A 267-page document listing all U.S. civilian nuclear sites along with descriptions of their assets and activities became available on whistleblower Web site Wikileaks.org days after a government Web site publicly posted the data by accident.

The sensitive, but unclassified, data had been compiled as part of a report being prepared by the federal government for the International Atomic Energy Agency (IAEA). It was scheduled to be transmitted to the agency later this year and was sent for congressional review by President Obama on May 5, according to a report in the New York Times.

The document, which had been marked by the president as "Highly Confidential Safeguards Sensitive," subsequently appears to have, for some unexplained reason, been publicly posted by the U.S. Government Printing Office (GPO) on its Web site, the Times said. The document has since been taken down but is now available from several locations via Wikileaks.org.

The document was discovered on the GPO Web site on May 22 by Steven Aftergood, director of the Federation of American Scientists' (FAS) Project on Government Secrecy. Aftergood on Monday posted the document on Secrecy News, a publication of the FAS that he maintains.

The breached document is titled The List of Sites, Locations, Facilities, and Activities Declared to the International Atomic Energy Agency, and contains detailed information on hundreds of civilian nuclear sites in the country, including those storing enriched uranium. The report lists details on programs at nuclear weapons research labs at Los Alamos, Livermore and Sandia.

A message to Congress from Obama at the beginning of the document states that "appropriate measures" have been taken to ensure that no information of "direct national security significance" has been included in the document. While the IAEA classification for such declarations is "Highly Confidential Safeguards Sensitive," the U.S. considers the data "sensitive but unclassified," the president said in his letter.

Aftergood, in an interview, said he spotted the document during a "routine review" of new GPO publications. While scanning through the latest releases on May 22, Aftergood said he saw the one on the nuclear sites.

"I thought, 'wow, that's interesting' and grabbed it," he said. After scanning through the contents, Aftergood said he was puzzled that the GPO had publicly posted the document despite the cover letter from the president indicating that the information was sensitive and not to be disclosed.

"I don't understand how it could be that the GPO had nevertheless proceeded to publish it," he said. He added that it was apparently only after reporters started asking the GPO about the document on its Web site that it was taken down at around 5 p.m. Tuesday.

"I should say I didn't regard the document as a security concern having reviewed it," he said. "I did find it interesting, but I didn't see anything there that constitutes a breach of security."

Breach went undetected by government

Gartner Inc. analyst John Pescatore, who advises several government agencies on cybersecurity issues, said one of the most troubling aspects about the incident is that the government didn't notice the breach till it was alerted to it by reporters. The incident speaks to a lack of process within the GPO for dealing with sensitive data at a time when the current administration is pushing government agencies to be more transparent, he said.

"The federal government is trying to push out more data, but they need to make sure they have the processes in place first," to prevent such accidents, Pescatore said.

In a statement sent via e-mail, a GPO spokesman provided no explanation for why a document marked as sensitive and not for publication by the president was publicly posted.

But the statement suggested that the accident may have stemmed from the sheer volume of such reports that the GPO processes. On average, the GPO produces "approximately 160 House documents each Congress," the statement said. During the 109th Congress, the GPO produced 157 reports, while in the 110th Congress, 161 reports were published, the statement said. The one listing nuclear sites "was received by GPO in the normal process and produced under routine operating procedures," the statement said.

"Upon being informed about potential sensitive nature of the attachment in this document, the Public Printer of the United States removed it from GPO's website pending further review," the statement said. "After consulting with the White House and Congress, it was determined that the document including the sensitive attachment [should] be removed from the website," it added.