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Spanish police bust alleged “ransomware” ring that took in $1.34M annually

Spanish authorities announced Wednesday that they had arrested 10 people who were allegedly involved in a massive “ransomware” ring. The European Cybercrime Centre estimated that the criminal operation “affected tens of thousands of computers worldwide, bringing in profits in excess of €1 million euros ($1.34 million) per year.” The Spanish Ministry of the Interior described (Google Translate) the lead suspect as a “a 27-year-old citizen of Russian origin who was arrested in December in the United Arab Emirates,” and now awaits extradition to Spain. The newly arrested 10 were  linked to the financial cell of the ransomware operation, and include six Russians, two Ukrainians, and two Georgians. The Ministry added that the operation remains “open,” suggesting that more arrests could be forthcoming. (Spanish authorities posted a video (RAR) of the new arrests and raid.) Madrid dubbed  the ransomware used by the ring a “police virus” because it throws up a notice that appears to come from law enforcement. The malware requires the user to pay €100 ($134) as a “fine” from a false accusation of accessing child pornography or file-sharing websites. When the victims submit their payment details, European authorities added , the “criminals then go on to steal data and information from the victim’s computer.” Read 7 remaining paragraphs | Comments

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Spanish police bust alleged “ransomware” ring that took in $1.34M annually

How alleged crooks used ATM skimmers to compromise thousands of accounts

Federal authorities have charged two men suspected of running an international operation that used electronic devices planted at automatic teller machine locations to compromise more than 6,000 bank accounts. The operation—which targeted Capital One, J. P. Morgan Chase, and other banks—netted, or attempted to net, about $3 million according to an indictment filed in Manhattan federal court. It allegedly worked by obtaining payment card readers from Hungary and other countries and installing them on top of card readers already located on ATMs and doors to ATM vestibules. The fraudulent readers were equipped with hardware that recorded the information encoded onto a card’s magnetic stripe each time it was inserted. A hidden pinhole camera with a view of the ATM keypad then captured the corresponding personal identification number. Antonio Gabor and Simion Tudor Pintillie allegedly led a gang of at least nine other people who regularly planted the skimming devices in the Manhattan, Chicago, and Milwaukee metropolitan areas, prosecutors said. They would later revisit the ATM to retrieve the information stored on the skimming devices and cameras. Gang members would then encode the stolen data onto blank payment cards and use the corresponding PINs to make fraudulent purchases or withdrawals. Read 3 remaining paragraphs | Comments

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How alleged crooks used ATM skimmers to compromise thousands of accounts

Obama administration defends $222,000 file-sharing verdict

Credit: U.S. Embassy, Jakarta The Obama Administration has stepped into a long-running file-sharing lawsuit in Minnesota, urging the United States Supreme Court not to get involved in a six-figure verdict against a young mother from Northern Minnesota. The feds don’t buy the woman’s argument that the massive size of the award makes it unconstitutional. Jammie Thomas-Rasset has been fighting a recording industry lawsuit accusing her of sharing music using the now-defunct peer-to-peer network Kazaa for the better part of a decade. In 2007, a jury found Thomas-Rasset liable to the tune of $222,000 for sharing 24 songs. She appealed the verdict, resulting in two more trials that each produced even larger jury awards. These higher figures were thrown out by the courts, but last year, the Eighth Circuit Court of Appeals upheld the $222,000 award. Thomas-Rasset is now seeking review by the Supreme Court. In a December brief , her lawyer drew an analogy to a line of Supreme Court decisions regarding excessive punitive damages. In those cases, juries had awarded punitive damages that were more than 100 times larger than the actual damages suffered by the plaintiffs. The Supreme Court held that such disproportionate punitive damages violate the due process clause of the Constitution. Read 6 remaining paragraphs | Comments

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Obama administration defends $222,000 file-sharing verdict

Apple releases iOS 6.1.1 for iPhone 4S users with 3G issues (Updated)

Update : Apple has now released the iOS 6.1.1 update mentioned in our original writeup. The update is specifically for the iPhone 4S and “fixes an issue that could impact cellular performance and reliability for iPhone 4S.” This is most likely to address the 3G issues experienced by some users, though it doesn’t sound like iOS 6.1.1 does anything to improve battery life as of yet. Original story : iOS 6.1.1 may be making its way into consumers’ hands sooner than we expected. The first beta of iOS 6.1.1 was only released to Apple’s developer network last week, but the update is reportedly being “rushed” out to customers in order to address 3G performance bugs, according to German iPhone site iFun . It is also said to address other problems like reduced battery life. The software is said to have undergone some carrier testing, though it’s still unclear exactly when Apple plans to publish the update. Read 4 remaining paragraphs | Comments

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Apple releases iOS 6.1.1 for iPhone 4S users with 3G issues (Updated)

At Facebook, zero-day exploits, backdoor code bring war games drill to life

Aurich Lawson Early on Halloween morning, members of Facebook’s Computer Emergency Response Team received an urgent e-mail from an FBI special agent who regularly briefs them on security matters. The e-mail contained a Facebook link to a PHP script that appeared to give anyone who knew its location unfettered access to the site’s front-end system. It also referenced a suspicious IP address that suggested criminal hackers in Beijing were involved. “Sorry for the early e-mail but I am at the airport about to fly home,” the e-mail started. It was 7:01am. “Based on what I know of the group it could be ugly. Not sure if you can see it anywhere or if it’s even yours.” The e-mail reporting a simulated hack into Facebook’s network. It touched off a major drill designed to test the company’s ability to respond to security crises. Facebook Facebook employees immediately dug into the mysterious code. What they found only heightened suspicions that something was terribly wrong. Facebook procedures require all code posted to the site to be handled by two members of its development team, and yet this script somehow evaded those measures. At 10:45am, the incident received a classification known as “unbreak now,” the Facebook equivalent of the US military’s emergency DEFCON 1 rating. At 11:04am, after identifying the account used to publish the code, the team learned the engineer the account belonged to knew nothing about the script. One minute later, they issued a takedown to remove the code from their servers. Read 31 remaining paragraphs | Comments

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At Facebook, zero-day exploits, backdoor code bring war games drill to life

Cause of Super Bowl blackout was installed to prevent Super Bowl blackout

Entergy New Orleans, the utility that provides power to the Mercedes SuperDome in New Orleans, announced today that its technicians had determined the cause of the partial blackout during the Super Bowl last Sunday: an electrical relay the company had installed to prevent blackouts. The relay was supposed to trip switches to redirect power in the event of a line fault over one of the cables connecting Entergy’s switching gear to the stadium. In a statement , the company said that “the relay functioned without issue during a number of high-profile events—including the New Orleans Bowl, the New Orleans Saints-Carolina Panthers game, and the Sugar Bowl.” But on Super Bowl Sunday, the device instead triggered when there was no fault, signaling a switch to open shortly after the second half began. The relay has now been pulled, and Entergy is evaluating other equipment. “While some further analysis remains,” said Entergy New Orleans President and CEO Charles Rice in the prepared statement, “we believe we have identified and remedied the cause of the power outage and regret the interruption that occurred during what was a showcase event for the city and state.” Read 1 remaining paragraphs | Comments

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Cause of Super Bowl blackout was installed to prevent Super Bowl blackout

CES tells CNET: You’re fired!

At the 2013 CES convention, CNET’s editorial staff loved the Dish Hopper DVR and nominated it “Best in Show.” That journalistic decision was quickly tossed out, however, by the legal department at CBS, CNET’s corporate parent. CBS is involved in litigation against Dish over the Hopper. The censoring of CNET’s decision has produced a fair bit of fallout for CBS already. The company has been criticized in many quarters for silencing its journalists. Greg Sandoval, a well-known writer for CNET, even left the company, saying he was concerned that his employer didn’t respect editorial independence. Now, CES itself has put out a press release slamming CNET’s behavior and announcing that CNET won’t be allowed to produce the “Best of CES” awards anymore. Those awards are produced by CNET under contract with the Consumer Electronics Association (CEA), which puts on CES. CEA said it will work to identify a new partner to run the Best of CES awards. Read 4 remaining paragraphs | Comments

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CES tells CNET: You’re fired!

How Yahoo allowed hackers to hijack my neighbor’s e-mail account

Reflected XSS vulnerabilities in action Aspect Security When my neighbor called early Wednesday morning, she sounded close to tears. Her Yahoo Mail account had been hijacked and used to send spam to addresses in her contact list. Restrictions had then been placed on her account that prevented her from e-mailing her friends to let them know what happened. In a  blog post  published hours before my neighbor’s call, researchers from security firm Bitdefender said that the hacking campaign that targeted my neighbor’s account had been active for about a month. Even more remarkable, the researchers said the underlying hack worked because Yahoo’s developer blog runs on a version of the WordPress content management system that contained a vulnerability developers addressed more than eight months ago . My neighbor’s only mistake, it seems, was clicking on a link while logged in to her Yahoo account. As someone who received one of the spam e-mails from her compromised account, I know how easy it is to click such links. The subject line of my neighbor’s e-mail mentioned me by name, even though my name isn’t in my address. Over the past few months, she and I regularly sent messages to each other that contained nothing more than a Web address, so I thought nothing of opening the link contained in Wednesday’s e-mail. The page that opened looked harmless enough. It appeared to be an advertorial post on MSNBC.com about working from home, which is something I do all the time. But behind the scenes, according to Bitdefender, something much more nefarious was at work. Read 9 remaining paragraphs | Comments

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“PlayStation 4K” and “Xbox Durango” will be key to Ultra HD adoption

Joseph Dumary Next-gen TV—with a 4K “Ultra HD” picture resolution—was this year’s hot topic at CES . But its success may be in the hands of console gamers. With leaked details of octal-core processor banks paired with 8GB of RAM, the PlayStation 4 “Orbis” is sounding powerful (just for comparison of RAM alone, the 8GB of system memory is roughly 32 times more than the current model). But to see where 4K comes in, it’s worth taking a trip back seven years. In 2005, very few people had an HDTV. According to one study , there were “as many” as 10 million homes with high-definition screens—globally. The problem, according to many commentators, was the lack of HD content: nobody wanted to buy an HDTV because there was little HD content; very little HD content was made because there were very few people to sell it to. Classic catch-22. Read 11 remaining paragraphs | Comments

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“PlayStation 4K” and “Xbox Durango” will be key to Ultra HD adoption

Grammar badness makes cracking harder the long password

Comparison of the size of password search space when treating the password as a sequence of characters or words, or as words generated by grammatical structure. Rao,et al. When it comes to long phrases used to defeat recent advances in password cracking, bigger isn’t necessarily better, particularly when the phrases adhere to grammatical rules. A team of Ph.D. and grad students at Carnegie Mellon University and the Massachusetts Institute of Technology have developed an algorithm that targets passcodes with a minimum number of 16 characters and built it into the freely available John the Ripper cracking program. The result: it was much more efficient at cracking passphrases such as “abiggerbetter password” or “thecommunistfairy” because they followed commonly used grammatical rules—in this case, ordering parts of speech in the sequence “determiner, adjective, noun.” When tested against 1,434 passwords containing 16 or more characters, the grammar-aware cracker surpassed other state-of-the-art password crackers when the passcodes had grammatical structures, with 10 percent of the dataset cracked exclusively by the team’s algorithm. The approach is significant because it comes as security experts are revising password policies to combat the growing sophistication of modern cracking techniques which make the average password weaker than ever before . A key strategy in making passwords more resilient is to use phrases that result in longer passcodes. Still, passphrases must remain memorable to the end user, so people often pick phrases or sentences. It turns out that grammatical structures dramatically narrow the possible combinations and sequences of words crackers must guess. One surprising outcome of the research is that the passphrase “Th3r3 can only b3 #1!” (with spaces removed) is one order of magnitude weaker than “Hammered asinine requirements” even though it contains more words. Better still is “My passw0rd is $uper str0ng!” because it requires significantly more tries to correctly guess. Read 9 remaining paragraphs | Comments

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Grammar badness makes cracking harder the long password