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Clips November 26, 2002
- To: "Lillie Coney":;, Gene Spafford <spaf@xxxxxxxxxxxxxxxxx>;, John White <white@xxxxxxxxxx>;, Jeff Grove <jeff_grove@xxxxxxx>;, goodman@xxxxxxxxxxxxx;, David Farber <dave@xxxxxxxxxx>;, glee@xxxxxxxxxxxxx;, Andrew Grosso<Agrosso@xxxxxxxxxxxxxxxx>;, ver@xxxxxxxxx;, lillie.coney@xxxxxxx;, v_gold@xxxxxxx;, harsha@xxxxxxx;, KathrynKL@xxxxxxx;, akuadc@xxxxxxxxxxx;, computer_security_day@xxxxxxx;, waspray@xxxxxxxxxxx;
- Subject: Clips November 26, 2002
- From: Lillie Coney <lillie.coney@xxxxxxx>
- Date: Tue, 26 Nov 2002 11:22:55 -0500
Clips November 26, 2002
ARTICLES
Three Charged With Stealing 30,000 Credit Reports
Cash-strapped parents turn to their kids for credit
Students' Computers Seized at Annapolis
Critics Say Government Deleted Web Site Material [Censorship]
Court to Decide on Online Copyright Suit
The Censor and the Artist: A Murky Border
Wireless LAN vendors attack security issues
Georgia CIO Singer resigns
Counterterrorism project assailed by lawmakers, privacy advocates
Users Begin to Demand Software Usability Tests
Homeland security bill limits vendor liability
America Online blocks instant spam
Global Network Battles Bioterror
Why we're all at risk of ID theft
New credit cards dangle from keychains
EU Networks for e-government
New email worm detected
DARPA Looks to Quantum Future
ISPs Must Better Prepare For Attacks, Report Warns
Nearly 1 Million IT Jobs Moving Offshore
E-Mail -- A Company's Forensic Nightmare
*************************
November 25, 2002
Three Charged With Stealing 30,000 Credit Reports
By THE ASSOCIATED PRESS
NEW YORK (AP) -- Federal authorities charged three men with orchestrating a
huge identity-theft scheme in which credit information was allegedly stolen
from more than 30,000 victims.
Manhattan U.S. Attorney James Comey said the arrests announced Monday mark
the largest identity theft case in U.S. history, with initial losses pegged
at $2.7 million and growing.
``With a few keystrokes, these men essentially picked the pockets of tens
of thousands of Americans and, in the process, took their identities, stole
their money and swiped their security,'' Comey said.
More than 15,000 credit reports were stolen using passwords belonging to
Ford Motor Credit Corp. to access information from Experian, a commercial
credit history bureau, officials said. Credit reports also were stolen from
other companies, authorities said.
Authorities say the scheme began about three years ago when Philip
Cummings, a help-desk worker at a computer software company, agreed to give
an unidentified co-conspirator the passwords and codes for downloading
consumer credit reports.
The FBI also charged Linus Baptiste and Hakeem Mohammed with roles in the
far-flung fraud.
Cummings was paid roughly $30 for each report, and the information was then
passed on to at least 20 individuals who then set out to make money from
the stolen information.
Victims have reported losing money from their bank accounts, seeing their
credit cards hit with unauthorized charges, and having their identities
assumed by strangers.
Baptiste allegedly downloaded hundreds of credit reports with Cummings'
access passwords. Mohammed has pleaded guilty to mail fraud for making
changes to individual credit accounts.
******************************
Chicago Sun-Times
Cash-strapped parents turn to their kids for credit
November 26, 2002
BY MARTHA IRVINE
Chicago Sun-Times
It was her first credit card application, or so she thought, prompted by an
offer on her Ohio college campus for a free T-shirt.
But a rejection letter uncovered troubling news--someone had already opened
four credit cards in her name and racked up $50,000 in debt.
That someone was her father.
''I couldn't believe it,'' says the young woman, who asked not to be named.
Her father has not been charged.
Now 25 and living in Chicago, she says she knew her father was struggling
financially after his divorce from her mother and the failure of his
restaurant. But she never imagined he'd fill out credit card applications
sent to his home in her name. ''He completely violated my trust and my
privacy and my future,'' she says.
With the proliferation of credit cards, experts say, parents who've botched
their own finances are increasingly tempted to dip into their children's
credit. As co-signers, all they need is a birth date and Social Security
number.
''I've seen it happen a lot--and the damage it takes to correct it is
tremendous,'' says Howard Dvorkin, president of Florida-based Consolidated
Credit Counseling Services. ''These people don't go in with the intention
of screwing up their kids' credit. The problem is, old habits are hard to
break.''
Not wanting to file a complaint against her dad, she persuaded him to
consolidate the $50,000 credit card debt and pay it off by having his wages
garnisheed.
Meanwhile, she had $30,000 in student loans of her own.
''I worried about everything. Am I going to be able to get a car when I
graduate? Am I going to be able to get an apartment? Am I going to find
someone who's going to want to marry someone with $80,000 debt?'' she says.
Her father, now a bus driver, declined to comment. But five years later,
the debt is finally gone.
In some cases, law enforcement is stepping in. Last month, a father from
Billings, Mont., was sentenced to five years in prison for charging $12,000
to credit cards in his daughter's name.
Some parents put bills--cable TV, utilities--in their kids' names.
Dionicio Campos, a 29-year-old Chicagoan, says he's been stuck untangling
the trouble caused by his mother's ex-boyfriend and others using his Social
Security number.
''I'm sure a 17-year-old kid isn't worrying about his mom taking his stuff
from him--but maybe he should,'' Campos says.
Overall, identity theft and credit card fraud have reached an ''epidemic
level,'' says Carl Pergola, national director of fraud investigations for
accounting firm BDO Seidman.
Vital information, he says, is stolen by everyone from parents to
co-workers to hucksters who post fake job listings or run other schemes.
He says young people whose parents have money problems should consider
running regular credit reports--and request that the three major credit
agencies notify them when new accounts are opened in their name.
Last year, the Federal Trade Commission says, 6 percent of the 86,168
people who reported identity theft to the agency said a family member was
responsible. Joanna Crane, an attorney who manages the FTC's identity theft
program, says those figures are ''only the tip of the iceberg,'' because
many cases go unreported or are reported directly to credit providers.
Even if parents aren't stealing credit, experts say, young people whose
parents are bad money managers should still seek help with their
finances--even for simple matters like creating a monthly budget.
''Parents don't realize that their bad financial habits are being passed on
to their kids,'' says Michelle Hoesly, a member of the Million Dollar Round
Table, an organization of finance professionals.
For children whose parents have abused their credit, the options include
paying off the debt in big chunks or filing a complaint that could send the
parent to jail. ''Those choices are not very good,'' Dvorkin says.
******************************
Washington Post
Students' Computers Seized at Annapolis
Academy Battling Music, Film Theft
By Amy Argetsinger and Jonathan Krim
Tuesday, November 26, 2002; Page A01
The U.S. Naval Academy in Annapolis has seized nearly 100 student computers
suspected of containing illegally downloaded music and movies, the toughest
action yet in higher education's struggle against the trading of
copyrighted material over colleges' Internet servers.
Navy officials said punishment could range from loss of leave time to
court-martial and expulsion.
Though the consequences for midshipmen may be unusually steep, in part
because the computers are government property, the issue is bedeviling
college administrators across the country.
In recent years, students have taken advantage of super-fast campus
Internet networks to swap a wide variety of entertainment -- movies, music,
television shows -- for free. The industry objects to any copyrighted
content being exchanged electronically -- whether the next single by Eminem
or the latest episode of "The West Wing." That is in contrast to the taping
of TV shows and music on video and audio cassettes, which cannot be
distributed to millions of people at the touch of a button.
The music and film industries -- having vanquished Napster, the mother of
all music-sharing software, in court -- are pleading with universities to
help stop a new generation of file-sharing, which they say cuts into their
sales and violates copyrights.
Meanwhile, colleges have found their computer systems slowing to a crawl
because of the strain placed on them by the nearly constant downloading of
audio and visual files.
"Our outbound service to the Internet gets maxed out," said Carl Whitman,
executive director of e-operations at American University in the District.
"If you're a prospective student interested in applying or a student trying
to do work from home, you can't get into our system sometimes because it's
saturated."
Many schools have adopted computer policies that prohibit students from
circulating copyrighted materials and cut off repeat offenders from
Internet-server privileges. Yet school officials continue to come up
against the casual attitudes of students, many of whom have few moral
qualms about something as cheap and easy as downloading a song.
"This is a lot better deal than going out and spending $15 for 20 other
tracks on a CD you don't want," said Evan Wagner, 20, a junior at AU. "It
takes you five or 10 seconds to type in. There's no risk, and it's one of
those things where you don't see the victim."
Last month, four entertainment industry lobbying groups sent letters to
2,300 colleges and universities urging them to crack down on piracy by
students. This was part of an aggressive, multi-pronged campaign,
stretching far beyond college campuses, against file-swapping technologies
and their users.
The Recording Industry Association of America has been successful in suing
to force Napster and other popular services out of business. The
entertainment industry has lobbied Congress, so far unsuccessfully, for
legislation that would mandate building barriers into computers to block
illegal copying and that would allow copyright owners to hack into
offending computer systems.
The content industry also has sought to compel companies that provide
Internet access to consumers to identify users who illegally download
copyrighted material. In a case awaiting a ruling in federal court in
Washington, the RIAA is seeking to force Verizon Corp. to divulge the name
of a customer suspected of downloading music files illegally.
The letters to colleges, many of which operate their own networks, avoided
direct threats. Instead, they urged the schools to develop methods of
raising awareness of copyright theft and stamping it out.
The Naval Academy had issued several warnings to students before taking
action Thursday, when computers were seized while midshipmen were in class.
Cmdr. Bill Spann, academy spokesman, confirmed that an investigation is
underway but declined to comment further.
Higher education lawyers suggested that the academy took stronger action
than most institutions because it is a federal installation. "The academy
may be wanting to send a strong message to midshipmen, as a shot across the
bow," said Sheldon E. Steinbach, general counsel of the American Council on
Education.
In only a few other cases has strong action been taken against college
students. In August 1999, a 22-year-old University of Oregon student
negotiated a plea agreement under which he was convicted of distributing
illegal music files and received probation. A year later, campus police at
Oklahoma State University seized the computer of a 19-year-old student who
had more than 10,000 songs on file that he was sharing with others. He
pleaded no contest to a misdemeanor.
This year, University of Georgia officials reported to the student judicial
system that a freshman had downloaded a copy of "Austin Powers 3:
Goldmember." Ben Albert, 18, of Roswell, Ga., said he was shocked to be
singled out, because "every one of my friends does it."
Albert received six months' probation from the university and was ordered
to write a paper on copyright law. But he asked why the industry is going
after people like himself. "They should be targeting the people higher up
on the media food chain, who are actually encoding [the material] and
putting it up on the Internet," he said. "That would have much more effect."
Some colleges have put in special programs to prevent students from using
too much of the campus's computer capacity or to limit the amount of
capacity that can be used for file-sharing. Campuses are reluctant to block
file-sharing altogether because of free-speech and privacy concerns.
"We don't pretend to know that what's being shared is inappropriate," said
AU's Whitman. "We're not in a position to monitor and make that
presumption. We're sensitive to people's privacy."
Most colleges simply send warnings to students whom industry groups have
reported as downloading copyrighted material. "We make sure the music is
taken off the hard drive and inform the student that if we get another
message, we'll take their computer off the server," said Joy Hughes, vice
president for information technology at George Mason University.
That usually does the trick, she said: "I don't think the students realize
that there's a record of their having done this. When we send them a
letter, citing the time, date and machine number, it's enough to make them
understand."
Some in the technology community criticize the content industry's tactics
as an assault on the concept of "fair use," under which it is generally
accepted that a person can lend a book, tape a song or share videos of TV
programs.
They argue that rather than going after file-sharing, the movie and
recording studios should concentrate on building online services that offer
copyrighted material at reasonable prices.
****************************
November 26, 2002
Critics Say Government Deleted Web Site Material to Push Abstinence
By ADAM CLYMER
New York Times
WASHINGTON, Nov. 25 Information on condom use, the relation between
abortion and breast cancer and ways to reduce sex among teenagers has been
removed from government Web sites, prompting critics to accuse the
Department of Health and Human Services of censoring medical information in
order to promote a philosophy of sexual abstinence.
Over the last year, the department has quietly expunged information on how
using condoms protects against AIDS, how abortion does not increase the
risk of breast cancer and how to run programs proven to reduce teenage
sexual activity. The posting that found no link between abortion and breast
cancer was removed from the department's Web site last June, after
Representative Christopher H. Smith, a New Jersey Republican who is
co-chairman of the House Pro-Life Caucus, wrote a letter of protest to
Secretary Tommy Thompson calling the research cited by the National Cancer
Institute "scientifically inaccurate and misleading to the public."
The removal of the information has set off protests from other members of
Congress, mainly Democrats, and has prompted a number of liberal health
advocacy groups to accuse the department of bowing to pressure from social
conservatives.
The controversy began drawing attention late last month, when
Representative Henry A. Waxman, the California Democrat, and other members
of Congress wrote to Mr. Thompson protesting the removal of the material.
Bill Pierce, the department's deputy assistant secretary for media affairs,
said that in all three cases the removals were made so that material could
be rewritten with newer scientific information. He also said the decisions
to remove material had been made by the Centers for Disease Control and
Prevention or the National Institutes of Health without any urging from the
department's headquarters.
But in one case the removal of information about condoms from a C.D.C. Web
site he was contradicting a C.D.C. official. That official, Dr. Ron
Valdiserri, deputy director of the center's program for H.I.V., S.T.D. and
TB Prevention, said on Oct. 31, when questioned about the removal of Web
site information at a news briefing on syphilis trends, that it was a joint
C.D.C.-Health and Human Services decision. Asked about the contradiction,
Mr. Pierce said it was a C.D.C. "decision to do it."
The department has previously been accused of subverting science to
politics by purging advisory committees and choosing scientific experts
with views on occupational health favorable to industry.
In an interview, Mr. Waxman said: "We're concerned that their decisions are
being driven by ideology and not science, particularly those who want to
stop sex education. It appears that those who want to urge abstinence-only
as a policy, whether it's effective or not, don't want to suggest that
other programs work, too."
One Republican congressman, Representative James C. Greenwood of
Pennsylvania, joined Mr. Waxman and 10 other Democrats, in writing
Secretary Thompson on July 9 to complain about the deletion of the breast
cancer report. Mr. Greenwood had no comment today.
Mr. Smith, who asked that the breast cancer report be expunged, could not
be reached. In his letter, which was signed by 27 of his colleagues in the
House, objections to the study were termed scientific, not political. Their
letter contended that the large majority of studies showed a relationship
between abortion and breast cancer, and argued that the study relied on by
the National Cancer Institute "contains many significant flaws."
The deletions have caused anger among some health activists. Gloria Feldt,
president of the Planned Parenthood Federation of America, had a sharp
criticism of H.H.S. She said: "They are gagging scientists and doctors.
They are censoring medical and scientific facts. It's ideology and not
medicine. The consequences to the health and well-being of American
citizens are secondary to this administration."
James Wagoner, president of Advocates for Youth, a public health
organization dealing with adolescent sexual health, objected to the removal
of information on programs aimed at reducing sexual activity among
teenagers, which was contained on the Web site of the National Center for
Chronic Disease Prevention and Health Promotion, saying that there "seems
to be a concerted effort to censor science and research that supports
contraception in favor of `abstinence-only until marriage' programs."
Terje Anderson of the National Association of People with AIDS, speaking of
the deleted condom information, which was removed from the National Center
for H.I.V., S.T.D. and TB Prevention Web site on July 23, 2001, said,
"Something doesn't need to disappear for a year and a half to be updated."
The Web site said, in part: "Studies have shown that latex condoms are
highly effective in preventing H.I.V. transmission."
Kitty Bina, a spokeswoman for the C.D.C. in Atlanta, said the revised
version, which would explain that condoms did not always provide protection
from other sexually transmitted diseases, had been sent to department
headquarters for review.
The National Cancer Institute's removed document, "Abortion and Breast
Cancer," said: "The current body of scientific evidence suggests that women
who have had either induced or spontaneous abortion have the same risk as
other women for developing breast cancer."
Dorie Hightower, a press officer at the National Cancer Institute, said:
"We regularly review our fact sheets. We regularly update them for accuracy
and scientific relevance. This was taken off the Web to review it for
accuracy in July." She said that the review was to see if there had been
other scientific studies. "There is supposed to be an interim statement
that is going to be posted shortly," she said.
The C.D.C. Web site had also published information about intervention
programs designed to discourage teenage sexual activity. Some mentioned
abstinence, one mentioned condoms. Katharine Harvin, speaking for the
C.D.C. in Atlanta, said the information was removed in June because some
"communities and schools did not adopt packaged interventions, because some
parts were disliked, or parts were liked and disliked."
********************************
Associated Press
Court to Decide on Online Copyright Suit
November 26, 2002
By SANDRA MARQUEZ, Associated Press Writer
LOS ANGELES (AP) - A federal judge has signaled his support for a bid by
record companies and movie studios to sue the parent company of Kazaa, a
popular online file-swapping service.
U.S. District Judge Stephen Wilson heard arguments Monday on whether
Sharman Networks Ltd., which is headquartered in Australia and incorporated
in the Pacific Island nation of Vanuatu, is subject to U.S. copyright laws.
"It is a difficult question, but it has to be resolved," Wilson said. "The
court will do its best to resolve it promptly."
Although Wilson did not indicate when he plans to issue a ruling, he
appeared to tip his hand, noting that he "would be inclined to find there's
jurisdiction against Sharman."
"I find the argument about providing the service to so many California
residents compelling," Wilson said, referring to the plaintiffs' claims
that Kazaa provides free access to copyrighted music and films to some 21
million users in the United States. The company has advertising revenue of
about $4 million.
The Sharman case is one of the largest in the recent copyright wars testing
the international reach of U.S. courts. If Wilson decides Sharman can be
sued, the company would be thrust into the same legal predicament that has
stymied popular swapping services such as Napster (news - web sites) and
Aimster.
David Casselman, an attorney representing Sharman, said holding the online
swapping company liable for copyright violations would be akin to
prosecuting a computer manufacturer for the actions of computer hackers.
David Kendall, an attorney representing six movie studios, including
Disney, Fox and Paramount, said the fact that Sharman's product is
available in this country is sufficient cause to face trial in a U.S. court.
"It does not violate due process to have them stand here to answer for
their conduct," Kendall said.
Sharman attorney Rod Dorman countered that such a move could open a door
for a judge in "communist China" to rule against U.S. companies that
operate online. The judge did not appeared swayed by the argument.
*******************************
New York Times
November 26, 2002
The Censor and the Artist: A Murky Border
By EMILY EAKIN
Does using software to remove potentially offensive language, sex and
violence from R-rated movies constitute censorship? Or, by allowing viewers
to tailor films to their tastes, is it a reasonable concession to consumer
choice?
This was one of the questions confronted at a conference on free expression
and the arts at Columbia University last week that focused on new limits on
artistic freedom in a high-tech culture. In this evolving environment,
artists seeking access to images and information often find themselves in
battle with companies determined to protect their content and trademarks
from unauthorized use.
In two days of heated discussion, several dozen scholars, activists,
artists, foundation officers and media executives invoked a baffling array
of recent cultural developments, including corporate consolidation of radio
stations, the extension of the copyright term and the crackdown on illegal
Internet file-sharing. And though no consensus emerged, many panelists
seemed to agree that artists may face more resistance from private
companies than from the political and religious groups that have objected
to certain expressions in the past.
In his keynote address on Wednesday morning, Lee C. Bollinger, the
university's president and a law professor who specializes in the First
Amendment, noted that the Supreme Court did not define free speech until
1919. As a set of constitutional rules and interpretations, he told
participants gathered in a lecture hall at Columbia's Graduate School of
Journalism, free speech is "simply an invention of the 20th century."
Already, conference organizers argued, free speech doctrine is taking a
backseat to the murky thicket of copyright law, at least when it comes to
fights over artistic expression. Michael Janeway, director of the National
Arts Journalism Program, which sponsored the conference, said censorship
battles were no longer being waged primarily against governmental bans on
books or movies but "amid increasingly chaotic definitions of intellectual
copyright, against a backdrop of technological revolution and legal and
regulatory confusion."
While outside the building, Columbia students exercised their free speech
rights by staging an antiwar protest with posters declaring, "Bush is the
real terrorist," Andras Szantos, deputy director of the arts journalism
program, joked that the First Amendment was so tangential to current art
censorship cases that someone had suggested calling the conference "Does
the First Amendment matter anymore?" (It was called "The New Gatekeepers"
instead.) "These days, many artists are more afraid of getting a
cease-and-desist letter than of outright censorship," Mr. Szantos said.
Several panelists endorsed this claim, painting a picture of media
corporations that monopolize content, demand exorbitant licensing fees from
artists and Internet users and threaten violators with legal action. "Some
copyright holders would have individuals believe users have no rights to
reuse a work or parody it," said Wendy Seltzer, a fellow at the Berkman
Center for Internet and Society at Harvard Law School and the founder of
Chilling Effects Clearinghouse, a Web site that collects cease-and-desist
letters sent to Internet users and advises them on their rights.
Often, Ms. Seltzer said, the law is unclear. In one letter that appears on
the site (www.chillingeffects.org), for example, a lawyer from Paramount
Pictures warns a Star Trek fan in Peoria, Ill., that the plot synopsis of
"Star Trek: First Contact," he posted on his Web site constituted copyright
infringement. In fact, Chilling Effects' legal team explains that this is
not necessarily true. Since its Web site was inaugurated four months ago,
Ms. Seltzer said, Chilling Effects has received 450 letters (including
some, she stressed, from users who had clearly been breaking the law).
Gigi B. Sohn, president of Public Knowledge, a nonprofit advocacy group in
Washington, said that measures like the 1998 law that extended the
copyright term by 20 years, along with more aggressive enforcement by
corporate copyright holders, were compelling some artists to engage in
self-censorship. Rather than risk a lawsuit, she said, some hip-hop
musicians have abandoned sampling, once the genre's signature technique.
But other panelists disputed this dire view. "Taking a work, unaltered and
using it, that is theft," said Richard Masur, an actor and former president
of the Screen Actors Guild. Shira Perlmutter, associate general counsel for
intellectual property policy at AOL Time Warner, called the copyright
extension an "incremental addition" to existing law, pointing out that it
was designed to protect artists and their heirs as well as corporations.
Charles C. Mann, a correspondent for The Atlantic Monthly, noted that
despite the talk about corporate censorship, it was easier to download a
bootleg copy of "Steamboat Willie," the 1928 Disney film that prompted the
company's successful campaign to extend the copyright term, than to rent a
legal one at a video store. Summing up the paradox, Mr. Mann said,
"Copyright is stronger than ever, which experts say will plunge us into the
Dark Ages. Copyright is weaker than ever, which experts say will plunge us
into the Dark Ages. The confusing thing is that both statements happen to
be true."
There is also evidence that traditional free speech issues persist. Sarah
Jones, a performance artist, spoke about her suit against the Federal
Communications Commission after it declared indecent "Our Revolution," her
spoken-word song parodying hip-hop misogyny, and fined a Portland, Ore.,
radio station $7,000 for playing it.
One panelist who seemed unfazed by the unfolding debate was Breck Rice,
co-founder of Trilogy Studios, a Utah company whose software program
Moviemask is used to sanitize R-rated movies. On Thursday afternoon Mr.
Rice demonstrated the latest advances in his company's technology.
A famous scene from the film "Titanic" flashed across his computer screen.
There was Leonardo DiCaprio lovingly sketching Kate Winslet as she lounged
seminude on her stateroom bed. Then the scene flashed by again. This time
Ms. Winslet's torso was decorously sheathed, and on Mr. DiCaprio's sketch
pad there was a ruffled bodice where seconds before a naked breast had been.
"Censorship is one person or one group imposing their point of view on the
public," Mr. Rice explained. "We provide choice to consumers."
But neither artists' advocates nor corporate executives seem ready to
accept that argument. The Directors Guild of America has already filed a
lawsuit against Trilogy and other companies that use similar technology,
and Hollywood studios are expected to join in.
"It's worrisome as a matter of artistic integrity," said Marjorie Heins,
director of the Free Expression Policy Project, a Manhattan organization
that tracks censorship in the arts. "To mutilate somebody's work in that
way, whether or not it's violation of copyright, is offensive to somebody
who cares about art."
********************************
Government Executive
November 25, 2002
Former Education Department official, e-gov pioneer dies
By Amelia Gruber
agruber@xxxxxxxxxxx
Greg Woods, a former Education Department official who helped lead efforts
to make the federal government more citizen-friendly, died of pancreatic
cancer last Thursday.
Woods, 59, was the former chief operating officer of the Education
Department's Federal Student Aid (FSA) office and pioneered the
e-government concept.
"If there's a school in heaven, and if a student needs financial aid,
there's a new administrator there today who probably can't wait to get down
to business," said G. Kay Jacks, general manager of FSA's Web site about
financial aid, referring to Woods.
Woods was the FSA's first COO, joining the office when it was created in
the fall of 1998. He retired this September.
"Greg was truly dedicated to the mission of the department to provide
access to postsecondary education for millions of students," Education
Secretary Rod Paige said in a statement. "He was committed to his work and
the challenge of streamlining and updating the technology systems that
deliver aid to help make the goal of college education a reality for so many."
While trying to help his six-year-old granddaughter understand his job,
Woods came up with the slogan used by the roughly 1,100 FSA employees: "We
help put America through school."
Woods also made his mark pushing the government to provide citizens with
wider electronic access to its services. He developed the Access America
Program, a predecessor to what is now known as "e-government," a core
element of the president's management agenda.
"Few possessed the sweeping knowledge and experience in information
technology, successful business practices, and government reform that Greg
Woods brought to bear on the challenge of delivering federal student aid to
America's students," a FSA statement said.
After graduating from California Southern University with a mechanical
engineering degree in 1965, Woods worked as an engineer at AiResearch
Manufacturing Co. and helped design the Apollo command module's life
support system. He was an expert in thermodynamics and held several patents
for heat exchange systems.
Woods began his career with the government in 1970, when he served as chief
European analyst for the secretary of Defense. In that position, he helped
engineer the Mutual Balance Force Reduction Agreement between NATO and the
Warsaw Pact by assisting the negotiation delegation and presenting
congressional testimony on the agreement's viability. In 1974, Woods won
the Arthur Flemming Award, which recognizes outstanding young people in
government.
Following a 17-year stint at private consulting firms, Woods returned to
public service in 1993 to help with then-Vice President Al Gore's
"reinventing government" initiative. He used his business expertise to help
the government develop more cost-effective methods for buying technology.
These methods were later incorporated into the 1996 Clinger-Cohen Act,
which eliminated some rules and reporting requirements to make government
purchasing easier.
Woods also drafted President Clinton's executive order on improving
government customer service and chaired the Internal Revenue Service's
customer service task force. He worked on regulatory reform as well,
helping the Clinton administration develop a strategy to reach its goals
for regulating water quality and air travel safety.
In addition, Woods helped lead efforts to create Performance Based
Organizations in the federal government. In PBOs, executives are given
broad exemptions from federal procurement and personnel rules in exchange
for tough performance standards. The organizations are based on the belief
that some federal programs can perform better if they are run more like
private companies.
Woods is survived by his mother, Helene; wife, Lee; two daughters, Denise
Shultz and Kristen Martinez; a son, Brian; and six grandchildren.
Funeral services will be held at 1:30 p.m. on Tuesday, Nov. 26 at St.
Mary's Catholic Church, 312 S. Royal St., Alexandria, Va.
*******************************
Government Computer News
Wireless LAN vendors attack security issues
By Thomas R. Temin
When the Pentagonno small potential customercracked down recently on the
installation of wireless LANs, the industry sat up and took notice.
Why? The inherent vulnerabilities of the technology. If you simply go to
the nearest computer dealer and buy a $99 access point and plug it in, your
wireless link will be insecure.
But vendors are bringing out commercial equipment to make it easier to
overcome the security problems that plague wireless LANs. They are
splitting access points into two parts so that the 2.4- and 5.0-Gigahertz
radio signals can be showered anywhere, but a second component behind the
corporate firewall will arbitrate the access or movement of data.
"That's how the 802.11 standard was set up in the first place," said Graham
Melville, director of wireless technical marketing for Symbol Technologies
Inc. The Holtsville, N.Y., company recently introduced Mobius, a wireless
system "that goes back to the original wired specification," he said.
With Mobius, Symbol has put the intelligence and access controls into a
rack-mountable switch controlled from behind a firewall. Access ports
containing only an antenna connect to the switch using Ethernet cabling,
over which they also get power. The ports resemble flying saucers.
"This gives extensive security improvement," Melville said. There are no
traditional access points at the edge of the network, and policies can be
set to examine individual data packets, he said.
SMC Networks Inc. of Irvine, Calif., has taken a similar approach with its
2504W EliteConnect, a rack-mounted WLAN server that combines Layer 3
intelligence and management in the wiring closet.
Chief executive officer Sean Keohane said one federal reseller is testing
the machine for the Navy and Veterans Affairs Department.
With the intelligence and control separate from the access points, an
administrator can ensure unauthorized users "can't get network access
without authentication. It bypasses Wired Equivalent Privacy with virtual
LAN technology," Keohane said.
Keohane predicted the next generation of WLAN products would have more
features for security and management, such as variable antenna output to
limit the area of coverage and prevent signals from heading outside to the
streets. Also coming, he said, would be access points with Simple Network
Management Protocol agents for remote management, and broadband modems and
access points integrated into single boxes.
*****************************
Government Computer News
11/25/02
Georgia CIO Singer resigns
By Trudy Walsh
Georgia CIO Larry Singer today announced his resignation, effective Dec. 9.
Singer also was executive director of the Georgia Technology Authority. He
will return to Public Interest Breakthroughs, a nonprofit consulting
company where he worked before becoming the state's CIO two and a half
years ago.
Before he leaves, Singer will help negotiate plans for the Converged
Communications Outsourcing Project, a program to upgrade the state's
telecommunications services, especially in remote areas of the state.
In his tenure as CIO, Singer said he was most excited about working to
improve the relationship between citizens and government through
e-government initiatives such as the state's Web portal, electronic voting
and online driver's license renewal. "I wouldn't have missed it for the
world," he said.
*****************************
Government Executive
November 25, 2002
Counterterrorism project assailed by lawmakers, privacy advocates
By Shane Harris
sharris@xxxxxxxxxxx
Lawmakers, privacy advocates and civil libertarians are criticizing a
controversial Defense Department research project as an invasion of
personal privacy, and are questioning whether it should be scrapped.
In January, the Defense Advanced Research Projects Agency (DARPA) began a
multi-year effort to look for ways that technology could be used to
pre-empt terrorist attacks. Known as the Total Information Awareness (TIA)
system, much of the work centers on theoretical ways to use information
technology and human analysis to analyze transactions, such as credit card
purchases or phone calls, to find patterns that might indicate a terrorist
attack is being plotted.
The project has outraged groups that support restrictions on the use of
personal data. At a press conference Monday in Washington, Marc Rotenberg,
executive director of the Electronic Privacy Information Center, said the
TIA system was the "hub" of a far-reaching effort by the government to
"extend surveillance of the American public."
Rotenberg objected to the appointment of John Poindexter as the project's
director. Poindexter, who brought the idea for the system to the Pentagon,
served as President Ronald Reagan's national security adviser and was
convicted for lying to Congress during the Iran-Contra scandal in the
1980s. The conviction was overturned.
Rotenberg called Poindexter "the architect of a program to extend
surveillance of private databases," pointing to his involvement in a 1984
policy directive that privacy advocates and some lawmakers feared would
give the National Security Agency control over privately held information.
The 1987 Computer Security Act voided the directive.
Sen. Charles Schumer, D-N.Y., sent a letter to Defense Secretary Donald
Rumsfeld on Sunday, urging him to fire Poindexter. On ABC's "This Week,"
Schumer said Poindexter shouldn't head such a sensitive project, given his
past. "If we need a 'Big Brother,' John Poindexter is the last guy on the
list that I would choose," Schumer said.
In a recent interview, Robert Popp, the deputy director of the TIA system,
said DARPA has made no decision about what technologies the system
eventually might include. The agency is using fictional data to test some
components, but ultimately DARPA will not actually build a working machine,
Popp said. Rather, its mission is to build a conceptual prototype and then
to share that design information with agencies that want it.
Rotenberg said "the picture coming into focus" about DARPA's work suggests
the system would result in a sweeping monitoring of citizens' everyday
activities. But Popp stressed that work on the system is in the early
stages, and that DARPA has no authority to decide what information the
government should gather or analyze. That decision would be left to
individual agencies and to Congress.
Part of DARPA's role is to determine if using technology to predict
terrorist attacks is even feasible. Steven Aftergood, who heads the
Federation of American Scientists' projects on government secrecy and
intelligence, said he doubts that technology can be precise enough to
distinguish a few suspicious transactions in a sea of activity. "I don't
know that they will ever be able to detect a meaningful signal above the
background noise," he said.
Popp said protecting the privacy of citizens is a chief concern of the
project team, which is experimenting with ways to remove a person's name
from any transactional data that an unauthorized government employee might
see. The agency has asked companies to propose devices that would "protect
the privacy of individuals not affiliated with terrorism," according to a
solicitation notice posted on DARPA's Web site.
Congressional hearings on the TIA system are likely, given the opposition
of some lawmakers to the program. On Friday, Sen. Charles Grassley, R-Iowa,
asked that the Defense Department's inspector general review the project
and examine the particulars of how Poindexter was hired.
Grassley's spokeswoman accused the Pentagon of "getting into domestic law
enforcement issues" by supporting the project. Grassley wants to know
whether DARPA officials have coordinated with federal law enforcement
officials about the TIA system, and whether the agency received their input
before funding began.
*****************************
Computerworld
Users Begin to Demand Software Usability Tests
Boeing requiring vendors to follow new usability standard for products
By Patrick Thibodeau
NOVEMBER 25, 2002
WASHINGTON -- The Boeing Co. is changing the way it buys software and is
making a product's usabilitythe ease with which end users can be trained on
and operate the producta fundamental purchasing criterion. It's a move the
aerospace giant sees as an essential means of controlling IT costs.
"We simply can't afford to pay for products that cost us a lot of overhead
anymore," said Keith Butler, a technical fellow at Boeing's Phantom Works
research and development arm. When thousands of end users are involved,
design flaws can cost millions of dollars in lost time and productivity, he
said.
What's helping Boeing change its purchasing approach is the recent
development of a standard for comparing product usability that was
spearheaded by the National Institute of Standards and Technology.
Called the Common Industry Format for Usability Test Reports, the standard
outlines a format for reporting test conditions and results and gives user
companies enough information about a test to replicate it. It's a means for
objectively evaluating software, say its backers.
Next month, NIST intends to seek international standards recognition. The
standard has already received American National Standards Institute
certification.
CIF's success as a purchasing tool depends on whether other companies
follow Boeing and make usability a "peer," as Boeing officials put it, of
such traditional purchasing criteria as a product's functionality, price
and system requirements. If that happens, users say, the standard could
have a far-reaching effect in improving the usability of software.
"The real value of CIF, quite honestly, is that if vendors know we are
expecting it, meaning large software purchasers, they will focus their
attention on usability and hopefully make their products better before they
ever come out the door," said Jack Means, superintendent of usability at
State Farm Insurance Cos. in Bloomington, Ill.
Boeing played a lead role in the development of CIF after its experience
and internal studies showed that usability played a significant role in
total cost of ownership. In one pilot of the CIF standard on a widely
deployed productivity application, the Chicago-based company said improved
product usability had a cost benefit of about $45 million.
Butler said it's much better to have vendors refine an interface design
"than to have thousands of end users doing it involuntarily on top of their
jobs and then just feeling frustrated."
Spotting Problems Early
Doug Francisco, director of IS architecture at Boeing's commercial airplane
division, maintains that CIF will improve the ability of the IT department
to spot problems before a product is rolled out to employees. The company
has looked at usability in purchasing, "but sometimes we wouldn't discover
the inefficiencies of a software product until we brought it in-house," he
said.
Microsoft Corp., in its capacity as a CIF development participant, has
incorporated the usability testing it conducted on its Windows XP, Windows
ME and Windows 2000 operating systems into the CIF format, said Kent
Sullivan, Microsoft's usability lead for the Windows client.
Sullivan said Microsoft is prepared to use CIF but noted that its adoption
will depend on customer demand. Microsoft typically doesn't receive
questions about usability from customers, so when users do ask about it, he
said, "it indicates that they are ahead of the curve a little bit."
In the past year, interest in CIF has grown from about 50 firms taking part
in the NIST effort to more than 150, including PeopleSoft Inc., Oracle
Corp. and Eastman Kodak Co.
The CIF format will also be adapted for hardware testing, said Emile Morse,
who heads the effort for NIST. Morse said she believes CIF makes it
possible for vendors and users to discuss usability as a science rather
than marketing hype. "I think CIF gives a lot of credibility to the
practice of usability," she said.
********************************
Computerworld
Homeland security bill limits vendor liability
By PATRICK THIBODEAU
NOVEMBER 25, 2002
WASHINGTON -- It's common practice for IT vendors to limit their liability
for the products they sell. But the homeland security bill passed by
Congress last week may provide a federally supported framework within which
vendors can protect themselves from legal action by corporate users (see
story).
The intent of the bill is to safeguard technologies that vendors may be
reluctant to make available without liability limits, such as chemical,
biological and radiological sensors.
But the legislation is so broad that qualifying technologies may include
widely used products, such as firewalls, antivirus software and
intrusion-detection systems, said experts familiar with the bill. The new
Department of Homeland Security must determine which technologies qualify
as contributing to antiterrorism efforts.
Echoes of UCITA
John Pescatore, an analyst at Gartner Inc. in Stamford, Conn., compared the
federal liability provision to an effort to limit IT product liability in
the states under the Uniform Computer Information Transactions Act (UCITA).
"This seems to be trying to sneak in 'UCITA lite' on the federal level,"
said Pescatore.
David Colton, a vice president of the Information Technology Association of
America, an industry trade group in Arlington, Va., that backed the
liability-limiting provision, said the protections are critical to ensuring
that vendors can offer their most advanced hardware and software.
The legislation will be especially helpful for start-ups and smaller
companies, "where many of the most innovative and cutting-edge solutions
come from," said Colton.
But if the liability protections are extended to systems that are routinely
used by businesses, it could only add to the skepticism about the law's
intent.
The legislation limits vendor liability to the maximum amount of
"reasonably available" insurance and bans punitive damages. It's primarily
aimed at government use of these technologies, but it doesn't exclude
businesses that purchase the same products. For most user companies,
however, a law limiting liability won't significantly change what now goes
on, observers said. Most contracts already limit liability.
"It doesn't change the world too much, because we're not focused enough on
holding vendors' feet to the fire to build quality software," said Gerry
Brady, chief technology officer at Guardent Inc. in Waltham, Mass.
Liability limitation in software has been a contested issue for many years.
Alan Paller, director of research at the SANS Institute in Bethesda, Md.,
said he believes buyers can address some of the contractual concerns if
they exercise their "community responsibility" to require vendors to
provide proactive, automatic correction of problems, rather than searching
for fixes on a Web site.
"Since the problem is caused contractually, it can be solved
contractually," Paller said.
***************************
CNET.com
America Online blocks instant spam
By Robert Lemos
Staff Writer, CNET News.com
November 25, 2002, 4:51 PM PT
Internet service America Online has changed its network to block pop-up
spam from reaching its customers, the company said Monday.
In a move quickly discovered by spammers, the AOL Time Warner subsidiary
made a few technical changes last week to stop a relatively new type of
annoying message that uses the Windows messenger service to cause
unsolicited marketing to appear on a person's screen.
"In the ongoing fight against spam on a wide-ranging front, this is a big
victory for our members," said AOL spokesman Andrew Weinstein.
The technique uses a feature of Windows intended to let network
administrators notify their customers of critical maintenance issues such
as server downtime or schedule backups. The text-only messages pop up in a
dialog box on top of any other window being used at the time. The
vulnerability affects Windows 95, 98, NT, 2000 and XP.
Software from companies such as DirectAdvertiser and BroadcastMarketer
allow direct marketers to send thousands to hundreds of thousands of such
messages every hour to random Internet addresses. Each success means a
message appears on a PC's desktop. Spammers like the technique because it
forces an Internet user to see a message and close it.
Response rates are high, said Anish Dhingra, president of Broadcast
Marketer. Dhingra claims that the technique isn't spam, because affected
users can simply turn off the Windows feature that allows the pop-up
messages to appear.
"It is pretty hard to opt out completely from spam," he said. His company
noticed that AOL had made the modification when customers started calling
in, he said.
Dhingra, whose software can send up to 135,000 messages in an hour,
believes the company's software will be able to get past AOL's blockade in
a few weeks. "Pretty much our next version will have a workaround for AOL,"
he said.
That means that America Online may find itself in an arms race. "We've
blocked this exploit, and we'll continue to fight spam," AOL's Weinstein said.
Last month, with the release of its AOL 8.0 service, the company vowed to
cease delivering pop-up ads, even though it said it would lose millions in
revenue by doing so.
*********************************
Wired News
Global Network Battles Bioterror
Dr. Alan Zelicoff is willing to go many extra miles to combat the threat of
bioterrorism.
The Albuquerque physician-turned-researcher just returned from a trip to
the NATO Summit in Prague, where he hoped to persuade President Bush and
the other 19 member nations that a global health surveillance network is
the best way to protect people from manufactured disease.
A former internist who is now a senior scientist at Sandia National Labs,
Zelicoff said the current system of disease reporting is too slow and
haphazard for a world in perpetual danger of bioterror attacks. The
self-described "recovering physician" said his internist wife "learns about
outbreaks of disease by reading the newspaper."
Public health officials receive information only after physicians have
confirmed cases of disease, Zelicoff said, which is far too slow to
counteract the distribution of biochemical agents like the bacteria that
causes anthrax. The reporting system is paper-based, he said, and rarely
routes information from public health officials back to the physicians who
are treating patients.
"The current system is exquisitely designed to fail," Zelicoff said.
The solution to the problem, he said, is to send information about symptoms
to epidemiologists when patients show up at clinics, emergency rooms and
doctors' offices -- well before a diagnosis is made.
But health care professionals often focus only on the big or small picture.
"Your doctor is not a population biologist and doesn't care about the
population, he cares about the person he's taking care of," Zelicoff said.
"An epidemiologist doesn't care about you, he cares about the population as
a whole, so you have discordance there."
Speeding up the reporting process is critical to limiting the spread of
infectious disease, said Amy Kelchner, a spokeswoman for the Pennsylvania
Department of Health. "The faster you can see a trend and contain it, the
faster you're saving lives," she said.
To enable a two-way flow of information, Zelicoff created an Internet-based
database application called Rapid Syndrome Validation Project, or RSVP.
Physicians and clinicians use a touch screen to pick from a menu of disease
symptoms such as fever with skin rash, respiratory ailments or
influenza-like illness. The system does not list personal information about
patients other than an age range and a ZIP code. A map of "hot spots" --
locations that have seen many patients with those symptoms -- appears and
allows workers to take appropriate action. The system also provides daily
updates from the leading world health organizations and epidemiological
news services.
RSVP was recently installed in 16 clinics and hospitals in New Mexico and
Texas. Zelicoff hopes that eventually it will be used to battle infectious
diseases around the world.
In August, the Senate passed a bill that would provide $150 million over
the next two years to set up hospitals and clinics in developing nations
with the necessary equipment to access an RSVP-like network. Since the
House has adjourned for the year, funding is on hold for now.
Tigi Ward, public health coordinator for the city of Lubbock, Texas, said
the clinicians in her agency quickly understood the value of RSVP, which
was installed in September.
Ward recently sent out an alert after noting 19 cases of shigellosis, a
bacteria-driven disease, in a week. Instead of trying to reach hospitals
and clinics by phone or fax, she reported the cases in the system, which
sent an alert to all doctors in the area.
Ward said if the system were installed internationally it would make it
much easier to identify pathogens contracted by patients who have recently
traveled.
"I used to think, 'It's nice to know something is happening in
Mozambique,'" she said. But with the threat of bioterrorism and an
increasingly mobile population, "it's becoming essential."
***********************
MSNBC
Why we're all at risk of ID theft
Identity fraud is rampant and protection options limited
ANALYSIS
By Bob Sullivan
MSNBC
Nov. 25 Almost certainly, none of the 30,000 victims knew Philip Cummings
when he allegedly sold their identities for $30. They probably hadn't heard
of Teledata Communications Inc., the company Cummings worked for when their
data was stolen. And many of them had probably followed all the standard
advice: protecting their Social Security numbers, using hard-to-guess bank
PINS, maybe even shredding documents. But it didn't matter. The truth about
the huge identity theft ring that was uncovered Monday is this: there was
nothing any of the victims could have done to stop it.
CAREFULLY GUARD YOUR Social Security number, the experts say. Don't
enter it in Web pages; don't give it out to companies and watch your bank
statements like a hawk. It's all good advice. But for hundreds of thousands
of victims who had their personal financial data stolen in the past year,
it's cold comfort.
Even people who did everything by the book have seen their data
exposed. And then it becomes a waiting game: Wait and see if your bank
accounts are drained, if car loans are taken out in your name, if your
homes are mortgaged and equity stolen right out from under your roof.
Monday's theft revelations make that point all too clear. If you
had a Social Security number, and you'd ever been involved in any financial
transaction that involved credit, Philip Cummings had access to your data.
The truth revealed by the incident is this: A help-desk employee at a small
65-person firm in Long Island managed to shake down the nation's entire
credit reporting system.
"At end of the day other people have custody of your information
and it's very difficult for consumers to control that," said Betsy Broder,
the Federal Trade Commissions identity theft expert. "Even when you give
the information to legitimate merchants, it's only as safe as that
institution's safeguards."
About 750,000 people had their identities copied last year and
suffered the consequences, said Rob Douglas, CEO of American Privacy
Consultants Inc., including high-profile incidents at Ford Motor
Company allegedly victimized by Cummings and the State of California,
which saw its entire employee database leaked by a hacker. The crime is so
easy and risk-free that even drug dealers are turning to identity theft as
a safer way to make money, says Robert Douglas, CEO of American Privacy
Consultants.
WHAT CAN YOU DO? NOT MUCH
What can a concerned potential victim do? The truth is, not much.
"The problem is a little bit in the intractable category," said
Larry Ponemon, CEO of the Privacy Council. "For the most part, we rely on
the good intentions of companies (that have customers' personal data). But
the empirical evidence says you cannot rely on that any more. Bad things
will happen. ... Sooner or later it's going happen. I don't know if there's
really much we can do."
The recent spate of high-profile data thefts suggests just that. In
Ford's case, there was no way potential victims could have protected
themselves they didn't even have to be Ford customers.
Thieves were able to impersonate the company and order thousands of
credit checks through Experian, one of the big three credit reporting
companies. Experian thought Ford was requesting the data, and forked over
15,000 reports between April 2001 and February of this year before someone
noticed the suspicious activity. Most victims weren't customers of Ford
Credit; the identity thieves simply used Ford's name to get credit reports
on victims living in affluent neighborhoods, according to the Detroit News,
which first reported the theft. Ford sent letters to all the victims
starting last month.
There have already been victims connected to the Ford data leak. The
CUNA Mutual Group sent a memo to its member credit unions warning about
financial fraud connected to the incident.
"At least one credit union has suffered losses from member account
identity takeover because the member's credit report was one of the stolen
credit reports," the memo said.
265,000 EMPLOYEES WARNED
California state employees victimized earlier this year couldn't
have done much, either. Corporations and government agencies push hard to
convince employees to receive their paychecks through direct deposit. It's
cheaper for banks and companies, and often more convenient for employees.
But that convenience meant all that personal financial information was kept
in one place, and now, it's likely in the hands of financial thieves.
"My only consolation regarding the whole payroll screwup is that it
affects everyone from the board members on down," wrote one victim to
MSNBC.com. "For 20 years I've never had a single late payment on anything
but now my credit history could be toast due to some lowly paid state worker."
CORPORATE COVER-UP
Another leak at Bank One in May was equally as difficult for
consumers to stop. In that incident, a 21-year-old former female employee
of the firm's Pewaukee, Wis., office sold hundreds of financial records to
an identity theft ring. Tom Kelly, a Bank One spokesperson, said the firm
only found 250 stolen records during an investigation. But WISN 12 News,
which first reported the incident, suggested thousands more records were sold.
The incident also highlights what privacy experts say as the
biggest problem surrounding identity theft incidents corporate secrecy.
Bank One never told its customers about the problem. Disclosure only came
eight months after the theft when a victim received a call from the Secret
Service, discovered someone had purchased a Jaguar in his name and
contacted WISN.
"We were a little tardy in telling customers," Kelly admits. "We
should have told them sooner."
In fact, it's common that consumer victims aren't told about a
break-in, as companies try to avoid the potential embarrassment and cross
their fingers that no crimes will actually be committed with the stolen
data. Bank One played that kind of Russian roulette with its customer data
and lost. But Bank One is hardly alone.
"Most of these still go unreported and are swept under the carpet,"
Ponemon said. "God forbid, you lose confidence in your bank or insurance
company."
PARTIAL DISCLOSURE NOT ENOUGH
And sometimes, even the disclosures victims do receive are hardly
complete. Douglas, from American Privacy Consultants, thinks California's
warning to state employees was too vague.
A letter sent to employees said someone may have accessed a data
center containing payroll information, but adds that "there is no
indication the information contained in the database was targeted or will
be used for any unlawful purposes."
That left employees wondering what really happened, what was really
taken, and what to do. Should they close all their bank accounts, or just
sit and wait for the bad news? What are the odds that a theft will occur?
"I think the California government has a responsibly to be more
forthcoming about what happened, what have they determined from the logs
... so employees can make an educated decision on what do to," Douglas
said. "Just making public statements released late on a Friday afternoon
doesn't cut it."
Douglas said the state should go even further than full
disclosure its should fix the problem it created with sloppy security
practices. He said he "yelled out loud" when he read that employees are
being left to fend for themselves, told to order credit reports at their
own expense.
"Doesn't the state have some obligation to do something for these
people?" he said. "Their data is compromised .. and then they tell
employees 'Here's all the things you should do to protect yourself.' Why
don't they contact the credit agencies themselves? The state isn't doing
diddlysquat other than to go protect themselves."
LEGAL RECOURSE?
Helpless consumers can only hope that ultimately companies and
state agencies face some legal obligations when a data breach occurs, said
privacy consultant Richard Smith, who operates ComputerBytesMan.com.
Mistakes do happen, but in the world of computer security "very small
mistakes can have really bad results," he said.
"This gets back to getting a liability system in place," Smith
said. "Now the state of California has some bad press. But if actually
turns into identity theft, shouldn't the state have liability?"
Customers who find their credit reports marred by car loans or
other illegal financial activity should have recourse against companies
that failed to disclose a data breach, he said. "Like Bank One. The fact
that they knew and didn't tell customers, that's inexcusable. There ought
to be the threat of liability hanging over it."
But currently, it's up to consumers to watch their own backs they
generally aren't liable for money that's stolen as the result of ID theft,
but only if they report the theft in a timely matter. And estimates show
that the laborious paperwork and time lost to cleaning up a blemished
credit report can cost between $500 and $1,000.
To make things a little easier, the FTC created a identity theft
affidavit which can be sent to all financial institutions by victims to
alert them of potential fraud. It's available from the agency's Web site.
****************************
CNN Online
New credit cards dangle from keychains
Companies aim to make paying faster, easier
By Jeordan Legon
CNN
Tuesday, November 26, 2002 Posted: 10:05 AM EST (1505 GMT)
(CNN) -- New credit cards are smaller than a stick of chewing gum. And a
pinky-size keychain wand lets customers pay at the pump.
Welcome to the future of digital paying, where checking out is as easy as
reaching for car keys.
Combining advances in technology with marketing muscle, businesses are
spending millions to come up with new forms of payment that make it
possible for consumers to charge it even when they've left their wallets
behind.
Firms are using radio frequency signals, scanners and stronger plastics to
make it easier for customers to give in to impulse. It's too soon to know
whether the new plastic will go the way of the 8-track. But analysts say in
the cutthroat credit card business, impressing finicky customers counts --
especially when a product makes it faster and more convenient to get
through a checkout line.
"It's a gimmick," said Greg McBride, a Bankrate.com analyst who tracks
banking products. "Every day there are new programs. Something to get
people to carry a particular card."
Death to the wallet?
In the past 20 years, customers have learned to love debit cards, which
deduct money from bank accounts, eliminating the need for cash. They've
also come to consider ATMs indispensable and embraced online banking. But
through it all, the wallet has remained a staple. Now, some are wondering
whether wallets will someday be passe.
"A new generation of consumers who have grown up in an electronic age are
more willing to accept and embrace these new payment technologies," said
James Harris, an executive with Unisys, which helps companies implement new
payment systems.
Harris said much of the innovation is fueled not by costumers' needs but
because it saves companies money.
"It can reduce the cost of processing payments and gives businesses credit
for transactions much faster," he said.
Discover was the first U.S. financial services company to introduce
diminutive cards as a way to stand out from other credit cards. The
kidney-shaped Discover cards, introduced in June, come with a keychain and
cover, and they've been a hit with the public, said spokeswoman Jennifer Kang.
"We're working 'round-the-clock to produce these because the demand is so
high," she said.
Banks say customers like mini plastic
Not to be left behind, Bank of America introduced a mini card in October.
It's about half the size of a regular credit card and is made of
more-durable plastic with a hole in a corner that lets customers slip it on
their keychains. A debit mini card from Bank of America will be introduced
in the first quarter of next year, spokeswoman Lisa Gagnon said.
The bank is also testing a product it calls QuickWave, which allows
customers to wave tiny cards in front of a blue sensor pad to pay for
purchases at restaurants and shops in a neighborhood in Charlotte, North
Carolina.
"People like having things on their keychain. It all comes back to
convenience," Gagnon said.
Over at ExxonMobil, consumers have been using a keychain payment system for
years. The chip-embedded plastic SpeedPass is about an inch long and looks
like a tiny, black wand.
Customers fill out an application that links their credit card to the wand.
Then they use the device to pay at the pump or buy convenience store items
at 7,500 Exxon and Mobil stations nationwide. The wand transmits a signal
to a sensor that allows the gas station to process the transaction.
Paying at the drive-thru
The company says more than 6 million people have signed up for SpeedPass. A
pilot program is testing the wand in the drive-thrus and counters of 440
McDonald's restaurants in Chicago, Illinois.
"It breeds loyalty," said Betsy Eaton, spokeswoman for ExxonMobil. "It
makes it so much easier to get in and out."
Critics of the programs say regular-size credit cards work just fine and
that because keys are misplaced so often, keychain devices could lead to
more cards being lost or stolen. They also raise security issues, saying
thieves could steal credit card numbers from dangling keychains. And
keychains might be too big to fit in pockets when they look like overloaded
charm bracelets.
"The question is whether consumers really want everything in one gadget,"
Bill Tice, managing director of Abt Associates' telecommunications
consulting business, told The Orlando Sentinel. "If it incorporates your
car keys and credit cards, what happens if it breaks? If that device stops
working, your life will stop, too."
*******************************
Euromedia.net
EU Networks for e-government
26/11/2002
Editor: eGov Monitor
The European Commission has announced a decision allowing the governments
of 11 candidate countries to collaborate in trans-national e-government
initiatives with the EU Member States ahead of their formal accession to
the Union.
From January next year the countries will be permitted to share data with
EU administrations on the application of EU law, enforcement of Internal
Market rules, as well as the supply of e-government services across borders
to citizens and enterprises.
Participation in the Commission's Interchange of Data Between
Administrations (IDA) programme, a strategic initiative supporting
e-government activities and best practice exchange between EU Member
States, has already been extended to Poland with procedures to formally
bring Slovenia on board due to conclude shortly.
The IDA programme will be opened to the remaining candidate countries,
namely Bulgaria, Cyprus, the Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Romania and Slovakia, on 1 January 2003.
Turkey and Malta are also expected to follow in a matter of months.
The Commission said that IDA's E25m work programme for 2003, currently
under preparation, will be taking into account the needs of all candidate
countries.
******************************
Sydney Morning Herald
New email worm detected
November 26 2002
Anti-virus software maker F-Secure has reported the presence of a new email
worm called Winevar.
The company has ranked it as a level 2 alert - a new worm causing large
infections which might be local to a specific region.
The worm was found in the wild in South Korea towards the end of November.
It was apparently released during the AVAR 2002 Conference (Anti-Virus
Researcher's Asia) in Seoul.
The worm's file is a Windows PE executable about 91k long written in
Microsoft Visual C++. Winevar resembles the Bridex worm that appeared earlier.
The worm arrives in an email that contains three attachments. The names are
variable but they will have the format:
WIN[some characters].TXT (12.6 KB) MUSIC_1.HTM
WIN[some characters].GIF (120 bytes) MUSIC_2.CEO
WIN[some characters].PIF
The file with the .HTM extension exploits an old vulnerability, the
Microsoft VM ActiveX Component Vulnerability to register the .CEO extension
as an executable file.
The e-mail message is formed to take advantage of the Incorrect MIME Header
Can Cause IE to Execute E-mail Attachment vulnerability.
On system restart the worm displays the message "Make a fool of oneself:
What a foolish thing you've done!". If the "OK" button is pressed the worm
deletes all deletable files in all folders.
The worm continuously tries to download the front page of the Symantec Web
site to a temporary file, then deletes this file. This may lead to a denial
of service attack in case the worm becomes widespread.
The worm also changes Windows registration information on an infected
computer:
Registered Organization: Trand Microsoft Inc.
Registered Owner: AntiVirus
**************************
Broadband Networking Regulator News
Senators to Introduce Wireless Broadband Bill
Senators Barbara Boxer (D-CA) and George Allen (R-VA) will introduce a bill
in the next Congress (the 108th) aimed at accelerating the wireless
broadband market. The proposed legislation would require the FCC to make
more broadcast spectrum available for Wi-Fi and other such technologies.
The Boxer-Allen bill would also require the FCC to develop guidelines for
the expanded portion of the broadcast spectrum that will be used by these
devices to avoid signal congestion and interference.
http://boxer.senate.gov/newsroom/200211/20021121_tech.html
http://allen.senate.gov/PressOffice/wifi.pdf
U.S. Senate, 22-Nov-02
Key points of the proposed Boxer-Allen "Jumpstart Broadband Act"
The FCC would allocate no less than 255 MHz of continuous spectrum below 6
GHz for unlicensed use while ensuring that Department of Defense devices
and systems are not compromised.
The FCC would be required adopt minimal technical and service rules to
facilitate efficient use of the spectrum.
The FCC would be required to amend rules to require that all wireless
broadband devices be designed and manufactured to maximize spectral
efficiency and to use the minimum power necessary to provide broadband
service and to minimize interference.
The National Telecommunications and Information Administration would be
charged with establishing standards for interference protection.
******************************
Datamation.com
DARPA Looks to Quantum Future
November 22, 2002
By Roy Mark
The Defense Advanced Research Projects Agency (DARPA) is asking five
government vendors to develop studies on the architecture of the
high-performance computers of 2010. Today's most powerful computers have
their design roots in the late 1980's and DARPA is seeking new ideas to
meet the future super computing needs of the defense and intelligence
communities.
Companies competing in the design phase include Cray, Hewlett-Packard, IBM,
SGI and Sun Microsystems. DARPA will eventually ask as many as three of the
vendors to provide more detailed plans and one or two vendors will be
chosen for a detailed engineering plan. DARPA did not reveal the amount of
money to be spent on the program.
The idea behind the program, known as High Performance Computing Systems
(HPCS), is to bridge the gap between today's super computers and the
promise of quantum computing, a fundamentally new mode of information
processing that allows for the faster performance of multiple computations
simultaneously.
Gathering at a Baltimore conference Thursday, the five vendors agreed the
super computers of the future should become easier to program, improve
computer performance, increase bandwidth to reduce memory and I/O
bottlenecks, become more robust, and decrease the idea-to-solution timeline.
Robert B. Graybill, HPCS program manager in DARPA's Information Processing
Technology Office, said the agency was seeking to double the value of
high-end computers every 18 months. Graybill cautioned, however, that value
and productivity gave different meanings to different groups of the user
community.
Graybill said one of the challenges was to develop new super computer
measurement tools other than calculating the theoretical performance from
processor clock speeds.
******************************
Datamation.com
ISPs Must Better Prepare For Attacks, Report Warns
November 21, 2002
By Sharon Gaudin
While the Internet proved itself resilient and an important communications
resource on Sept. 11, a new report warns that ISPs need to further prepare
themselves to handle future emergencies.
The overall damage to the Internet on Sept. 11, 2001, when terrorist
attacks collapsed the World Trade Center and punctured the Pentagon,
destroying networks and communications equipment, was minimal, according to
a report released yesterday by the National Academies' National Research
Council. But the council warned that IT leaders shouldn't take that digital
resiliency as a reason to slack off security efforts -- especially since
the attack did not focus specifically on the network.
"Internet service providers and users need to address some operational
issues to better prepare for and respond to future emergencies in light of
the useful role the Internet played after the attacks," warns the council.
The council's report noted that the telephone system, the more traditional
and widely spread method of communications, suffered more damages than
online communications, such as email and online news sites. One-third of
Americans, according to the council, had trouble making a telephone call on
the day of the attacks, while the Internet suffered only a small loss of
connectivity. And that is despite the fact that New York, which suffered
the greatest force of the terrorist attacks, is home to major network hubs.
"The terrorist attacks provoked a national emergency during which we could
see how the nation and the world uses the Internet in a crisis," says Craig
Partridge, chair of the committee that wrote the report and chief scientist
at Cambridge, Mass.-based BBN Technologies. "Overall, the Internet
displayed not only its resilience on Sept. 11, but also its role as a
resource."
The committee found that serious effects on the Internet were isolated to
New York City and a few other locations. Most of the damage was quickly
fixed through the rapid deployment of new equipment and the rerouting of
Internet traffic to bypass failed parts of the network.
Sept. 11, though not focused on attacking the network, shed some light on
potential vulnerabilities.
The committee warns IT administrators in key businesses or in the service
sector to review their dependency on the Internet and plan accordingly.
Contingency plans should be put in place, set up the ability to coordinate
with local authorities and prepare a hot site, or a mirrored system in a
remote location so the company would have a means of restoring service.
Prepare for not only an interruption in Internet service but in electric
power, as well, the committee warns.
*****************************
Datamation.com
Nearly 1 Million IT Jobs Moving Offshore
November 19, 2002
By Sharon Gaudin
Nearly 1 million IT-related jobs will move offshore over the course of the
next 15 years, according to a new report released by Forrester Research, Inc.
And that will leave some U.S. IT workers -- largely base- to mid-level
programmers -- out in the cold if they don't upgrade their skills and move
up the ladder away from the work that will be shipped out of the country.
''The people who make this transition will be people who can manage these
offshore projects,'' says John McCarthy, group director of research for
Forrester. ''Programmers and your base IT worker will have opportunities if
they evolve -- just like the American manufacturer had to evolve. IT
workers will have to become more business-centric and not just stay in
their little technology cocoons.''
McCarthy says there will be a wave of jobs moving offshore over the next 16
months. He then predicts a two-year slow down while corporate executives
digest the economies of the move, and then there will be an acceleration in
jobs moving to other countries from 2005 through 2015.
''Gradually, you're going to see an increase in the pace of this,'' says
McCarthy, who did the interview from India, one of the main countries
absorbing U.S. IT work. ''It's already been happening. GE has been
offshoring for almost 10 years now. The size of the deals, the number of
deals, that's what is increasing.''
And IT jobs are only part of it.
McCarthy estimates that about 3.3 million American jobs and $136 billion in
wages will move to countries like India, Russia, China and the Philippines.
The IT industry, however, will be leading the initial exodus.
Just as with the textile, shoe and automotive manufacturing industries, IT
work can be had more cheaply outside of the U.S. Cheaper labor and more
relaxed labor rules means a huge cost savings. But McCarthy says that's not
the only reason that U.S. CIOs are turning to foreign workers.
''They're getting better quality work done,'' he says. ''India is a culture
more focused on quality and process than America is. They tend to be much
more disciplined. They've done the most to turn IT development away from a
mystical black art to a real business process... 'Just wing it' is not part
of the culture there.''
But Humberto Andrade, director of professional services at Hampton,
N.H.-based Technology Business Research, Inc., would take issue with that.
Andrade puts a premium on U.S. IT skills and work, saying that while the
bulk of IT jobs may move offshore, U.S. workers will still have the
high-end, value-add jobs. ''Companies will outsource the infrastructure,
the low-end, the time-consuming parts,'' he explains. ''But you're always
going to have offices here and you'll have a large section of work done
here.''
Gordon Haff, an analyst at Nashua, N.H.-based Illuminata, agrees that
critical IT work will remain in the U.S. but those without high-end skills
will suffer.
''There's some types of work that basically lend themselves to being farmed
out,'' says Haff. ''Maintenance programming and basic programming that is
straightforward are easily sent overseas. But if something is strategic to
your company, you want to maintain very close control over it. And when
you're pushing the technology envelope, you need to have much closer
communications with the people doing the development.''
Andrade also disagrees with Forrester that there will be a two-year lull in
the exodus of jobs. He notes that many companies have being doing this --
possibly in small batches -- for four, five or six years. They've had time
to calculate the benefits and expenses and now, battling a down economy,
they're ready to move ahead with offshoring a chunk of their work.
''The Internet and broadband are helping everyone develop large projects
outside the country,'' adds Andrade. ''There's a pool of well-educated
people overseas, specifically in India. And with the economy slowing down,
everyone has been reevaluating their processes and they're ready to keep
moving [in this direction].''
*********************************
Datamation.com
E-Mail -- A Company's Forensic Nightmare
November 18, 2002
By Cynthia Flash
Lawyers are having a field day sifting through electronic documents in
their attempts to unearth evidence of corporate scandals.
They've had considerable success, as can be seen by the recent corporate
black eyes or maimings given to executives at companies like Enron, Arthur
Andersen LLP and WorldCom, Inc.
In most cases involving corporate fraud or investigations run by government
regulators, a company's vast stores of electronic data have been used as
evidence against it. Merrill Lynch in May agreed to pay $100 million in
fines after government lawyers found internal e-mails in which research
analysts for the Wall Street brokerage house described the same stocks they
were recommending to clients as ''junk.''
Despite the recent headlines, few companies appear to have their electronic
documents under control. And this is regardless of the fact that within
four years there will be 60 billion daily worldwide e-mail messages
exchanged, according to Framingham, Mass.-based market research firm
International Data Corp.
A September 2002 survey by Chicago-based management consulting firm
Cohasset Associates Inc. found that 53% of some 500 to 600 organizations
surveyed said they don't include electronic records in their records
management program. The survey also found that 68% are not at all confident
or only slightly confident that their organization could successfully
demonstrate that its electronic records are accurate, reliable and
trustworthy many years after they were created. And 39% of the
organizations do not have a formal policy regarding retention practices for
e-mail.
''In litigation, the largest cost component is discovery and the most
fertile source of evidence is e-records, specifically e-mail,'' Cohasset
president Robert F. Williams wrote in his report. ''Not having any e-mail
retention policies (means) amassing vast volumes of communications that are
costly to retain, even more expensive to search through in response to
discovery requests, and may unwittingly supply information that is harmful
to the organization if disclosed in response to discovery requests.''
In the past, many companies took a reactive approach to electronic record
management and waited until they had to produce documents as a result of a
lawsuit or corporate merger. But that decision could ultimately cost them
more.
Waiting, say analysts, is not a viable option.
This past July, President George W. Bush signed the Sarbanes-Oxley Act of
2002 in an effort to create more corporate oversight and protect
shareholders from future Enron-like debacles.
The Act sets penalties for destructing records, lays out document
production requirements and specifies how long certain records must be
retained.
More than ever, corporations are turning to experts in electronic discovery
and data retention to help them determine what to do with their digital
records.
''Nobody is immune from having to produce data,'' says Deanna Loy Schuler,
an industry consultant and former vice president of sales and marketing
with Electronic Evidence Discovery in Seattle. ''If you get on the wrong
side of litigation, you'll be asked to pull data. If you can't do it,
you'll be turning over more than you need to.''
Industries that are highly regulated by government agencies --
pharmaceutical, health care and financial services companies -- are leaders
in this area because of already set government regulations. But other
companies need to take this as seriously, say industry observers.
For help, they can turn to companies that specialize in this area, such as
Cohasset, Electronic Evidence Discovery, or Applied Discovery. They also
can turn to the large consulting firms, like Deloitte & Touche or Ernst &
Young, which have their own divisions that specialize in this area.
Companies that can't afford to hire a consultant can turn to trade groups,
like The American Records Management Association (ARMA) or The Association
for Information and Image Management (AIIM), which offer seminars and free
advice online.
These consultants and organizations help companies do three things with
regards to records management. First, companies must determine what records
they have and where they're stored. Second, companies must determine what
records to keep and how to keep them in a way that is easily accessible if
they are required to produce them. Third, companies must establish a
retention schedule so they don't have to keep records forever and they can
defend -- in court if need be -- their decision to destroy old records.
Virginia Llewellyn, lawyer and director of industry relations for Applied
Discovery based in Scottsdale, Ariz., cited a lawsuit in which an IT
professional for a large Silicon Valley firm let slip that he had more than
800 backup tapes in a closet. His lawyers didn't know this and the firm was
forced to make those tapes available to the opposing side.
''It was devastating to the case,'' Llewellyn said. ''It cost millions of
dollars to review that amount of information.''
Just as important as having an electronic records policy is educating
employees about it.
Employees must be told that just because they pushed the delete button on
an e-mail or an electronic file doesn't mean it's really gone.
Having a successful electronic records policy requires the cooperation of
the IT department and the company's lawyers.
''All companies need to worry about their records,'' says Betsy Fanning,
director of standards and content development for the Association for
Information and Image Management. ''You have to look at it as if your
records are a snapshot of your company... Companies need to think in terms
of how do they want their company to be remembered.''
*****************************
Lillie Coney
Public Policy Coordinator
U.S. Association for Computing Machinery
Suite 510
2120 L Street, NW
Washington, D.C. 20037
202-478-6124
lillie.coney@xxxxxxx