Fraud Archives

Fraud

BitSight: A Equifax For Security Risk?

September 10, 2013 Paul Roberts

I’ve opined in these pages and elsewhere that one of the big problems in the IT security space is the absence of actionable data. After all, problems like denial of service attacks, network compromises and inadvertent data leaks are all just risks that organizations and individuals must grapple with in our increasingly wired world. True – they’re new kinds of risks, but otherwise they’re not fundamentally different from problems like auto accidents, property crime or illness – things that we do a good job accounting for. The difference, as I see it, is an absence of accepted and independent means of assessing the relative security posture of any organization. IT security is still so much dark magic: we rely on organizations to tell us about how secure they are. Organizations, in turn, rely on a complex and patchy network of security monitoring and detection tools, then try to read the […]

Why The Mailpile Misstep Is No Joke To PayPal

September 7, 2013 Paul Roberts

PayPal and Mailpile, the scrappy secure mail startup ended the week on a high note: hugging it out (via Twitter) after the online payments behemoth froze more than $40,000 in payments to the crowd-funded startup then donated $1,000 to the project, to boot. But making it right with the tiny secure email firm is just the beginning of the story at PayPal, which is making the whole mix-up as something of an object lesson in how it needs to change to address a fluid and fast-moving online payments market. First, some background: Mailpile, of Reykjavík, Iceland, has raised more than $145,000 in a month-long campaign on the crowd funding web site Indiegogo.com to build a “fast, web-mail client with user-friendly encryption and privacy features.” Beginning on Saturday, PayPal froze more than $40,000 of those donations, suspecting fraud. The company’s spokespeople told company executive Brennan Novak that it wanted to see […]

Privacy: From Right To Fight

August 14, 2013 Paul Roberts

As more and more of our public and private spaces are equipped with remote sensing and surveillance technology, personal privacy – at least as it has been understood for the last two or three centuries – is endangered. The solution, of course, is through improved privacy legislation and, perhaps, a more expansive reading of the U.S. Constitution’s 4th Amendment protecting against search and seizure. But, with policymakers in Washington D.C. stuck in a rut, and many EU nations as hooked on surveillance as the U.S., the onus falls to individuals to do what they can. That’s the subject of my latest column for ITWorld, where I talk about what is likely to be the next stage in our society’s rapid evolution on matters of privacy and security, what I’ve termed “The Jamming Wars.” Like other social movements, this will be fueled by a growing rift between the law and a […]

Security Of “Things” Increasingly The Stuff Of Headlines

August 12, 2013 Paul Roberts

It looks as if the mainstream media is waking to the security implications of the “Internet of Things,” in the wake of recent demonstrations at the Black Hat and DEFCON conferences that highlight vulnerabilities in everything from home automation systems to automobiles to toilets. Stories in The New York Times and other major news outlets in the last week have highlighted concerns about “the cyber crime of things” as Christopher Mims, writing in The Atlantic, called it. Insecure, Internet connected devices ranging from surveillance cameras to home heating and cooling systems could leave consumers vulnerable to remote attacks and spying. The stories come after hacks to non-traditional computing platforms stole most of the headlines from this year’s Black Hat and DEFCON shows in Las Vegas. A compromise of a Toyota Prius hybrid by researchers Charlie Miller of Twitter and Chris Valasek of IOActive was featured prominently in stories by Forbes and […]

Are Anti-Mule Ops Breaking The Bank Fraud Kill Chain?

August 6, 2013 Paul Roberts

Mules are the “last mile” in many online fraud operations: the unwitting dupes, or witting co-conspirators who lend their legitimate bank account (and reputation) to fraudsters who are looking for a way to cash out funds from a compromised account. Mules – often lured with promises of “work-from-home” riches receive fraudulent transactions, then immediately withdraw the funds and wire them to the fraudsters, minus a healthy “commission.” In recent years, there has been ample coverage in the media of cyber crime and fraud and the role of money mules in scams. (I note Brian Krebs excellent reporting on the mule problem on his blog.) And yet, the supply of mules seems to be endless. Or is it? According to researchers at the security firm RSA, bank account cash-out attacks are becoming less common online, and a sharp increase in busts on money mules may be the cause. Writing on […]