-----Original Message----- From: NIPC Watch To: daily Sent: 11/13/01 10:35 AM Subject: NIPC Daily Report 13 November 2001 NIPC Daily Report 13 November 2001 NOTE: Please understand that this is for informational purposes only and does not constitute any verification of the information contained in the report nor does this constitute endorsement by the NIPC or the FBI. Significant Changes and Assessment - No significant changes. Private Sector - Security experts are disputing a report that two new tools defeat the outbound data filters of three leading personal firewalls. The two tools can upload user data without being detected by the firewall, but only after they have been installed on a system through other means since they cannot breach firewalls on their own. The tools have to get on a user's hard drive in order to operate, usually through a downloaded program on a Web site or an e-mail attachment. If the user prevents that from happening by using updated AV software, then that program does not stand much of a chance of running on the user's computer. Firewall vendors zeal for trying to roll too many features into a single product may be the reason that firewalls are being blamed for being vulnerable to these tools. Properly configured firewalls can prevent these tools from being used on a system. (Source: Security Wire Digest, 8 November) Microsoft and five security companies announced that they would create an organization to promote the responsible publishing of information about software flaws. Though many of the details have yet to be hammered out, the move marks the beginning of what could be the widespread emergence of ethical rules for security research. "There has been a need for industry convergence around a code of conduct for releasing exploits," said Eddie Schwartz, chief operating officer for security services firm Guardent, a founding member of the group. "We are going to form an organization to help us deal with the vulnerabilities. Ultimately, we want to develop some standards for releasing these things." Besides Microsoft and Guardent, security companies @Stake, Bindview, Foundstone and Internet Security Systems also supported the announcement. (Source: CNET News.com, 8 November) Government - The majority of executive branch agencies earned failing or barely passing grades for computer security, and most actually managed to perform more poorly than last year, according to a report. Two-thirds of executive branch agencies, including the Departments of Defense, Agriculture, Education, Energy, Justice, Labor, Transportation and Treasury and eight other departments, earned an "F" for computer security. Such abysmal scores helped win the government a overall "F" grade this year, down from a "D-" awarded in last year's computer security report card. In its analysis of the penetration tests, the General Accounting Office (GAO) noted that this year's grades may be lower because agencies significantly expanded the scope of their testing. The GAO also found that most agencies are doing a poor job installing readily available patches for commonly known software hacks. According to the Federal Computer Incident Response Center, such deficiencies are the root cause of some 90% of successful attacks on government computers. (Source: Newsbytes, 9 November) US cyber security czar Richard Clarke says that cyber attacks on the nation's critical IT infrastructure could potentially cause "catastrophic damage to the economy" and urged more spending on IT infrastructure and security. Clarke, who is chairman of the president's Critical Infrastructure Protection Board, also told a gathering of about 150 security and privacy experts from business and government at the Trusted Computing Conference that he opposes a national ID card and wants to reduce the opportunities for anonymity on the Internet. Clarke strongly defended the proposed GovNet project, which is meant to build a closed-loop government agency network that can be isolated from the Internet. Building trust into computing and protecting critical infrastructures were the dominant themes of this year's conference, and regulation came up most often as the way to curtail rising cyber crime. (Source: IDG, 9 November) Military - The US military is gearing up to use computers and code as potentially decisive weapons in the next phases of its campaign. The goal would be to disable air defense systems, scramble enemy logistics and perhaps infect software through tactics being honed by a joint task force set up in 1999 under the Colorado Springs, Colorado-based US Space Command. The US military has been working on tools that could wreak electronic havoc on countries accused of harboring terrorists as well as on ways of defending global networks against cyber attack. (Source: Reuters, 9 November) Faced with a near doubling of attacks on military computers in the past year, the guardian of the US military's information systems has asked Pentagon leaders for permission to strike back. "We are no longer going to be passive. If they hit us, we'll be hitting them back real soon," US Army Maj. Gen. Dave Bryan, commander, Joint Task Force-Computer Network Operations (JTF-CNO) said. A new, classified technology would allow the task force to retaliate, Bryan said, although he refused to provide any details. JTF-CNO's request to deploy an active network defense is significant because it crosses both technological and legal boundaries, according to professor Dan Kuehl, professor of the National Defense University. (Source: Defense News, 12-18 November) International - The ruling Liberal Democratic Party (LDP) in Japan, plans to study measures aimed at protecting government computer systems from cyberterrorism. Specifically, the party intends to call on the government, companies, universities and research organizations to jointly develop original operating systems for the so-called e-government project, which seeks to link firms and residents with the central and local governments through the Internet. The project, scheduled to be implemented in fiscal 2003, will allow government ministries and agencies to conduct business licensing, resident registration and other administrative services online. It is feared, however, that the computer system could become vulnerable to unauthorized access. Members of the LDP believe that originally developed computer platforms will be more effective in preventing cyberterrorism than those on the market. The group also intends to enlist companies that possess expertise on information security and researchers who specialize in preventive measures against hackers. (Source: Tokyo Nikkei, 10 November) Suspected communist guerrillas waged an unprecedented attack against several telecommunications facilities, disrupting cellular telephone services in five northern Philippine provinces. Police chief superintendent Reynaldo Berroya said armed men doused buildings on at least five sites with gasoline, holding guards at gunpoint. No one was injured on the attacks, which took place late over the weekend. Berroya said the communist rebel group New People's Army was suspected in the attacks. He said there were reports that rebels have been trying to extort money from cellular phone companies. Four of the sites belonged to leading cell phone service provider Smart Communications Inc. Other sites attacked include Globe Telecom and Pilipino Telephone Corp. (Source: Associated Press, 11 November) U.S. SECTOR INFORMATION: Electrical Power - The US Federal Energy Regulatory Commission (FERC) extended the 15 December deadline for utilities to join regional transmission grids and said it will set new deadlines for each of four general regions. Earlier this year, federal regulators ordered controversial mediation talks to form four regional transmission organizations in the Southeast, Northeast, West, and Midwest. Under the FERC proposal, utilities would combine their transmission systems to provide open access, cheaper transmission rates, and more reliable systems. (Source: OGJ Online, 9 November) Water Supply - Water protection and counter terrorist experts will convene at the Water Security Summit 2001 to discuss the safety and security of water supply infrastructure. Organized by Haestad Methods, this nonprofit event is scheduled for 3-4 December in Hartford, CT. Participants will learn to evaluate system vulnerability, leverage existing federal, state, and private resources, and develop guidelines for implementing security plans. The event will include presentations and panel discussions from some of the foremost experts in water quality, bioterrorism, system vulnerability, and crisis management. "Water is the quintessential target," said Peter Beering, Esq., Deputy General Counsel for the Indianapolis Water Company. "People are emotionally and physically dependent on water because it is the only consumable utility. Those charged with providing safe water should be at a heightened state of alert and should implement appropriate security measures." (Source: PRNewswire, 12 November) Transportation - American Airlines Flight 587 en route to the Dominican Republic with 255 people aboard crashed moments after takeoff on 12 November from Kennedy Airport, setting homes on fire. All New York City metropolitan area airports (Kennedy, LaGuardia and Newark, N.J.) were closed after the crash, which took place in the Rockaway section of Queens. All bridges and tunnels into the city were closed except to emergency vehicles. (Source: Associated Press, 12 November) Banking and Finance - NTR Telecommunications - NTR Emergency Services - NTR Gas and Oil Storage Distribution - NTR Government Services - NTR
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