Shhh… Anonymous: CyberSecurity Bill's a Scam

The article below sums it up nicely: the Protecting Cyber Networks Act passed by the Congress this week was a surveillance bill in disguise.

Check out this video by the Anonymous:

House of Representatives Passes Cybersecurity Bills Without Fixing Core Problems

April 22, 2015 | By Mark Jaycox

The House passed two cybersecurity “information sharing” bills today: the House Permanent Select Committee on Intelligence’s Protecting Cyber Networks Act, and the House Homeland Security Committee’s National Cybersecurity Protection Advancement Act. Both bills will be “conferenced” to create one bill and then sent to the Senate for advancement. EFF opposed both bills and has been urging users to tell Congress to vote against them.

The bills are not cybersecurity “information sharing” bills, but surveillance bills in disguise. Like other bills we’ve opposed during the last five years, they authorize more private sector spying under new legal immunity provisions and use vague definitions that aren’t carefully limited to protect privacy. The bills further facilitate companies’ sharing even more of our personal information with the NSA and some even allow companies to “hack back” against potentially innocent users.

As we’ve noted before, information sharing is not a silver bullet to stopping security failures. Companies can already share the necessary technical information to stop threats via Information Sharing and Analysis Centers (ISACs), public reports, private communications, and the DHS’s Enhanced Cybersecurity Services.

While we are disappointed in the House, we look forward to the fight in the Senate where equally dangerous bills, like the Senate Select Committee on Intelligence’s Cybersecurity Information Sharing Act, have failed to pass every year since 2010.

Contact your Senator now to oppose the Senate bills.

Shhh… The Protecting Cyber Networks Act Gets Greenlight from Congress

Time to brace up for further loss of privacy as the PCNA would amount to voluntary wholesale transfer of data to the NSA (see story below).

And the Congress actually believe it’s in the name of stopping hackers and cyber attacks?

House Passes Cybersecurity Bill Despite Privacy Protests

Andy Greenberg
04.22.15

Congress is hellbent on passing a cybersecurity bill that can stop the wave of hacker breaches hitting American corporations. And they’re not letting the protests of a few dozen privacy and civil liberties organizations get in their way.

On Wednesday the House of Representatives voted 307-116 to pass the Protecting Cyber Networks Act, a bill designed to allow more fluid sharing of cybersecurity threat data between corporations and government agencies. That new system for sharing information is designed to act as a real-time immune system against hacker attacks, allowing companies to warn one another via government intermediaries about the tools and techniques of advanced hackers. But privacy critics say it also threatens to open up a new backchannel for surveillance of American citizens, in some cases granting the same companies legal immunity to share their users’ private data with government agencies that include the NSA.

“PCNA would significantly increase the National Security Agency’s (NSA’s) access to personal information, and authorize the federal government to use that information for a myriad of purposes unrelated to cybersecurity,” reads a letter signed earlier this week by 55 civil liberties groups and security experts that includes the American Civil Liberties Union, the Electronic Frontier Foundation, the Freedom of the Press Foundation, Human Rights Watch and many others.

“The revelations of the past two years concerning the intelligence community’s abuses of surveillance authorities and the scope of its collection and use of individuals’ information demonstrates the potential for government overreach, particularly when statutory language is broad or ambiguous,” the letter continues. “[PCNA] fails to provide strong privacy protections or adequate clarity about what actions can be taken, what information can be shared, and how that information may be used by the government.”

Specifically, PCNA’s data-sharing privileges let companies give data to government agencies—including the NSA—that might otherwise have violated the Electronic Communications Privacy Act or the Wiretap Act, both of which restrict the sharing of users’ private data with the government. And PCNA doesn’t even restrict the use of that shared information to cybersecurity purposes; its text also allows the information to be used for investigating any potential threat of “bodily harm or death,” opening its application to the surveillance of run-of-the-mill violent crimes like robbery and carjacking.

Congressman Adam Schiff, who led the advocacy for the bill on the House floor, argued in a statement to reporters that PCNA in fact supports privacy by protecting Americans from future hacker breaches. “We do this while recognizing the huge and growing threat cyber hacking and cyber espionage poses to our privacy, as well as to our financial wellbeing and our jobs,” he writes.

“In the process of drafting this bill, protecting privacy was at the forefront throughout, and we consulted extensively with privacy and civil liberties groups, incorporating their suggestions in many cases. This is a strong bill that protects privacy, and one that I expect will get even better as the process goes forward—we expect to see large bipartisan support on the Floor.”

Here’s a video [above] of Schiff’s statement on the House floor.

PCNA does include some significant privacy safeguards, such as a requirement that companies scrub “unrelated” data of personally identifying information before sending it to the government, and that the government agencies pass it through another filter to delete such data after receiving it.

But those protections still don’t go far enough, says Robyn Greene, policy counsel for the Open Technology Institute. Any information considered a “threat indicator” could still legally be sent to the government—even, for instance, IP address innocent victims of botnets used in distributed denial of service attacks against corporate websites. No further amendments that might have added new privacy restrictions to the bill were considered before the House’s vote Wednesday. “I’m very disappointed that the house has passed an information sharing bill that does so much to threaten Americans’ privacy and civil liberties, and no real effort was made to address the problems the bill still had,” says Greene. “The rules committee has excluded amendments that would have resolved privacy concerns…This is little more than a backdoor for general purpose surveillance.”

In a surprise move yesterday, the White House also publicly backed PCNA and its Senate counterpart, the Cybersecurity Information Sharing Act in a statement to press. That’s a reversal of its threat to veto a similar Cybersecurity Information Sharing and Protection Ac in 2013 over privacy concerns, a decision that all but killed the earlier attempt at cybersecurity data sharing legislation. Since then, however, a string of high-profile breaches seems to have swayed President Obama’s thinking, from the cybercriminal breaches of Target and health insurer Anthem that spilled millions of users’ data, to the devastating hack of Sony Pictures Entertainment, which the FBI has claimed was perpetrated as an intimidation tactic by the North Korean government to prevent the release of its Kim Jong-un assassination comedy the Interview.

If the White House’s support stands, it now leaves only an upcoming Senate vote sometime later this month on the Senate’s CISA as the deciding factor as to whether it and PCNA are combined to become law.

But privacy advocates haven’t given up on a presidential veto. A new website called StopCyberspying.com launched by the internet freedom group Access, along with the EFF, the ACLU and others, includes a petition to the President to reconsider a veto for PCNA, CISA and any other bill that threatens to widen internet surveillance.

OTI’s Greene says she’s still banking on a change of heart from Obama, too. “We’re hopeful that the administration would veto any bill that doesn’t address these issues,” she says. “To sign a bill that resembles CISA or PCNA would represent the administration doing a complete 180 on its commitment to protect Americans’ privacy.”

Shhh… Did Obama Know What He's Doing When He Signed the new Executive Order on Cybercrimes?

Was that a brainfart?

President Barack Obama signed an executive order Wednesday that permits the US to impose economic sanctions on individuals and entities anywhere in the world for destructive cyber-crimes and online corporate espionage – see the Bloomberg article below.

Now what’s this about? An all-out effort on cyber-criminals or just plain window dressing?

For all their abilities to trace the attacks right down to the identities of the hackers, have the US authorities been able to do anything? Recall the Mandiant Report two years ago that allegedly traced Chinese hackers down to the very unit of a military base in Shanghai?

Hackers-Chinese

Recall also the five Chinese military hackers (above) on the FBI wanted list last year? Where has that led to (see video clip below)? And what about the alleged North Korean hacks on Sony Pictures?

With all good intent and seriousness to go on the offensive, Obama has yet to put his words into action on this front…


Hackers, Corporate Spies Targeted by Obama Sanctions Order

by Justin SinkChris Strohm

President Barack Obama signed an executive order Wednesday allowing the use of economic sanctions for the first time against perpetrators of destructive cyber-attacks and online corporate espionage.

That will let the Treasury Department freeze the assets of people, companies or other entities overseas identified as the source of cybercrimes. The federal government also will be able to bar U.S. citizens and companies from doing business with those targeted for sanctions.

“Cyberthreats pose one of the most serious economic and national security challenges to the United States,” Obama said in a statement. “As we have seen in recent months, these threats can emanate from a range of sources and target our critical infrastructure, our companies and our citizens.”

Under the order, sanctions only will be used if a cyber-attack threatens to harm U.S. national security, foreign policy or the broader economy. It’s aimed at cybercriminals who target critical infrastructure, disrupt major computer networks, or are involved in the “significant” theft of trade secrets or intellectual property for competitive advantage or private financial gain.

Data Breaches

The administration is using the threat of sanctions to help prevent large-scale data theft after breaches at major U.S. corporations, including retailer Target Corp., health-insurer Anthem Inc. and home-improvement chain Home Depot Inc. It’s also a recognition that companies are facing increasingly destructive attacks, such as the hack against Sony Pictures Entertainment that crippled thousands of computers and delayed release of a comedy movie.

Sanctions imposed under the executive order will help disrupt the operations of hackers who may be in countries outside the reach of U.S. law enforcement, John Carlin, U.S. assistant attorney general for national security, said in a phone interview.

Banks and other companies connected to the U.S. financial system will be required to prohibit sanctioned hackers and entities from using their services, cutting them off from valuable resources, Carlin said.

“It’s a new powerful tool and we intend do to use it,” Carlin said. “It has the capability to significantly raise the cost for those who steal or benefit through cybercrime.”

Transcends Borders

The unique aspect of the executive order is that it allows the U.S. to impose sanctions on individuals or entities over hacking attacks regardless of where they are located, White House Cybersecurity Coordinator Michael Daniel told reporters on a conference call. While other sanctions are tied to a particular country or group of persons, hacking attacks transcend borders.

“What sets this executive order apart is that it is focused on malicious cyber-activity,” Daniel said. “What we’re trying to do is enable us to have a new way of both deterring and imposing costs on malicious cyber-actors wherever they may be.”

The order is a signal of the administration’s “clear intent to go on offense against the full range of very serious cyberthreats that are out there,” said Peter Harrell, the former principal deputy assistant secretary for sanctions at the State Department.

“This is a message that if folks around the world don’t cut out these activities, they’re going to find themselves cut off from the American banking system,” Harrell said in an interview.

Hidden Identities

Harrell said there are potential stumbling blocks to effective implementation. For one, hackers work hard to conceal their identity. Even though the U.S. and private companies have improved their ability to trace attacks, attribution can sometimes be difficult.

Daniel acknowledged that determining who is actually behind hacking attacks is still a challenge but said the U.S. is getting better at it.

In other cases, diplomatic considerations may be at play. The administration’s decision in 2014 to file criminal charges against five members of the Chinese military over their role in cyber-espionage strained relations with Beijing.

In January, Obama authorized economic sanctions against 10 North Korean officials and government entities in connection with the Sony attack. The North Korean government has denied any involvement in the Sony case.

Overseas Governments

Harrell said the use of sanctions can provide leverage as the U.S. registers complaints with governments overseas about cyber-attacks. Targeted use of the new sanctions powers also may help deter criminals.

“A number of these cyber-attacks are organized by fairly significant actors out there — large hacking collectives, or organized by foreign intelligence agencies,” Harrell said. “They all have real potential costs if they were put on sanctions lists.”

The Obama administration has been under pressure to take action to help companies protect their networks from cyber-attacks. In early March, Premera Blue Cross announced that hackers may have accessed 11 million records, including customer Social Security numbers, bank account data and medical information.

Home Depot in September said 56 million payment cards and 53 million e-mail addresses had been stolen by hackers. And just days earlier, JPMorgan Chase & Co. announced a data breach affecting 76 million households and 7 million small businesses.

The highest-profile breach, however, may have been the hacking of Sony Pictures. The U.S. government said North Korean hackers broke into the studio’s network and then exposed e-mails and private employment and salary records. U.S. authorities said it was in retaliation for plans to release “The Interview,” a satirical film depicting the assassination of leader Kim Jong Un.

Shhh… The Why's, How's and What's of Hacks into Health Insurance Companies Like Anthem and Premera

It should come as no surprise that health insurance companies store lots, lots more sensitive and personal information about their clients than banks and credit card companies and it certainly doesn’t help when they were not taking cybersecurity seriously, as the recent hacks on Anthem and Premera (article below) have highlighted.

And what’s going to happen to these clients following the (Anthem and Premera) hacks? Watch the video clips below.

The disturbing truth behind the Premera, Anthem attacks

March 24, 2015 | By Dan Bowman

As details continue to emerge following the recent hack attacks on payers Anthem and Premera–in which information for close to 90 million consumers combined may have been put at risk–perhaps the most disturbing revelation of all is that, in both instances, neither entity appears to truly take security seriously.

Premera, for instance, knew three weeks prior to the initial penetration of its systems in May 2014 that network security issues loomed large. A report sent by the U.S. Office of Personnel Management’s Office of Inspector General detailed several vulnerabilities, including a lack of timely patch implementations and insecure server configurations.

The findings were so bad, they prompted OPM to warn Premera, “failiure to promptly install important updates increases the risk that vulnerabilities will not be remediated and sensitive data could be breached.” In addition, OPM told the Mountlake Terrace, Washington-based insurer that failure to remove outdated software would increase the risk of a successful malicious attack on its information systems.

“Promptly” to Premera apparently meant eight months down the road. And one month after its self-imposed Dec. 31, 2014, deadline to resolve its issues, guess what the payer found?

Just imagine how much damage could have been spared had Premera acted with more haste.

In Anthem’s case, negligence continues to persist. The nation’s second-largest payer has refused to allow a federal watchdog agency to perform vulnerability scans and compliance tests on its systems in the wake of its massive hack attack. It also prevented auditors from adequately testing whether it appropriately secured its computer information systems during a 2013 audit, citing corporate policy prohibiting external entities from connecting to the Anthem network.

Corporate policy is all well and good, but it’s not going to mean squat to a consumer two years from now when Anthem’s complimentary credit monitoring wears off and the hackers begin wading through the treasure trove of stolen information. As one of those consumers, it would be nice to hear Anthem take the advice Shaun Greene, chief operating officer of Salt Lake City-based Arches Health Plan, who told my colleague Brian Eastwood last month that payers should hire third parties to conduct HIPAA risk assessments.

“That way, you avoid internal posturing and receive objective feedback,” Greene said.

Following last summer’s massive Community Health Systems breach–and on the heels of other high-profile cybersecurity attacks–it appeared earlier this year that the healthcare industry was finally starting to truly prioritize information protection.

That’s not to say that the majority of the industry doesn’t take such matters seriously. But it’s disappointing to see that some of its biggest players seem to feel differently. – Dan (@Dan_Bowman and @FierceHealthIT)