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- Police raid Italian branch of Anonymous - Italian police have
reported 15 suspected members of the Italian branch of the Anonymous
hacker group to the judiciary for investigation on charges of
illegally accessing IT systems, damaging IT systems and interrupting
a public service, Italian media reported.
- Feds cuff programmer in alleged trading-ware theft - Say
Chinese-born Chicago coder had flight booked a 49-year old
Chinese-born American, has been charged with stealing proprietary
- ICO reports that private sector was responsible for a third of
data breaches, yet most businesses refuse an audit - According to
the Information Commissioner Christopher Graham, of the 603 data
security breaches reported to the ICO in 2010/11, 186 occurred in
the private sector, yet only 19 per cent of businesses contacted by
the ICO accepted a free data protection audit.
- We can force you to decrypt that laptop - The Colorado prosecution
of a woman accused of a mortgage scam will test whether the
government can punish you for refusing to disclose your encryption
- Tabloid phone hacking scandal spreads, former Cameron aide
arrested - The News of the World phone hacking scandal has already
destroyed the newspaper and could cost 200 jobs. Now, an ex-editor
and senior aide to Prime Minister David Cameron is under arrest.
- Contractors resist DoD's tougher info rules - The Pentagon is
proposing to keep under wraps all unclassified information shared
between contractors and the Defense Department except that which is
expressly released to the public.
- Police officers and staff breach Data Protection Act - More than
900 UK police officers and staff were being subjected to internal
disciplinary procedures for breaching the Data Protection Act (DPA)
over a three year period.
- UCLA Medical Center agrees to settle HIPAA violation charges for
$865K - Computerworld - After years of being accused of doing little
to enforce Health Insurance Portability and Accountability Act's
security and privacy rules, the U.S. Department of Health and Human
Services appears to be finally getting serious about cracking down
ATTACKS, INTRUSIONS, DATA THEFT & LOSS
- 'Sophisticated' attack targets two Energy Dept. labs - The Web
sites of the Energy Department's Pacific Northwest National Lab and
Jefferson National Lab were down today in the aftermath of
"sophisticated" attacks, a spokesman at one of the labs told CNET.
- WellPoint Settles Over Data Breach - Indiana to Receive $100,000
for Restitution - Health insurer WellPoint Inc. has reached a
settlement with the Indiana Attorney General's office over a delayed
notification about a consumer data breach that affected the records
of 32,051 people.
- Washington Post reports data breach on job ads section - The
Washington Post has alerted job seekers who use its employment pages
of a data breach that compromised up to 1.27 million accounts.
- Morgan Stanley client data goes missing - The personal information
of tens of thousands of Morgan Stanley Smith Barney investment
clients has gone missing.
- Colorado agency loses medical aid applicants' data - A computer
disk containing the personal information of thousands of medical aid
applications has gone missing from the Colorado Department of Health
Care Policy and Financing.
- Hackers steal 1.27M email addresses from Washington Post site -
Hackers broke into The Washington Post's jobs website late last
month and stole approximately 1.27 million user IDs and email
addresses, the newspaper disclosed Thursday.
- Hackers claim they exposed Booz Allen Hamilton data - Hackers
flying the AntiSec banner claimed today that they compromised a
server at consulting firm Booz Allen Hamilton and have released
internal data, including about 90,000 military e-mail addresses.
Return to the top
of the newsletter
WEB SITE COMPLIANCE -
We continue our review of the
FFIEC interagency statement on "Weblinking:
Identifying Risks and Risk Management Techniques."
(Part 7 of 10)
B. RISK MANAGEMENT TECHNIQUES
Planning Weblinking Relationships
If a financial institution receives compensation from a third
party as the result of a weblink to the third-party's website, the
financial institution should enter into a written agreement with
that third party in order to mitigate certain risks. Financial
institutions should consider that certain forms of business
arrangements, such as joint ventures, can increase their risk. The
financial institution should consider including contract provisions
to indemnify itself against claims by:
1) dissatisfied purchasers of third-party products or services;
2) patent or trademark holders for infringement by the third party;
3) persons alleging the unauthorized release or compromise of their
confidential information, as a result of the third-party's conduct.
The agreement should not include any provision obligating the
financial institution to engage in activities inconsistent with the
scope of its legally permissible activities. In addition, financial
institutions should be mindful that various contract provisions,
including compensation arrangements, may subject the financial
institution to laws and regulations applicable to insurance,
securities, or real estate activities, such as RESPA, that establish
broad consumer protections.
In addition, the agreement should include conditions for terminating
the link. Third parties, whether they provide services directly to
customers or are merely intermediaries, may enter into bankruptcy,
liquidation, or reorganization during the period of the agreement.
The quality of their products or services may decline, as may the
effectiveness of their security or privacy policies. Also
potentially just as harmful, the public may fear or assume such a
decline will occur. The financial institution will limit its risks
if it can terminate the agreement in the event the service provider
fails to deliver service in a satisfactory manner.
Some weblinking agreements between a financial institution and a
third party may involve ancillary or collateral information-sharing
arrangements that require compliance with the Privacy Regulations.
For example, this may occur when a financial institution links to
the website of an insurance company with which the financial
institution shares customer information pursuant to a joint
the top of the newsletter
INFORMATION TECHNOLOGY SECURITY -
We continue our series on the FFIEC interagency
Information Security Booklet.
SECURITY CONTROLS - IMPLEMENTATION -
TCP/IP is a packet - based communications system. A packet consists
of a header and a data payload. A header is analogous to a mail
envelope, containing the information necessary for delivery of the
envelope, and the return address. The data payload is the content of
the envelope. The IP packet header contains the address of the
sender (source address) and the intended recipient (destination
address) and other information useful in handling the packet. Under
IP, the addresses are unique numbers known as IP addresses. Each
machine on an IP network is identified by a unique IP address. The
vast majority of IP addresses are publicly accessible. Some IP
addresses, however, are reserved for use in internal networks. Those
addresses are 10.0.0.0 - 10.255.255.255, 172.16.0.0 -
172.31.255.255, and 192.168.0.0 - 192.168.255.255. Since those
internal addresses are not accessible from outside the internal
network, a gateway device is used to translate the external IP
address to the internal address. The device that translates external
and internal IP addresses is called a network address translation
(NAT) device. Other IP packet header fields include the protocol
field (e.g., 1=ICMP, 6=TCP, 7=UDP), flags that indicate whether
routers are allowed to fragment the packet, and other information.
If the IP packet indicates the protocol is TCP, a TCP header will
immediately follow the IP header. The TCP header contains the source
and destination ports, the sequence number, and other information.
The sequence number is used to order packets upon receipt and to
verify that all packets in the transmission were received.
Information in headers can be spoofed, or specially constructed to
contain misleading information. For instance, the source address can
be altered to reflect an IP address different from the true source
address, and the protocol field can indicate a different protocol
than actually carried. In the former case, an attacker can hide
their attacking IP, and cause the financial institution to believe
the attack came from a different IP and take action against that
erroneous IP. In the latter case, the attacker can craft an attack
to pass through a firewall and attack with an otherwise disallowed
Return to the top of
INTERNET PRIVACY - We continue
our series listing the regulatory-privacy examination questions.
When you answer the question each week, you will help ensure
compliance with the privacy regulations.
Exceptions to Notice and Opt Out Requirements for Processing and
49. If the institution uses a Section 14 exception as necessary to
effect, administer, or enforce a transaction, is it :
a. required, or is one of the lawful or appropriate methods to
enforce the rights of the institution or other persons engaged in
carrying out the transaction or providing the product or service;
b. required, or is a usual, appropriate, or acceptable method
1. carry out the transaction or the product or service business
of which the transaction is a part, including recording, servicing,
or maintaining the consumer's account in the ordinary course of
2. administer or service benefits or claims; [§14(b)(2)(ii)]
3. confirm or provide a statement or other record of the
transaction or information on the status or value of the financial
service or financial product to the consumer or the consumer's agent
or broker; [§14(b)(2)(iii)]
4. accrue or recognize incentives or bonuses; [§14(b)(2)(iv)]
5. underwrite insurance or for reinsurance or for certain other
purposes related to a consumer's insurance; [§14(b)(2)(v)] or
6. in connection with:
i. the authorization, settlement, billing, processing,
clearing, transferring, reconciling, or collection of amounts
charged, debited, or otherwise paid by using a debit, credit, or
other payment card, check, or account number, or by other payment
ii. the transfer of receivables, accounts or interests
therein; [§14(b)(2)(vi)(B)] or
iii. the audit of debit, credit, or other payment