Bogus anti-spyware makers ahead of law in South Korea
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Bogus anti-spyware makers are a growing source of public concern in IT powerhouse South Korea, a top online security firm has said.
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(InfoWorld) - Hackers may want to avoid Germany, after the approval of a law that makes their activity a punishable crime. The legislation, which theÂ German government proposedÂ earlier last year and approved Friday with no changes, aims to crack down on the sharp rise in computer attacks in the public and private sectors. Although Germany already has a comprehensive penal law against attacks on IT systems, the new legislation looks to close any remaining loopholes. It defines hacking as penetrating a computer security system and gaining access to secure data, without necessarily stealing data. Offenders are defined as any individual or group that intentionally creates, spreads or purchases hacker tools designed for illegal purposes. They could face up to 10 years in prison for major offenses. Other punishable cybercrimes include DOS (denial-of-service) attacks and computer sabotage attacks on individuals, which would extend the existing law that limited sabotage to businesses and public authorities. The new law, however, has drawn criticism by several groups, including the hacker club Chaos Computer Club e.V., which points to the work of "good" hackers, also known as "white hats," who work for security companies. These computer experts, the club argues, could be restricted in their ability to help software makers develop secure products and businesses to deploy them. That opinion is shared by some hackers as well. In an e-mail, a hacker, known by the pseudonym van Hauser, wrote that if hackers are unable to share their tools with the public, white hats will not be able to get them and use them internally for testing or external security consultants won't be able to do security testing. "It's a win-lose law in favor for the bad guys," he wrote. Chaos Computer Club also warns that the law could make it much easier for the German government to allow law enforcement officials to install spyware on computers of suspected criminals without their knowledge. The club is concerned about the ability of consumers and businesses to protect their systems from government spyware without support from the hacker community. In February, the country's High Court handed down a landmark decisionÂ banning police from installing spyware, delivering a blow to the plans of the German Interior Minister Wolfgang SchÃ¤uble to give the Federal Criminal Police Office greater power to monitor terrorists and other criminals online, and peek inside their computers. But SchÃ¤uble is seeking ways ever since to have the court revise its decision. Â
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Organizations and law enforcement agencies fighting spyware are making progress, but new tools in an antispyware bill stalled in the U.S. Congress could improve the efforts, a member of the U.S. Federal Trade Commission said Monday.One of the spyware bills passed by the House of Representatives earlier this year, the Spy Act, would give the FTC authority to impose civil fines on companies that distribute spyware to consumers&#39; computers. The bill, along with the Internet Spyware Prevention (or I-SPY) Act, have&#160;stalled in the Senate&#160;since passing the House in May and June.The FTC has the authority to collect profits from spyware operations and collect money for consumer redress, but it lacks the authority to impose other fines, as it does when going after spammers, said Commissioner Jon Leibowitz, speaking at a spyware forum in Washington, D.C.Assigning a dollar figure to consumer harm is tricky in many spyware cases, especially when the spyware delivers pop-up advertisements to computers, Leibowitz said. It&#39;s sometimes difficult to get courts to assign large consumer damages to pop-up cases, he said.In some cases, spyware damages are assessed by judges &quot;who don&#39;t even use computers,&quot; said Dave Koehler, with the FTC&#39;s Bureau of Consumer Protection.The Spy Act would allow the FTC to fine spyware vendors up to $3 million for hijacking computers, delivering unwanted adware, and other violations, and $1 million for collecting personal data without permission, in addition to going after the vendor&#39;s profits and seeking consumer redress.Additional authority to impose civil fines would give the FTC &quot;an enormous deterrent,&quot; Leibowitz said.&quot;Right now, companies know that the worst they can do is lose their profits,&quot; he added. &quot;They&#39;re not going to get fined on top of that.&quot;The FTC has brought several spyware actions against companies. In February, the agency settled&#160;a case against adware distributor DirectRevenue. In that case, DirectRevenue settled for $1.5 million, based on its profits, but the founders of the company had received more than $20 million in venture-capital funding, Leibowitz said.While participants in the spyware forum said there continue to be many challenges, including a growing trend of foreign spyware vendors, the cost of spyware to U.S. consumers seems to be falling. Consumer Reports estimated that spyware cost U.S. consumers $2.6 billion in 2006, but only $1.7 billion in 2007, noted Ari Schwartz, deputy director of the Center for Democracy and Technology, a supporter of StopBadware.org, a consumer-protection effort aimed at spyware and other malicious code.The drop in the cost of spyware can be attributed to a number of factors, Schwartz said. Antispyware technology is getting better, the FTC has taken action against spyware vendors, and StopBadware.org has distributed a&#160;list of malicious Web sites, he said. In addition, some states have taken action against spyware, and cybersecurity groups&#39; public education programs seem to be working, he said.But Ron Teixeira, executive director of the National Cyber Security Alliance (NCSA), noted that consumers may know more about spyware, but they aren&#39;t always acting on their knowledge. A survey released by the NCSA and McAfee earlier this month found 78 percent of respondents&#39; computers didn&#39;t have all three of what the NCSA calls the &quot;core protection&quot; software: anti-virus, antispyware, and firewall.&quot;We&#39;re not seeing a huge increase in the actual behavior change,&quot; he said.
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Leading security software vendor PC Tools is pleased to see House  passage of the Internet Spyware (I-Spy) Prevention Act of 2007,  providing the justice system with greater power and resources to  prosecute cyber criminals. "We need to give these criminals more than a  slap on the wrist.
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The House of Representatives passed legislation Wednesday that further penalizes the use of spyware, but leaves out requirements for compliance by software developers.
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Anti-spyware company had granted another company rights to its software.
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SEOUL: South Korean microchip makers said they face a US investigation into a price-fixing conspiracy in which German maker Infineon technologies has already suffered heavy fines.
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California's pioneering law aimed at cracking down on spyware -- signed this week to curb the software that hides on computers and secretly follows users around the Web -- is only a partial step toward protecting consumers, critics said on Friday.
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Release of anti-spyware tool, promise of virus removal software could spell trouble for antivirus software companies.
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(InfoWorld) - A California attorney claims he has unraveled part of the mystery behind a questionable software program and is prepared to go to court. Attorney Joseph M. Bochner filed a class-action civil suit last September in California Superior Court in Santa Clara County against two men the suit alleges are behind Winfixer, a purported security software. The lawsuit names Marc J. Cohen of Florida, and was amended last week to add James Reno of Ohio as an additional defendant, Bochner said. It seeks compensation and a halt to the distribution of Winfixer, among other remedies. The suit was filed on behalf of Beatrice Ochoa, a mother of two who paid US$39.95 for Winfixer after it badgered her with repeated pop-up warnings that her computer had security threats. The program eventually rendered her computer's hard drive unusable, Bochner said. The suit counts another 100 anonymous victims. "All of these people are being defrauded and they're just ordinary folks," Bochner said. "They buy a computer, they surf the Internet, they're not doing anything unreasonable and suddenly they're defrauded." Indecision over whether Winfixer is a legitimate product may be the reason it still pervades the Internet. Winfixer has been a moving target for security experts, at times going by the names ErrorSafe, WinAntiSpyware, WinAntiVirus, SystemDoctor and DriveCleaner. Security software from vendors such as Sophos PLC and Symantec Corp. will detect it, but give users the option of whether they want to remove it. Sophos calls it "adware" that hypes security threats and then implores users to buy the software. Microsoft Corp., however, pulled no punches last month whenÂ Winfixer ads began show up on its instant-messaging program, calling it "malware," a shorter term for "malicious software." Experts have also seen it install itself on computers via security vulnerabilities in browsers or OSes. However, the lawsuit could face hurdles in court. Web sites are frequently registered under false names or under stolen identifies and the real owners can be difficult to trace, said Sandi Hardmeier, a computer security authority who writes about Winfixer on her blog "Spyware Sucks." Proving the link to the alleged perpetrators, their connections to Winfixer all the way through to the effects on Ochoa's computer will be very difficult, she said. "Forensics is everything," she said. Bochner acknowledges it's hard work to track down fraudsters who use the Internet's anonymity to commit crimes, but the criminals are real people who can be located. Bochner said he has compelling documentation to link the defendants named in the suit to Winfixer. By researching IP (Internet Protocol) addresses that hosted the versions of Winfixer and their owners, Bochner alleges he has uncovered a fraud based in the U.S. that has escaped law enforcement scrutiny. Reno ran a Web hosting company called ByteHosting Internet Service LLC with a postal address in Amelia, Ohio. Bochner said at one time, a support number for Winfixer support also rang through to ByteHosting, which led in part to Reno being added to the suit. Reno, along with other co-defendants and ByteHosting, was sued by Symantec Corp. in 2004 for allegedly creating pop-up ads that told consumers their Symantec software was about to expire. The ads then directed users to fake software that looked similar to Symantec products. Court records show Reno and Symantec reached a confidential settlement in December 2004. Cohen was named for his connections with vipfares.com, a now-defunct travel Web site, Bochner said. At one time, the Winfixer software would hijack the user's browser and suddenly show vipfares.com, he said. Efforts to reach Cohen and Reno for comment were unsuccessful on Wednesday and Thursday. However, Cohen's attorney, Judy Silverstein, appeared on a San Francisco TV news program on Feb. 26 regarding Winfixer and her client. Silverstein said, "His [Cohen's] position is he's done nothing wrong. He's done nothing improper or illegal, and he's had no ownership interested in those Web sites." Bochner said he has turned over some of his research to law enforcement agencies such as the U.S. Federal Bureau of Investigation and Secret Service along with California authorities. While researching IP addresses that linked to Winfixer, Bochner said he suddenly came upon a database detailing sales of Winfixer and the other versions of the programs. The multi-gigabyte database -- apparently left unsecured and open to the Internet -- contained names, addresses, credit-card numbers, transaction amounts and the version of Winfixer that was sold, he said. For example, on Jan. 20, 2006, the data showed 2,351 sales to users worldwide, with an average transaction amount of $40, Bochner said. The database covers transactions made from January 2005 through January 2006. One of the records shows a transaction made by someone who lives across the street from his law office, Bochner said. The data, while incomplete, allows a view of the fraud ring's broad reach and scope, he said. "I think this is far larger than anyone has ever expected," Bochner said. "It's not inconceivable that these people have made $150 million or more over the last few years." Â
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Ever heard of Giant Company Software Inc? Not yet, well perhaps from today as they became Microsoft Corporations latest purchase as Microsoft try to enter the anti-spyware industry as is being portrayed.
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Security researchers at South Korea's first international hacker conference rip holes in Linux and VOIP. But where are the drinking games? Quinn Norton reports from Seoul.
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Two bills designed to curb the proliferation of Internet "spyware" took another step toward law this week with overwhelming approval from the House of Representatives, but supporters said they face a tough race against the clock to get Senate approval before Congress disperses for the November elections.
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Companies and others that secretly install "spyware" programs on people's computers to quietly monitor their Internet activities would face hefty federal fines under a bill the House passed Tuesday.
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A prominent Internet safety organization and leading computer-maker Dell Inc. launched a campaign Friday to help consumers fend off "spyware," software that can cause sluggish computer performance or popup ads and secretly monitor the activities of Internet users.
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Can't pay, will only pay $50K Two alleged spyware operations have settled lawsuits brought by the US Federal Trade Commission.â¦
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The irony of the German government floating a proposal to deploy spyware to infect the computers of suspected criminals isn't lost on the security community, still furious over the "anti-hacking" law that has undermined legitimate security research in that country.