Does M$ Have A Strategy For Windows?

As we reported earlier today, Microsoft CEO Satya Nadella proclaimed the virtues of its cloud computing platform.

Windows 10 Passes 20% User Share Mark

For the first time since its debut, Windows 10 accounted for more than one-fifth of the visits to sites tracked by the Digital Analytics Program (DAP), which mines traffic to more than 4,000 websites on over 400 different domains maintained by U.S. government agencies, such as the Internal Revenue Service and the National Weather Service.

IRS Reducing Size Of Cybersecurity Staff

The Internal Revenue Service, which confirmed rumors of a breach of 100,000 taxpayer accounts, has been consistently reducing the size of its internal cybersecurity staff as it increases its security spending. This may seem paradoxical, but one observer suggested it could signal a shift to outsourcing.

In 2011, the IRS employed 410 people in its cybersecurity organization, but by 2014 the headcount had fallen by 11% to 363 people, according to annual reports about IRS information technology spending by the U.S. Treasury Department Inspector General.

Despite this staff reduction, the IRS has increased spending in its cybersecurity organization. In 2012, the IRS earmarked $129 million for cybersecurity, which rose to $141.5 million last year, an increase of approximately 9.7%.

This increase in spending, coupled with the reduction in headcount, is an indicator of outsourcing, said Alan Paller, director of research at the SANS Institute. Paller sees risks in that strategy.

“Each organization moves at a different pace toward a point at which they have outsourced so much that the insiders do little more than manage contracts, and lose their technical expertise and ability to manage technical contractors effectively,” said Paller.

An IRS spokesman was not able to immediately answer questions about the IRS’s cybersecurity spending.

This breach is drawing congressional scrutiny. On Tuesday, U.S. Senator Orrin Hatch (R-Utah), who heads the Senate Finance Committee, called the breach “unacceptable.”

The IRS’s total IT budget in 2014 was $2.5 billion, an increase from the prior year’s $2.3 billion, with 7,339 employees last year, little change from 7,303 reported in 2013.

The agency’s IT budget has fared better than the agency overall. Congress has been cutting spending at the agency. IRS funding has been reduced by $1.2 billion over the last five years, from $12.1 billion in 2010 to $10.9 billion this year. An IRS official told lawmakers earlier this year that the budget cuts have delayed critical IT investments of more than $200 million, which includes replacing aging IT systems.

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Self-Healing Software On The Way

Researchers at the University of Utah have developed self-healing software that detects, expunges and protects against malware in virtual machines.

Called Advanced Adaptive Applications (A3), the software suite was created in collaboration with US defence contractor Raytheon BBN over a period of four years.

It was funded by DARPA through its Clean-Slate Design of Resilient, Adaptive, Secure Hosts programme, and was completed in September, Science Daily reported on Thursday.

A3 features “stackable debuggers”, a number of debugging applications that cooperate to monitor virtual machines for indications of unusual behaviour.

Instead of checking computer object code against a catalogue of known viruses and other malware, the A3 software suite can detect the operation of malicious code heuristically, based on the types of function it attempts.

Once the A3 software detects malicious code, it can apparently suspend the offending process or thread – stopping it in its tracks – repair the damage and remove it from the virtual machine environment, and learn to recognise that piece of malware to prevent it entering the system again.

The self-healing software was developed for military applications to support cyber security for mission-critical systems, but it could also be useful in commercial web hosting and cloud computing operations.

If malware gets into such systems, A3 software could detect and repair the attack within minutes.

The university and Raytheon demonstrated the A3 software suite to DARPA in September by testing it against the notorious Shellshock exploit known as the Bash Bug.

A3 detected and repaired the Shellshock attack on a web server within four minutes. The project team also tested A3 successfully on another six examples of malware.

Eric Eide, the research associate professor of computer science who led the A3 project team along with computer science associate professor John Regehr, said: “It’s pretty cool when you can pick the Bug of the Week and it works.”

The A3 self-healing software suite is open source, so it’s free for anyone to use, and the university researchers would like to extend its applicability to cloud computing environments and, perhaps eventually, end-user computing.

Professor Eide said: “A3 technologies could find their way into consumer products someday, which would help consumer devices protect themselves against fast-spreading malware or internal corruption of software components. But we haven’t tried those experiments yet.”

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Is Apple Hiding Billions?

According to Apple’s Q4 corporate filings, the company channeled $11 billion into tax havens in a single quarter. The Sunday Times claims the company is sheltering a total of $94 billion in tax havens. However, Apple’s activities are completely legal and the IRS can’t do anything about it.

But Apple’s tax avoidance strategy is not limited to the US. The company is avoided an estimated £550 million in tax in Britain back in 2011. A different analysis suggests a £550 million tax bill. Let’s not forget Kate Middleton is about to have a baby, and babies tend to cost money, so shame on you Apple.

American politicians, from both sides of the political spectrum, like to have their photos taken next to anything Apple.  The company is often viewed as an American success story, as it managed to reinvent itself and come back from the brink to become the world’s second most valuable company.

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ID Theft Projected To Cost $21B

A new audit of the Internal Revenue Service (IRS) has discovered that the agency paid refunds to criminals who filed fraudalent tax returns, in some cases on behalf of people who had died, according to the Treasury Inspector General for Tax Administration (TIGTA), which is part of the U.S. Treasury.

The IRS stands to lose as much as US$21 billion in revenue over the next five years due to identity theft, according to TIGTA’s audit, dated July 19 but publicized on Thursday.

TIGTA noted that the IRS did not agree with the $21 billion figure, but wrote that the figure does include estimated savings from new fraud control filters. Without new controls, TIGTA estimated losses of $26 billion.

Part of problem is that the IRS is not gathering enough data about fraud trends, such as how a return was filed, income information from W-2 forms, the amount of refunds and where those refunds were sent, TIGTA said.

“We found that $8.1 million in potentially fraudulent tax refunds involved tax returns filed from one of five addresses,” the audit said.

The IRS said it detected 938,664 fake tax returns during the 2011 processing year, which would have cost $6.5 billion. While TIGTA said the figure was “substantial,” it believes the IRS doesn’t know how many identity thieves are filing bogus returns and how much money is lost.

The IRS has implemented new fraud detection measures, but TIGTA found that institutional procedures were undermining those efforts. For example, taxpayers can begin filing returns in mid-January, but third parties that have information linked to those tax returns do not have to file until March 31.

The IRS is contacting some taxpayers to verify their identity. That simple measure stopped the issuance of $1.3 billion in potentially fraudulent tax returns as of April 19, TIGTA said.

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DoJ Charges Clickjacking Perpetrators

The U.S. Department of Justice is charging seven individuals with 27 counts of wire fraud and other computer-related crimes, accusing the group of hijacking 4 million computers across 100 countries in a sophisticated clickjacking scam.

According to the indictment, the defendants had set up a fake Internet advertising agency, entering into agreements with online ad providers that would pay the group whenever its ads where clicked on by users. The group’s malware, which it had planted on millions of user computers, would redirect the computers’ browsers to its advertisements, thereby generating illicit revenue.

The malware worked by capturing and altering the results of a user’s search engine query. A user would search for a popular site, such as ones for Netflix, the Wall Street Journal, Amazon, Apple iTunes and the U.S. Internal Revenue Service. Whenever the user would click on the provided link, however, the browser would be redirected to another website, one that the group was paid to generate traffic for.

The malware the group used also blocked antivirus software updates, which left users vulnerable to other attacks as well, according to the DOJ.

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