Is Samsung Preparing For A Price War?

Samsung Electronics changing its approach to its memory chip business and focus on market share over profit margins and the industry will suffer, according to one analyst.

The Linux Foundation Goes Zephyr

The Linux Foundation has launched its Zephyr Project as part of a cunning plan to create an open source, small footprint, modular, scalable, connected, real-time OS for IoT devices.

Android Is Coming To The Desktop

Jide Technology has released an Alpha build of its much praised Remix OS version of Android, available free of charge.

Cisco Warns Of Bug In Virtual App

Cisco has warned of a default Secure Shell vulnerability in three of its virtual applications.

The flaw could allow attackers to decrypt traffic exchanged in the services, and has been detailed in a Cisco security advisory.

It affects Cisco’s Web Security Virtual Appliance (SMAv), Email Security Virtual Appliance and Security Management Virtual Appliance, which are already commercially available.

Cisco said that it “is not aware of any public announcements or malicious use of the vulnerabilities”, but warned that attackers who got hold of the private keys could decrypt communications with a man-in-the-middle attack.

The default private encryption keys were preinstalled on all three of the products, a move which is considered bad security practice.

“Successfully exploiting this vulnerability on Cisco SMAv allows an attacker to decrypt communication toward SMAv, impersonate SMAv, and send altered data to a configured content appliance,” the advisory said.

“An attacker can exploit this vulnerability on a communication link toward any content security appliance that was ever managed by any SMAv.”

Cisco has released a patch which deletes the preinstalled SSH keys and explains how customers can correct the problem.

The Cisco-sa-20150625-ironport SSH Keys Vulnerability Fix comes as part of several product upgrades, and must be manually installed from a command line interface.

Cisco’s advisory said that the patch is not required for physical hardware appliances, or for virtual appliance downloads or upgrades after 25 June.

Cisco revealed details of a new point of sale attack earlier this year that could part firms from money and customers from personal data.

The threat, called PoSeidon by the Cisco team, came at a time when eyes were on security breaches at firms like Target.

Cisco said in a blog post that PoSeidon is a threat that has the ability to breach machines and scrape them for credit card information.

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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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ARM Buys Offspark For IoT

ARM has snaffled up Dutch Internet of Things (IoT) company Offspark.

The move is designed to improve ARM’s security credentials for IoT offerings.

Offspark is the creator of PolarSSL, a widely used protocol for IoT security products, and ARM hopes that the combined companies can offer a one-stop shop for IoT developers.

Krisztian Flautner, ARM’s IoT manager, said: “PolarSSL technology is already deployed by the leading IoT players.

“The fact that those same companies also use ARM Cortex processor and software technologies means we are now able to provide a complete bedrock solution for the industry to innovate from.”

The product will be renamed ARM Mbed TLS, but will remain open source, reports Tech Week Europe.

Paul Bakker, CEO of Offspark, added: “Security is the most fundamental aspect in ensuring people trust IoT technology and that is only possible with a truly tailored solution.

“Together, ARM and Offspark can provide security to the edge of any system and we look forward to working with our partners to help them deliver some exciting new projects.”

Developers will be able to license the technology for commercial use as well as embedding it into future ARM products.

Last week the company released the ARM Cortex-A72 processor, a 64-bit effort offering support for Android 5.x Lollipop and incorporating the big.LITTLE architecture that prioritises jobs to different processor cores based on their computational requirements.

A message on the Offspark website indicates that it has been taken down and redirects to ARM.

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ARM Develops IoT For Students

ARM has created a course to teach IoT skills to students at University College London (UCL)

The course is designed to encourage graduates in science, technology, engineering and maths (Stem) to seek careers in IT.

The IoT Education Kit will teach students how to use the Mbed IoT operating system to create smartphone apps that control mini-robots or wearable devices.

Students are expected to be interested in building their own IoT business, or joining IoT-focused enterprises like ARM. The course will also try to limit the number of Stem graduates pursuing non-technology careers.

ARM reported statistics from a 2012 study by Oxford Policy and Research revealing how many engineering graduates (36 percent of males, 51 percent of females), technology graduates (44 percent, 53 percent) and computer scientists (64 percent, 66 percent) end up with non-Stem jobs.

The IoT Education Kit will be rolled out by UCL’s Department of Electronics from September 2015, with a week-long module for full-time and continuing professional development students.

The Kit comprises a complete set of teaching materials, Mbed-enabled hardware boards made by Nordic Semiconductor, and software licensed from ARM. A second teaching module for engineering graduates is being developed for 2016.

“Students with strong science and mathematical skills are in demand and we need to make sure they stay in engineering,” said ARM CTO Mike Muller.

“The growth of the IoT gives us a great opportunity to prove to students why our profession is more exciting and sustainable than others.”

UCL professor Izzat Darwazeh also highlighted the importance of Stem skills, saying that “many students are not following through to an engineering career and that is a real risk to our long-term success as a nation of innovators”.

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Yet Another Retailer System Hacked

Women’s clothing retailer Bebe Stores has become the latest in a growing list of national retailers to be hit by an attack on its credit card payment system.

The company said Friday that the cardholder name, account number, expiration date, and verification code could have been stolen by hackers who apparently had access to the company’s payment processing system between Nov. 8 and 26.

The incident came to light in late November when Bebe said it noticed suspicious activity on computers that operate the payment processing system. Stores affected were the roughly 200 it operates in the U.S., Puerto Rico and the U.S. Virgin Islands.

“If you used a payment card at a U.S., Puerto Rico or U.S. Virgin Islands store during this time frame, you should review your account statements for any unauthorized activity,” it said in a message to customers.

The last couple of years have been bad ones for the safety of credit card data at major U.S. retailers. Millions of credit and debit card numbers have been compromised in breaches at retailers, including Target, Home Depot, PF Chang’s restaurants, Super Valu grocery stores, Neiman Marcus, UPS Store and others.

In many cases, the attacks were targeted at payment processing terminals and used sophisticated malware that stole card details as consumers swiped their cards. Many of the thefts were only discovered after the card numbers appeared for sale on Internet hacking forums.

Such was the case with Bebe Stores. First news of the hack came earlier this week through the closely followed Krebs on Security blog.

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Will The Drupal Flaw Be Catastrophic?

The Drupal web content management system has been exposed as having backdoor access that could deliver your site to hackers.

The problem is not particularly new. Drupal warned about it earlier this month, but it still needs tackling as millions of websites may be at risk.

Drupal said that sites running version 7 really ought to have upgraded to 7.32 by now, because not doing so leaves them as open as a torn tea bag.

Initially the alert was about the threat, but the firm has updated its earlier advice and is now warning of in-the-wild attacks.

That earlier advice was about a problem in a database API. “A vulnerability in this API allows an attacker to send specially crafted requests resulting in arbitrary SQL execution,” warned Drupal in a security alert.

“Depending on the content of the requests this can lead to privilege escalation, arbitrary PHP execution, or other attacks. This vulnerability can be exploited by anonymous users.”

More recent information from the firm points users toward the released upgrade, and informs them that attacks started not long after the initial announcement.

“You should proceed under the assumption that every Drupal 7 website was compromised unless updated or patched before Oct 15th, 11pm UTC, that is seven hours after the announcement,” it said, adding that, even when updated, sites will have some cleaning up to do.

“If you have not updated or applied this patch, do so immediately, then continue reading this announcement; updating to version 7.32 or applying the patch fixes the vulnerability but does not fix an already compromised website,” it explains.

“If you find that your site is already patched but you didn’t do it, that can be a symptom that the site was compromised – some attacks have applied the patch as a way to guarantee they are the only attacker in control of the site.”

Gavin Millard, EMEA technical director at Tenable Network Security, advised people to follow Drupal’s advice.

“The so-called ‘Drupageddon’ vulnerability could have easily led to exploitation of any systems running the vulnerable code. With such an easy to exploit flaw, the chance of exfiltration of data or further exploitation are high,” he said.

“For those who have good security controls, reviewing of logs and traffic directed at the sites following the vulnerability being announced and the patch applied is common sense and highly advisable, with appropriate action taken if indicators of compromise are found.

“For those who don’t have such a good level of security or visibility into the logs, the advice from the Drupal team should be heeded. If you don’t know if you were exploited you should assume that you have been.”

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Zeus Attached To Cancer Email Scam

Thousands of email users have been hit by a sick cancer email hoax that aims to infect the recipients’ computers with Zeus malware.

The email has already hit thousands of inboxes across the UK, and looks like it was sent by the National Institute for Health and Care Excellence (NICE). It features the subject line “Important blood analysis result”.

However, NICE has warned that it did not send the malicious emails, and is urging users not to open them.

NICE chief executive Sir Andrew Dillon said, “A spam email purporting to come from NICE is being sent to members of the public regarding cancer test results.

“This email is likely to cause distress to recipients since it advises that ‘test results’ indicate they may have cancer. This malicious email is not from NICE and we are currently investigating its origin. We take this matter very seriously and have reported it to the police.”

The hoax message requests that users download an attachment that purportedly contains the results of the faux blood analysis.

Security analysis firm Appriver has since claimed that the scam email is carrying Zeus malware that if installed will attempt to steal users’ credentials and take over their PCs.

Appriver senior security specialist Fred Touchette warned, “If the attachment is unzipped and executed the user may see a quick error window pop up and then disappear on their screen.

“What they won’t see is the downloader then taking control of their PC. It immediately begins checking to see if it is being analysed, by making long sleep calls, and checking to see if it is running virtually or in a debugger.

“Next it begins to steal browser cookies and MS Outlook passwords from the system registry. The malware in turn posts this data to a server at 69.76.179.74 with the command /ppp/ta.php, and punches a hole in the firewall to listen for further commands on UDP ports 7263 and 4400.”

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