Thursday, March 31, 2011

Microsoft goes to EU over Google

Microsoft is to take an anti-competition complaint against Google to the European Commission.

The software maker claims that Google used its dominant position in the search market to restrict the growth of Microsoft services.

It cites a number of practices, including Google limiting the ability of Microsoft Bing to index web content.

Google said it was not surprised by the move and would happily explain itself.

In a detailed blog, Microsoft's general counsel, Brad Smith, outlined the company's grievances.

He wrote: "Our filing today focuses on a pattern of actions that Google has taken to entrench its dominance in the markets for online search and search advertising to the detriment of European consumers."

The post goes on to list five different ways in which Google, according to Microsoft, has sought to control the search market.

Those are:

  • Using technical measures to stop Microsoft's search engine Bing from indexing content on Google-owned YouTube.
  • Blocking Microsoft Smartphones from operating properly with YouTube.
  • Controlling access to online copies of out-of-copyright books.
  • Limiting the ability of businesses to reclaim "their own information" generated through Google advertising campaigns for use elsewhere.
  • Compelling leading websites to only use Google search boxes on their pages.
Heavy fines

The European Commission launched an investigation into allegations of anti-competitive practices by Google last November, at the behest of several internet companies, including Ciao, a shopping site owned by Microsoft.

It is likely, if the Commission accepts the latest round of complaints from Microsoft, that they would be rolled into the same investigation.

For the Microsoft case to be accepted, the company would have to prove two things - firstly that Google was dominant in a particular market, namely search, and secondly that it had abused that position.

In a statement, Google said it would cooperate with any investigation.

"We're not surprised that Microsoft has done this, since one of their subsidiaries was one of the original complainants. For our part, we continue to discuss the case with the European Commission and we're happy to explain to anyone how our business works," is stated.

Penalties for companies found to have engaged in anti-competitive practices in Europe can be severe. The EC has the power to impose fines up to 10% of global earnings.

That will likely have a bearing on how the case proceeds, according to Mark Tricker, an antitrust lawyer with the law firm Norton Rose.

He told BBC News: "Once the Commission has formulated its claims then I suspect that Google will enter into a dialogue with them to address those concerns so it does not have to reach a judgement."

Role reversal

Microsoft's position as accuser in an anti-competition case is something of a role reversal.

In the past, the world's leading software company has been the target of similar actions.

A 2003 EC ruling determined that Microsoft had unfairly advantaged its Windows Media Player software over other streaming technologies by embedding it into the Windows operating system.

It was fined �381m, followed by a further �194m in 2006 for failing to comply with elements of the original ruling.

To date, the largest fine levied by the EC was �948m against Intel in 2009.

The microchip maker was found to have offered financial incentives to manufacturers to favour its products over those of its rivals.



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UK radio pushes online listening

Almost all of the UK's radio broadcasters have joined forces to launch a system for listening to their stations over the internet.

UK Radioplayer brings together commercial outlets alongside BBC stations in an attempt to boost online listening.

Only 3% of people access radio via the web and growth has been sluggish.

Although broadcasters will now use the same interface, they are free to customise it and include advertising.

Among the radio groups supporting the project are Global, GMG, Bauer Media and UTV Radio, as well as the BBC.

Tim Davie, director of audio and music at the BBC, welcomed the move, but conceded it was perhaps overdue.

"It is true that, to a certain extent, the radio industry has lacked the level of innovation of television," he said.

Mr Davie suggested that the launch of UK Radioplayer, along with a BBC trial of high bitrate HD radio, indicated a renewed determination to innovate.

No guarantee of quality

The UK Radioplayer is intended to offer some consistency to users, with all players having the same basic controls, search function and favourites option.

However the system does not guarantee that all radio stations will provide the same quality of audio stream.

Broadcasters remain free to chose lower or higher bitrates, said Michael Hill, managing director of Radioplayer Ltd.

He told BBC News: "We wanted to leave it to stations to chose their own bitrate. That is the way for small stations to keep their costs down."

At launch, the Radioplayer will only work on devices that are capable of running Adobe's Flash platform. That includes most personal computers and some mobile phones and tablets.

A version capable of running on Apple devices will follow shortly, said Mr Hill.



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Ofcom acts to cut broadband price

The cost of home telephone and broadband services could come down after telecoms regulator Ofcom moved to reduce the wholesale price.

It has revised the list of rates that Openreach, which manages BT's network, can charge other providers for using its services.

In some cases, the wholesale price could fall by more than 10% per year.

The move will benefit companies such as TalkTalk and Sky, but not Virgin Media which uses its own cable network.



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Wednesday, March 30, 2011

Google to be audited on privacy

Google will be subjected to independent privacy audits for the next 20 years over charges that it "violated its own privacy promises".

The US Federal Trade Commission (FTC) said that the search giant wrongly used information from Google Mail users last year to create its social network Buzz.

The FTC ruled that "the options for declining or leaving the social network were ineffective".

"Google Buzz fell short of our usual standards," Google said in a blog post.



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Startup website linked to malware

A government-backed website, designed to champion the UK's start-up businesses has inadvertently linked users to malware, it has emerged.

StartUp Britain, which launched on Monday, linked to a page hosting fake anti-virus programs, according to security firm Sophos.

It will be an embarrassment for the government, which has been widely promoting the initiative.

The link was removed shortly after launch, according to StartUp Britain.

It told the BBC in a statement: "There were some issues with a link on the website at the launch. This issue has been addressed and any links that were not operating as intended have been amended or removed."

Malvertising

According to Paul Baccas, a senior threat researcher at Sophos, the link featured in an article about US investor Warren Buffet and took users to a fake banking site.

"It went to a third-party site, bankling.com, where users were redirected to a fake anti-virus page given a prompt saying their computer was infected and encouraging them to download a fix," he said.

In reality, the fix contained malware.

The exploit only affected users of Internet Explorer, including the most recent versions. Other browsers, including Firefox, were not affected.

The slip will be embarrassing for the government, especially as Prime Minister David Cameron had helped launch the site and the Number 10 website linked prominently to it.

Last month, the London Stock Exchange hosted booby-trapped adverts that asked visitors to download similar fake security software.

And this week, music streaming service Spotify apologised after 'malverts' were served to some of its users.

So-called malvertising is becoming a growing problem for businesses.



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Top Gear denies fixing Tesla race

Tesla Roadster <!-- Empty - Wide embedded hyper -->

The BBC is being sued by the makers of the electric sports car, the Tesla Roadster, over claims a race on Top Gear was rigged.

Tesla Motors claims the test set up by Jeremy Clarkson on a 2008 edition of the show was rigged to make it look like the Tesla ran out of power when racing a petrol powered Lotus.

The Tesla Roadster is the world's fastest production electric car.

A Top Gear spokesman said the BBC would be "vigorously defending" the claim.

On the programme Jeremy Clarkson claimed: "Although Tesla say it'll do 200 miles, we worked out that on our track it would run out after just 55 miles."

'Driven aggressively'

But in a statement on its website, Tesla said the Roadster's miles per charge had been certified at 211 miles by a third party European Union (EU) test.

It argued that because the car was "driven aggressively" on Top Gear the charge didn't last as long, but that if driven "mindfully" charges could last for 313 miles.

The statement also disagreed with several other elements of the show.

A Top Gear spokeswoman said: "We can confirm that we have received notification that Tesla have issued proceedings against the BBC.

"The BBC stands by the programme and will be vigorously defending this claim."



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BBC website crashes for an hour

Technical problems with the BBC website saw a total outage of the news site, iPlayer and other web services yesterday.

The disruption lasted for around an hour on Tuesday evening.

BBC bosses admitted that there had been a "major network problem" but no official explanation has yet been given.

The outage set Twitter alight with angry fans questioning how such a breakdown happened.

It led to speculation that the site had been attacked, while others blamed cutbacks.

Users trying to get on to the BBC website on Tuesday evening from around 11pm to midnight were confronted with an error message, showing the BBC's iconic test card.

"It's not often we get a message from the BBC's technical support teams saying 'total outage of all BBC websites'," blogged Steve Herrmann, editor of the BBC news website.

"We haven't had a full technical debrief, but it's clear it was a major network problem," he added.

Siemens, which provides the BBC's technical support, said network engineers were looking into the problems at sites in both Maidenhead, Berkshire and London Docklands.

In an e-mail to staff, the firm said engineers: "remotely powered down equipment at a second Internet connection at Telehouse Docklands. This got things back up and running again."

Or, in layman's terms, they turned it off and back on again.



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Tuesday, March 29, 2011

Facebook removes &#39;intifada&#39; page

Facebook has removed a page calling for a new Palestinian uprising against Israel after more than 350,000 people signed up to it.

The page which appeared on the social networking site was called Third Palestinian Intifada after two previous uprisings against Israeli occupation.

It was removed for featuring calls for violence, a company spokesman said.

Israel had raised concerns about the page. Facebook has helped spread calls for protests in Arab states.

The Third Palestinian Intifada page had called for an uprising after Muslim prayers on Friday 15 May.

"Judgment Day will be brought upon us only once the Muslims have killed all of the Jews," a quote from the page read.

According to AFP news agency, three new copycat pages have appeared, with more than 7,000 Palestinians signing up to them.

'Red lines'

Facebook said the page had begun as a call for peaceful protest, even though it used the term "intifada" with its connotation of violent revolt.

"Start Quote

It seems that [Israeli] Minister Yuli Edelstein needs lessons in human rights and freedom of expression as he is not aware of the world's respect for individual opinion"

End Quote Demtri Deliani Fatah official

"However, after the publicity of the page, more comments deteriorated to direct calls for violence," said Andrew Noyes, Facebook's public policy communications manager.

The creators of the page eventually made calls for violence as well, he added.

"We monitor pages that are reported to us, and when they degrade to direct calls for violence or expressions of hate - as occurred in this case - we have and will continue to take them down," Mr Noyes said.

In a letter last week to Facebook founder Mark Zuckerberg, Israeli Public Diplomacy Minister Yuli Edelstein said the page featured "wild incitement" with calls to kill Jews and talk of "liberating" Jerusalem through violence.

"I asked Mr Zuckerberg that the red lines of freedom of expression and incitement and violence should not be crossed," he said.

"I welcome that decision even though I am sure that more cat-and-mouse games await us and there will be attempts by our enemies and those who hate us to enter Facebook in other ways."

Demetri Deliani, a leading member of the Palestinian party Fatah, mocked Israel's request to remove the page.

"It seems that Minister Yuli Edelstein needs lessons in human rights and freedom of expression as he is not aware of the world's respect for individual opinion," he told the official Palestinian news agency Wafa.



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Spotify ads hit by malware attack

Spotify has apologised to users after an advertisement containing a virus was displayed to some users of the music-streaming service.

The advertisement, which appeared within Spotify's Windows desktop software, did not need to be clicked on in order to infect a user's machine.

The exploit would install a bogus 'Windows Recovery' anti-virus program.

"Users with anti-virus software will have been protected," Spotify said in a statement.

"We quickly removed all third party display ads in order to protect users and ensure Spotify was safe to use.

"We sincerely apologise to any users affected. We'll continue working hard to ensure this does not happen again and that our users enjoy Spotify securely and in confidence."

The vulnerability only affects users with free subscriptions.

Security research specialists Websense said it received the first report of "malvertising" on the service at 11:30GMT on 24 March, noting that it used the Blackhole Exploit Kit - a tool for hackers - to carry out the attack.

"Start Quote

If you had Spotify open but running in the background, listening to your favorite tunes, you could still get infected"

End Quote Patrik Runald Websense

Malvertising is usually confined to content viewed through web browsers, but this instance was displayed within the Spotify software itself for people with a free membership.

"The application will render the ad code and run it as if it were run inside a browser," explained Websense's Patrik Runald in a blog post.

"This means that the Blackhole Exploit Kit works perfectly fine and it's enough that the ad is just displayed to you in Spotify to get infected, you don't even have to click on the ad itself.

"So if you had Spotify open but running in the background, listening to your favorite tunes, you could still get infected."

Avast! anti-virus said the majority of their users reporting infections were from Sweden (59%), while 40% of virus reports relating to the vulnerability came from the UK. The rest were from other countries.

Spotify, which is based in Sweden, has around seven million users, six million of which use the free service affected.



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Amazon unveils cloud music player

Amazon has unveiled an online music service that lets users to upload songs and play them from a range of devices.

The internet retailer launched its Cloud Player in the US, ahead of rivals Apple and Google which are rumoured to be developing similar systems.

Users are given 5Gb of storage space, roughly equivalent to 1,200 tracks, but can opt to pay for additional capacity.

Cloud Player works with Blackberry, Palm and Android mobiles, although there is no support for Apple's iOS.



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Monday, March 28, 2011

Internet advertising worth �4bn

The internet now accounts for a quarter of all advertising spending in the UK, according to figures.

Theyu show that the value of online advertising grew by 12.8% in 2010, breaking through the �4bn barrier.

A study by the Internet Advertising Bureau (IAB) and the accountants PwC found that online advertising spending grew three times as rapidly as in 2009.

It also outpaced the rest of the advertising market, which has recovered after dipping during the recession.

Guy Phillipson, the chief executive of the IAB, said: "Major brands restored their advertising budgets in 2010 and online was a big winner."

The biggest growth area was display advertising on social networks, which grew by nearly 200%.

Print media's pain

Facebook has made big advances in the last year in persuading advertisers to see social networks as a place to promote their wares.

With figures showing that UK internet users spend 25% of their online time on social networks, advertisers are keen to tap into this audience.

Online video advertising also nearly doubled in 2010, with �54m spent on adverts that appeared before, during or after video clips.

Mobile advertising raced ahead too, with finance, telecoms and consumer brands trying to reach audiences on the move.

Search advertising, still dominated by Google, remains the biggest earner, although growth in this more mature business was just 8%.

Ian Barber of the Advertising Association says there is one clear attraction which is boosting online spending: "It's targeted, it makes it easier for brands to work out who they're advertising to."

Other areas of advertising recovered last year, with television spending bouncing back after a steep decline.

But much of the Press is still suffering, with magazines and regional newspapers seeing revenues continue to fall. Classified advertising, once a key element in regional newspaper revenues, has now nearly all migrated online.

But Lynne Anderson of the Newspaper Society says local newspapers are capturing some of that online advertising spending on their own websites: "They are getting pretty savvy at capturing audiences in new ways."

She added: "Regional newspapers - print and online - are resilient, innovative and well-placed to benefit when wider market conditions improve."

The IAB expects online spending to continue to grow, as faster broadband makes new formats increasingly attractive.



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Twitter founder rejoins company

Twitter co-founder Jack Dorsey, who was pushed out of the company as chief executive in 2008, is to return full time to lead product development.

He will replace fellow co-founder Evan Williams, who has stepped back from daily involvement with Twitter but will remain on the board.

The announcement was tweeted by chief executive Dick Costolo who wrote that he was "excited" by the return.

Mr Dorsey followed up the tweet, saying that he was "thrilled".

He says he intends to remain chief executive of a mobile payments service called Square, which is located near Twitter's San Francisco headquarters.

"As executive chairman, Jack will dive into work with more than 450 people, led by an experienced executive team," Twitter said in a company statement.

"The timing is fortuitous; not only is Twitter experiencing record growth, but we also now have a new infrastructure that will keep us ahead of that growth and enable us to launch products that will make Twitter more instant, simple and always present," the statement said.

The move comes at an important time for the information and communications platform.

Despite the phenomenal take up by around 200 million users, the company faces challenges ahead as it proves itself to be a profitable business.

Last week Twitter celebrated its fifth birthday.



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Hackers target business secrets

Intellectual property and business secrets are fast becoming a target for cyber thieves, a study suggests.

Compiled by security firm McAfee, the research found that some hackers are starting to specialise in data stolen from corporate networks.

McAfee said deals were being done for trade secrets, marketing plans, R&D reports and source code.

It urged companies to know who looks after their data as it moves into the cloud or third-party hosting centres.

"Cyber criminals are targeting this information based on what their clients are asking for," said Raj Sumani, chief technology officer in Europe for McAfee.

He said that some business data had always been scooped up when net thieves compromised PCs using viruses and trojans in a search for logins or credit card details.

The difference now was that there exists a ready market for the data they are finding. In some cases, said Mr Sumani, thieves were running campaigns to get at particular companies or certain types of information.

Perimeter defences

Thefts of intellectual property or key documents could be hard to detect, said Mr Sumani.

"You may not even know it's stolen because they just take a copy of it," he said.

Defending against these threats was getting harder, he said, because key workers with access to the most valuable information were out and about using mobile devices far from the defences surrounding a corporate HQ.

"Smartphones and laptops have crossed the perimeter," said Mr Sumani.

The report comes in the wake of a series of incidents which reveal how cyber criminals are branching out from their traditional territory of spam and viruses.

2010 saw the arrival of the Stuxnet virus which targeted industrial plant equipment and 2011 has been marked by targeted attacks on petrochemical firms, the London Stock Exchange, the European Commission and many others.

Mr Sumani said that, as firms start to use cloud-based services to make data easier to get at, they had to work hard to ensure they know who can see that key corporate information.

Otherwise, he warned, in the event of a breach, companies could find themselves losing the trust of customers or attracting the attention of regulators.

"You can transfer the work but you cannot transfer the liability," said Mr Sumani.



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Sunday, March 27, 2011

Invention &#39;boosts phone storage&#39;

Scottish researchers have helped to create a device which improves memory storage for technology including MP3s, smartphones and cameras.

The device uses a tiny mechanical arm to translate data into electrical signals.

This allows faster operation and uses less energy compared with conventional memory storage products.

The Edinburgh University researchers worked with the Konkuk University and Seoul National University, in Korea.

The device records data by measuring the current passing through a carbon nanotube, and the binary value of the data is determined by an electrode that controls the flow of current.

Previous attempts to use carbon nanotube transistors for memory storage hit a stumbling block because they had low operational speed and short memory retention times.

By using a mechanical arm to charge the electrode, which operates faster than conventional memory devices, scientists have been able to overcome the problems.

'Novel approach'

Prof Eleanor Campbell, from Edinburgh University's school of chemistry, said: "This is a novel approach to designing memory storage devices.

"With this device you have much faster switching on and off which you do not have with conventional memory storage devices.

"However, one of the issues with these novel devices is how easy they can be manufactured on an industrial scale, which we are yet to see."

Prof Campbell said research was continuing with colleagues in Korea on increasing the operating speed of the device even further.

The findings were published in the journal Nature Communications.



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Friday, March 25, 2011

Spam kings sought after takedown

The Rustock botnet, which sent up to 30 billion spam messages per day, might have been run by two or three people.

Early analysis, following raids to knock out the spam network, suggest that it was the work of a small team.

Rustock was made up of about one million hijacked PCs and employed a series of tricks to hide itself from scrutiny for years.

Since the raids on the network's hardware, global spam levels have dropped and remain relatively low.

Net gains

"It does not look like there were more than a couple of people running it to me," said Alex Lanstein, a senior engineer at security firm FireEye, which helped with the investigation into Rustock.

Mr Lanstein based his appraisal on familiarity with Rustock gained while working to shut it down over the past few years.

He said that the character of the code inside the Rustock malware and the way the giant network was run suggested that it was operated by a small team.

That work by FireEye, Microsoft, Pfizer and others culminated on 16 February with simultaneous raids on data centres in seven US cities that seized 96 servers which had acted as the command and control (C&C) system for Rustock.

Mr Lanstein said hard drives from the servers had been handed over to a forensic firm that will scour them for clues as to the identity of the network's controllers.

His hunch that a small team was behind Rustock is partly based on how different it was to other spam networks such as Zeus.

That network, said Mr Lanstein, operates on a franchise basis and involves many different groups and cyber criminals.

By contrast, Rustock was a tightly controlled, if huge, network that brought with it many of the administration headaches suffered by any web-based business.

"They ran into a lot of problems with managing their assets and pushing updates out to a million user network," he said.

Rustock evaded capture for years because of the clever way it was controlled, he said. Victims were snared when they visited websites seeded with booby-trapped adverts and links.

Once PCs were compromised, updates were regularly pushed out to them using custom written encryption. Those downloads contained the spam engine that despatched billions of ads for fake pharmaceuticals.

Updates to PCs in Rustock were also disguised to look like comments in discussion boards, making them hard to spot by security software which typically looks for well-known signs of malware.

The servers controlling Rustock were also located within hosting centres in the US rather than overseas.

"By locating all the C&C servers in middle-America, not in major metropolitan areas, they were able to stay off the radar," said Mr Lanstein.

Hosting costs for the C&C systems ran to about $10,000 (�6,211) per month, he said.

It was hard to estimate how much money the operators of Rustock had made, said Mr Lanstein, but it was likely to be a huge figure.

Since the raids, Rustock's controllers do not seem to have tried to re-assert control of their creation. Legal steps taken by Microsoft could limit any future attempt, said Mr Lanstein, adding that he was not sure they would even try.

"When you are a programmer and you realise that you have the full force of the Microsoft legal department pointed directly at you, then you might say to yourself its time to try something else," he said.



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Microsoft buys old net addresses

Microsoft has offered to pay $7.5m (�4.7m) for net addresses from bankrupt telecoms firm Nortel.

The 666,624 IP version 4 (IPv4) net addresses were put up for auction as part of the sell-off of Nortel's assets.

Blocks of IPv4 are valuable because the pool of this generation of address is close to running dry.

It was predicted that a market in IPv4 would appear among companies facing a costly migration to the newer IPv6.

Details of the sale were contained in papers filed to a Delaware bankruptcy court and show that Microsoft's bid was the highest of the 80 firms asked if they wanted to make an offer for the IP addresses.

The deal is yet to be approved by that court and anyone who objects to it can file their comments before 4 April.

If it goes through, Microsoft will get hold of 470,016 of the IP addresses instantly and the remaining 196,608 will be released as former customers of Nortel are moved to other telecoms firms.

IP addresses are used to identify individual computing devices on the internet and private networks.

IPv4 allows for a maximum of approximately 4.3 billion devices.

That number seemed enough in the early 1980s when the standard was first proposed, however the rapid growth in personal computers, smartphones and other internet connected devices means that addresses have been rapidly running out.

The last big blocks of IPv4 addresses were handed out in February and all of them are expected to be used up by late 2011.

Net firms are in the process of moving to version 6 of the IP addressing scheme, which offers more than 3 undecillion individual numbers (3 with 38 noughts)

However, the migration is happening very slowly.

In the interim, it is expected that IPv4 addresses will become increasingly valuable.

It is not clear why Microsoft wants to buy Nortel's supply, however many companies are keen to avoid the cost of changing their networking systems over to IPv6 compatible equipment.

The Microsoft-Nortel deal values the IPv4 address blocks at $11.25 (�7) each, higher than the price many firms charge for a .com domain. This was indicative, said experts, that the market for IPv4 addresses was heating up.

Registries that oversee the allocation of net addresses are also working on plans for a re-circulation system that takes IPv4 addresses from firms that are using IPv6 and releases them for use by others.



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Thursday, March 24, 2011

Cyber summit signs training deal

A conference on cyber security has ended with a university deal to train a new generation of experts in fighting off criminal and terrorist IT attacks.

The summit in Cardiff agreed that the UK and the US would need to produce many thousands of people with this expertise over the next few years.

Delegates at the University of Wales event included the UN, the US defence department, Microsoft and IBM.

The US says government systems are under continued attack.

The US federal government recently announced plans to spend more than $13bn a year within the next five years on protecting its systems.

In the UK, cyber crime is costing the economy up to �27bn every year, it is estimated.

US officials say cyber criminals, terrorists and other nations are getting better at penetrating state and private networks, whether to spy, to steal data or damage critical infrastructure.

"Start Quote

Cyber-physical security is now considered the number one threat to national security"

End Quote Professor John Williams Geospatial Data Centre, MIT

Last week, the head of the Pentagon's cyber command said the US military lacked the people and resources to defend the country adequately from concerted cyber attacks.

The two-day summit was organised by the University of Wales Global Academy and the Geospatial Data Center of the Massachusetts Institute of Technology (MIT) in the US.

It also included professors from Harvard University, the University of Oxford, University of Memphis, Boston University and the University of Central Florida.

'Overriding issue'

The University of Wales and the Geospatial Data Centre at MIT signed an agreement to jointly develop cyber security leadership and training programmes.

University of Wales vice-chancellor Professor Marc Clement said he believed the summit was a "major coup" for Wales and the deal signed would put Wales at the forefront of cyber security defence.

He said the university hoped to "work closely with many of the participating academics to take forward the agenda identified by the summit and to advance relations between MIT and the University of Wales".

He added: "We now plan to develop a joint training programme for taking forward educational developments in the field of cyber-physical security, an area that the summit agreed was the overriding issue for government, business, and universities."

Professor John Williams, director of the Geospatial Data Centre, said: "Cyber-physical security is now considered the number one threat to national security, being deemed more critical than conventional nuclear attacks.

"Last year alone, the US logged over 300,000 virus attacks on their networks and noted that organised crime now makes more money from cyber crime than any other activity."



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Iran accused in &#39;dire&#39; net attack

Hackers in Iran have been accused of trying to subvert one of the net's key security systems.

Analysis in the wake of the thwarted attack suggests it originated and was co-ordinated via servers in Iran.

If it had succeeded, the attackers would been able to pass themselves off as web giants Google, Yahoo, Skype, Mozilla and Microsoft.

The impersonation would have let attackers trick web users into thinking they were accessing the real service.

Fake identity

The attack was mounted on the widely used online security system known as the Secure Sockets Layer or SSL.

This acts as a guarantee of identity so users can be confident that the site they are visiting is who it claims to be. The guarantee of identity is in the form of a digital passport known as a certificate.

Analysis of the attack reveals that someone got access to the computer systems of one firm that issue certificates. This allowed them to issue bogus certificated that, if they had been used, would have let them impersonate any one of several big net firms.

It appears that the attackers targeted the SSL certificates of several specific net communication services such as Gmail and Skype as well as other popular sites such as Microsoft Live, Yahoo and the Firefox browser.

SSL certificate issuer Comodo published an analysis of the attack which was carried out via the computer systems of one of its regional affiliates.

It said the attack exhibited "clinical accuracy" and that, along with other facets of the attack led it to one conclusion: "this was likely to be a state-driven attack."

It is thought it was carried out by the Iranian authorities to step up scrutiny of opposition groups in the country that use the web to co-ordinate their activity.

The bogus certificates have now been revoked and Comodo said it was looking into ways of improving security at its affiliates.

Browsers have also been updated so anyone visiting a site whose credentials are guaranteed by the bogus certificates will be warned.

Writing on the blog of digital rights lobby group the Electronic Frontier Foundation, Peter Eckersley, said the attack posed a "dire risk to internet security".

"The incident got close to � but was not quite � an internet-wide security meltdown," he said.

"We urgently need to start reinforcing the system that is currently used to authenticate and identify secure websites and e-mail systems," said Mr Eckersley.



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US hacker denies fleeing justice

The American hacker who unlocked Sony's PS3 has denied fleeing the country to avoid legal action.

George Hotz, also known as Geohot, said his trip had been planned for months and added that he was still in contact with his lawyers.

Sony had raised questions about the reason for his sudden disappearance in recent legal papers that it filed in California.

The company is suing him for computer fraud and breach of copyright.

To explain his absence, Mr Hotz wrote on his blog: "Factually, it's true I'm in South America, on a vacation I've had planned and paid for since November. I mean, it is Spring break; hacking isn't my life."

He continued: "Rest assured that not a dime of legal defense money would ever go toward something like this."

The blog was written in reaction to reports of his departure which speculated that he may have paid for the trip with money donated by supporters, intended to pay for pay for his legal costs.

Serious question

His absence was brought to light in the latest court documents filed by Sony Computer Entertainment America (SCEA) to the San Francisco court where he is being sued.

They raise concerns, both about Mr Hotz whereabouts and the condition of computer equipment he was due to submit for examination.

The filing states: "SCEA learned that Hotz had deliberately removed integral components of his impounded hard drives prior to delivering them to a third party neutral and that Hotz is now in South America, an excuse for why he will not immediately provide the components of his hard drives as requested by the neutral.

"Hotz's attempts to dodge this Court's authority raise very serious questions."

Sony launched its legal action in California where its US subsidiary is headquartered. It also claims that information relating to the hack was posted on several California-based websites, including Twitter and Youtube.

However, Mr Hotz has disputed the court's jurisdiction, claiming that he is a resident of New Jersey and that the PS3 is made in Japan.

Mr Hotz developed his system for unlocking the PlayStation 3 in 2009. It makes it possible for users to play "homebrew" software and copied games, although he denies that it was his intention to enable piracy.

Sony is taking legal action against Mr Hotz and more than 100 other defendants who, it claims, downloaded the hack.

In previous hearings, George Hotz has been ordered to hand over the IP addresses of users who accessed his website.



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Wednesday, March 23, 2011

Games industry wins tax relief

TIGA, the trade association which represents the UK games industry has described plans to enhance R&D tax credits as a "decisive victory" for its members.

The announcement in the budget should be worth around �7 million to the video games industry, a spokesman said.

It will mean studios can invest more in research and development, as well as hiring additional staff.

But it falls short of the specific tax relief that the industry wanted.

Dr Richard Wilson, TIGA chief executive said: "The R&D tax credits will deliver 60% to 70% more value to games studios than the current tax credit regime."

But he was unhappy that the government had not gone further.

"Failure to deliver TIGA's Games Tax Relief is a dismal decision that displays a complete lack of imagination and one which will leave the UK video games industry swimming against the tide internationally," he said.

"Our key competitors have tax breaks for games production. The UK does not," he said.

Canada, for example, saw its games industry grow by 33% between 2008 and 2010, while the UK sector declined by 9%.

Plans by Labour to introduce tax cuts for the games industry were scrapped by the incoming coalition government during its 2010 emergency budget.



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Sudan to unleash cyber jihadists

Sudan's ruling National Congress Party has warned that its "cyber jihadists" will "crush" internet-based dissent.

It follows an increase in anti-government campaigns organised on Facebook and Twitter.

Vice-president in Khartoum state, Mandur Al-Mahdi warned opposition groups that its "cyber battalion" was leading "online defence operations".

The country saw anti-government street protests in January.

The government, which seized power in a military coup in 1989, is concerned about uprisings similar to those seen across the Middle East and North Africa.

It reacted violently to street protests organised by opposition parties, detaining many activists.

In the run-up to the January protests, supporters of the NCP posted messages on the Facebook pages of dissidents, warning them against joining in.

So far the protests, organised by groups from Sudan's Darfur region, have failed to attract mass popularity.

Despite the NCP's threat, there is little evidence regarding the size or nature of the cyber battalion, or if it even exists.

In July 2010, oil-producing South Sudan became independent of the north.

Its ruling party, the Sudan People's Liberation Movement has since accused President Omar al-Bashir of plotting to overthrow the southern government.



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Millions download latest Firefox

More than five million people have downloaded the latest version of Firefox since its release a day ago.

Mozilla, which makes the number two web browser, has been keeping a real-time map showing where in the world users are installing the software.

Despite the rapid uptake, downloads have been slower for version 4 than its predecessor.

Over the past year, Firefox's market share has declined slightly in the face of competition from Google's Chrome.

Firefox 4 was made available for download less than a month after Microsoft launched Internet Explorer 9, the latest version of its market-leading browser.

Both pieces of software promise users a faster, more secure online experience.

Firefox, like its rival, now makes extensive use of HTML 5, one of main the programming languages used to build websites.

Both browsers feature hardware acceleration when displaying HTML 5 pages - drawing on the power of a computer's graphics processor to improve the speed of complex visuals.

Declining share

Within its first 24 hours, more than 5.5 million users had downloaded Firefox 4. However, that falls short of the 8 million who downloaded version 3 on its release day in 2008.

The lower figure may be explained by the widespread availability of pre-release versions of Firefox 4 in the months ahead of its launch.

Firefox has enjoyed rapid growth since it first appeared in 2004. At its peak, in 2009 it held a 24% market share, according to Netmarketshare.

However, by February 2011 its slice of the browser market had fallen to 21%.

At the same time, Google's Chrome browser has grown from 1% to 10%, according to the same figures.

Internet Explorer remains the dominant platform, although its fall has been the most precipitous - from 68% in March 2009 to 56% in February 2011.

Some analysts believe that Firefox could still secure a bigger piece of the increasingly fragmented market, especially among corporate users.

"Internet Explorer 9 is only for Windows Vista and 7. Two thirds of companies are still using Windows XP," said Ovum analyst Richard Edwards.

"If you want to make the most of the HTML 5 stuff that is out there then you have to go to IE9 and a Windows 7 upgrade or switch to Firefox.

"That may be a significant opportunity for Firefox," he said.



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Digital Act heads to High Court

Parts of the Digital Economy Act that deal with illegal file-sharing are being challenged in the High Court.

Internet providers BT and TalkTalk demanded the judicial review, arguing that the legislation was rushed through parliament without proper debate.

They claim that the measures unnecessarily impact users' privacy and force ISPs to police copyright infringement on the net.

If the court finds in their favour, the act would no longer be enforceable.

"It is a big deal to be judicially reviewing primary legislation but we took advice and there were very clearly were some real problems," said Simon Milner, BT's head of industry policy.

"It might find that it is all fine - I'd be surprised if it was - but we are going to court to get legal clarity," he added.

Letter campaign

"Start Quote

Peer-to-peer file-sharing is yesterday's game. People now are going off the network where they won't be detected - swapping hard-drives, and getting music via blogs and upload sites"

End Quote Mark Mulligan Forrrester Research

The courts will consider whether the act is in line with European legislation, in particular as it relates to users' privacy and the role of ISPs.

The previous government brought in the tough measures to deal with the growing issue of internet piracy.

Under the current legislation, content providers will have to monitor peer-to-peer networks for illegal activity and collate the IP addresses - the numerical code that links a particular computer network to an illegally downloaded file.

They can then apply to a court to force ISPs to surrender the real world address that is connected to that IP address.

Letters could then be sent to alleged net pirates, advising them that their computer connection has been used in illegal activity.

The creative industry is keen that the emphasis will be on education initially, although people will go on a blacklist which could in future be used to take individual infringers to court.

Other penalties, such as slowing down net connections or even cutting people off from the net entirely have not been ruled out, but would need additional legislation.

The letter-writing strategy bears similarities to the tactics of discredited law firm ACS: Law, which sent over 10,000 letters to alleged net pirates.

Unlike content providers, which will not be levying fines, ACS: Law collected some �300,000 from people - who were charged an average of �500 per infringement.

Not everyone paid up and 27 cases recently went to court in highly controversial circumstances.

Lead solicitor Andrew Crossley attempted to discontinue the cases shortly before the hearing was due and was accused of obstructing the court process.

In the middle of the case, Mr Crossley said he no longer wanted to be in the business of chasing net pirates and the cases were eventually thrown out.

But he faces an investigation for his conduct from the Solicitors' Regulation Authority and could be hit with legal costs for the cases he brought.

Yesterday's game

During the court case, doubt was cast over whether an IP address was suitable evidence of wrong-doing as it does not identify the individual user - only the location of their connection.

Consumer watchdog Which? highlighted several cases where people claimed to have been wrongly accused.

Charles Dunstone, chairman of TalkTalk, thinks the same thing will happen if the government's measures go ahead.

"Innocent broadband customers will suffer and citizens will have their privacy invaded," he said.

Jim Killock, director of the Open Rights Group, said that he is particularly worried about how the legislation will affect public wi-fi hotspots.

"We need to start again and find a new policy settlement which embraces, rather than tramples on, the exciting possibilities that the digital age offers," he said.

John McVay, chief executive of PACT (Producers Alliance for Cinema and TV), who will represent the UK's creative industries at the judicial review, defended the act.

"The Digital Economy Act is the result of many years of consultation and presents a reasonable and balanced solution," he said.

But Mark Mulligan, an analyst with Forrester Research, warned that even if the act remains intact, the measures won't work because they are already out-of-date.

"Peer-to-peer file-sharing is yesterday's game. People now are going off the network where they won't be detected - swapping hard-drives, and getting music via blogs and upload sites," he said.



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Tuesday, March 22, 2011

Play.com warns of security breach

Play.com has warned its customers to "be vigilant" after a security breach led to some personal information being compromised.

The retailer, which sells music, videos and games, blamed another company that it employs to do marketing.

It said that no payment details were stolen, but asked users to beware of spam e-mails containing harmful links.

The company has apologised saying it had "taken every step to make sure this doesn't happen again".

In a statement, Play.com's chief executive John Perkins said: "On Sunday 20 March some customers reported receiving a spam e-mail to e-mail addresses they only use for Play.com."

"We believe this issue may be related to some irregular activity that was identified in December 2010 at our e-mail service provider, Silverpop.

"Investigations at the time showed no evidence that any of our customer e-mail addresses had been downloaded.

"We reacted immediately by informing all our customers of this potential security breach in order for them to take the necessary precautionary steps."

The retailer, which operates out of Jersey, said that all of its customers had now been warned to be cautious of e-mails appearing to come from Play.com.

It has also requested that any suspicious messages be forwarded to privacy@play.com.

Cyber attack

US-based firm Silverpop was employed by the site in 2008 to manage e-mail marketing and communications.

Silverpop's manager of corporate communications, Stacy Kirk, told the BBC that the only security issue it had been affected by happened last year, and that it had notified all affected clients at the time.

"Silverpop was among several technology providers targeted as part of a broader cyber attack that occurred in the fall of 2010," she said.

"At that time, we very quickly stopped the attack, notified all customers impacted by the activity and began working with the FBI, law enforcement and third party security experts to help identify those responsible and take any additional steps necessary to ensure this did not happen again.

"Start Quote

On behalf of Play.com, I would like to once again apologise to our customers for any inconvenience due to a potential increase in spam that may be caused by this issue."

End Quote John Perkins CEO, Play.com

"We are confident that the breach last year remains an isolated incident."

Ms Kirk would not confirm that Play.com was among those contacted due to client confidentiality.

Some users on Twitter and in discussion forums have reported an increase in spam e-mail to accounts signed up to Play.com, with some of these e-mails containing links to websites containing malware.

Phishing scams are designed to trick users into believing they are sharing data with a company that they trust, and giving out personal information such as a credit card details.

However, it cannot be confirmed that the e-mails were sent as a result of the data breach at Play.com.

No notice

Some customers who received Play.com's warning e-mail questioned its validity as it did not refer to them by name.

Play.com's website currently contains no notice or guidance about the breach.

Many users have also complained that it is currently not possible to manually remove credit card details from the site.

Paul Vlissidis, technical director of IT security firm NGS Secure, said that such situations are a major concern for retailers and their customers.

"Online businesses, even those of Play.com's size, cannot afford the loss of reputation and customer trust that negligence of this type causes," he said.

"While it is a weakness in the security of a third party that has allowed this data breach, it is the responsibility of all organisations dealing with personal customer data to ensure comprehensive security audits have been carried out in all areas of outsourced work."

Mr Perkins has moved to re-assure customers that other data kept with Play.com is safe.

"We would also like to reassure our customers that all other personal information (i.e. credit cards, addresses, passwords, etc.) are kept in the very secure Play.com environment.

"Play.com has one of the most stringent internal standards of e-commerce security in the industry.

"On behalf of Play.com, I would like to once again apologise to our customers for any inconvenience due to a potential increase in spam that may be caused by this issue."



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China rejects Google allegations

China's foreign ministry has rejected claims by Google that Beijing is disrupting access to its e-mail service in the country.

"This is an unacceptable accusation," ministry spokeswoman Jiang Yu told a regular news conference on Tuesday.

Google said on Monday that difficulties faced by users of its Gmail service was the result of government blocks.

Users say the interference coincided with an internet campaign calling for protests like those in the Middle East.

Google said it had found no technical issues, and blamed "a government blockage carefully designed to look like the problem is with Gmail".

Last year, Google said it had suffered cyber-attacks from China-based organisations intent on hacking into the Gmail accounts of Chinese rights activists.

The incident caused tensions between China and the United States, and led to Google reducing its presence in the Chinese market.

Beijing has always denied any state involvement in the cyber-attacks, and has in the past called such accusations "groundless".



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Monday, March 21, 2011

China blamed for Gmail disruption

Google has blamed the Chinese government for problems accessing its e-mail service in the country.

Internet users have complained that the authorities have stepped up disruption of its Gmail service in recent weeks.

Google said it had found no technical issues, and blamed "a government blockage carefully designed to look like the problem is with Gmail".

Users say the interference coincided with an internet campaign calling for protests like those in the Middle East.

Last year, Google said it suffered cyber-attacks from China-based organisations intent on hacking into the Gmail accounts of Chinese rights activists.

The incident caused tensions between China and the United States, and led to Google reducing its presence in the Chinese market.

Beijing has always denied any state involvement in the cyber-attacks, and has in the past called such accusations "groundless".



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Sex domain given final approval

Internet overseer Icann has given final approval to the creation of an internet domain dedicated to pornography.

The move to create a top level ".xxx" domain - similar to ".com" and ".org" - ends a 10-year battle over the virtual red-light district.

Icann gave initial approval last year, but carried out further consultation checks over the application.

It is now poised to sign an agreement with the ICM Registry, which is backing the domain, to make .xxx a reality.

Supporters say the domain will make it easier to filter out inappropriate content.

But many pornographers worry that the move could ghettoise their content. Religious groups have argued that giving pornography sites their own domain legitimises the content.

Icann, the Internet Corporation for Assigned Names and Numbers, said in a draft paper ahead of approving the decision: "The Icann community has engaged in extensive debate as well, with this single issue generating higher volumes of community comment than nearly any other issue ever faced within Icann."

The organisation oversees the internet's addressing system and demands that new top level domains, such as .biz, must be "sponsored" in that they must serve the needs of a defined community.

ICM said last year that it had more than 110,000 pre-reservations for .xxx domains.

Initial approval for .xxx was given in 2005 but this was rescinded following protests from politically conservative groups. Icann also said it was worried that it would be asked to police content - a role it was not created for.

In February 2010, a panel of US judges said Icann erred in denying the approval of the domain.

Icann accepted that ruling and began a public consultation process on whether the domain should be approved.



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Friday, March 18, 2011

ISPs defend plan for two-tier net

ISPs have defended their right to operate a two-speed internet, at a key debate into the future of the web.

The debate was organised by the government, which is keen to see the principles of a free and equal net maintained.

ISPs are increasingly looking to prioritise some traffic on their networks and block some.

After the meeting the BBC called for the creation of a broadband content group to represent content providers.

It, along with content providers such as Google, Yahoo, Facebook and Skype, is growing increasingly concerned about how the issue of net neutrality is being dealt with.

Net neutrality - the principle that all net traffic should be treated equally - has been challenged in recent years as ISPs look to make a return on their increasingly expensive networks.

They argue that if content providers want to pay to get their traffic prioritised on the network, then they should be allowed to do so.

But some content owners and digital activists such as Open Rights Group argue that such a policy would do long-term damage to the internet, which was always conceived as a platform for everyone - not just those with deep pockets.

Net neutrality has been a key issue in Europe and a raft of legislation comes into force in May which will force ISPs to be more open about how they manage the traffic on their networks.

Free net

After the debate, Ed Vaizey, communications minister, made his views clear.

"Internet traffic is growing," he said. "Handling that heavier traffic will become an increasingly significant issue so it was important to discuss how to ensure the internet remains an open, innovative and competitive place.

Commenting about a code of practise drawn up by the Broadband Stakeholders' Group earlier in the week, he said the agreement should be guided by three principles.

"The first is users should be able to access all legal content," he said. "Second, there should be no discrimination against content providers on the basis of commercial rivalry and finally traffic management policies should be clear and transparent."

While Mr Vaizey is reluctant to regulate the industry, he has appointed world wide web inventor Sir Tim Berners-Lee to bang heads together.

But he could struggle to persuade ISPs that all the traffic on their networks should be treated equally.

Jim Killock, director of the ORG, said ISPs were in no mood for compromise at the debate.

"They weren't willing to make any concessions on their ability to manage traffic," he said. "BT even said that if people want to block things they should be able to."

"If people are blocking large sections of the internet and promoting a handful of service then they shouldn't be able to claim that they sell internet access," he added.

Enhanced service

A spokesman for ISPA, the body that represents UK internet service providers told the BBC that ISPs "should be free to manage their networks as they see fit".

He added that it would make no sense to throttle popular services such as the iPlayer. "That is just going to annoy your customers and they will leave," he said.

The code of practice drawn up by the BSG this week is aimed at making it easier for consumers to see how traffic is managed on different networks.

The ORG argues that it should go further

"In some countries, such as Norway, ISPs have said that they will only do traffic management to deal with congestionm" said Mr Killock. "But the UK code allows ISPs to prioritise and discriminate as they like as long as they are transparent."

Simon Milner, head of policy at BT, said the ISP had no intention of blocking anything other than illegal traffic, but he defended the right of others to do so.

"In our view if someone wants to offer a service in which things are blocked - for example the Church of England might want to deliver Christian-friendly broadband - then they should be allowed to do that. It is no different from the walled gardens we used to have," he said.

And in the "multi-channelled" internet of the future, he said, firms should be allowed to prioritise certain traffic.

"If someone came to us - for example a Russian TV mogul - and wanted enhanced delivery, then that shouldn't be regulated against. It wouldn't mean that other content would be of low quality," he said.

But, he added, so far "content providers aren't beating down our door" for such a service.

Traffic lights

The BBC has always maintained that it won't pay to have its popular iPlayer service prioritised over other traffic.

John Tate, the BBC's director of policy and strategy said: "People should be able to access the internet without the blocking or throttling of certain content due to commercial rivalry."

The BBC is currently developing a traffic-light system to let users see how different ISPs treat its iPlayer service.

The details of the system, due for release in the spring, are not fully decided but it is likely ISPs will be rated simply: Red for poor, amber for OK, and green for acceptable.

The debate also looked at how mobile operators are managing traffic as more people access the web via mobile devices.

Traffic management in mobile is already routine, said Mr Killock.

"The levels of blocking on phones is enormous," he said. "Most phones block peer-to-peer traffic while most degrade the quality of Skype calls because they don't want Skype to be taking revenue away from them."



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Hackers tackle secure ID tokens

Hackers have stolen data about the security tokens used by millions of people to protect access to bank accounts and corporate networks.

RSA Security told customers about the "extremely sophisticated cyber attack" in an open letter posted online.

The company is providing "immediate remediation" advice to customers to limit the impact of the theft

It also recommended customers take steps, such as hardening password policies, to help protect themselves.

Proof positive

In the open letter, written by RSA boss Art Coviello, the company said that the data stolen would not help a "direct" attack on the the SecurID tokens.

It did not disclose exactly what had been purloined and only said that the information "specifically related to RSA's SecurID two-factor authentication products".

RSA's SecurID tokens are used by millions of people alongside passwords to beef up security.

As its name suggests, two-factor authentication involves improving security using two methods of identifying a user. The first factor is usually the traditional login ID and password combination.

The second factor can be a SecurID token that is paired with back-end software that generates a new six digit number every minute.

A token paired with this software generates the same numbers so only the holder will be able to type in the right digits and get access.

RSA said the information stolen could reduce the effectiveness of this two-factor authentication system if a company came under a broader attack by malicious hackers.

This could potentially put a lot of people at risk as RSA claims to have millions of people using its security technology to secure online accounts and access to corporate systems.

RSA recommended that firms monitor social network sites to spot if hackers were trying to capitalise on what they now know about RSA's systems.

This could be because hackers have got information about who has which token and might try to exploit that to trick employees into giving them access.

RSA also recommended reminding users about the dangers of responding to suspicious e-mails, to limit who can access critical infrastructure systems and to reinforce all policies surrounding SecurID token use.

There could be "tremendous repercussions" if criminals piggy-backed on what they know to stealthily get at corporate and other critical systems, said Richard Stiennon, chief research analyst at security firm IT-Harvest.

"You'd never have a sign that you've been breached," he said.



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Thursday, March 17, 2011

Twitter boss on application snub

Twitter founder Biz Stone has rejected suggestions that the site is shunning developers in order to make money.

He told BBC News that attempts to dissuade companies from writing Twitter client applications were about improving the user experience.

Twitter has come under fire for suggesting that it did not want developers creating software which replicates its own interface.

Critics claimed the dispute was about ensuring users view adverts its site.

Since Twitter's creation, scores of third-party applications have appeared that allow users to write, read and respond to tweets.

However, in a recent blog posting, Twitter's coding chief Ryan Sarver suggested that companies should consider stopping making such software.

The move was condemned by developers who feel they are partly responsible for Twitter's success and are concerned about how they will make money in the future.

But Mr Stone insisted that the company's focus is about providing a consistent experience for the user, no matter how they access the service.

"Historically the best way to do that is not necessarily to create or recreate apps that could be confusing or do the things we are already doing," he said.

"Developers extend our ability to help users, and our end goal is to serve users. Part of that goal can by helped by giving developers opportunities to create new, interesting and innovative ways to help them get more value out of Twitter."

"Start Quote

the best way to do that is not necessarily to create or recreate apps that could be confusing or that already do the things we are doing"

End Quote Biz Stone Twitter co-founder
Too many apps

As an example of the confusion that he believes exists, Mr Stone pointed to the number of Twitter apps available for the iPhone.

They include Twittelator, Twitterific, TweetDeck, Echofon, Tweetcaster, La Twit, Tweetaholic, TweetList, TweetBird and TweetBoard.

Mr Stone explained that since Twitter had brought out its own official clients the number of users had skyrocketed.

However, research carried-out by media analytics firm Sysomos suggests that third-party applications are still widely used.

The company looked at 25 million tweets, sent on the day that Twitter unveiled its new policy. It found that 42% were sent from unofficial apps.

"The question for developers is to ask themselves is how they can best serve the users," said Mr Stone.

"By another app that pretty much does the same thing as Twitter? Or by creating new and innovative ways to get value out of Twitter that we are not necessarily doing ourselves," he said.

New policy

In the blog posting that sparked the controversy, Ryan Sarver wrote: "Developers ask us if they should build client apps that mimic or reproduce the mainstream Twitter consumer client experience. The answer is no."

He suggested that they should look to build other services that complement the Twitter experience such as mining data to help with brand management, customer relations and enterprise solutions.

While existing applications are fine for the moment, Mr Sarver said they would be closely policed.

Learning curve

Developers vented their fury on Twitter's discussion board and various blogs calling the decision everything from appalling to chilling.

RSS pioneer Dave Winer told technology blog GigaOm.com that the new roadmap for developers underscored the need for them to look at building new businesses directly on the internet instead of on other services where the owner is too active.

"The Internet remains the best place to develop because it is the Platform With No Platform Vendor. Every generation of developers learns this for themselves," he said.

Mr Stone said while he understood the frustration and concern emanating from the developer community, Twitter had to do what is best for its users.

"There are going to be some growing pains but I think the most important thing we can do is communicate as best we can, even if it is bad news people don't want to hear or we are not comfortable saying.

"It is important because people can get the clarity they need," he said.



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