Thursday, October 11, 2012 


Daily Report

Top Stories

Tens of thousands of car owners whose air bags were replaced in the past 3 years may have had dangerous counterfeit bags installed, the U.S. Presidential administration warned October 10. – Associated Press


10. October 10, Associated Press – (National) Counterfeit air bags called 'extreme
safety risk'. Car owners whose air bags were replaced in the past 3 years may have had
dangerous counterfeit bags installed, the U.S. Presidential administration warned
October 10. Only 0.1 percent of the U.S. vehicle fleet is believed to be affected, the
National Highway Traffic Safety Administration (NHTSA) said in a statement.
However, industry officials briefed by the government said tens of thousands of car
owners may be driving vehicles with counterfeit air bags. In government tests of 11
counterfeit bags, 10 did not inflate or failed to inflate properly. In one test, a counterfeit
bag shot flames and shards of metal shrapnel at a crash dummy instead of inflating,
according to the NHTSA Administrator. NHTSA is asking car owners to check a
government Web site for information on how to contact a call center established by
auto manufacturers to learn if their vehicle model is among those for which counterfeit
air bags are known to have been made. NHTSA compiled a list of dozens of vehicle
makes and models for which counterfeit air bags may be available, but the agency
cautioned that the full scope of the problem was not clear yet and the list is expected to
"evolve over time." The counterfeit bags were typically made to look like air bags
made by automakers and usually include a manufacturer's logo. Government
investigators believe many of the bags come from China, an industry official said.


A man arrested at Los Angeles International Airport wearing a bulletproof vest and flame-resistant pants refused to cooperate with federal officials working to discover why he was headed to Boston with a suitcase full of weapons. – Associated Press


20. October 9, Associated Press – (California) Feds: Man arrested at LA airport not
cooperating. A man arrested at Los Angeles International Airport in Los Angeles
wearing a bulletproof vest and flame-resistant pants would not cooperate with federal
officials working to discover why he was headed to Boston with a suitcase full of
weapons, the Associated Press reported October 9. The man was taken into custody
recently during a stopover on a trip from Japan when U.S. Customs and Border
Protection officers reported he was wearing the protective gear under his trench coat,
triggering a Homeland Security investigation. A search of his checked luggage
uncovered numerous suspicious items, including a smoke grenade, knives, body bags, a
hatchet, a collapsible baton, a biohazard suit, a gas mask, billy clubs, handcuffs, leg
irons, and a device to repel dogs, authorities said. The suspect was charged with one
count of transporting hazardous materials, an offense that carries a maximum penalty of
5 years in prison. He made a brief court appearance October 9, but his arraignment was
delayed until October 12 and he was ordered held until then. The suspect is a U.S.
citizen whose permanent residence is in Boston, though he recently started living and
working in Japan, officials said.


Pressure mounted for greater federal regulation in response to a meningitis scare caused by tainted steroid injections that widened to 11 States and 138 people — including 12 who died — October 10. – Reuters


37. October 10, Reuters – (National) Calls for oversight grow as meningitis scare
widens. Pressure mounted for greater regulation in response to a meningitis scare that
widened to 11 States on October 10 with the first case confirmed in Idaho, Reuters
reported. The Idaho case was the first discovered in the western United States. To date,
138 people have contracted meningitis and 12 have died. Approximately 5 percent of
patients treated with the suspect medication have contracted meningitis, said the chief
medical officer for the Tennessee Department of Health. The rate of infection overall is
not known. The recalled steroid vials were shipped to 76 facilities in 23 States,
according to the CDC. Tennessee has been the hardest hit, with six reported deaths and
44 cases of meningitis, followed by Michigan with three deaths and 28 cases, Virginia
with one death and 27 cases, and Maryland with one death and nine cases. The other
States with cases are Indiana, Florida, Minnesota, North Carolina, Ohio, New Jersey,
and Idaho.


The U.S. State Department withdrew U.S. security personnel from Libya just weeks before suspected Islamist extremists killed the U.S. ambassador and three other Americans there. This withdrawal occurred despite warnings from the U.S. Embassy that the Libyan government could not protect foreign diplomats, according to an email released October 9. – McClatchy Newspapers


43. October 9, McClatchy Newspapers – (International) Security units pulled from
embassy in Libya despite warnings. The U.S. State Department withdrew U.S.
security personnel from Libya just weeks before suspected Islamist extremists killed
the U.S. ambassador and three other Americans there despite warnings from the U.S.
Embassy that the Libyan government could not protect foreign diplomats, according to
an email released October 9. The State Department rejected requests to extend the tours
of U.S. diplomatic and military security personnel in order to "normalize" embassy
operations according to "an artificial timetable," the embassy's former security chief,
wrote in an October 1 email. The email and a list the former security chief compiled
while in Libya of 230 security incidents between June 2011 and July 2012 were
released by the House Committee on Oversight and Government Reform on the eve of
a hearing at which the chief, who is still a State Department security officer, was
scheduled to testify. A lieutenant colonel who commanded a security detail at the
embassy in Tripoli was also scheduled to appear. The security chief's list, which he said
resulted in a 30 percent increase in pay this summer for embassy staff because of the
danger of the assignment, recounted a litany of near-daily bombings, shootings,
robberies, and other violence.

Details

Banking and Finance Sector

12. October 9, United Press International – (New York) Fake bills found in New York
City ATMs. Crudely counterfeited currency was found in automatic teller machines at
two New York City banks, and bank officials said about $110,000 was missing, United
Press International reported October 9. Police and bank officials were investigating, on
the assumption the stacks of fake money, printed on ordinary paper stock and only on
one side, were placed in two Chase Bank branch machines to replace stolen cash. The
counterfeit bills were not to fool customers but to imply the machines had a full load of
cash, The New York Times reported. At least two customers received fake $20 bills in
transactions with the machines, but alerted bank personnel quickly and resolved the
situations, a bank official said.

13. October 9, MarketWatch – (National) U.S. approves stress test rules for 100
banks. Bank regulators October 9 approved regulations requiring more than 100 large
financial institutions with more than $10 billion in assets to conduct annual stress tests
to ensure they have enough capital in the event of a deep recession. The rules expand
on a similar stress test developed by the Federal Reserve for the biggest bank holding
companies with $50 billion or more in assets, and the agencies have agreed to
coordinate efforts on the tests. The Federal Reserve stress test in March gave failing
marks to Ally Financial Inc., Citigroup Inc., MetLife Inc., and SunTrust Banks Inc. The
new rules were approved by the board of Federal Deposit Insurance Corp., the
Comptroller of the Currency, and the Federal Reserve as part of a three-agency joint
rule effort. The regulation requires stress tests based on three scenarios, a baseline
scenario, an adverse scenario, and a severely adverse scenario that will be provided to
banks and the public by November 15 at the latest each year.

14. October 9, Bloomberg News – (International) Capital One target as cyber attacks
resume on U.S. banks. Capital One Financial Corp. said it was the latest target in a
new round of coordinated cyber attacks aimed at disrupting the Web sites of major U.S.
banks, Bloomberg News reported October 9. SunTrust Banks Inc. and Regions
Financial Corp. said they expect to be next. A spokeswoman for Capital One confirmed
in an email statement that the bank’s online systems were disrupted, but that most
online services had been restored. ―At this point, we have no reason to believe that
customer and account information is at risk,‖ she said. The computer assaults are a
continuation of a campaign that began last month using commercial servers to overload
bank Web sites with Internet traffic, temporarily disrupting and slowing online services
for customers. A group claiming responsibility said that attacks would continue against
SunTrust October 10, and Regions Financial October 11.

15. October 9, Reuters – (National) U.S. sues Wells Fargo in mortgage fraud case. The
U.S. Government filed a civil mortgage fraud lawsuit October 9 against Wells Fargo &
Co, the latest legal volley against big banks for their lending during the housing boom.
The complaint, brought by the U.S. Attorney in Manhattan, seeks damages and civil
penalties from Wells Fargo for more than 10 years of alleged misconduct related to
government-insured Federal Housing Administration (FHA) loans. The lawsuit alleges
the FHA paid hundreds of millions of dollars on insurance claims on thousands of
defaulted mortgages as a result of false certifications by Wells Fargo. Wells, the largest
U.S. mortgage lender, denied the allegations, and said in a statement it believes it acted
in good faith and in compliance with FHA and U.S. Department of Housing and Urban
Development rules.

Information Technology Sector

47. October 10, The H – (International) Mozilla closes numerous critical holes in Firefox
16. Following the recent Firefox 16 release, Mozilla detailed all of the security fixes in
the new version of its open source Web browser as well as in the Thunderbird news and
email client. Version 2.13 of the SeaMonkey "all-in-one internet application suite" also
received fixes. In addition to adding new features, version 16.0 of Firefox closes 14
security holes, 11 of which are rated as "Critical" by the project. These critical
vulnerabilities include several memory handling and corruption issues, buffer
overflows, and the possibility of arbitrary code execution through bypassing security
checks for the cross-origin properties. Another vulnerability could lead to JavaScript
crashing the browser when using an invalid cast with the instanceof operator.
According to Mozilla, many of these vulnerabilities could be exploited remotely by an
attacker to, for example, execute malicious code on a victim's system.

48. October 10, The H – (International) BIND DNS server updates close critical
hole. The Internet Systems Consortium (ISC) is warning users of a critical vulnerability
in the free BIND DNS server that can be exploited by an attacker to cause a denial-ofservice
(DoS) condition. According to the ISC, the security issue (CVE-2012-5166) is
caused by a problem when processing a specially crafted combination of resource
records (RDATA). When loaded, this data can cause a name server to lock up. The ISC
says that, when this happens, normal functionality can only be restored by terminating
and restarting the named daemon. Affected versions include 9.2.x to 9.6.x, 9.4-ESV to
9.4-ESV-R5-P1, 9.6-ESV to 9.6-ESV-R7-P3, 9.7.0 to 9.7.6-P3, 9.8.0 to 9.8.3-P3, and
9.9.0 to 9.9.1-P3. The ISC notes that while versions 9.2, 9.3, 9.4, and 9.5 of BIND are
vulnerable, these branches are considered to be "end of life" (EOL) and are no longer
updated. Upgrading to 9.7.7, 9.7.6-P4, 9.6-ESV-R8, 9.6-ESV-R7-P4, 9.8.4, 9.8.3-P4,
9.9.2, or 9.9.1-P4 corrects the problem. Alternatively, as a workaround, users can set
the "minimal-responses" option to "yes" in order to prevent the lockup.

49. October 10, The H – (International) Pwnium 2: Full Chrome exploit earns hacker
$60,000. Google's Chrome Web browser fell at the company's Pwnium 2 security
competition, which took place October 10 at the Hack In The Box conference. SC
Magazine reported that the hacker who goes by the pseudonym "Pinkie Pie" was
successfully able to "fully exploit" Chrome, escaping the sandbox using only bugs
within Chrome. The hack was done on a fully patched 64-bit Windows 7 system
running the latest stable branch of Chrome.

50. October 9, Threatpost – (International) Microsoft report exposes malware families
attacking supply chain. Less than a month after the Nitol botnet takedown, Microsoft
released data casting more scrutiny on supply chain security. In its latest Security
Intelligence Report (SIR), Microsoft connected the most prevalent malware families
involved in supply chain compromises, including malicious add-ons pre-installed on
PCs by manufacturers, pirated software on peer-to-peer networks, and music and movie
downloads. Microsoft began its Nitol investigation more than a year ago after it found
Nitol-related malware on PCs built in China running counterfeit versions of Windows.
Microsoft took down more than 70,000 sub-domains hosting the botnet, which was
backed by more than 500 different malware strains. In the SIR, Microsoft reports
hackers are hitting supply chains by infecting networks with malware bearing file
names matching popular downloads and by the presence of what Microsoft calls
indicator families on machines compromised by file-sharing or an insecure supply
chain.

51. October 9, Threatpost – (International) Microsoft patches critical word flaw;
certificate key length changes are official. Microsoft issued seven security updates,
including a fix for a critical remotely exploitable Word vulnerability. In all, Microsoft
repaired 20 vulnerabilities, and issued an advisory regarding poorly generated digital
certificates an automated mechanism that will check for certificate key lengths,
revoking any shorter than 1024 bits. The patch for the Word flaw fixes a memoryparsing
vulnerability; attackers using a specially crafted RTF file could remotely gain
the system privileges if users preview or open the infected RTF file in Outlook's
preview pane when Word is the default email reader. Microsoft Word 2003, 2007, and
2010 are vulnerable, as are Microsoft Word Viewer, Microsoft Office Compatibility
Pack, Microsoft Word Automation Services on Microsoft SharePoint Server 2010, and
Microsoft Office Web Apps.

52. October 9, Ars Technica – (International) Confirmed: Apple-owned fingerprint
software exposes Windows passwords. Security consultants independently confirmed
a serious security weakness that makes it trivial for hackers with physical control of
many computers sold by Dell, Acer, and at least 14 other manufacturers to quickly
recover Windows account passwords. The vulnerability is contained in multiple
versions of fingerprint-reading software known as UPEK Protector Suite. In July,
Apple paid $356 million to buy Authentec, the Melbourne, Florida-based company that
acquired the technology from privately held UPEK in 2010. The weakness was
revealed no later than September, but Apple has yet to acknowledge it or warn end
users how to work around it.

53. October 9, Ars Technica – (International) Skype users targeted by malicious worm
that locks them out of their PCs. Researchers detected a malware campaign that
attempts to infect Skype users by sending them booby-trapped links from contacts in
their address book. The social-engineering ploy attempts to install a variant of the
Dorkbot worm that previously menaced Twitter and Facebook users. Once installed,
Dorkbot uses its host computer to engage in click fraud and installs software that locks
the user out of the machine and displays screens saying their data will be deleted unless
a $200 "fine" is paid within 48 hours. According to a report from Sophos, the malware
campaign is taking advantage of the Skype API to spam out messages such as "lol is
this your new profile pic?" along with a malicious URL.

54. October 9, Ars Technica – (International) HTTPS Everywhere plugin from EFF
protects 1,500 more sites. Members of the Electronic Frontier Foundation (EFF)
updated their HTTPS Everywhere browser plugin to offer automatic Web encryption to
an additional 1,500 sites, twice as many as previously offered. EFF introduced HTTPS
Everywhere in 2009 in collaboration with members of the Tor anonymity project with
the goal of encrypting the entire Web. When the browser extension is installed, users
are automatically directed to secure sockets layer (SSL) versions of many Web sites
even when the "HTTPS" tag is not in the URL. Google, Wikipedia, Twitter, and
thousands of other sites are included, with more added regularly. A previous update to
HTTPS Everywhere introduced an optional feature called the Decentralized SSL
Observatory. It detects and warns of possible man-in-the-middle attacks on Web sites a
user visits by sending a copy of the site's SSL certificate to the EFF's SSL Observatory.
When EFF detects anomalies, it sends a warning to affected end users.
For another story see item 14 above in the Banking and Finance Sector

Communications Sector

Nothing to report


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