Tuesday, November 12, 2013

Complete DHS Daily Report for November 12, 2013

Daily Report

Top Stories

 • The U.S. Securities and Exchange Commission charged a Royal Bank of Scotland subsidiary with misleading investors in a residential mortgage-backed security offering, with the bank agreeing to pay a $150 million settlement. – U.S. Securities and Exchange Commission See item 4 below in the Financial Services Sector

 • An investigation revealed that the Federal Motor Carrier Safety Administration inspectors failed to respond to red flags of significant safety problems leading up to 4 tour bus and truck crashes that killed 25 people. – Associated Press

17. November 7, Associated Press – (National) Interstate 84 bus crash: Federal safety inspectors failed to respond to red flags, investigation shows. The National Transportation Safety Board investigators found November 7 that Federal Motor Carrier Safety Administration inspectors failed to respond to indicators of significant safety problems on the part of bus and truck companies leading up to 4 tour bus and truck crashes that killed 25 people and injured 83 others. Source: http://www.oregonlive.com/pacific-northwest-news/index.ssf/2013/11/interstate_84_bus_crash_federa.html

 • The Federal Aviation Administration released a roadmap authorizing unmanned aircraft to share the skies with civilian aircraft. – Politico
19. November 7, Politico – (National) FAA releases ‘road map’ on wider use of drones. The Federal Aviation Administration released a plan November 7 that outlines a roadmap of regulations, technologies, standards, and policies authorizing unmanned aircrafts to share the skies with civilian aircrafts by 2015. Source: http://www.politico.com/story/2013/11/faa-drones-99527.html

 • An inspector general’s report revealed that the Internal Revenue Service issued $4 billion in fraudulent tax refunds in 2012 to identity thieves. – Associated Press

27. November 7, Associated Press – (International) IRS refunded $4 billion to identity thieves, says report. An inspector general’s report released November 7 stated the Internal Revenue Service issued $4 billion in fraudulent tax refunds in 2012 to people using stolen identities, with some going to international addresses. For 2013, the agency developed a computer program that helps spot when multiple refunds go to the same address or bank account. Source: http://news.msn.com/us/irs-refunded-dollar4-billion-to-identity-thieves-says-report


Financial Services Sector

4. November 7, U.S. Securities and Exchange Commission – (International) SEC charges Royal Bank of Scotland subsidiary with misleading investors in subprime RMBS offering. The U.S. Securities and Exchange Commission (SEC) November 7 charged a subsidiary of Royal Bank of Scotland plc (RBS) with misleading investors in a 2007 residential mortgage-backed security offering. RBS agreed to settle the SEC charges and pay more than $150 million, which will be used to compensate investors harmed by RBS’s actions. Source: http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370540300002#.Unz2z_mkrSl

5. November 7, Orange County Daily Pilot – (California) ‘Snowboarder Bandit’ convicted in bank heists. A man known as the “Snowboarder Bandit” pleaded guilty November 7 to robbing 10 banks in Orange County, California, between December 2011 and March 2012. Source: http://www.dailypilot.com/news/tn-dpt-me-1108-snowboarder-bandit-convicted-20131107,0,2620222.story

6. November 7, KERO 23 Bakersfield – (California) Three plead guilty in $30 million Bakersfield mortgage fraud scheme. Two individuals from Bakersfield pleaded guilty November 7 for their role in a $30 million mortgage fraud scheme that operated between January 2004 and September 2007. A co-conspirator pleaded guilty November 5. Source: http://www.turnto23.com/news/local-news/three-plead-guilty-in-30-million-bakersfield-mortgage-fraud-scheme-including-carl-cole-110713

7. November 7, Seattle Times – (Washington) Seattle investment advisor guilty of fraud in $46M case. A Seattle investment advisor who ran investment firm The Spangler Group was found guilty November 7 of 31 counts of fraud and money laundering for defrauding clients by diverting $46 million of their money into two risky startups that he had an ownership interest in. Source: http://seattletimes.com/html/businesstechnology/2022214917_spanglertrialxml.html

8. November 7, U.S. Securities and Exchange Commission – (International) SEC obtains final judgment against defendants charged with perpetuating $35 million international boiler room scheme. The District Court for the Central District of California entered a settled judgment against The Good One Inc., Kaleidoscope Real Estate Inc., and an individual for their roles in an international $35 million market manipulation and boiler room scheme. The companies and individual were ordered to pay more than $3 million and were barred from participating in any offerings of penny stocks. Source: http://www.sec.gov/litigation/litreleases/2013/lr22865.htm

9. November 7, SC Magazine – (International) PCI council publishes updated payment security standards. The PCI Security Standards Council (PCI SSC) published a new version of the Payment Card Industry Data Security Standard (PCI DSS) and Payment Application Data Security Standard (PA-DSS) for merchants to better protect payment information. Merchants have until January 1, 2014 before the requirements come into effect. Source: http://www.scmagazine.com//pci-council-publishes-updated-payment-security-standards/article/320036/

For additional stories, see items 11 below and 27 above in the Top Stories

11. November 7, New York Daily News – (New York) MetroCard glitch leaves subway riders unable to pay with credit, debit cards. An outage because of technical problems in a Verizon communications network used to process credit and debit card transactions left passengers at 126 subway stations in New York unable to buy MetroCards with credit or debit cards for several hours November 7. Source: http://www.nydailynews.com/new-york/metrocard-glitch-leaves-riders-unable-pay-cards-article-1.1510411

Information Technology Sector

31. November 7, Computerworld – (International) Fire at Internet Archive reaffirms need for an Internet archive. The document scanning operations of The Internet Archive in San Francisco suffered a fire November 6 that caused $600,000 in damages. Source: http://www.networkworld.com/news/2013/110713-fire-at-internet-archive-reaffirms-275754.html

32. November 7, CSO – (International) Automated hacking tools swarm Web site login pages. Incapsula monitored access attempts at the Web sites of 1,000 of its clients and found that malicious automated tools accounted for 94 percent of access attempts. The tools can be used to find weak passwords and other vulnerabilities. Source: http://www.networkworld.com/news/2013/110713-automated-hacking-tools-swarm-web-275723.html

Communications Sector

33. November 7, Radio Survivor – (National) FCC warns broadcasters against misuse of emergency alert tones. The Federal Communications Commission announced an enforcement advisory the week of November 4 reminding broadcasters about the guidelines for using the Emergency Alert System (EAS) and attention signals prompted by recent violations, misuse, and overuse of the EAS system. Source: http://radiosurvivor.com/2013/11/07/fcc-warns-broadcasters-against-misuse-of-emergency-alert-tones/

34. November 7, KOSA 7 Odessa; Associated Press – (National) Most cell phone 911 calls lack location info 11/7/13. The Federal Communications Commission announced that more than two thirds of 911 calls coming from a cell phone are not as accurate at disclosing the location of the call as it once used to be, and found the rate of Texas wireless emergency calls with detailed location information has fallen by about half since 2011, which is in violation of federal requirements. Source: http://www.cbs7kosa.com/news/details.asp?ID=50966

For another story, see item 30 below:

30. November 7, KVAL 13 Eugene – (Oregon) 911 service down in Dexter thanks to copper thieves. CenturyLink crews worked to restore 9-1-1, phone, and Internet service in the Dexter area after thieves cut a cable, knocking out service in order to steal copper. Source: http://www.kval.com/news/local/911-sevice-down-in-Dexter-thanks-to-copper-theives-231037241.html