112 posts categorized "Europe" Feed

Russian Cyber Attacks Against US Voting Systems Wider Than First Thought

Cyber attacks upon electoral systems in the United States are wider than originally thought. The attacks occurred in at least 39 states. The Bloomberg report described online attacks in Illinois as an example:

"... investigators found evidence that cyber intruders tried to delete or alter voter data. The hackers accessed software designed to be used by poll workers on Election Day, and in at least one state accessed a campaign finance database. Details of the wave of attacks, in the summer and fall of 2016... In early July 2016, a contractor who works two or three days a week at the state board of elections detected unauthorized data leaving the network, according to Ken Menzel, general counsel for the Illinois board of elections. The hackers had gained access to the state’s voter database, which contained information such as names, dates of birth, genders, driver’s licenses and partial Social Security numbers on 15 million people, half of whom were active voters. As many as 90,000 records were ultimately compromised..."

Politicians have emphasized that the point of the disclosures isn't to embarrass any specific state, but to alert the public to past activities and to the ongoing threat. The Intercept reported:

"Russian military intelligence executed a cyberattack on at least one U.S. voting software supplier and sent spear-phishing emails to more than 100 local election officials just days before last November’s presidential election, according to a highly classified intelligence report obtained by The Intercept.

The top-secret National Security Agency document, which was provided anonymously to The Intercept and independently authenticated, analyzes intelligence very recently acquired by the agency about a months-long Russian intelligence cyber effort against elements of the U.S. election and voting infrastructure. The report, dated May 5, 2017, is the most detailed U.S. government account of Russian interference in the election that has yet come to light."

Spear-fishing is the tactic criminals use by sending malware-laden e-mail messages to targeted individuals, whose names and demographic details may have been collected from social networking sites and other sources. The spam e-mail uses those details to pretend to be valid e-mail from a coworker, business associate, or friend. When the target opens the e-mail attachment, their computer and network are often infected with malware to collect and transmit log-in credentials to the criminals; or to remotely take over the targets' computers (e.g., ransomware) and demand ransom payments. Stolen log-in credentials are how criminals steal consumers' money by breaking into online bank accounts.

The Intercept report explained how the elections systems hackers adopted this tactic:

"... the Russian plan was simple: pose as an e-voting vendor and trick local government employees into opening Microsoft Word documents invisibly tainted with potent malware that could give hackers full control over the infected computers. But in order to dupe the local officials, the hackers needed access to an election software vendor’s internal systems to put together a convincing disguise. So on August 24, 2016, the Russian hackers sent spoofed emails purporting to be from Google to employees of an unnamed U.S. election software company... The spear-phishing email contained a link directing the employees to a malicious, faux-Google website that would request their login credentials and then hand them over to the hackers. The NSA identified seven “potential victims” at the company. While malicious emails targeting three of the potential victims were rejected by an email server, at least one of the employee accounts was likely compromised, the agency concluded..."

Experts believe the voting equipment company targeted was VR Systems, based in Florida. Reportedly, it's electronic voting services and equipment are used in eight states. VR Systems posted online a Frequently Asked Questions document (adobe PDF) about the cyber attacks against elections systems:

"Recent reports indicate that cyber actors impersonated VR Systems and other elections companies. Cyber actors sent an email from a fake account to election officials in an unknown number of districts just days before the 2016 general election. The fraudulent email asked recipients to open an attachment, which would then infect their computer, providing a gateway for more mischief... Because the spear-phishing email did not originate from VR Systems, we do not know how many jurisdictions were potentially impacted. Many election offices report that they never received the email or it was caught by their spam filters before it could reach recipients. It is our understanding that all jurisdictions, including VR Systems customers, have been notified by law enforcement agencies if they were a target of this spear-phishing attack... In August, a small number of phishing emails were sent to VR Systems. These emails were captured by our security protocols and the threat was neutralized. No VR Systems employee’s email was compromised. This prevented the cyber actors from accessing a genuine VR Systems email account. As such, the cyber actors, as part of their late October spear-phishing attack, resorted to creating a fake account to use in that spear-phishing campaign."

It is good news that VR Systems protected its employees' e-mail accounts. Let's hope that those employees were equally diligent about protecting their personal e-mail accounts and home computers, networks, and phones. We all know employees that often work from home.

The Intercept report highlighted a fact about life on the internet, which all internet users should know: stolen log-in credentials are highly valued by criminals:

"Jake Williams, founder of computer security firm Rendition Infosec and formerly of the NSA’s Tailored Access Operations hacking team, said stolen logins can be even more dangerous than an infected computer. “I’ll take credentials most days over malware,” he said, since an employee’s login information can be used to penetrate “corporate VPNs, email, or cloud services,” allowing access to internal corporate data. The risk is particularly heightened given how common it is to use the same password for multiple services. Phishing, as the name implies, doesn’t require everyone to take the bait in order to be a success — though Williams stressed that hackers “never want just one” set of stolen credentials."

So, a word to the wise for all internet users: don't use the same log-in credentials at multiple site. Don't open e-mail attachments from strangers. If you weren't expecting an e-mail attachment from a coworker/friend/business associate, call them on the phone first and verify that they indeed sent an attachment to you. The internet has become a dangerous place.


Hacking Group Reported Security Issues With Samsung 8 Phone's Iris Recognition

Image of Samsung Galaxy S8 phones. Click to view larger version The Computer Chaos Club (CCC), a German hacking group founded in 1981, posted the following report on Monday:

"The iris recognition system of the new Samsung Galaxy S8 was successfully defeated by hackers... The Samsung Galaxy S8 is the first flagship smartphone with iris recognition. The manufacturer of the biometric solution is the company Princeton Identity Inc. The system promises secure individual user authentication by using the unique pattern of the human iris.

A new test conducted by CCC hackers shows that this promise cannot be kept: With a simple to make dummy-eye the phone can be fooled into believing that it sees the eye of the legitimate owner. A video shows the simplicity of the method."

The Samsung Galaxy S8 runs the Android operating system, claims a talk time of up to 30 hours, has a screen optimized for virtual reality (VR) apps, and features Bixby, an "... intelligent interface that is built into the Galaxy S8. With every interaction, Bixby can learn, evolve and adapt to you. Whether it's through touch, type or voice, Bixby will seamlessly help you get things done. (Voice coming soon)"

The CCC report also explained:

"Iris recognition may be barely sufficient to protect a phone against complete strangers unlocking it. But whoever has a photo of the legitimate owner can trivially unlock the phone. "If you value the data on your phone – and possibly want to even use it for payment – using the traditional PIN-protection is a safer approach than using body features for authentication," says Dirk Engling, spokesperson for the CCC."

Phys.org reported that Samsung executives are investigating the CCC report. Samsung views the Galaxy S8 as critical to the company's performance given the Note 7 battery issues and fires last year.

Some consumers might conclude from the CCC report that the best defense against against iris hacks would be to stop posting selfies. This would be wrong to conclude, and an insufficient defense:

"The easiest way for a thief to capture iris pictures is with a digital camera in night-shot mode or the infrared filter removed... Starbug was able to demonstrate that a good digital camera with 200mm-lens at a distance of up to five meters is sufficient to capture suitably good pictures to fool iris recognition systems."

So, more photos besides selfies could reveal your iris details. The CCC report also reminded consumers of the security issues with using fingerprints to protect their devices:

"CCC member and biometrics security researcher starbug has demonstrated time and again how easily biometrics can be defeated with his hacks on fingerprint authentication systems – most recently with his successful defeat of the fingerprint sensor "Touch ID" on Apple’s iPhone. "The security risk to the user from iris recognition is even bigger than with fingerprints as we expose our irises a lot. Under some circumstances, a high-resolution picture from the internet is sufficient to capture an iris," Dirk Engling remarked."

What are your opinions of the CCC report?


The Guardian Site Reviews Documents Used By Facebook Executives To Moderate Content

Facebook logo The Guardian news site in the United Kingdom (UK) published the findings of its review of "The Facebook Files" -- a collection of documents which comprise the rules used by executives at the social site to moderate (e.g., review, approve, and delete) content posted by the site's members. Reporters at The Guardian reviewed:

"... more than 100 internal training manuals, spreadsheets and flowcharts that give unprecedented insight into the blueprints Facebook has used to moderate issues such as violence, hate speech, terrorism, pornography, racism and self-harm. There are even guidelines on match-fixing and cannibalism.

The Facebook Files give the first view of the codes and rules formulated by the site, which is under huge political pressure in Europe and the US. They illustrate difficulties faced by executives scrabbling to react to new challenges such as “revenge porn” – and the challenges for moderators, who say they are overwhelmed by the volume of work, which means they often have “just 10 seconds” to make a decision..."

The Guardian summarized what it learned about Facebook's revenge porn rules for moderators:

Revenge porn content rules found by The Guardian's review of Facebook documents

Reportedly, Facebook moderators reviewed as many as 54,000 cases in a single month related to revenge porn and "sextortion." In January of 2017, the site disabled 14,000 accounts due to this form of sexual violence. Previously, these rules were not available publicly. Findings about other rules are available at The Guardian site.

Other key findings found by The Guardian during its document review:

"One document says Facebook reviews more than 6.5m reports a week relating to potentially fake accounts – known as FNRP (fake, not real person)... Many moderators are said to have concerns about the inconsistency and peculiar nature of some of the policies. Those on sexual content, for example, are said to be the most complex and confusing... Anyone with more than 100,000 followers on a social media platform is designated as a public figure – which denies them the full protections given to private individuals..."

The social site struggles with how to handle violent language:

"Facebook’s leaked policies on subjects including violent death, images of non-sexual physical child abuse and animal cruelty show how the site tries to navigate a minefield... In one of the leaked documents, Facebook acknowledges “people use violent language to express frustration online” and feel “safe to do so” on the site. It says: “They feel that the issue won’t come back to them and they feel indifferent towards the person they are making the threats about because of the lack of empathy created by communication via devices as opposed to face to face..."

Some industry watchers in Europe doubt that Facebook can do what it has set out to accomplish, lacks sufficient staff to effectively moderate content posted by almost 2 billion users, and Facebook management should be more transparent about its content moderation rules. Others believe that Facebook and other social sites should be heavily fined "for failing to remove extremist and hate-crime material."

To learn more, The Guardian site includes at least nine articles about its review of The Facebook Files:

Collection of articles by The Guardian which review Facebook's content policies. Click to view larger version


4 Charged, Including Russian Government Agents, In Massive Yahoo Hack

Department of Justice logo The U.S. Department of Justice (DOJ) announced yesterday that a grand jury in the Northern District of California has indicted four defendants, including two officers of the Russian Federal Security Service (FSB), for computer hacking, economic espionage and other criminal offenses related to the massive hack of millions of Yahoo webmail accounts. The charges were announced by Attorney General Jeff Sessions of the U.S. Department of Justice, Director James Comey of the Federal Bureau of Investigation (FBI), Acting Assistant Attorney General Mary McCord of the National Security Division, U.S. Attorney Brian Stretch for the Northern District of California and Executive Assistant Director Paul Abbate of the FBI’s Criminal, Cyber, Response and Services Branch.

The announcement described how the defendants, beginning in January 2014:

"... unauthorized access to Yahoo’s systems to steal information from about at least 500 million Yahoo accounts and then used some of that stolen information to obtain unauthorized access to the contents of accounts at Yahoo, Google and other webmail providers, including accounts of Russian journalists, U.S. and Russian government officials and private-sector employees of financial, transportation and other companies. One of the defendants also exploited his access to Yahoo’s network for his personal financial gain, by searching Yahoo user communications for credit card and gift card account numbers, redirecting a subset of Yahoo search engine web traffic so he could make commissions and enabling the theft of the contacts of at least 30 million Yahoo accounts to facilitate a spam campaign."

The four defendants are:

  1. Dmitry Aleksandrovich Dokuchaev, 33, a Russian national and resident
  2. Igor Anatolyevich Sushchin, 43, a Russian national and resident,
  3. Alexsey Alexseyevich Belan, aka “Magg,” 29, a Russian national and resident, and
  4. Karim Baratov (a/k/a "Kay," "Karim Taloverov," and "Karim Akehmet Tokbergenov") 22, a Canadian and Kazakh national and a resident of Canada.

Several lawsuits have resulted from the Yahoo breach including a shareholder lawsuit alleging a breach of fiduciary duty by the directors of the tech company, and a class-action regarding stolen credit card payment information.

Attorney General Sessions said about the charges against four defendants:

"Cyber crime poses a significant threat to our nation’s security and prosperity, and this is one of the largest data breaches in history... But thanks to the tireless efforts of U.S. prosecutors and investigators, as well as our Canadian partners, today we have identified four individuals, including two Russian FSB officers, responsible for unauthorized access to millions of users’ accounts. The United States will vigorously investigate and prosecute the people behind such attacks..."

FBI Director said:

"... we continue to pierce the veil of anonymity surrounding cyber crimes... We are shrinking the world to ensure that cyber criminals think twice before targeting U.S. persons and interests."

Acting Assistant Attorney General McCord said:

"The criminal conduct at issue, carried out and otherwise facilitated by officers from an FSB unit that serves as the FBI’s point of contact in Moscow on cybercrime matters, is beyond the pale... hackers around the world can and will be exposed and held accountable. State actors may be using common criminals to access the data they want..."


Smart Mouse Traps: A Good Deal For Consumers?

Rentokil logo Rentokil, a pest control company, has introduced in the United Kingdom a new pest-control device for consumers wanting the latest WiFi technology. The company introduced ResiConnect, an Internet-connected mouse trap. A Rentokil representative explained to the Register UK newspaper:

“This is a trap that’s connected to the internet, essentially. Whereas there are other standard traps on the market that just catch and kill the mouse, that mouse can be caught in that trap for several weeks or several months. What this does is sends us a signal to notify us the trap has been activated, which allows us to respond... What this allows us to do is catch, kill and contain the mouse... and provide the best solution to the customer as well.”

Rentokil technician and vehicle Reportedly, the device sells for about £1,300, or about U.S. $1,300. Last summer, Rentokil Initial Plc announced a partnership with Google and PA Consulting Group (PA) to deploy globally the company's:

"... innovative digital pest control products and, in the future, to the development of ‘next generation’ services to offer customers new levels of proactive risk management against the threat of pest infestation... Rentokil has developed and begun to roll out its range of connected rodent control products particularly to customers in the tightly regulated food and pharmaceutical industries. In the field today, Rentokil has over 20,000 digital devices running in 12 countries which have now sent more than 3 million pieces of data.

The new digital pest control services use connected rodent devices with embedded sensors and mobile connectivity. The units communicate with Rentokil’s online ‘Command Centre’ and when they've caught a rodent, the technician is automatically alerted while customers are kept informed through myRentokil, the industry’s leading online portal... Built on Google’s Cloud Platform, and delivered by PA using Agile techniques, this technology is highly scalable and is now ready to be deployed more widely to existing and new customers from Q4 2016 and to other parts of the company..."

It seems that Rentokil is making available to consumers smart traps similar to those already deployed in the commercial market, such as fast food restaurants with multiple locations. Rentokil sells in the United States a device that uses radar to detect and capture mice. This raises the question: do consumers really need a smart mouse trap?

I have direct experience with mice. The building where I live is contains condominiums, and I have the responsibility to pay the condo association's monthly bills (e.g., water, insurance, and electricity), plus hire vendors and contractors, as needed, for repairs and maintenance. That includes pest control companies. Last week, our pest-control vendor deployed bait traps (e.g., poison and glue strips) in all units, plus the basement (with utilities and storage areas).

Obviously, owners of retail stores with multiple locations (e.g., fast food restaurants) would benefit from smart mouse traps. It seems cost-prohibitive to send (and pay for) technicians to visit each store and check multiple traps, while only selective traps would have caught rodents.

First, the benefit for residential customers sees marginal. Internet-connected mouse trap might appeal to squeamish consumers, who are afraid or unsure what to do, but it's hard to beat the convenience and low cost of a phone call. For our condo association, it was easy to know when a trap has caught a mouse. You heard the squeaking.

For us, the rodent removal process was easy. After a quick phone call the evening the mouse was caught, a pest-control technician arrived the next morning. The company sent a technician that was already in the area for nearby service calls. The technician removed the mouse stuck on a glue strip, checked, and re-baited several traps. That visit was included in the price we paid, and the phone call cost was negligible.

Second, the price seems expensive. The $1,600 price for a smart mouse trap equals about three years of what our condo association pays for pest control services.

Reliability and trust with smart devices are critical for consumers. A recent global study found that 44 percent of consumers are concerned about financial information theft via smart home devices, and 37 percent are concerned about identity theft.

Informed shoppers know that not all smart devices are built equally. Some have poor security features or lack software upgrades. These vulnerabilities create opportunities for bad guys to hack and infect consumers' home WiFi networks with malware to steal passwords and money, create spam, and use infected devices as part of DDoS attacks targeting businesses. (Yes, even the hosting service for this blog was targeted.) So, it is wise to understand any smart trap's software and security features before purchase.

What do you think? Are smart mouse traps worthwhile?


EU Privacy Watchdogs Ask Microsoft For Explanations About Data Collection About Users

A privacy watchdog group in the European Union (EU) are concerned about privacy and data collection practices by Microsoft. The group, comprising 28 agencies and referred to as the Article 29 Working Party, sent a letter to Microsoft asking for explanations about privacy concerns with the software company's Windows 10 operating system software.

The February 2017 letter to Brendon Lynch, Chief Privacy Officer, and to Satya Nadella, Chief Executive Officer, was a follow-up to a prior letter sent in January. The February letter explained:

"Following the launch of Windows 10, a new version of the Windows operating system, a number of concerns have been raised, in the media and in signals from concerned citizens to the data protection authorities, regarding protection of your users’ personal data... the Working Party expressed significant concerns about the default installation settings and an apparent lack of control for a user to prevent collection or further processing of data, as well as concerns about the scope of data that are being collected and further processed... "

Microsoft logo While Microsoft has been cooperative so far, the group's specific privacy concerns:

"... user consent can only be valid if fully informed, freely given and specific. Whilst it is clear that the proposed new express installation screen will present users with five options to limit or switch off certain kinds of data processing it is not clear to what extent both new and existing users will be informed about the specific data that are being collected and processed under each of the functionalities. The proposed new explanation when, for example, a user switches the level of telemetry data from 'full' to 'basic' that Microsoft will collect 'less data' is insufficient without further explanation. Such information currently is also not available in the current version of the privacy policy.

Additionally, the purposes for which Microsoft collects personal data have to be specified, explicit and legitimate, and the data may not be further processed in a way incompatible with those purposes. Microsoft processes data collected through Windows 10 for different purposes, including personalised advertising. Microsoft should clearly explain what kinds of personal data are processed for what purposes. Without such information, consent cannot be informed, and therefore, not valid..."

Visit this EU link for more information about the Article 29 Working Party, or download the Article 29 Working Party letter to Microsoft (Adobe PDF).


Travelers Face Privacy Issues When Crossing Borders

If you travel for business, pleasure, or both then today's blog post will probably interest you. Wired Magazine reported:

"In the weeks since President Trump’s executive order ratcheted up the vetting of travelers from majority Muslim countries, or even people with Muslim-sounding names, passengers have experienced what appears from limited data to be a “spike” in cases of their devices being seized by customs officials. American Civil Liberties Union attorney Nathan Wessler says the group has heard scattered reports of customs agents demanding passwords to those devices, and even social media accounts."

Devices include smartphones, laptops, and tablets. Many consumers realize that relinquishing passwords to social networking sites (e.g., Facebook, Instagram, etc.) discloses sensitive information not just about themselves, but also all of their friends, family, classmates, neighbors, and coworkers -- anyone they are connected with online. The "Bring Your Own Device" policies by many companies and employers means that employees (and contractors) can use their personal devices in the workplace and/or connected remotely to company networks. Those connected devices can easily divulge company trade secrets and other sensitive information when seized by Customs and Border Patrol (CBP) agents for analysis and data collection.

Plus, professionals such as attorneys and consultants are required to protect their clients' sensitive information. These professionals, who also must travel, require data security and privacy for business.

Wired also reported:

"In fact, US Customs and Border Protection has long considered US borders and airports a kind of loophole in the Constitution’s Fourth Amendment protections, one that allows them wide latitude to detain travelers and search their devices. For years, they’ve used that opportunity to hold border-crossers on the slightest suspicion, and demand access to their computers and phones with little formal cause or oversight.

Even citizens are far from immune. CBP detainees from journalists to filmmakers to security researchers have all had their devices taken out of their hands by agents."

For travelers wanting privacy, what are the options? Remain at home? This may not be an option for workers who must travel for business. Leave your devices at home? Again, impractical for many. The Wired article provided several suggestions, including:

"If customs officials do take your devices, don’t make their intrusion easy. Encrypt your hard drive with tools like BitLocker, TrueCrypt, or Apple’s Filevault, and choose a strong passphrase. On your phone—preferably an iPhone, given Apple’s track record of foiling federal cracking—set a strong PIN and disable Siri from the lockscreen by switching off “Access When Locked” under the Siri menu in Settings.

Remember also to turn your devices off before entering customs: Hard drive encryption tools only offer full protection when a computer is fully powered down. If you use TouchID, your iPhone is safest when it’s turned off, too..."

What are the consequences when travelers refuse to disclose passwords and encrpt devices? Ars Technica also explored the issues:

"... Ars spoke with several legal experts, and contacted CBP itself (which did not provide anything beyond previously-published policies). The short answer is: your device probably will be seized (or "detained" in CBP parlance), and you might be kept in physical detention—although no one seems to be sure exactly for how long.

An unnamed CBP spokesman told The New York Times on Tuesday that such electronic searches are extremely rare: he said that 4,444 cellphones and 320 other electronic devices were inspected in 2015, or 0.0012 percent of the 383 million arrivals (presuming that all those people had one device)... The most recent public document to date on this topic appears to be an August 2009 Department of Homeland Security paper entitled "Privacy Impact Assessment for the Border Searches of Electronic Devices." That document states that "For CBP, the detention of devices ordinarily should not exceed five (5) days, unless extenuating circumstances exist." The policy also states that CBP or Immigration and Customs Enforcement "may demand technical assistance, including translation or decryption," citing a federal law, 19 US Code Section 507."

The Electronic Frontier Foundation (EFF) collects stories from travelers who've been detained and had their devices seized. Clearly, we will hear a lot more in the future about these privacy issues. What are your opinions of this?


Big Data Brokers: Failing With Privacy

You may not know that hedge funds, in both the United Kingdom and in the United States, buy and sell a variety of information from data brokers: mobile app purchases, credit card purchases, posts at social networking sites, and lots more. You can bet that a lot of that mobile information includes geo-location data. The problem: consumers' privacy isn't protected consistently.

The industry claims the information sold is anonymous (e.g., doesn't identify specific persons), but researchers have it easy to de-anonymize the information. The Financial Times reported:

"The “alternative data” industry, which sells information such as app downloads and credit card purchases to investment groups, is failing to adequately erase personal details before sharing the material... big data is seen as an increasingly attractive source of information for asset managers seeking a vital investment edge, with data providers selling everything from social media chatter and emailed receipts to federal lobbying data and even satellite images from space..."

One part of the privacy problem:

“The vendors claim to strip out all the personal information, but we occasionally find phone numbers, zip codes and so on,” said Matthew Granade, chief market intelligence officer at Steven Cohen’s Point72. “It’s a big enough deal that we have a couple of full-time tech people wash the data ourselves.” The head of another major hedge fund said that even when personal information had been scrubbed from a data set, it was far too easy to restore..."

A second part of the privacy problem:

“... there is no overarching US privacy law to protect consumers, with standards set individually by different states, industries and even companies, according to Albert Gidari, director of privacy at the Stanford Center for Internet and Society..."

The third part of the privacy problem: consumers are too willing to trade personal information for convenience.


German Regulators Ask Tesla To Stop Advertising 'Autopilot' Term

Government regulators have asked the automaker Tesla to stop using the term "autopilot" for its driver-assist feature. Deutsche Welle (DW) reported that a letter:

"... published in the newspaper "Bild am Sonntag," called on Tesla to take urgent action "in order to prevent misunderstandings and false expectations from clients." The KBA transport regulator said the term "autopilot" was misleading, and called for it to be removed in future advertisements for Tesla products. The self-driving feature has been available on the California-based automaker's Model S since October 2015."

The Autopilot feature manages the car's speed, steers within a lane, changes lanes (when the driver taps a turn signal), scan for a parking space, and parallel parks on command. Officials in Germany are still conducting an investigation into the car's capabilities.

After the fatal crash in May of a Tesla Model S car operating beta-version software for its Autopilot feature, Tesla engineers said in August the problem was with the car's brakes and not its Autopilot feature.

DW also reported:

"... the German transport regulator wrote to Tesla owners warning them that the autopilot function was purely to assist the driver and did not turn the car into a highly-automated vehicle. The feature still required the driver's unrestricted attention at all times, the letter said. Under German road traffic regulations, the driver is required to remain alert and in control of the vehicle at all times when using the system, the letter added."

The Los Angeles Times reported:

"Tesla Chief Executive Elon Musk has repeatedly said he’s sticking with the name, and the company responded to the German report as it does every time the subject comes up: The term “autopilot” has a long history in aerospace, where human pilots and autopilot systems work together to fly a plane."


Federal Reserve Bars 2 HSBC Foreign Exchange Traders From Working In The Industry

HSBC Holdings logo The Federal Reserve Board (FRB) has prohibited two former foreign exchange (FX) traders from working in the banking industry. Both persons, Mark Johnson and Stuart Scott were managers at London-based HSBC Bank plc, a subsidiary of HSBC bank Johnson had been a managing director and the global head of FX cash trading. Scott reported to Johnson and had managed the bank's FX trading for Europe, the Middle East, and Africa.

The FRB's press release explained the reasons for its actions:

"Mark Johnson and Stuart Scott, former senior HSBC managers, were recently indicted for criminal wire fraud in connection with their trading activities... According to the indictment, Johnson and Scott made multiple misrepresentations to an FX client of HSBC in connection with a large pre-arranged currency transaction. The indictment also alleges Johnson and Scott engaged in conduct to trade to the detriment of HSBC's client and for their own (and HSBC's) benefit... the Board found that given the indictment, Johnson's and Scott's continued participation in any depository institution may threaten to impair public confidence in that institution."

The U.S. Department of Justice filed criminal charges on July 16, 2016 against Johnson and Scott in U.S. District Court for the Eastern District of New York. On August 16, 2016, a federal grand jury indicted Johnson and Scott with multiple counts of wire fraud and conspiracy to commit wire fraud. The alleged fraud happened during November and December, 2011, in part, in New York City at the offices of HSBC Bank USA National Association, a unit of HSBC.

HSBC Bank plc is a unit of HSBC Holdings plc (HSBC). HSBC's website says it has 4,400 offices in 71 countries that serve 46 million customers worldwide.  Bloomberg described HSBC Bank plc's activities:

"HSBC Bank plc provides various banking products and services worldwide. The company operates through Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking segments. It accepts various deposits, such as current, savings, and business bank accounts..."

The prohibition is effective immediately and until the criminal charges against Johnson and Scott are resolved.


News About The Massive Data Breach At Yahoo Isn't Pretty

Yahoo logo The news about Yahoo's massive data breach seems to be getting worse. The Oregonian reported:

" "Data breaches on the scale of Yahoo are the security equivalent of ecological disasters," said Matt Blaze, a security researcher who directs the Distributed Systems Lab at the University of Pennsylvania, in a message posted to Twitter. A big worry is a cybercriminal technique known as "credential stuffing," which works by throwing leaked username and password combinations at a series of websites in an effort to break in, a bit like a thief finding a ring of keys in an apartment lobby and trying them, one after the other, in every door in the building. Software makes the trial-and-error process practically instantaneous. Credential stuffing typically succeeds between 0.1 percent and 2 percent of the time..."

Apply those success rates to half a billion stolen credentials and criminals have plenty of opportunities to break into consumers' online accounts. And, this list of seven ways the breach has exposed consumers to online banking fraud is definitely accurate.

The tech company's stock has dropped 4 percent since September 22. During an interview, Tim Amstrong, the head of Verizon's AOL would not comment about whether Verizon might renegotiate its $4.8 billion purchase price cash offer for Yahoo's core business. Experts have speculated about whether or not the breach might trigger the "material adverse effect" clause in the purchase transaction.

Tech Week Europe reported:

"Cybersecurity specialist Venafi conducted research into how well Yahoo reacted to the breach, in particular the cryptographic controls Yahoo still has in place, and said the results were “damning.” Researchers said Yahoo had still not “taken the action necessary to ensure they are not still exposed and that the hackers do not still have access to their systems and encrypted communications.” Furthermore Venafi warned that “Yahoo is still using cryptography (MD5) that has been known to be vulnerable for many years now.” "

On Monday, U.S. Senator Mark R. Warner (D-VA) requested that the U.S. Securities and Exchange Commission (SEC) investigate Yahoo and its executives. Senator Warner said in a statement:

"Data security increasingly represents an issue of vital importance to management, customers, and shareholders, with major corporate liability, business continuity, and governance implications," wrote Sen. Warner, a former technology executive. "Yahoo’s September filing asserting lack of knowledge of security incidents involving its IT systems creates serious concerns about truthfulness in representations to the public. The public ought to know what senior executives at Yahoo knew of the breach, and when they knew it."

Senator Warner called on the SEC:

"... to investigate whether Yahoo and its senior executives fulfilled their obligations to keep investors and the public informed, and whether the company made complete and accurate representations about the security of its IT systems. Additionally, since published reports indicate fewer than 100 of approximately 9,000 publicly listed companies have reported a material data breach since 2010, I encourage you to evaluate the adequacy of current SEC thresholds for disclosing events of this nature,

Also, six U.S. Senators sent a letter on September 27 to Marissa Meyer, the Chief executive Officer at Yahoo, demanding answers about precisely how and why the massive breach went undetected for so long. The letter by Senators Richard Blumenthal (D-CT), Al Franken (D-MN), Patrick Leahy (D-VT), Edward J. Markey (D-MA), Elizabeth Warren (D-MA), and Ron Wyden read in part:

"We are even more disturbed that user information was first compromised in 2014, yet the company only announced the breach last week. That means millions of Americans' data may have been compromised for two years. That is unacceptable. This breach is the latest in a series of data breaches that have impacted the privacy of millions of Americans in recent years, but it is by far the largest. Consumers put their trust in companies when they share personal and sensitive information with them, and they expect all possible steps to be taken to protect that information."

Indeed. Consumers have these reasonable and valid expectations. The letter demands that the tech company provide a briefing to the Senators' staffs with answers to a set of eight questions including a detailed timeline of events, specific systems and services affected, steps being taken to prevent a massive breach from happening again, and how it responded to any communications and warnings by government officials about state-sponsored hacking activity.

Elizabeth Denham, the Information Commissioner of the United Kingdom (UK), released a statement on September 23 demanding answers from Yahoo:

"The vast number of people affected by this cyber attack is staggering and demonstrates just how severe the consequences of a security hack can be. The US authorities will be looking to track down the hackers, but it is our job to ask serious questions of Yahoo on behalf of British citizens and I am doing that today. We don’t yet know all the details of how this hack happened, but there is a sobering and important message here for companies that acquire and handle personal data. People’s personal information must be securely protected..."

Some consumers aren't waiting for lawmakers. The Mercury News reported:

"... a class-action suit accusing the Sunnyvale tech firm of putting their finances at risk and failing to notify them earlier about the breach. “While investigating another potential data breach, Yahoo uncovered this data breach, dating back to 2014,” the lawsuit, filed Thursday in U.S. District Court in San Diego, said. “Two years is unusually long period of time in which to identify a data breach.” On Friday in U.S. District Court in San Jose, a second class-action suit was filed over the hack. Plaintiff Ronald Schwartz, of New York, claims his personal information was stolen. His suit calls Yahoo’s treatment of users’ data “grossly negligent” and alleges that circumstantial evidence indicates “Yahoo insiders” knew of the breach “long before it was disclosed.” "

Reportedly, one of the plaintiffs has already experienced financial fraud as a result of identity theft from the data breach.


Viking River Cruises Ship Collides With Bridge Killing 2 Crew Members

View of the top deck of Viking ship with the wheelhouse in the up position. Click to view larger version Earlier this week, Viking River Cruises announced that one of its ships struck a bridge Sunday while sailing the Rhine-Main-Danube Canal in Germany:

"Viking Freya experienced an accident in Erlangen, Germany early Sunday morning. Viking Freya’s wheelhouse collided with the bridge in Erlangen. Two crew members of the ship were in the wheelhouse and died as a result of injuries sustained during the collision. No other crew members or guests were injured, and all guests have been transported to local hotels..."

View of lowered handrails and partially lowered wheelhouse on a Viking ship. Click to view larger version The above photo (click to view larger version) shows the top deck of another Viking ship with the wheelhouse in the "up" position. For low bridge clearances, the wheel house lowers inside the ship. Also, the crew lowers all railings on the top deck, and passengers are prohibited from that area. The photo on the left shows lowered handrails and a partially lowered wheelhouse.

The Metro UK reported (with photos) that the ship struck the bridge about 1:30 AM. The two crew members killed were from Hungary. None of the 181 passengers were injured. All passengers and 49 crew members were transferred to local hotels. Passengers were able to board another Viking ship in Passau, Germany to continue their journey to Budapest. While the Viking Freya is out of service for repairs, the Viking Bestia ship will substitute for future 2016 sailings.

During my Viking cruise in September 2014 from Amsterdam to Budapest, I noticed that there wasn't much clearance under some bridges; perhaps 5 to 7 feet between the top deck and the bottom of several bridges. See the photo below.

View of low clearance between a Viking ship and a bridge. Click to view larger version Clearly, something went awfully wrong on the Freya. This was terrible, sad news.


Drone Strikes Commercial Airliner While Landing At London Airport

Image of drone. Click to view larger version Several news organizations reported this morning that a drone struck a commercial airliner during its approach to land at an airport in England. CNN reported:

"British Airways Flight BA727 from Geneva, Switzerland, was coming in to land at London's Heathrow Airport when the pilot said he thought a drone had struck the front of the aircraft, London Metropolitan Police said."

During the drone strike, the plane was descending and at an altitude of about 1,700 feet. The plane landed safely and no passengers were injured. Officials inspected the plane and found no damage. Government authorities are investigating. They do not know who operated the drone, nor the type of drone. So far, officials haven't found any debris from the drone, during a land search.

In the United Kingdom, as in the United States, drone operators are supposed to operate their drones within flight restrictions (e.g., 400-foot maximum altitude, not near airports). The trouble is enforcement. There doesn't seem to be any way for government authorities to enforce the restrictions.

In the United States, the Federal Aviation Administration (FAA) is responsible for maintaining the safety of our skies. Current flight restrictions by the FAA for drones (also called Unmanned Aircraft Systems):

"Fly below 400 feet and remain clear of surrounding obstacles. Keep the aircraft within visual line of sight at all times. Remain well clear of and do not interfere with manned aircraft operations. Don't fly within 5 miles of an airport unless you contact the airport and control tower before flying. Don't fly near people or stadiums. Don't fly an aircraft that weighs more than 55 lbs. Don't be careless or reckless with your unmanned aircraft – you could be fined for endangering people or other aircraft

What does "near" mean: 5 feet, 5 yards, 50 yards, 500 yards, or 5 miles? What does "careless" mean? Enforcement seems to be an open security issue. There is nothing stopping drone operators from violating these flight rules. The FAA registration rules seem equally problematic:

"Anyone who owns a small unmanned aircraft that weighs more than 0.55 lbs. (250g) and less than 55 lbs. (25kg) must register with the Federal Aviation Administration's UAS registry before they fly outdoors. People who do not register could face civil and criminal penalties... The owner must be: 13 years of age or older...A U.S. citizen or legal permanent resident."

How is this enforced when anyone can walk into a retail store and buy a drone (or order one online)?

The Heathrow drone strike should not be a surprise. There were two near misses in New York in August last year.The CNN news story also reported:

"A recent report, based on the center's analysis of Federal Aviation Administration data from August 21, 2015 to January 31, 2016, said there were 519 incidents involving passenger aircraft and unmanned drones in the U.S. within that period."

Last year, U.S. Senator Chuck Schumer (Democrat-New York) proposed an amendment to Federal Aviation Administration Re-authorization bill to require all remote-controlled aircraft sold in the United States to have tracking mechanisms installed. The mechanisms would use geo-fencing technology to keep drones away from high-value targets, such as airports, major parades, the Pentagon, major sporting events, and sports stadiums.

Drones have many valid uses, including faster, easier safety inspections of infrastructure, such as bridges, residential roofs, towers, and stacks; plus commercial package delivery. While drone pilots have been required to register with the FAA since December, there are still many unregistered operators.

The Heathrow drone strike could have had a very different result. It seems the drone bounced off the plane's metal exterior. A strike that punctures a windshield, or damages an engine, could produce a different outcome.

Once terrorists figure out the security hole with drone flight enforcement, you can bet they will test security limits. Heaven forbid terrorists pack explosives on larger drones and successfully fly them into a commercial airliner. If this happens, the travel industry will take a huge economic hit as consumers fly less often; or stop flying altogether (and takes trains or buses). Related tourism industries and locations would also be affected economically. People will lose jobs.

Image of M1A2 Abrahms battle tank. Click to view larger image A more sensible approached would have been to have put in place drone flight rules combined with effective enforcement processes before allowing consumers to purchase drones. One could argue that limits also apply. Consumers cannot buy an M1A2 Abrahms battle tank or a howitzer cannon. Maybe consumers should not be able to buy drones until effective enforcement and safety processes are in place first. Last year, a person installed and fired a handgun on his drone.

If this bothers you (and I sincerely hope that it does), tell your elected officials. What are your opinions of drones safety?


Report: Significant Security Risks With Healthcare And Financial Services Mobile Apps

Arxan Technologies logo Arxan Technologies recently released its fifth annual report about the state of application security. This latest report also highlighted some differences between how information technology (I.T.) professionals and consumers view the security of healthcare and financial services mobile apps. Overall, Arxan found critical vulnerabilities:

"84 percent of the US FDA-approved apps tested did not adequately address at least two of the Open Web Application Security Project (OWASP) Mobile Top 10 Risks. Similarly, 80 percent of the apps tested that were formerly approved by the UK National Health Service (NHS) did not adequately address at least two of the OWASP Mobile Top 10 Risks... 95 percent of the FDA-approved apps, and 100 percent of the apps formerly approved by the NHS, lacked binary protection, which could result in privacy violations, theft of personal health information, and tampering... 100 percent of the mobile finance apps tested, which are commonly used for mobile banking and for electronic payments, were shown to be susceptible to code tampering and reverse-engineering..."

Some background about the U.S. Food and Drug Administration (FDA). The FDA revised its guidelines for mobile medical apps in September, 2015. The top of that document clearly stated, "Contains Nonbinding Regulations." The document also explained which apps the FDA regulates (link added):

"Many mobile apps are not medical devices (meaning such mobile apps do not meet the definition of a device under section 201(h) of the Federal Food, Drug, and Cosmetic Act (FD&C Act)), and FDA does not regulate them. Some mobile apps may meet the definition of a medical device but because they pose a lower risk to the public, FDA intends to exercise enforcement discretion over these devices (meaning it will not enforce requirements under the FD&C Act). The majority of mobile apps on the market at this time fit into these two categories. Consistent with the FDA’s existing oversight approach that considers functionality rather than platform, the FDA intends to apply its regulatory oversight to only those mobile apps that are medical devices and whose functionality could pose a risk to a patient’s safety if the mobile app were to not function as intended. This subset of mobile apps the FDA refers to as mobile medical apps."

The Arxan report found that consumers are concerned about app mobile security:

80 percent of mobile app users would change providers if they knew the apps they were using were not secure. 82 percent would change providers if they knew alternative apps offered by similar service providers were more secure."

Arxan commissioned a a third party which surveyed 1,083 persons in the United States, United Kingdom, Germany, and Japan during November, 2015. 268 survey participants were I.T. professionals and 815 participants were consumers. Also, Arxan hired Mi3 to test mobile apps during October and November, 2015. Those tests included 126 health and financial mobile apps covering both the Apple iOS and Android platforms, 19 mobile health apps approved by the FDA, and 15 mobile health apps approved3 by the UK NHS.

One difference in app security perceptions between the two groups: 82 percent of I.T. professionals believe "everything is being done to protect my apps" while only 57 percent of consumers hold that belief. To maintain privacy and protect sensitive personal information, Arxan advises consumers to:

  1. Buy apps only from reputable app stores,
  2. Don't "jail break" your mobile devices, and
  3. Demand that app developers disclose upfront the security methods and features in their apps.

The infographic below presents more results from the consolidated report. Three reports by Arxan Technologies are available: consolidated, healthcare, and financial services.

Arxan Technologies. 5th Annual State of App Security infographic
Infographic reprinted with permission.


Apple vs. FBI: "Extraordinary" Government Actions May Cause U.S. Companies To Move Offshore

Apple Inc. logo There may be unintended consequences of the Federal Bureau of Investigation (FBI) is successful with forcing Apple, Inc. to build back doors into its iPhones. What might some of those unintended consequences be? TechCrunch reported that Lavabit filed an amicus brief supporting Apple. Never heard of Lavabit? Forgot about Lavabit? You may remember:

"... Lavabit, a technology company that previously judged it necessary to shutter its own service after receiving similarly “extraordinary” government demands for assistance to access user data, in the wake of the 2013 disclosures by NSA whistleblower Edward Snowden... the FBI sought the private encryption key used by Lavabit to protect the Secure Socket Layer (“SSL”) and Transport Layer Security (“TLS”) connections to their servers. With the SSL/TLS private key in hand, the FBI would be able to impersonate Lavabit on the Internet. This would allow them to intercept, decrypt, inspect, and modify (either with intent, or by accident) all of the connections between Lavabit and the outside world..."

Federal Bureau of Investigation logo In its brief, Lavabit argues that by being forced to build back doors into its devices. not only would Apple's brand be tarnished, but that the ability of iPhone users to receive reliable and secure operating-system security updates would be degraded. Some updates might include malware. If users' trust decreases and they choose to stop receiving security updates, then their devices become more vulnerable than otherwise. That's not good. And, if people blame government for starting this security mess, then that's not good either since it would erode trust in government.

Would companies relocate out of the United States due to privacy and surveillance concerns? Consider:

"... Silent Circle, moved its global headquarters from the Caribbean to Switzerland back in May 2014 — citing the latter’s “strong privacy laws” as one of the reasons to headquarter its business in Europe. Various other pro-encryption startups, including ProtonMail and Tutanota, have also chosen to locate their businesses in countries in Europe that have a reputation for protecting privacy."

Plus, there are money concerns. Since 1982, at least 51 companies completed tax inversions: moved their headquarters (and sometimes some employees) out of the United States to another country to enjoy lower taxes. So, Burger King is now a Canadian company. Pfizer is now an Irish company. And, lower tax payments by companies make government deficits (federal, state, local) worse. The bottom line: profitability matters. When companies suffer lower profitability -- as tarnished brands often do -- their executives take actions to improve profits. It's what they do.

Want to learn more about Lavabit? At about the two-thirds mark in the film "CitizenFour," Lavabit founder Ladar Levison shares some of his experiences.


Safer Internet Day: Do Your Part

Safer Internet Day 2016 logo Today is Safer Internet Day (SID) #SID2016. This event occurs every year in February to promote safer and more responsible use of online technology and mobile phones, especially among children. This year's theme is:

"Play your part for a better Internet"

There are events in 100 countries worldwide. The European Commission’s Safer Internet Programme started the event, which has continued under the Connecting Europe Facility (CEF). This is the 13th annual event. According to its press release:

"Last year’s celebrations saw more than 19,000 schools and 28 million people involved in SID actions across Europe, while over 60 million people were reached worldwide..."

Hans Martens, Digital Citizenship Programme Manager at European Schoolnet and Coordinator of the Insafe Network said:

“The theme of ‘Play your part for a better internet’ truly reflects how stakeholders from across the world can and should work together to build a trusted digital environment for all. This approach is at the core of the Better Internet for Kids agenda, and we look forward to seeing many exciting onitiatives and collaborations, both on the day of SID itself and beyond."

Sophos, a security firm, described six safety tips for families. That includes learning to spot phishing scams to avoid password-stealing computer viruses and ransomware. Children need to learn how to create strong passwords, and never use these weak passwords. Read about several SID events in California, including teens brainstorming ways to fight online bullying and teens helping adults.

To learn more, watch the video below and then visit SaferInternetDay.org for events in your country.

Or, watch the video on Youtube.


EU Antitrust Chief: Vast Digital Data Collection By A Few Threatens Competition

On Sunday, the New York Times reported comments by the European Union's antitrust chief:

"Margrethe Vestager, the European Union’s antitrust chief, warned on Sunday that the collection of a vast amount of users’ data by a small number of tech companies like Google and Facebook could be in violation of the region’s tough competition rules."

The European Union (EU) and the United States are negotiating a new data-sharing arrangement by the January 31, 2016 deadline after the European Court of Justice ruled in October 2015 that Europeans’ sensitive personal information was not adequately protected when transmitted to the United States under the safe harbor agreement. The court ruled the agreement invalid because of access by U.S. government (spy) agencies.

The EU developed its Privacy Directive during the late 1990s to, a) standardize privacy laws across its member countries, b) protect their residents' sensitive personal and financial information as the Internet industry blossomed, and c) define the protections as information is transmitted across country borders. The protections cover online activities such as posting to social networking sites, buying products online, and performing searches at search engine websites. To learn more, read the "US/EU Safe Harbor Agreement: What It Is and What It Says About the Future of Cross Border Data Protection" (Adobe PDF) document by the U.S. Federal Trade Commission (FTC) from 2003. (The 2003 report is also available here.) To sell their products and services within the EU, companies based in the United States must comply with these privacy regulations.

Reportedly, Vestager said:

"If a few companies control the data you need to cut costs, then you give them the power to drive others out of the market...”

She is not the only one concerned:

"A number of European executives echoed Ms. Vestager’s fears about how a small number of American tech companies could use their large-scale data collection to favor their own services over those of rivals. Among them was Oliver Samwer, the German entrepreneur who co-founded Rocket Internet, one of the region’s most high-profile tech companies."

The EU has several antitrust investigations underway:

"... for example, investigations into Apple’s tax practices in Ireland and has started a wide-ranging inquiry into e-commerce that analysts say could encompass the likes of Amazon, among others. Ms. Vestager also brought antitrust charges against Google last April, saying the search giant had unfairly favored some of its digital services over those of rivals. An announcement in that case is expected in late spring... while a separate European investigation continues into whether Google used Android, its popular mobile software, to unfairly restrict rivals..."

It seems wise for consumers in the United States to pay attention to events and negotiations in Europe to ensure as much competition and privacy as possible.


The Most Discussed Topics On Facebook During 2015

Facebook logo What did Facebook members discuss the most during 2015? It wasn't all lolcats, music, selfies, and humor. The social networking giant published its list of most discussed global topics:

  1. U.S. Presidential Election
  2. November 13 Attacks in Paris
  3. Syrian Civil War & Refugee Crisis
  4. Nepal Earthquakes
  5. Greek Debt Crisis
  6. Marriage Equality
  7. Fight Against ISIS
  8. Charlie Hebdo Attack
  9. Baltimore Protests
  10. Charleston Shooting & Flag Debate

Survey: 40 Percent Of Companies Expect Data Breaches Caused By Employees

eSecurity Planet reported the results of a recent survey of information technology managers and employees. The survey included workers int he United States, United Kingdom, Germany, and Australia. The key findings:

"... 40 percent of companies expect to experience a data breach resulting from employee behavior in the next 12 months... 75 percent of employees believe their company doesn't give them enough information about data policies... 58 percent don't understand what would actually constitute a security breach... 50 percent of respondents admitted that they disregard their companies' data protection policies in order to get their jobs done."

The phrase "insider data breach" refers to data breaches caused by employees. Companies seem focused on external threats from hackers, while not focusing also upon insider threats. Lax or untrained employees and poor internal processes are often the root causes.

these survey results are not good. The results indicate that companies are not doing everything they can (and should) to protect the sensitive customer, client, employee, and retiree information they have collected.


Learning Apps Company Confirms Data Breach Affecting 11.6 Million Persons

Vtech logo Earlier today, educational toy maker VTech confirmed a data breach affecting 11.6 million persons. On November 27, Motherboard first reported the breach affecting 5 million parents and 200,000 children. The data breach is larger than first reported by many news organizations.

In its FAQ page, VTech confirmed that on November 14 hackers accessed its customer database:

"... on our Learning Lodge app store customer database and Kid Connect servers. Learning Lodge allows our customers to download apps, learning games, e-books and other educational content to their VTech products.  Kid Connect allows parents using a smartphone app to chat with their kids using a VTech tablet."

The company learned of the data breach on November 24 when a journalist inquired. During its current breach investigation, During its breach investigation, Vtech has temporarily suspended operations at Learning Lodge, the Kid Connect network, and a dozen websites including both PlanetVtech and VSmileLink sites in the US, France, Germany, United Kingdom, and Spain. Vtech's customer data includes the USA, Canada, United Kingdom, Ireland, France, Germany, Spain, Belgium, the Netherlands, Denmark, Luxembourg, Latin America, Hong Kong, China, Australia and New Zealand.

The number of persons affected by the breach:

"In total 4,854,209 customer (parent) accounts and 6,368,509 related kid profiles worldwide are affected, which includes approximately 1.2 million Kid Connect parent accounts.  In addition, there are 235,708 parent and 227,705 kids accounts in PlanetVTech. Kid profiles unlike account profiles only include name, gender and birthdate."

The VTech FAQ page also listed the number of breach victims by country. Parent accounts include the following data elements: name, e-mail address, security question and answer for password retrieval, IP address, mailing address, download history, and encrypted password. VTech's customer database does not contain credit card payment information, nor Social Security and similar identification information.

VTech describes itself as a global leader in electronic learning products for children and the world's largest manufacturer of cordless phones. Founded in 1976, VTech is headquartered in Hong Kong and has operations in 11 countries including manufacturing facilities in China. It employs about 30,000 employees, with 1,500 research and development professionals in Canada, Germany, Hong Kong, and China.

Even though customers' passwords were encrypted, VTech advised breach victims to change their passwords anyway, as skilled hackers may break the encryption. This is critical if breach victims used the same passwords, security questions, and security answers at other online sites.

This is not good. Whatever security detection software VTech used needs to be upgraded or replaced. A company should not learn about a breach from a journalist. The data elements stolen are sufficient for criminals to impersonate data breach victims, attempt to break into victims' other online accounts (e.g., banking), and send spam e-mail messages.

Do you or your children use VTech apps, games, or e-books? If so, what breach notifications have you received?