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Threat Weekly – A Situational Awareness Report from our Technical Security Team

Volume 2, Issue 6 – 9 February 2012

ThreatCon 2: Normal

Both Microsoft and Adobe have released important security patches this week. Computer devices are at elevated risk until they are patched.

TOP OF THE NEWS


UK Cyber Security skills are 'wholly inadequate', says former Security Minister

“[The UK cyber security skills base] is wholly inadequate,” Neville-Jones said in a lecture at the Global Strategy Forum in London yesterday [Tuesday 7th].

“[Education minister] Michael Gove has rightly, in my opinion, just swept away the existing ICT course. We need to revert to teaching programming [and to] create a perception of a career in this area. We need to have British graduates in our universities, not just Chinese.”

The private sector, academics and professional organisations all have a role to play in constructing the necessary education courses and raising the profile of cyber security careers, Neville-Jones added. She believes that in government, particularly, security is regarded more as a cost than an enabler. “Part of the problem is that cyber security skills are not recognised. Cyber security ought to be a module that everyone takes at business school,” she said. But making cyber security an issue that businesses should take seriously is also difficult, Neville-Jones has admitted.

Private companies need to have a statement on their cyber security strategy in their financial reports, she said. However, despite the government’s efforts to get cyber security onto the agenda of UK boardrooms, many still think it is too technical. “The Financial Reporting Council and professional organisations ought to give guidance and obligations to their companies,” Neville-Jones said.

The private sector would also benefit from sharing more information on cyber attacks and threats, she said. “If they don’t do that, the likelihood of being tripped up by the supply chain is just as [high]. The two-part attack – a decoy and a real attack – is becoming more common. “Do not think that it is in the long-term interest of the industry to be coy with each other,” Neville-Jones warned.

In November, the government announced a pilot of a cyber security ‘hub’ that enables public and private sectors to exchange information on cyber threats. This was one of the key announcements of the UK’s Cyber Security Strategy. A joint public/private sector ‘hub’ will pool government and private threat information and pass that out to ‘nodes’ in key business sectors, helping them identify what needs to be done and providing a framework for sharing best practice,” the government said in its strategy.

Source: http://www.computerworlduk.com/news/security/3335646/uk-cyber-security-skills-are-wholly-inadequate-says-former-security-minister/


FBI Investigating Leaked Phone Call About Anonymous

Members of Anonymous have released an intercept of a conference call between investigators at the FBI and Scotland Yard during which operations against hacktivist group were discussed. During the 17-minute call – which was released as an MP3 file and distributed on YouTube and elsewhere – investigators can be heard discussing various Anonymous and LulzSec-related cases. Information discussed in the call reportedly included details of evidence against suspects (sometimes referred to by their hacker handles), plans for legal action and court dates. The hacktivist group also published what it said was an FBI email detailing the addresses of invited call participants: 40 law enforcement officials in the UK, US, France, Ireland, The Netherlands and Sweden.

It is unconfirmed how the 17 January call was intercepted but the "leaked email" includes the time, dial-in number and access code, so it could be that members of the group simply dialled into the number and recorded the call directly. The FBI confirmed the leak, saying the information "was intended for law enforcement officers only and was illegally obtained," AP reports. The agency has reportedly launched an investigation into the leak, the BBC adds.

Meanwhile, a Met spokesman said: We are aware of the video which relates to an FBI conference call involving a PCeU [Police Central e-Crime Unit] representative. The matter is being investigated by the FBI.

At this stage no operational risks to the MPS have been identified; however we continue to carry out a full assessment. We are not prepared to discuss (this) further. The interception of the conference call is a serious operation security breach, especially because it affects an ongoing high-profile investigation, and is a major coup for the rag-tag hactivist collective.

A Twitter account linked to Anonymous – AnonymousIRC – boasted: The #FBI might be curious how we're able to continuously read their internal comms for some time now. #OpInfiltration.

Hints that hackers may have had an inside track on police investigations into their activities came late last month when "Anonymous Sabu" (leader of the LulzSec group) correctly predicted the postponement of trial against Jake Davis, an alleged member of LulzSec, F-Secure notes.

The cases against Jake Davis (allegedly "Topiary", the public face of the Anonymous and LulzSec hacktivist groups) and Ryan Cleary (who is alleged to have run a DDoS attack on the Serious Organised Crime Agency's website) are discussed during the conference call.

Source: http://www.wired.com/threatlevel/2012/02/anonymous-scotland-yard/


DNSChanger Trojan Still Needs to be Cleaned from Fortune 500 and US Government Systems

More than two months after authorities shut down a massive Internet traffic hijacking scheme, the malicious software that powered the criminal network is still running on computers at half of the Fortune 500 companies, and on PCs at nearly 50 percent of all federal government agencies, new research shows.

The malware, known as the “DNSChanger Trojan,” quietly alters the host computer’s Internet settings to hijack search results and to block victims from visiting security sites that might help scrub the infections. DNSChanger frequently was bundled with other types of malware, meaning that systems infected with the Trojan often also host other, more nefarious digital parasites.

In early November, authorities in Estonia arrested six men suspected of using the Trojan to control more than four million computers in over 100 countries — including an estimated 500,000 in the United States. Investigators timed the arrests with a coordinated attack on the malware’s infrastructure. The two-pronged attack was intended to prevent miscreants from continuing to control the network of hacked PCs, and to give Internet service providers an opportunity to alert customers with infected machines.

But that cleanup process has been slow-going, according to at least one security firm. Internet Identity, a Tacoma, Wash. company that sells security services, found evidence of at least one DNSChanger infection in computers at half of all Fortune 500 firms, and 27 out of 55 major government entities.

More on this story at: http://krebsonsecurity.com/2012/02/half-of-fortune-500s-us-govt-still-infected-with-dnschanger-trojan/

To establish if your computers DNS settings have been altered visit: http://www.dns-ok.us/


Global Cybersecurity Is Possible But Unlikely For Now

It’s a sobering experience to read the Security and Defense Agenda’s (SDA) just-released report, Cybersecurity: The Vexed Question of Global Rules. The report, sponsored by McAfee, culls together interviews with 80 cyber-security experts in government, business, international organizations, and academia with a survey of 250 senior security practitioners, to get a handle on the cybersecurity challenges nations face today and the measures they must take to protect the Internet and its business, government, and other users tomorrow. The report also rates the cybersecurity preparedness of 21 countries, including the United States. The U.S. comes out very well, though behind Israel, Sweden, and Finland,

The conclusion is best summed up in this sentence, “For the moment, the “bad guys” have the upper hand … because the lack of international agreements allows them to operate swiftly and mostly with impunity.” And, the more you read the report, the more you conclude that “for the moment” really means for the foreseeable future.

Global cooperation and information sharing are the keys to managing this threat, according to the report, yet the parade of new technologies such as mobile devices and the cloud, competing interests, and lack of agreement on what that cooperation should look like are huge challenges that won’t be solved any time soon.

More on this story at: http://blogs.mcafee.com/enterprise/security-connected/global-cybersecurity-is-possible-but-unlikely-for-now


Symantec Issues Hotfixes for pcAnywhere

Symantec has said its pcAnywhere remote control software is once again safe to use, following the release of its latest security patch. The security giant made the highly unusual move last week of advising customers to avoid using older but still widely used versions of pcAnywhere as a precaution, after it emerged that the product's source code was swiped by Anonymous-affiliated hackers.

The "Lords of Dharmaraja" bragged that they had obtained copies of Symantec's source code and threatened to publicly disclose it in order to facilitate the hunt for unpatched vulnerabilities. Source code for pcAnywhere was put up as the first candidate for this bug hunt, hence the heightened security concern over this product. After initially blaming the leak on a security breach by an "unnamed third party", Symantec eventually admitted the breach was the result of a previously undisclosed theft of source code from its systems dating back to 2006. Older versions of the source code of a range of enterprise and consumer security products from Symantec was exposed.

At this point – a fortnight ago – Symantec issued a statement warning that "customers of Symantec’s pcAnywhere product may face a slightly increased security risk as a result of this exposure if they do not follow general best practices."

Symantec released a patch for pcAnywhere versions 12.0 and 12.1 on Friday 27 January – just days after patching vulnerabilities in the latest (pcAnywhere 12.5) version of the software on Monday 23 January. In the days in between, Symantec advised users of older versions of its remote-control software to suspend the use of the technology of their environments pending the availability of a fix, which it has now delivered.

The initial version of Symantec's best practice white paper reportedly advised customers to disable pcAnywhere, unless it was required for business-critical purposes (surely the last thing you'd want to do with it).

More on this story at: http://www.theregister.co.uk/2012/02/02/pcanywhere_source_code_leak_sheanigans


Trojan smuggles out nicked blueprints as Windows Update data

Security watchers have uncovered a new highly targeted email-borne attack that uses a supposed conference invitation as a lure - and disguises extracted data as Microsoft Update traffic. The spearphishing attempts, which have been levied against several government-related organisations worldwide, try to use alleged unfixed security flaws in Adobe software to implant a Trojan on compromised machines - ultimately opening a backdoor for hackers to take over systems.

Once loaded, the malware also cunningly attempts to escape detection by posing as a benign Windows Update utility. The attack was independently discovered by security researchers from Seculert and Zscaler, who issued a joint warning about the so-called MSUpdater Trojan assault on Tuesday. "We were able to track similar attacks, from the same group of attackers, back to 2009," Aviv Raff, CTO at Seculert told El Reg. "The method of operation of many of the attacks is similar – a spearphishing email is sent with a PDF attachment of a fake industry related 'Conference Invitation'. The PDF file exploits zero-day vulnerabilities in Adobe Reader, and then installs the RAT [Remote Access Trojan] malware. The malware tries to stay under the radar of security products by pretending to be a 'Microsoft Windows Update' - hence the name 'MSUpdater' Trojan."

"One variant is using Windows Update-like HTTP requests to communicate with the command-and-control server. The other drops a file named msupdate.exe," he added. "The attacks' purpose was indeed industrial espionage, mainly for stealing intellectual property. One of the main functions of a variant of this malware was to steal specific files and upload them to the C&C server."

Analysis of the attack is ongoing, and Raff is yet to form a clear opinion on the likely perpetrators of the assault. "We don't have information about the people behind those attacks, however as all of them are targeting government-related organisations, it is highly reasonable to suspect that the attackers are high profile, maybe even a country," he concluded.

Source: http://www.theregister.co.uk/2012/02/01/spear_phishing_rats/


Romanian cops cuff suspected serial hacker TinKode

Romanian police have arrested a man suspected of breaking into the websites of NASA and the Pentagon in a series of high-profile hack attacks. Razvan Manole Cernaianu, 20, from Timisoara, is accused of publishing details of the SQL injection vulnerabilities discovered on the targeted websites under the hacker handle TinKode. The Romanian Directorate for Investigating Organized Crime and Terrorism (DIICOT) further alleges that Cernaianu, an IT student, sold hacking tools from his personal site.

TinKode bragged about breaking into the Royal Navy's official website in November 2010 and making off with site passwords. Other attacks claimed by TinKode include breaking into the MySQL site (using a SQL injection vulnerability) and the European Space Agency. These alleged targets fail to appear on the rap sheet, which concentrates on the NASA hack and an assault of US Army systems that allegedly resulted in the extraction of confidential data. Investigating officers from the FBI and NASA took part in the investigation that led to Cernaianu's arrest.

The motive for all the attacks was all about claiming high-profile scalps, obtaining bragging rights in the process, plus a heady mix of intellectual curiosity and pure devilment, rather than any form of money-making scam.

Source: http://www.theregister.co.uk/2012/02/01/tinkode_nasa_hack_suspect_cuffed/


Verisign Admits Breaches in SEC Filing

Internet giant VeriSign was hacked repeatedly in 2010 resulting in the theft of undisclosed information and raising questions about the integrity of security certificates issued by the company as well as its domain name service. The breaches were disclosed in vague language in a Securities and Exchange Commission filing last October in accordance with new SEC guidelines requiring companies to report intrusions to investors, according to Reuters.

The filing doesn’t say when in 2010 the breaches occurred, but administrators didn’t alert top management until September 2011, although the document indicates administrators were aware of, and responded to, the breaches shortly after they occurred in 2010. The company’s former chief technology officer, Ken Silva, who was with VeriSign until November 2010, was unaware of the breaches until Reuters contacted him for its story.

VeriSign told Reuters the company did “not believe these attacks breached servers that support our Domain Name System Network.” DNS is responsible for delivering web surfers to the correct sites they’re seeking. DNS converts requested URLs, such as www.amazon.com, into the correct IP address so that users trying to reach the retailer will have their browsers directed to that company’s website. A breach of the DNS network could allow attackers to redirect users to malicious web pages or redirect and intercept e-mail communications.

Just as important are the security certificates that VeriSign issued at the time. Such certificates verify the legitimacy of secure web pages such as https://google.com, so that browsers know they’ve reached a legitimate site. An attacker who manages to subvert a certificate-issuing authority can issue a bogus certificate that would allow him to pose as a legitimate site and trick people into entering usernames and passwords into an impostor site.

VeriSign sold its certificate-issuing business to Symantec in August 2010. A Symantec spokeswoman told Reuters that “there is no indication” that the breach “was related to the acquired SSL product production systems.” The spokeswoman did not indicate how the company could be sure this part of the business was not affected, however.

VeriSign would not be the first certificate authority hacked. Dutch certificate authority DigiNotar was hacked in July 2011. The attackers were able to obtain several hundred fraudulent certificates for top internet entities such as Google, Mozilla, Yahoo and even the privacy and anonymizing service Tor. Fraudulent certificates also played an important role in the super worm Stuxnet, which used certificates stolen from two companies in Taiwan. The authors of the worm, which was designed to attack centrifuges in Iran’s uranium enrichment program, used the certificates to sign a driver in their malware so that systems the worm was trying to infect would believe that the malicious file was a legitimate one from these two companies.

Source: http://www.wired.com/threatlevel/2012/02/verisign-hacked-in-2010/


THE REST OF THE WEEK’S NEWS


Regional cybercrime hubs launched across England

Three police cybercrime teams have been launched as part of a £6m regional effort to combat growing threats. Yorkshire and the Humber, the Northwest and East Midlands will each get its own dedicated unit. They will work alongside the Metropolitan Police Centre e-crime Unit which deals with national online security. The funding is part of £30m targeted at bolstering e-crime prevention nationally over the next four years. The new centres will consist of three members of staff - a detective sergeant and two detective constables. The initiative was announced at the Association of Chief Police Officers (ACPO) e-crime conference in Sheffield on Wednesday.

A training period is required before the hubs will be fully operational, Deputy Assistant Commissioner Janet Williams, who heads ACPO's e-crime efforts, said. "These three additional policing units are going to play a critical role in our ability to combat the threat," she added.  "It is anticipated the hubs will make a significant contribution to the 'national harm reduction' target of £504m." Harm reduction is calculated using a "harm matrix" - a system which factors in costs such as how much the criminal stood to gain, how much money was invested in the crime, and the potential cost to the victim. "In the first six months of the new funding period alone we have already been able to show a reduction of £140m with our existing capability," Ms Williams said.

Britain's e-crime efforts were exposed last week after a conference call in which Met officers discussed operations against hackers with the FBI was itself intercepted by hackers. Details about active investigations into hackers who identified themselves with the activist collective Anonymous were posted online. At one point in the tape, a British detective can be heard saying: "We're here to help. We've cocked things up in the past, we know that."

The move to increase funding and reach of e-crime prevention efforts has been praised by security professionals. "It seems to me to be a positive move towards enhancing the national response to cybercrime," said David Emm, a security researcher for Kaspersky. "Until now, most of the police's expertise in computer-based crime has been concentrated in the Serious Organised Crime Agency and the Met. "Clearly, the government is keen to widen the field of expertise, and this is part of that initiative."

Source: http://www.bbc.co.uk/news/technology-16945859


Google to Block Blogs on a Country-by-Country Basis

Google has quietly announced changes to its Blogger free-blogging platform that will enable the blocking of content only in countries where censorship is required. Twitter announced technology last week addressing the same topic. It said it had acquired the ability to censor tweets in the countries only where it was ordered removed, instead of on an internet-wide basis.

Twitter’s announcement via its blog sparked a huge online backlash. The microblogging service was accused of becoming a censoring agent. Yet Google’s announcement three weeks ago — buried in a Blogger help page — went unnoticed until it was highlighted by TechDows on Tuesday.

Google wrote Jan. 9 it would begin redirecting Blogger traffic to country-specific URLs, meaning whatever country you’re in, you’ll get that country’s domain for Blogger-hosted blogs. TechDows reports that this is now happening in India, for example. So when you’re there and click on a Blogger blog, the URL will end ".in". Doing that, Google wrote, means content can be removed “on a per country basis.”

“Migrating to localized domains will allow us to continue promoting free expression and responsible publishing while providing greater flexibility in complying with valid removal requests pursuant to local law,” Google wrote.

Twitter did not announce how its new technology functions, but said Twitter has the ability to remove tweets only in countries where that content was barred.

Source: http://www.wired.com/threatlevel/2012/01/google-censoring-blogger


Hackers may be able to 'outwit' online banking security devices

Hackers may already able to use malware to outwit the latest generation of online banking security devices, security watchers warn. An investigation by BBC Click underlines possible shortcomings in the extra security provided by banking authentication devices such as PINSentry from Barclays and SecureKey from HSBC. Using such two-factor authentication devices means that even if hackers trick consumers into handing over their bank login passwords they still won't be able to raid online banking accounts.

But although basic phishing attacks will fail, it might still be possible to hackers to monitor and alter a user's communication with a banking site using malware. Hackers could set up a fake banking website and prompt users attempting to log into their account for both their online login credential and, for example, a PINSentry code, a pseudo-random number that changes every minute or so. This information would allow cybercrooks to log onto the genuine banking website, posing as a customer, before authorising fraudulent transfers or other payments.

This variant of a classic man-in-the-middle-attack is known in security circles as a man-in-the-browser attack. Isolated incidents of this type of fraud have cropped up over recent years, so the attack isn't new. Phishers have been having a pop at two-factor authentication devices since at least 2006, if not earlier. Targets over the years have included customers at Citibank and some Nordic banks, among others.

While the tactic is understood in security circles, it is doubtful that many consumers are aware of it, so the BBC Click investigation is welcome in helping to publicise the issue. The investigation – which does not highlight new instances of fraud or include quotes from victims – makes it clear that the threat is not tied to the technology supplied by any particular bank.

More on this story at: http://www.theregister.co.uk/2012/02/06/online_banking_security


Camera phones pose security threat to aircraft carrier project

Mobile phones with cameras have become a major security concern at Cochin Shipyard Limited (CSL) where the construction of India's first indigenous aircraft carrier has entered its crucial phase. Though the shipyard has been put under tight security, mobile phones of employees are troubling authorities who want to maintain a high level of secrecy about this project.

After floating the vessel on December 29, the shipyard has been working on crucial features of the vessel which includes interior mechanical system and integration of other devices. There are unconfirmed reports that some trainee employees have uploaded a few pictures of the carrier on social media sites like Facebook and Orkut.

However, the authorities have totally rejected this possibility. "We have not come across any such reports. There is a mechanism that checks whether the employees are using mobile phones in restricted areas. Above all, access is the key and the shipyard has prepared a list of employees who can access the construction site of the vessel," said CSL company secretary V Kala.

The security wing has also framed tougher regulations on mobile phone usage inside the shipyard from January 2012. According to CSL security officer in charge M D Varghese, procedures are on to hologram the mobile phones of all employees who will be allowed to carry it inside the shipyard. "Only mobile phones having the particular hologram will be allowed inside. Employees have been directed to submit an application form along with their mobile phones for fixing the hologram," he said. The officer said, restrictions are also imposed on usage of mobile phones with cameras. "Only officials above the rank of supervisors will be allowed to use mobile phones at sites where the construction activities of the aircraft carrier are progressing," he said.

Source: http://articles.timesofindia.indiatimes.com/2012-02-06/kochi/31031109_1_mobile-phones-aircraft-carrier-cochin-shipyard-limited Via G Forbes @OCEANUSlive


Manning to Face All Charges in Court Martial

WikiLeaks suspect Bradley Manning is headed for a general court-martial, according to the commander of the U.S. Army Military District of Washington in an announcement released late Friday. Maj. Gen. Michael Linnington, the general convening authority for the district, made the determination that Manning will face all 22 charges levelled against him, include aiding the enemy, wrongfully causing intelligence to be published on the internet knowing that it is accessible to the enemy, theft of public property or records, transmitting defence information, and fraud and related activity in connection with computers.

The most serious charge — aiding the enemy — carries a possible death penalty. Prosecutors have said they will not seek the death penalty. Instead, Manning faces life in prison if convicted of all the charges.

More on this story at: http://www.wired.com/threatlevel/2012/02/manning-to-be-court-martialed


Prison terms in Pirate Bay trial stand as Supreme Court refuses hearing

The Swedish Supreme Court will not hear an appeal from the founders of The Pirate Bay against prison sentences and fines imposed by the Swedish Court of Appeals, the court said on Wednesday. Over a year ago, the Court of Appeals sentenced Fredrik Neij, Peter Sunde, and Carl LundstrAPm to 10 months, eight months and four months of jail time, respectively. The court also said they must collectively pay a 46 million kronor ($6.7 million) fine.

The Supreme Court hears cases that are considered important for the direction of Swedish law enforcement, or when there are special circumstances. The court has reviewed the material in the Pirate Bay case and found that neither reason to hear the case exists, it said.

Separately, Gottfrid Swartholm Warg has been sentenced to one year in prison. Due to illness, Warg never showed up at the appeals trial, and recently had his verdict in the district court confirmed. The Pirate Bay case has been contentious from day one, and not everyone thinks Wednesday's decision was the right choice. "The Pirate Bay case is fundamentally important and it is unfortunate that the Supreme Court chooses not to hear the case," said Anna Troberg, leader of the Pirate Party in Sweden, in a statement. The case has been handled inadequately since the raid back in May 2006, and it would have been desirable that the Supreme Court heard the case, she said.

The entertainment industry is happier. The verdict is a defining moment in the battle over copyright on the Internet, according to the industry-funded Anti-Piracy Office. The Supreme Court has made it clear that all involved are responsible for any violations, including those that deliver the Internet connection, said the industry group.

Now that the sentence has been confirmed, Anti-Piracy Office will act against the nearly 150 illegal file-sharing services that have Swedish connections, it said.

Source: http://www.computerworld.com/s/article/9223874/Prison_terms_in_Pirate_Bay_trial_stand_as_Supreme_Court_refuses_hearing


Kelihos Botnet Regaining Momentum

Although Microsoft struck a massive blow at the Kelihos/Hlux botnet last year, Microsoft's ally in the strike, Kaspersky Labs, has now found new variants of the Kelihos bots, calling into question whether the operation was effective. The Kelihos/Hlux botnet was previously dealt a blow through a method called sinkholing. During normal operation, botnets communicate with one or more command-and-control centres. The compromised computers need to know where the command-and-control centres are, so the botnet's operators set up domains and modify their DNS entries to point to the IP address of the command-and-control centre's servers.

Sinkholing comes into effect when researchers contact the domain registrars, prove that the domains are being used for malicious purposes and take control of their DNS entries, substituting their own server IP addresses. This fools infected computers into communicating with the researchers' server instead. At this point, no further instructions are sent out to compromised clients, as attempts to self-cleanse the botnets have numerous ethical and legal considerations. Although being cut off from the command-and-control servers effectively neutralises infected computers from being able to conduct illegal activities, the PCs are still left open to future exploitation by criminals.

The method was seen as a better alternative than attempting to gain control of the command-and-control servers. The latter strategy required a highly coordinated surprise attack, since operators could always modify the DNS entries of their domains and point to new servers if they ever realised or suspected that their physical infrastructure was being compromised. However, Kaspersky has said that sinkholing may not be very effective if the botnet's operators are not apprehended. It found that shortly after the announcement made by Microsoft and itself last year, new versions of the bot's code had begun to surface, either written by the existing yet-to-be-caught operators, or by a new player that had obtained the botnet source code.

The presence of two different keys used to encrypt communications in the new version of the botnet code indicates that there may be two different groups controlling the botnet, the company wrote in a blog post. The company said that sinkholing might still be used to neutralise botnets, but it would require slightly different techniques, including pushing tools on to infected machines to remove infection, and forcing operators to re-infect if they want to build another botnet. Ultimately, though, the company said that the most effective way to disable botnets is to find the operators.

Source: http://www.zdnet.com.au/kelihos-variants-slipped-microsofts-noose-339330987.htm


Kernell's Appeal to Overturn Obstruction of Justice Conviction Denied

A federal appeals court will not overturn the conviction of a 24-year-old found guilty last year of illegally accessing the personal email account of Sarah Palin while she was a vice presidential candidate. David Kernell, who is free from jail after serving time at a federal prison camp in Kentucky, lost his appeal to have one of his convictions, for obstruction of justice, thrown out. He did not file an appeal against the other count under which he was found guilty, for the unauthorized access of electronic information.

Kernell, the son of Mike Kernell, a member of the Tennessee House of Representatives, was convicted of the two charges by a Knoxville jury in April. He was a 20-year-old economics student at the University of Tennessee in 2008 when he hacked his way past security questions to access then-Alaska Gov. Palin's personal email account. He gained access by providing Palin's birth date and ZIP code to Yahoo's password retrieval system. At that time, she had been recently recruited to run as vice president in the 2008 presidential bid of Sen. John McCain, R-Ariz.

Once Kernell got into Palin's personal account, he published messages from it. Subsequently, anticipating an FBI investigation, he attempted to disguise his activities by deleting evidence from his computer, which resulted in the obstruction-of-justice charge. Despite deleting his web browser's cache and defragmenting his hard drive, the FBI still found a connection to Palin's email account, including a letter he posted to the message board 4chan touting his hack, according to court documents.

Kernell's lawyers argued to a three-judge appeals panel that the portion of the Sarbanes-Oxley Act under which he was convicted was “unconstitutionally vague,” and that it was unconstitutional to convict someone for obstruction of justice before an investigation was initiated, according to court documents. The panel ruled on Monday, however, that Kernell's acknowledging online that he anticipated an investigation supported the conviction.

"Kernell expressly states [posting on 4chan] that he deleted the information on his computer out of a fear that the FBI would find it, plainly showing that he took his actions with the intent to hinder an investigation," according to the judges' ruling.

Kernell's attorney, Wade Davies, has said Kernell's access of Palin's account was merely a prank, according to reports. Davies could not be reached for comment.

Source: http://www.scmagazine.com/palin-hacker-appeal-rejected/article/225872


Apple Issues Security Updates

Apple has released a security update for its OS X Lion, Snow Leopard and Server platforms. The company said that the OS X 10.7.3 release would patch Lion systems, while the 2012-001 security update would be made available to Snow Leopard and OS X server machines. The update, Apple's first major OS X security fix of the year, will include some 38 patches for security vulnerabilities in the operating system.

Among the applications and components patched in the update are Apple's QuickTime multimedia tool. The software received fixes for six vulnerabilities which could allow for remote code execution by way of specially crafted image and video files. Apple also issued updates for the OS X Apache and PHP components, along with fixes for a vulnerability in Time Machine and an update which blocks poorly-secured root certificates from Diginotar Malaysia. While none of the flaws addressed in the update are known to be used by malware in the wild, OS X users find themselves facing an increasing number of threats.

The emergence of the Mac Defender platform has led some researchers to conclude that Mac OS will be a more popular target than ever in 2012. Users can obtain the update by running the OS X software update tool or by manually downloading the package form Apple's support site. The release comes as Apple is seeing some of its strongest ever Mac sales. The company estimated that last quarter some 5.2 million Macs were sold, up 26 per cent over the previous year.

Source: http://www.v3.co.uk/v3-uk/news/2143131/apple-issues-security-update