Delfigo Security - Strong Authentication

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Identity Theft

FTC Pushes Back Identity Theft Red Flag Rules Again

The Federal Trade Commission announced that it is once again pushing back enforcement of the “Red Flags” Rule. This time through December 31, 2010 so that Congress can consider legislation that would clarify and fix affect the scope of entities covered by the Rule.

Federal Trade Commission statement:

The Rule became effective on January 1, 2008, with full compliance for all covered entities originally required by November 1, 2008. The Commission has issued several Enforcement Policies delaying enforcement of the Rule. Most recently, the Commission announced in October 2009 that at the request of certain Members of Congress, it was delaying enforcement of the Rule until June 1, 2010, to allow Congress time to finalize legislation that would limit the scope of business covered by the Rule. Since then, the Commission has received another request from Members of Congress for another delay in enforcement of the Rule beyond June 1, 2010.

The Red Flags Rule is part of the Fair and Accurate Credit Transactions Act of 2003 (FACTA). It requires “creditors” and “financial institutions” to address the risk of identity theft.

 

Identity For Sale Online

Symantec points out the most frequently advertised items for sale on underground economy servers.

Source: Symantec Intelligence Quarterly: APJ October - December, 2009

 

New Generation Trojans Counter Token Based Temporary Passwords

A recent New York Times article once again draws attention to potentical vulnerabilities of token based temporary passwords. Saul Hansell describes in the article how hackers use new trojans to capture passwords in real time, thereby by-passing the security of offered by a token based device that utilizes a complex algorithm to generate a new temporary password every minute.

Source: How Hackers Snatch Real-Time Security ID Numbers


 

Data Security Breach Puts Twitter In The News Again

Twitter is in the news again - this time their internal documents stored on Google Apps that were hacked.

Questions about cloud security and the feasibility of storing critical information in Web-based services are being raised in the wake of a hacking incident involving Twitter and Google Apps.  

Twitter management was swift to jump into action with internal policy changes. With the popularity of Twitter on the uptick, security practices, policies, and procedures must be front of mind for the management team.

Companies such as Twitter, Google, and Facebook are immensely popular, with membership in the tens millions. Strong passwords are simply no longer adequate to secure data and identity. I am sure these companies are concerned and challenged with how to best contain this increasing menace. However, it would be cost prohibitive for these companies, whose business model is based on free use adoption, to start sending out tokens or force each member to install digital certificates in their browsers for second factor authentication. In addition, even if they were willing to set up token-based second factor authentication for members willing to pay a premium to protect online accounts, they would be confronted with significant integration, distribution and ongoing management challenges that would constantly impose a burden upon organizational resources.

Another primary concern is user convenience. Clearly these social media sites would not be enjoying the same level of popularity if members were subject to cumbersome processes to secure online access. Therefore, balancing the need for strong authentication with user convenience is of utmost importance for these companies as well. But this seemingly insurmountable challenge is not without a solution. Delfigo Security's business model and product architecture is predicated on addressing these very challenges - it provides implicit multifactor authentication without inconveniencing end users. There is no need for end users to change their current use patterns to have the assurance their account and profile information is secure on these sites. And our DSGateway platform is easily deployed, configured, and managed. It is a true zero footprint solution and requires no client downloads or tokens.

I agree with analyst Dan Blum of the Burton Group when he said, "I wouldn't store sensitive documents in a cloud-based service unless I had a lot of confidence in the specific service," Blum says. "I'd hold them to the same standards that you hold for your own internal applications. If you expect your internal applications to be accessed only through two-factor authentication then the cloud should be at least as secure as that."

Any regular user of these social media sites should be concerned as well. Delfigo would like to make Twitter and other social media companies an offer. We will provide our strong authentication solution free of per user (member) fees for up to one year . If you want to assure that your information is safe you should hope they take us up on this offer."

Bharat Nair is Vice President of Business Development at Delfigo Security, This e-mail address is being protected from spambots. You need JavaScript enabled to view it , Boston, MA. He can be reached at http://www.delfigosecurity.com or by phone at 1.617.248.6501. You can now follow Delfigo Security news and articles on twitter (@delfigo).


 

Virginia's Prescription Monitoring Database Hacked

Over the weekend, MarketWatch reported hackers broke into the State of Virginia's Prescription Monitoring Program (PMP) database and are demanding a $10 million ransom. The nature of this crime is mind-boggling but not a surprise considering the increasing trend in identity theft. It should serve as an eye-opener to ensure adequate authentication and authorization policies are put in place, especially when databases with large volumes of individual data is managed for state wide use.

The Virginia database is intended for state wide doctors and pharmacies to track, and reduce the abuse and illegal sale of painkillers. It is not clear from the article how the hackers accessed the patient records, but it is obvious that a database of this nature should have a strong authentication solution. However, there are many inherent challenges with the distribution and management of hardware based second factor authentication solutions, chief among them integration and cost. It may be that it is just not plausible for the State to implement a second factor solution, such as "distribute" token based second factor authentication for use by the thousands of potential end users needing access.

Forrester Research's recent report on the State of Enterprise IT confirms that cost and complexity are the top barriers to Identity and Access Management. Delfigo Security has made it a point to address these challenges. Our business model focuses on lowering total cost of ownership, and our technology architecture concentrates on eliminating the hassles of integration, distribution and management.

I agree with Gov. Kaine, "it is difficult to foil every criminal that may want to do something against you". There is a need for manageable, cost effective solutions to prevent these types of brazen criminal acts from becoming regular occurrences.

Bharat Nair is Vice President of Business Development at Delfigo Security, www.delfigosecurity.com, Boston, MA. He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by phone at 1.617.248.6501.


 
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