TELECOM Digest     Mon, 2 Apr 2007 17:08:00 EDT    Volume 26 : Issue 90

Inside This Issue:                           Editor: Patrick A. Townson

    Microsoft Rushes Animated Cursor Security Patch to Users (Reuters News)
    Cybercrime Flourishes in Hacker Online Forums (Acohido & Schartz, USAToday)
    CommunicationsDirect News Daily Update (communicationsdirect_daily)
    AT&T in Talks for Telecom Italia Stake (USTelecom dailyLead)
    Re: Phone System Recommendation (Joss)
    Re: Judge Hits Vonage With Injuction; Stop Using (Scott Dorsey)

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----------------------------------------------------------------------

Date: Mon, 02 Apr 2007 14:36:16 -0500
From: Reuters News Wire <reuters@telecom-digest.org>
Subject: Microsoft Rushes Animated Cursor Security Patch to Users


Microsoft issuing animated cursor security patch

Microsoft Corp. plans to patch a security hole in Windows on Tuesday
related to an animated cursor that hackers have used to launch attacks
after users click on links to malicious Web sites.

Microsoft, whose Windows operating system runs on some 95 percent of
the world's computers, said it would release the patch outside of a
regular monthly security update because it completed testing earlier
than anticipated.

"Microsoft's monitoring of attack data continues to indicate that the
attacks and customer impact is limited," the world's biggest software
maker said in a statement.

Security firm F-Secure said attacks using the flaw related to cursor
animation files used by Windows intensified over the weekend, with the
majority tracing back to different Chinese hacker groups.

It said most of the activity around the so-called ANI exploit has been 
via dozens of malicious Web sites but warned that on Sunday the first 
Internet worm, able to replicate without the user doing anything to the 
machine, was found using the flaw to spread.

"This vulnerability is really tempting for the bad guys," said Mikko 
Hypponen, chief research officer at F-Secure. "It's easy to modify the 
exploit, and it can be launched via Web or e-mail fairly easily."

Microsoft has been working to improve the security and reliability of
its software as more and more malicious software targets weaknesses in
Windows and other Microsoft software.

The company said it was working with authorities investigating the
latest attacks and that consumers could visit Microsoft Update or
Windows Update or get more information at:

http://www.microsoft.com/athome/security

"Exploitation may occur when a user clicks a malicious link, reads or 
forwards a specially-crafted HTML e-mail, or accesses a folder 
containing a malicious animated cursor file," said a technical bulletin 
from the U.S. government-backed Computer Emergency Readiness Team.

Copyright 2007 Reuters Limited.

NOTE: For more telecom/internet/networking/computer news from the
daily media, check out our feature 'Telecom Digest Extra' each day at
http://telecom-digest.org/td-extra/more-news.html . Hundreds of new
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http://telecom-digest.org/chat/index.html

For more news and headlines, please go to:
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------------------------------

Date: Mon, 02 Apr 2007 14:40:57 -0500
From: Byron Acohido & Jon Swartz, USA Today <usatoday@telecom-digest.org>
Subject: Cybercrime Flourishes in Hacker Online Forums


By Byron Acohido and Jon Swartz, USA TODAY

SEATTLE -- Criminals covet your identity data like never before. What's 
more, they've perfected more ways to access your bank accounts, grab 
your Social Security number and manipulate your identity than you can 
imagine.

Want proof? Just visit any of a dozen or so thriving cybercrime forums, 
websites that mirror the services of Amazon.com and the efficiencies of 
eBay. Criminal buyers and sellers convene at these virtual emporiums to 
wheel and deal in all things related to cyberattacks and in the fruit 
of cyberintrusions: pilfered credit and debit card numbers, hijacked 
bank accounts and stolen personal data. They've got it all available.

The cybercrime forums gird a criminal economy that robs U.S. businesses 
of $67.2 billion a year, according to an FBI projection. Over the past 
two years, U.S. consumers lost more than $8 billion to viruses, spyware 
and online fraud schemes, Consumer Reports says.

In 2004, a crackdown by the FBI and U.S. Secret Service briefly
disrupted growth of the forums. But they soon regrouped, more robust
than ever. Today, they are maturing -- and consolidating -- just like
any other fast-rising business sector, security experts and law
enforcement officials say. In fact, this summer a prominent forum
leader who calls himself Iceman staged a hostile takeover of four
top-tier rivals, creating a megaforum.

Security firms CardCops, of Malibu, Calif., and RSA Security, a
division of Hopkinton, Mass.-based EMC, and volunteer watchdog group
Shadowserver observed the forced mergers, as well, and compiled dozens
of takeover-related screen shots. "It's like he created the Wal-Mart
of the underground," says Dan Clements, CEO of CardCops, an
identity-theft-prevention company. "Anything you need to commit your
crimes, you can get in his forum."

The Secret Service and FBI declined to comment on Iceman or the
takeovers. Even so, the activities of this mystery figure illustrate
the rising threat that cybercrime's relentless expansion -- enabled
in large part by the existence of forums -- poses for us all.

In the spy vs. spy world of cybercrime, where trust is ephemeral and
credibility hard won, CardersMarket's expansion represents the latest
advance of a criminal business segment that began to take shape with
the formation of the pioneering Shadowcrew forum.

Shadowcrew, which peaked at about 4,000 members in 2004, arose in
2002.  It established the standard for cybercrime forums -- set up on
well-designed, interactive Web pages and run much like a well-organized
co-op. Communication took place methodically, via the exchange of 
messages posted in topic areas. Members could also exchange private 
messages.

Shadowcrew gave hackers and online scammers a place to congregate, 
collaborate and build their reputations, says Scott Christie, a former 
assistant U.S. Attorney in New Jersey who helped prosecute some of its 
members.

In the October 2004 dragnet, called Operation Firewall, federal agents 
arrested 22 forum members in several states, including co-founder Andrew 
Mantovani, 24, aka ThnkYouPleaseDie. At the time, Mantovani was a 
community college student in Scottsdale, Ariz. In August, he began 
serving a 32-month federal sentence for credit card fraud and 
identification theft.

Shadowcrew as catalyst

Shadowcrew's takedown became the catalyst for the emergence of forums
as they operate today. With billions to be made, new forums have
reformed like amoebas, splintering into 15 to 20 smaller-scale
co-ops. "They learned that it's best to disperse," says Yohai Einav,
director of RSA Security's Tel Aviv-based fraud intelligence team.

Forum leaders have become increasingly selective about accepting new
members. "Vouching" for new members is now the norm, requiring a
member in good standing to extend an invitation to new recruits. Some
forums charge an initiation fee; others limit the power to invite new
members to the forum leaders.

Veteran vendors and buyers typically do business in multiple forums
simultaneously, in case any particular forum shuts down.

"If criminals get caught one way, they modify their behavior," says
Kevin O'Dowd, an assistant U.S. Attorney in New Jersey who prosecuted
the Shadowcrew case.

Some forums have become known for their specialties, such as offering 
free research tools to do things such as confirming the validity of a 
stolen credit card number or learning about security weaknesses at 
specific banks. A few offer escrow services, handling the details of 
complex deals for a fee.

The better-run forums invest in tech-security measures that have become 
the norm in the corporate world, such as use of encrypted Web pages. All 
forums run aggressive campaigns to identify and sweep out rippers -- the 
con artists who gain membership and instigate deals, only to renege on 
their part of the bargain.

 From this post-Shadowcrew milieu, Iceman has emerged as a forum
leader to watch.

RSA Security has tracked Iceman's postings on CardersMarket since
October 2005; CardCops has compiled an archive of hundreds of postings
on several forums by someone using the nickname Iceman since January
2006.

In the boastful world of cybercrime, nicknames, or nics, are
sacrosanct.  It's not unusual for a hacker or cyberthief to go by two
or three different nics, but unthinkable for two or three people to
knowingly share the same nic, says RSA Security's Einav. "I believe
we're talking about one guy and not a group hiding behind his name,"
he says.

Hostile takeover

Clearly enterprising and given to posting rambling messages explaining
his strategic thinking, Iceman grew CardersMarket's membership to
1,500.  On Aug. 16, he hacked into four rival forums' databases,
electronically extracted their combined 4,500 members, and in one
stroke quadrupled CardersMarket's membership to 6,000, according to
security experts who monitored the takeovers.

The four hijacked forums -- DarkMarket, TalkCash, ScandinavianCarding and 
TheVouched -- became inaccessible to their respective members. Shortly 
thereafter, all of the historical postings from each of those forums 
turned up integrated into the CardersMarket website.

To make that happen, Iceman had to gain access to each forum's 
underlying database, tech-security experts say. Iceman boasted in online 
postings that he took advantage of security flaws lazily left unpatched. 
CardCops' Clements says he probably cracked weak database passwords. 
"Somehow he got through to those servers to grab the historical postings 
and move them to CardersMarket," he says.

Iceman lost no time touting his business rationale and hyping the 
benefits. In a posting on CardersMarket shortly after completing the 
takeovers he wrote: "basically, (sic) this was long overdue ... why 
(sic) have five different forums each with the same content, splitting 
users and vendors, and a mish mash of poor security and sometimes poor 
administration?"

He dispatched an upbeat e-mail to new members heralding CardersMarket's 
superior security safeguards. The linchpin: a recent move of the forum's 
host computer server to Iran, putting it far beyond the reach of U.S. 
authorities. He described Iran as "possibly the most politically distant 
country to the United States (sic) in the world today."

At USA TODAY's request, CardCops traced CardersMarket's point of origin 
and confirmed that it is registered to a computer server in Iran.

If Iceman succeeds in establishing CardersMarket as the Wal-Mart of
forums, its routing through an Iranian server will make an already
complex law enforcement challenge that much more difficult, security
experts say.

"Chasing these carding fraudsters is like chasing terrorists in
Afghanistan," says RSA Security's Einav. "You know they are somewhere
out there, but finding their caves, their underground bunkers, is
almost impossible."

The U.S. Secret Service declined to answer questions about Iceman and
CardersMarket. It would not acknowledge whether they are under
investigation as part of Operation Rolling Stone, the most intensive
federal probe of cybercrime since Operation Firewall. This year, 35
suspects have been arrested. No names were initially released, but a
few have surfaced after indictments were unsealed.

Suspects include Binyamin Schwartz, 28, of Oak Park, Mich., indicted
in July in Nashville for allegedly trafficking more than 100,000
Social Security numbers, and Paulius Kalpokas, 23, of Lithuania, whose
extradition to Nashville on charges of trafficking stolen credit card
data has been requested.

Schwartz "got caught up in something on the Internet but did not
profit from it," says Sanford Schulman, Schwartz's attorney. "He
inquired about acquiring information online without criminal intent,
nor was he involved in a sophisticated enterprise."

Secret Service spokesman Thomas Mazur says Operation Rolling Stone is
designed to "disrupt and dismantle any of these carding forums," but
he declined to say which forums or how many are being investigated.

Security experts worry that CardersMarket's emergence as a model for
setting up hypersafe forums could translate into a spike of activity
by the best and brightest cybercrooks.

"It's called bulletproofing," says CardCops' Clements. "Guys will now
migrate to CardersMarket because they really are untouchable there."

Trust a thief?

Iceman's masterstroke rattled his rivals and raised suspicions among
his peers.

In the tech industry, companies routinely spread what they call FUD --
fear, uncertainty and doubt -- about a competitor's business model.
Shortly after Iceman swept up TalkCash's 2,600 members onto
CardersMarket's website, TalkCash's leader, nicknamed Unknown Killer,
e-mailed a shrill warning to TalkCash members: "I've talked to a
number of guys and all say that they didn't merge a (expletive) with
that site ... so please beware as they can be feds."

Speculation abounds on the Internet that the FBI helped install Iceman
as head of a dominant forum set up to lure kingpin cybercrooks into
capture.

In busting up Shadowcrew, law enforcement had used a high-ranking
member of Shadowcrew as an inside informant, beginning in August 2003,
according to court records. Security experts say it's possible, though
unlikely, Iceman could be an informant. While not commenting directly
about Iceman, FBI spokesman Paul Bresson says, "The FBI is not in the
business of exposing Americans to fraud."

Instead of being admired by his peers, Iceman found himself scrambling
to deal with an intensifying backlash. A forum member, nicknamed Silo,
posted this public comment on CardersMarket: "How Can we TRUST you and
this boards admin? You breached our community's security. Stole the
Databases of other forums ... you've breached what little trust
exists (sic) in the community."

Ten days after the forced mergers, the deposed leaders of DarkMarket and 
ScandinavianCarding managed to reconstitute forums under those names. 
And CardersMarket appeared to be under assault, with some of the 
features on its website functioning sporadically, according to RSA 
Security's Einav.

Security experts expect the infighting to run its course. They say
Iceman's attack prompted forum leaders to beef up database passwords
and patch other security holes, making both hostile takeovers and law
enforcement investigations more difficult. Most experts expect the
activity level of the forums to rise, because many consumers and
businesses are uninformed or apathetic.

Consumers' lax attitudes

Consumers continue to exhibit lax attitudes, even as Internet
intrusions and scams rise in frequency and sophistication. John
Thompson, CEO of anti-virus giant Symantec, contends Internet users
must adopt the same "sixth sense about security" they use when they
get in their cars or leave home.

Meanwhile, the commercial sector has been slow to ask consumers to
take other steps, such as using a smartcard or fingerprint reader --
along with typing a log-on and password -- to prove they are who
they say online.

Thomas Harkins spent two decades as operations director for MasterCard
International's fraud division, gaining an insider's view of
cybercrime's breakneck rise. Now COO of security firm Edentify, based
in Bethlehem, Pa., Harkins says identity theft is poised to increase
by a factor of 20 over the next two years.

"There's so many stolen identities in criminals' hands that (identity
theft) could easily rise 20 times," Harkins says. "The criminals are
still trying to figure out what to do with all the data."

Meanwhile, stories such as Kevin Munro's will continue to pile up. In
late August, the name, Social Security number and other data of the
51-year-old Warsaw, N.Y., building inspector turned up for sale on a
forum monitored by CardCops. Munro recalls changing checking accounts
after a thief tried to cash several bad checks in 2002. Since then,
his personal data have persisted in circulation.

Cybercrooks have used it online to order magazines, purchase three
Dell computers and attempt to take out a real estate loan. Recently,
MasterCard notified Munro that an account he's had for 20 years and
uses infrequently was being canceled.

"I work for a living," Munro says. "I do everything on the up-and-up,
and some lowlife comes by and takes it away."

Acohido reported from Seattle, Swartz from San Francisco.

Find this article at:
http://www.usatoday.com/tech/news/computersecurity/infotheft/2006-10-11-cybercrime-hacker-forums_x.htm?csp=N009 

Copyright 2007 USA TODAY, a division of Gannett Co. Inc.

NOTE: For more telecom/internet/networking/computer news from the
daily media, check out our feature 'Telecom Digest Extra' each day at
http://telecom-digest.org/td-extra/more-news.html . Hundreds of new
articles daily. And, discuss this and other topics in our forum at
http://telecom-digest.org/forum (or)
http://telecom-digest.org/chat/index.html

For more news and headlines, please go to:
http://telecom-digest.org/td-extra/internet-news.html  (or)
http://telecom-digest.org/td-extra/technews.html

------------------------------

Subject: CommunicationsDirect News Daily Update - April 02, 2007
From: communicationsdirect <communicationsdirect@communicationsdirectnews.com>
Reply-To: communicationsdirect_daily-owner@communicationsdirectnews.com
Date: Mon,  2 Apr 2007 11:45:48 EDT


********************************
PricewaterhouseCoopers Presents
The CommunicationsDirect Daily Update
For April 02, 2007
********************************

Our new poll: How do you prefer to watch movies? At the cinema, on TV, 
or on a computer? Visit our web site to vote.

Asset-Swap Talks Between Altimo and TeliaSonera End in Failure
http://communicationsdirectnews.com/do.php/120/23572?11228

     Talks regarding a possible asset swap between Altimo, the
     telecoms arm of Russian holding Alfa, and Swedish-Finnish group
     TeliaSonera, have ended in failure, according to press
     reports. There are reported to have been a number of stumbling
     blocks in negotiations. These include a dispute over the size of
     the stake in TeliaSonera to be ...

University of the Air
http://communicationsdirectnews.com/do.php/150/23568?11228

     Long distance truck driving can be a lonely, boring life. By
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     wants to help truckers put at least some of their idle time to
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     drivers the ability to ...

Recognize the Risks: VoWiMAX is Vulnerable to Loss, Cannibalization
and Fraud  http://communicationsdirectnews.com/do.php/140/23567?11228

     VoWiMAX and VoIP services offer companies new ways to maintain their
     customer base, but introduce new and different challenges. There is a
     fundamental difference between revenue management in other
     environments and with VoWiMAX. In most environments, operators can
     perform revenue management with the information they have in
     their ...

Nokia Siemens Opens on a Downer
http://communicationsdirectnews.com/do.php/120/23565?11228

     What a start! On its second day of operation, the telecom
     sector's third largest supplier, Nokia Siemens Networks , lowered
     its market growth expectations for 2007, showing the first
     clear-cut signs of merger strain. Nokia Siemens Networks says it
     expects 'very slight' growth in fixed and mobile infrastructure
     in ...

Vodafone Data Up, Shares Down
http://communicationsdirectnews.com/do.php/120/23563?11228

     Mobile data revenues are set to surge across Europe on the back of
     unprecedented corporate and consumer demand, said Vodafone Group
     plc executives today at an investor event focused on the
     performance of its flagship U.K. and German divisions. Investors,
     meanwhile, are more concerned about threats to profit margins in
     the ...

AT&T, Qwest, MCI/Verizon: In. Sprint Nextel: Out.
http://communicationsdirectnews.com/do.php/130/23561?11228

     The U.S. General Services Administration (GSA) selected AT&T,
     Qwest and Verizon yesterday for the largest-ever federal
     telecommunications contract, valued at $20 billion over 10 years,
     with some estimates putting the figure around $48 billion. The
     contract, called Networx Universal, will overhaul the
     government's ...

Can VoIP Inc. Save Vonage?
http://communicationsdirectnews.com/do.php/120/23558?11228

     Vonage has, in a semi-secret move that looks like it could be a
     workaround to the Verizon patents its been convicted of
     violating, signed a contract to use the network of rival carrier
     VoIP Inc.'s subsidiary Voice One Inc. Vonage doesn't have a
     network of its own. That's seen to be at least part of the issue
     ...

Digital Addressable Advertising Will Become Key Cable Growth Driver
http://communicationsdirectnews.com/do.php/120/23555?11228

     SCOTTSDALE, Ariz. -- During 2007, Digital Addressable Advertising
     will emerge in cable TV, and in the years to come will be a key,
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     vendors, reports In-Stat. The worldwide annual value of Digital
     Addressable Advertising equipment, software, systems, and
     services is likely to ...

Your feedback on our e-letter is always welcome. Send email to:

CommunicationsDirect Editor <telecom_direct_editor@us.pwc.com>

Copyright (C) 2007 PricewaterhouseCoopers.

------------------------------

Date: Mon, 2 Apr 2007 12:19:24 CDT
From: USTelecom dailyLead <ustelecom@dailylead.com>
Subject: AT&T in Talks for Telecom Italia Stake


USTelecom dailyLead
April 2, 2007
http://r.smartbrief.com/resp/gAaIfDtusXoTAbCibuddYBxi


TODAY'S HEADLINES


NEWS OF THE DAY
* AT&T in talks for Telecom Italia stake
BUSINESS & INDUSTRY WATCH
* Nokia Siemens goes live
* AT&T snags statewide video franchise in California
* Former Microsoft executive brings MVNO model to the masses
* Syniverse acquires BSG for $290 million
* Sprint Nextel dials up Goodby for consumer account
* Carphone Warehouse attracts new customers
USTELECOM SPOTLIGHT
* Register for NXTcomm today!
HOT TOPICS
* Judge orders permanent Vonage injunction
* AT&T, Verizon, Qwest share in Networx contract
* Fighting back against Google
* Whitacre steers AT&T ship
* Alcatel-Lucent wins Verizon network contract
TECHNOLOGY TRENDS
* Motorola completes purchase of Tut Systems
* Survey: Canadian telecoms avoid margin dips
* Fixed-mobile convergence promising, study says
* Bar codes provide link to mobile Web
REGULATORY & LEGISLATIVE
* Cambodia shuts off texting before elections

Follow the link below to read quick summaries of these stories and others.
http://r.smartbrief.com/resp/gAaIfDtusXoTAbCibuddYBxi

------------------------------

From: Joss <yossibh@gmail.com>
Subject: Re: Phone System Recommendation
Date: 1 Apr 2007 23:04:25 -0700
Organization: http://groups.google.com


On Mar 31, 3:49 am, T <nospam.k...@cox.nospam.net> wrote:

> In article <telecom26.8...@telecom-digest.org>, david.ea...@gmail.com
> says:

>> We are in the market for a new phone system.  The company has
>> approximately 35 employees with 3 - 5 remote workers we want to tie in
>> with VOIP connections.  We currently have an AT&T Partner system that
>> has served us very well.  Our needs are fairly simple and the system
>> should be easy to maintain with a broad support base.  We are
>> considering Avaya, Intertel, Cisco and 3Com.  I would appreciate any
>> good recommendations.

> Asterisk. You can use any open source VoIP phone, the sofware is open
> source, runs on Linux. It's a bit of a pain to set up but the cost
> savings are very high.

I second that, you can check http://www.asterisknow.org/ for an easy
installation package.

I have used asterisk software for IVR systems that handles thousands
of calls a day -- so 35 users is a breeze.


Joss.

------------------------------

From: kludge@panix.com (Scott Dorsey)
Subject: Re: Judge Hits Vonage With Injuction; Stop Using
Date: 2 Apr 2007 09:57:49 -0400
Organization: Former users of Netcom shell (1989-2000)


In article <telecom26.88.9@telecom-digest.org>,  <hancock4@bbs.cpcn.com> wrote:

> And is exactly the same as electronic technology 50-60 years ago.
> Back in 1957 IBM research discovered something they thought was
> perfectly obvious but to their surprise was never patented.  So they
> filed and got a patent for it.  On the flip side, a dubious patent
> claim forced IBM to pay out millions of dollars in royalties.

The difference between this situation and the current situation is that
in 1957, the patent office had inspectors who were familiar with the
technology, and who would reject attempts to patent devices that did not
work, or which had become part of standard industry techniques decades
beforehand.

Today, we have the additional issue that the patent office does not
have enough inspectors with actual familiarity with software
technology or with algorithms.  This is how Microsoft can get away
with patenting the ring buffer, a data structure used at least as
early as the CDC 6000.

We currently have a situation where huge numbers of obviously invalid
patents are being issued, and there is no way for the patents to be
declared so without going to court.  And once it comes time to go to
court, sadly it tends to be a situation of the person with the most
money winning.  


--scott

"C'est un Nagra.  C'est suisse, et tres, tres precis."

------------------------------


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End of TELECOM Digest V26 #90
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