Category Archives: Internet Security
Enter the Tangle, a blockchain designed specially for the Internet of Things – ZDNet
Blockchain and other distributed ledger technologies (DLTs) may be interesting ways to track and assure the validity of information as it's passed between entities or systems, and it has been weighed as a possible data exchange medium for devices and systems within the Internet of Things. But current blockchains and DLTs may have too much overhead for supporting millions of small-footprint devices.
That's the reasoning for the launch of a new approach, called the "Tangle," intended to weave devices, sensors and systems into a distributed, yet accountable network. To build and evangelize this new DLT for the IoT, the Eclipse Foundation and IOTA Foundationrecently jointly launched the Tangle EE Working Group, based on the IOTA distributed ledger protocol.
I recently had the opportunity to chat with Christoph Strnadl, VP of innovation & architecture at Software AG and IOTA proponent, about this potential new messaging platform for the IoT. The key differentiator between DLTs such as blockchain and IOTA Tangle "is that it is optimized for the machine-to-machine economy," he says. The Tangle is designed to enable the collection of information on "billions of endpoints, millions of devices, as opposed to blockchain, which fails to scale when we have a few thousand nodes." While other DLTs are intended to simply support cryptocurrency and financial exchanges, the Tangle is designed to manage information on the identity of devices, and having the ability to send and execute messages. Because this is what links the devices to the IoT platform and to the providers and supply chain networks."
IOTA Tangle is intended to run across "a continuum of devices, a continuum of edge computing facilities," Strnadl says. "Then everything is able to participate -- even if it's just a very small sensor. You can hook the sensors up to a node, and you can outsource information." The Tangle also supports the ability to send and execute on messages, Strnadl says. This enables machines such as robots to "deliver an order or reliably transmit a status report which can be used for billing. This is what links the devices to the IoT platform and to the providers, and supply chain networks." Another important function supported within the Tangle is smart contracts, he adds.
IOTA Tangle is designed to offer an alternative approach to blockchain for IoT payments and data use cases given its fee-less nature and the ability for secure data transfer in machine-to-machine communication. The network is built on a Directed Acyclic Graph (DAG) as a way to address what are seen as typical blockchain shortfalls related to scalability, environmental sustainability, cost, and security. "Unlike blockchain, which has an inherent transaction rate limit, the Tangle allows different branches of the DAG to spread and merge, resulting in a much faster overall throughput," according to IOTA. "The result is an open-source framework that is scalable, fee-free, and permissionless, thus eliminating previous barriers to use and making its application much easier for organizations of all kinds."
Typical blockchains "all feature a data structure which is a naming device that lists lead blocks, and every block contains a few thousand transactions," Strnadl explains. "Someone has to approve all the thousands of transactions in a block, digital mining, and then you mine the next block and approve a thousand more translocation. It is a very costly operation in terms of energy and computing resources."
Strnadl expects an eventual consolidation in DLT offerings, with IOTA Tangle covering small transaction and IoT information requirements. At this point, however, there is no integration likely between Tangle and other DLTs likely, he adds. "It's very hard to mix from one model to another.."
Founding members of the Tangle EE group include: Dell Computers , STMicroelectronics, Objects Management Group , accessec, BiiLabs, Calypso Network Association, Geometric Energy Corporation, RWTH Aachen University, Software AG , Industrial Internet Consortium, AKITA and Xain. Initial target industries for Tangle EE's commercialization of IoT payments infrastructure include mobility and automotive, global trade and supply chain, ehealth, smart energy, smart cities, and industrial IoT .
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Enter the Tangle, a blockchain designed specially for the Internet of Things - ZDNet
Posture management: Cloud security tools rise in wake of breaches – CIO
High-profile breaches have sparked interest in an emerging class of security software. The technology, named cloud security posture management (CSPM), scours cloud environments and alerts staff to configuration issues and compliance risks, most of which stem from human error.
Exhibit A of this type of gaffe occurred at Capital One in 2019, when a former Amazon Web Services (AWS) employee exploited a misconfigured Web Application Firewall (WAF) the financial service provider was using as part of its operations hosted in AWS, exfiltrated data and stored it on GitHub. In 2018, both a Walmart partner and GoDaddy were exposed when they left AWS storage instances accessible via the internet.
Most CIOs will tell you that their data is more secure with cloud vendors, but human error leaves even the stoutest compute networks susceptible to attacks, thanks in part to the various permissions and access points that leave enterprises exposed, says Gartner analyst Neil MacDonald. In fact, 99 percent of cloud security failures will be the customers fault through 2025, according to Gartner.
"The issue they are most worried about is some misconfiguration or mistake they make that leaves them exposed," MacDonald says.
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Posture management: Cloud security tools rise in wake of breaches - CIO
5 Windows 10 features that beat what you had on Windows 7 – CNET
Microsoft's Surface Laptop 3 runs Windows 10.
Finally made the upgrade from Windows 7 to Windows 10? Hopefully the answer is yes, since Microsoft stopped supporting Windows 7 ($4.79 at Walmart) in January, which means devices running that OS no longer get important updates or security patches. But never fear: Learning how to navigate Windows 10 ($79 at Walmart) isn't too difficult, especially if you can pinpoint all of the big differences between the new OS and the older version.
From tighter security to a new browser, Windows 10 has a lot to offer. Here are some of the biggest feature updates in Windows 10, compared to Windows 7.
Now playing: Watch this: Windows 10: Features to try now
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Read more: You can still download Windows 10 for free -- and you should because Windows 7 is dead
Windows 10's advanced security and continuous patches and updates are the top reason to switch to the latest version of the OS. Some of the best security features include:
If you're still holding on to Windows 7, at least consider these security tips to protect your Windows 7 laptop. You can also check out this full comparison of Windows 10 and Windows 7 security features from Microsoft.
Read more: The best antivirus protection of 2020 for Windows 10
Hit the familiar Windows icon at the bottom left of the screen or on your keyboard to find a list of your desktop apps and programs. Similar to the Start menu in Windows 8, the Windows 10 Start menu includes live tiles -- large icons to the right of the Start menu including Mail, Calendar and Weather. You can customize these tiles with any app you like: Just open the Start menu, click All apps and find the app you want to make into a tile. Right-click it, and click Pin to Start. To remove a tile, right-click it and click Unpin from Start.
With Windows 10, you can also access a lesser-known second Start menu that helps you access important features like the Command Prompt, the Control Panel and the Task Manager much easier, either by pressing the Windows key + X or by right-clicking the Windows icon/Start button.
Microsoft's digital assistant Cortana is available on Windows 10 PCs. Cortana acts as a personal assistant -- similar to Apple's Siri -- and operates via voice command to help with tasks like scheduling and reading or summarizing your email.
Go to Start > Settings > Cortana to turn Cortana on and off, and control when and how you use the assistant. For example, toggle yes if you want Cortana to help when you say, "Hey Cortana," and yes if you want speech and typing personalization turned on, which helps the assistant get to know your patterns.
Read more: Have a new PC or laptop? Here's how to set it up the best way
The Microsoft Edge browser now runs on Chromium.
Say goodbye to Internet Explorer: With Windows 10, Microsoft introduced the Edge browser to replace the old mainstay. In January, Microsoft rolled out a new version of Edge, built on the same engine that drives Google's Chrome browser -- making it more compatible with modern websites, for a better browsing experience. You can download the new Edge browser on Windows 10 (and, technically, since it's built on Chromium, on Windows 7 or 8 too) by going to the Microsoft Edge webpage, selecting Windows, and clicking Download.
Unlike Windows 7, Microsoft continually updates Windows 10 to patch security issues and make the machines run better. This is part of Microsoft's move to make Windows operate more as a service, with continuous updates instead of a brand-new version.
To check for updates, go to Start > Settings > Update & Security, and under Windows Update, click Check for updates.
Major feature updates come twice a year, with the most recent being the November 2019 Update. This update added some new productivity features, like the ability to create events directly from the Calendar flyout on the Taskbar, without having to open the Calendar app.
Now playing: Watch this: Windows 10: Try these hidden features right now
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Originally published earlier this month. Updated periodically with new information.
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5 Windows 10 features that beat what you had on Windows 7 - CNET
Beware of a cyber attack – faribaultcountyregister.com | News, Sports, Information on the Blue Earth region – Faribault County Register
"There is a large effort to target county commissioners by hackers," Midwest IT Systems security specialist Ben Geddis told the Faribault County Board at their meeting on Feb. 18.
Geddis was in attendance at the board meeting to talk about Internet security matters with the board.
"The idea the hackers have is they can cash in on government officials and gain access to information," Geddis explained. "Counties are highly targeted. If they can get control of your account they can impersonate you and send out emails which appear to be from you."
Security specialist Ben Geddis of Midwest IT Systems, left, discusses a variety of Internet security matters with the Faribault County Board last week.
The problems are most commonly spread through phishing emails, according to Geddis.
"For instance, I received an email which appeared to be from Pizza Hut offering me a free pizza if I clicked on the link in the email," Geddis commented. "But when I used my mouse to hover over the hyperlink displayed in the email message, the link-to address was for a different website."
You need to be very careful what you click on, Geddis shared.
"Ransomware is on the rise," he stated. "If hackers can get into your system, they can encrypt your information and prevent you from accessing it unless you pay them a ransom to remove the encryption."
So, what can be done to lower the risks of a hacker getting hold of your data?
"Many people live by the rule, if I was not expecting it (email), I delete it," Geddis said. "Changing your passwords every year is also a good idea."
Another way your information can be safeguarded is by having multi-factor protection.
"Multi-factor protection is when you are required to enter a code you may receive through a text to be able to get into your data," Geddis explained. "For instance, if you are logging into one of your credit cards from a computer you do not normally use, the credit card company may require you to get a code, which they will send to your phone, you will then have to enter the code before you can proceed on their website."
He provided the board with a list of red flags to watch out for.
"Unknown email addresses, emails received from outside of your organization and emails with a suspicious domain name are all things to look out for," Geddis said. "Also, watch for bad grammar and spelling errors. Be aware of emails which try and scare you into clicking on a link without thinking about it."
Also at the meeting was Billeye Rabbe, the solid waste coordinator for the Prairieland Solid Waste Facility in Truman.
She brought a list of solid waste and recycling haulers who needed to have their license renewals approved by the board.
B and B Sanitation and Recycling, Hometown Sanitation, LIP Enterprises, Inc., Peterson Refuse and Demo, Thompson Sanitation and Waste Management were approved for both solid waste hauling and recycling licenses.
Minnesota Lake was approved for a solid waste hauling license and Mason City Recycling was approved for the recycling license.
Commissioner Greg Young mentioned the audit of Prairieland had gone well, morale at the plant is high and the board is very happy with the job Rabbe does.
In other business, it was also noted the Charles Carlson versus Faribault County Drainage Authority court trial will begin on March 18, at 9 a.m., in Martin County.
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Beware of a cyber attack - faribaultcountyregister.com | News, Sports, Information on the Blue Earth region - Faribault County Register
Internet security Market 2020 Global Analysis, Research, Applications and Forecast to 2026 – Jewish Life News
Internet security Market Overview:
Verified Market Research offers its latest report on the Internet security Market that includes a comprehensive analysis of a range of subjects such as market opportunities, competition, segmentation, regional expansion, and market dynamics. It prepares players also as investors to require competent decisions and plan for growth beforehand. This report is predicted to assist the reader understand the market with reference to its various drivers, restraints, trends, and opportunities to equip them in making careful business decisions.
Global Internet security Market was valued at USD 32.67 Billion in 2017 and is projected to reach USD 61.42 Billion by 2025, growing at a CAGR of 8.2% from 2018 to 2025.
Get More information about Internet security Market @ https://www.marketresearchblogs.com/internet-security-market-size-growth-analysis-opportunities-business-outlook-and-forecast-to-2026/
Top 10 Companies in the Internet security Market Research Report:
International Business Machine (IBM) Corp., Hewlett Packard, Microsoft Corp., Cisco System Intel Corporation (McAfee), Symantec Corporation, Trend Micro, Kaspersky Lab, Dell (SonicWall). Symantec and IBM
Competitive Landscape
The chapter on competitive landscape covers all the major manufacturers in the global Internet security market to study new trends and opportunities. In this section, the researchers have used SWOT analysis to study the various strengths, weaknesses, opportunities, and trends the manufacturers are using to expand their share. Furthermore, they have briefed about the trends that are expected to drive the market in the future and open more opportunities.
Global Internet security Market: Drivers and Restraints
The researchers have analyzed various factors that are necessary for the growth of the market in global terms. They have taken different perspectives for the market including technological, social, political, economic, environmental, and others. The drivers have been derived using PESTELs analysis to keep them accurate. Factors responsible for propelling the growth of the market and helping its growth in terms of market share are been studied objectively.
Furthermore, restraints present in the market have been put together using the same process. Analysts have provided a thorough assessment of factors likely to hold the market back and offered solutions for circumventing the same too.
Global Internet security Market: Segment Analysis
The researchers have segmented the market into various product types and their applications. This segmentation is expected to help the reader understand where the market is observing more growth and which product and application hold the largest share in the market. This will give them leverage over others and help them invest wisely.
Regions Covered by the global market for Internet security :
Middle East and Africa (GCC countries and Egypt)North America (USA, Mexico and Canada)South America (Brazil, etc.)Europe (Turkey, Germany, Russia, Great Britain, Italy, France etc.)Asia Pacific (Vietnam, China, Malaysia, Japan, Philippines, Korea, Thailand, India, Indonesia and Australia)
Table of Contents
Introduction: The report starts off with an executive summary, including top highlights of the research study on the Internet security industry.
Market Segmentation: This section provides detailed analysis of type and application segments of the Internet security industry and shows the progress of each segment with the help of easy-to-understand statistics and graphical presentations.
Regional Analysis: All major regions and countries are covered in the report on the Internet security industry.
Market Dynamics: The report offers deep insights into the dynamics of the Internet security industry, including challenges, restraints, trends, opportunities, and drivers.
Competition: Here, the report provides company profiling of leading players competing in the Internet security industry.
Forecasts: This section is filled with global and regional forecasts, CAGR and size estimations for the Internet security industry and its segments, and production, revenue, consumption, sales, and other forecasts.
Recommendations: The authors of the report have provided practical suggestions and reliable recommendations to help players to achieve a position of strength in the Internet security industry.
Research Methodology: The report provides clear information on the research approach, tools, and methodology and data sources used for the research study on the Internet security industry.
Get a Complete Market Research Report Information @ https://www.marketresearchblogs.com/internet-security-market-size-growth-analysis-opportunities-business-outlook-and-forecast-to-2026/
TAGS: Internet security Market Size, Internet security Market Growth, Internet security Market Forecast, Internet security Market Analysis, Internet security Market Trends, Internet security Market
References : https://www.marketresearchblogs.com/
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Internet security Market 2020 Global Analysis, Research, Applications and Forecast to 2026 - Jewish Life News
Vigilantes and private security are policing the internet where governments have failed – The South African
Every time we switch on a computer, open an email, view a website or make an online payment, there are multiple new opportunities for crimes to occur.
In fact,almost halfof all crimes against individuals in England and Wales now involve or are enabled by the internet.
These technological changes have fuelled a substantialnew private policing sectorthat includes commercial companies but also online vigilantes.
This change is comparable to the quiet revolution seen in the 1970s when conventional private policing, particularly the use of uniformed security officers, emerged on an industrial scale.
Despite its scale, online private policing activity has been largely ignored by researchers and politicians. Yet it is already creating somesignificant issuesthat need addressing.
This new online private policing sector exists most obviously in the numerous companies providing services.
These include designing, testing and maintaining security systems, responding to cyber-attacks and moderating websites for harmful or illegal content.
But many other organisations have also developed their own cybersecurity structures to better protect themselves from online crime.
In most large organisations, these structures are led by what are generally called chief information security officers (CISO) but there are also many other new cybersecurity roles such as security architects and ethical hackers.
Globally, this new sector is estimated to support around6 million jobsand is predicted to be worth$248 billion (R3.7 trillion) by 2023.
This is much more than the traditional private security industry, which is only predicted to be worth around$167 billion (R2.5 trillion) by 2025.
One of the most interesting roles to emerge in this new sector is that of the moderators who police the content published on the internet.
They play an important role in preventing thepublication of undesirable material, from hardcore pornography and footage from war zones through to abusive and inappropriate language.
There has been virtually no academic research of these important operatives. Butmedia reportshaveraised concernsover the welfare of these staff, who often have to view large amounts of distressing content, including images.
So their conditions of employment and capabilities should be more of a priority for researchers and regulators.
The internet hasnt just stimulated new forms of commercial private policing but has also enabled a new type of vigilantism to flourish.
For example, the limited law enforcement response to the masses of scam emails and bogus websites were at risk from everyday has led to the growth of scambaitors.
These are private individuals who try to engage with scammers andwaste their timeor simplyraise awarenessof their scams. One of the problems with scambaiting is thehumiliation and racismoften involved.
For example some scammers have been encouraged to do repetitive tasks such as draw street maps and rewrite books, paint themselves or pose naked in humiliating positions, all of which have then been publicised.
Sometimes this is done with explicit or implicit racist commentaries, relating to the fact that many of the scammers areblack West Africans.
Perhaps the most controversial area of online vigilantism that has emerged ispaedophile hunting. Organised groups of internet users pose as children in online chatrooms to lure and expose paedophiles.
The actions of these groups have clearly helped the police and led to the exposure of real paedophiles who have subsequently been charged and convicted.
In 2018,at least 150 peoplein England and Wales were charged using evidence provided by paedophile hunters. But some groups have made their exposures and confrontations public, in some cases even live-streaming them online.
This has ledto innocent people being falsely and publicly condemned, while others have killed themselves after the exposure.
It has also been revealed that some of the people enacting this justice arethemselves convicted criminals whereas police forces themselves often bar people with criminal records from joining.
The rapid growth of both commercial and amateur attempts at policing the internet shows there is a demand that is not being met by the traditional provider of law enforcement, the state.
But the problems that are emerging from this private security activity demonstrate why it isnt enough to leave such significant operations to the market or volunteers.
The first quiet revolution eventually resulted in many jurisdictions introducing regulations to better control the activities of private security.
This new shift at least warrants further research and investigation to determine if the controls are adequate. The suspicion is that they are not.
Mark Button, Professor of Security and Fraud, University of Portsmouth. This article is republished from The Conversation under a Creative Commons license. Read the original article.
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Vigilantes and private security are policing the internet where governments have failed - The South African
Letter: It’s an election year why isn’t cybercrime on voters’ minds? – Greenville News
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Letter writer says that in light of recent hacking into Greenville Water System computers, voters should be concerned about cybercrime.
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OPINION
Jim Clark, Letter to the Editor Published 9:11 a.m. ET Feb. 23, 2020
Now that the Greenville Water System has been hacked and the state IRS (SC Department of Revenue) years ago, it is time to get serious about fixing this problem.
It is almost certain that your personal Social Security number and birth date are in cyberspace.So bank accounts, 401Ks and even home equity is at risk for cybercrime.
It is obvious the internet needs to be re-engineered for security.I have read that internet security is an illusion.All a hacker has to do is insert a line or two of code into a computer program. But banks are advertising the convenience of accessing personal accounts on cell phones.Is this making hacking easier?
The FDIC (Federal Deposit Insurance Corp.) does not cover hacking losses. Wire fraud laws need to berewritten to determine who is responsible, or insure these losses.
Hacking and ID theft has become a lucrative profession.These criminals are a growing parasite on responsible and productive Americans.It is long past timeto demand an end to these crimes or go back to pre-internet banking.
This is an election year.One would think cybercrime would an issue.
Jim Clark
Easley
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Letter: It's an election year why isn't cybercrime on voters' minds? - Greenville News
Straight Talk: That voicemail from the boss might be fake – Canton Repository
Better Business Bureau serving Canton Region and Greater West Virginia offers tips and advice for consumers to avoid fraudulent practices.
THE CONCERN Everyone knows to be on the lookout for phony emails, especially at work. Scammers can easily make messages that appear to come from anywhere, from your bosss account to the office printer. But what about voicemail? New voice-mimicking software is now being used by scammers to create convincing voicemail messages.
HOW THE SCAM WORKS:
You get a voicemail from your boss. They are instructing you to wire thousands of dollars to a vendor for a rush project. The request is out of the blue. But its the bosss orders, so you make the transfer.
A few hours later, you see your boss and confirm that you sent the payment. But theres one big problem; your manager has no idea what you are talking about! It turns out that the message was a fake. Scammers used new technology to mimic your bosss voice and create the recording. This voice cloning technology has recently advanced to the place where anyone with the right software can clone a voice from a very small audio sample.
Businesses may be the first places to see this con, but it likely wont stop there. The technology could also be used for emergency scams, which prey on peoples willingness to send money to a friend or relative in need. Also, with the US now in the midst of the 2020 election season, scammers could use the technology to mimic candidates voices and drum up donations.
TIPS TO AVOID A THIS SCAM:
Secure accounts: Set up multifactor authentication for email logins and other changes in email settings. Be sure to verify changes in information about customers, employees, or vendors.
Train staff: Create a secure culture at your office by training employees on internet security. Make it a policy to confirm all change and payment requests before making a transfer. Dont rely on email or voicemail.
FOR MORE INFORMATION To learn about other kinds of scams, go to BBB.org/ScamTips. If you have been the victim of a scam, make others aware by filing a report on BBB.org/ScamTracker.
FOR BBB INFORMATION Visit bbb.org/canton or call 330-454-9401 to look up a business, file a complaint, write a customer review, read tips, follow us on social media, and more!
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Straight Talk: That voicemail from the boss might be fake - Canton Repository
Best Protection Against File Less Malware and Advanced Threats: Kaspersky Scores Most Top Three Places in 2019 Test Results – Al-Bawaba
As competition intensifies, Kaspersky remains at the top of the TOP3 metric for consumer and corporate cybersecurity. In 2019, Kaspersky products helped the company to achieve podium places (first, second or third) in 70 of 86 different independent tests in which it took part.
The TOP3 metric represents the aggregate scores achieved by more than 80 well-known vendors in the most respected, independent tests and reviews in the cybersecurity industry. Each vendor receives a score based on the number of top three places its products achieved in independent testing, relative to the number of tests the products were examined in. Sustained performance across multiple tests and products provides customers, industry analysts and experts with a more comprehensive overview of the vendors capabilities than a one-off result in a single test.
As of 2019, Kaspersky gained a podium place in 70 of the tests that it entered, with first place finishes in 64 of them.
Kaspersky Anti Targeted Attack, the companys flagship offering against advanced threats, brought in some of the most remarkable results. It was the only solution in its class that demonstrated 100% detection and zero false positives in Advanced Threat Defense test run by ICSA Labs in Q3 2019.
Kaspersky Anti Targeted Attack also successfully passed the Breach Response Test by SE Labs, which emulated 85 various attacks in order to check whether the solution can prevent and remediate any real harm, not just detect them. As a result, Kaspersky scored a Total Accuracy Rating of 95% with zero false positives.
Probing real-life protection capabilities of security products have been the focus of testing approaches in 2019, as opposed to more formal and simpler detection tests. Last year, AV-Comparatives invited 16 anti-virus vendors to enter their new Enhanced Real-World Test. Kaspersky Internet Security was one of the two products among all six participants to achieve a perfect score in all 15 scenarios which involved exploits, fileless malware and other advanced cyberthreats while Kaspersky Endpoint Security for Business was one of the three corporate products with such a score.
Furthermore, Kaspersky once again proved its expertise in protecting against undetectable fileless malware in Advanced Endpoint Protection: Fileless Threat Protection Test by AV-TEST. As a result, Kaspersky Endpoint Security for Business scored detection rating of 100% (with 68% on average among competitors) and 94% for protection (with 59% on average among other vendors).
Were honored to continue setting the highest protection standards in the cybersecurity industry. Despite the growing competition in 2019, we were able to maintain the reputation of our technologies that help protect millions of our customers against the most complex and the most evasive cyberthreats, says Anton Ivanov, VP of Threat Research, Kaspersky.
To find out more about the methodology and testing process, and to see the full list of vendor participants, in the TOP3 rating please visit the website.
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Best Protection Against File Less Malware and Advanced Threats: Kaspersky Scores Most Top Three Places in 2019 Test Results - Al-Bawaba
The cannabis industry’s next big threat: Hacks and fraud – WICZ
By Alicia Wallace, CNN Business
Cannabis is an emerging industry with stratospheric growth expectations. Like the California Gold Rush, the dot-com boom and every other new market with boundless potential, the cannabis industry also has the tendency to attract some sketchy characters with dubious motives.
Security experts have long warned that the cannabis industry is susceptible to both cybercriminal and fraudulent activities. It's not exactly the Wild West anymore: Businesses and state-legal markets have matured. But risks and concerns about criminal activity and fraud haven't waned.
Just weeks into 2020, the cannabis industry has been the subject of several high-profile incidents: a reported dispensary point-of-sale system hack that potentially exposed the data of 30,000 people; the US Securities and Exchange Commission charging two men who allegedly used a fake cannabis company as a front for a Ponzi scheme; and the conviction of a former Colorado cannabis entrepreneur in one of the state's largest fraud cases.
"These industries are targets just because they're new and there is lots of controversy -- whether it's political or social -- with some of the things they're doing," Michael Bruemmer, the vice president of data breach resolution and consumer protection for consumer credit reporting company Experian, told CNN Business.
Experts are cautioning companies to shore up their security practices and for consumers to be mindful of opportunities that seem too good to be true.
Cannabis' emerging market status makes it a prime target fraud, said Jodi Avergun, a former federal prosecutor and DEA chief who now heads law firm Cadwalader, Wickersham & Taft's white-collar defense and investigations group.
"Consumer and retail investors are not taking appropriate precautions," she said.
The cannabis industry is teeming with interest and speculation, she said. Most cases brought by the US Securities and Exchange Commission involve operations that purport to be cannabis businesses but instead are schemes -- typically of the Ponzi and pump-and-dump variety, she said.
The recent cannabis cases include allegations of a Ponzi scheme tied to a fictitious cannabis company and charges of securities fraud tied to an alleged criminal ring in Colorado.
"The unscrupulous people who have always existed -- the out-and-out fraudsters -- take advantage of investors who want to make a buck quickly," Avergun said.
Although cannabis remains illegal under federal law and largely unregulated, some federal agencies continue to keep a close watch for potential nefarious activity. The US Federal Bureau of Investigation last year warned that it saw a "public corruption threat emerge in the expanding cannabis industry," and agencies such as the SEC have sought criminal charges.
In 2014, when Colorado and Washington State started selling recreational cannabis, the SEC suspended several cannabis stocks and issued an investor alert to warn of questionable practices, alleged illegal stock sales and market manipulation. The agency issued yet another investor alert in 2018 highlighting past enforcement actions and continued warnings.
The SEC Office of Investor Education and Advocacy "regularly receives complaints about marijuana-related investments, and the SEC continues to bring enforcement actions in this area," the SEC warned then. "If you are thinking about investing in a marijuana-related company, you should beware of the risks of investment fraud and market manipulation."
The hype -- and potential for fraudulent investing schemes -- may have abated in recent months as valuations have sunk and companies have restructured to ensure near- and long-term stability.
"But as soon as demand returns, so will the opportunistic fraudsters who seek to take advantage of those who see dollar signs in the cannabis industry," Avergun said.
Experian's "Data Breach Industry Forecast" for 2020 predicted that emerging industries such as cannabis, green energy and cryptocurrency would be increasingly become targets for cyberattacks. In 2019, these industries accounted for fewer than 10% of the breaches tracked by Experian, but they remain vulnerable because they're emerging industries, Experian's Bruemmer said.
"These controversial industries make great targets because they're more focused on growing their business and starting up than they are necessarily putting the appropriate focus on cybersecurity," he said.
Three years ago, a leading seed-to-sale tracking software provider was hit with two cyberhacks in a six-month period. The incidents consisted of a "sophisticated sequence of malicious attacks directed against the company," an attorney for the targeted company MJ Freeway, now named Akerna, said at the time.
The company spent at least $200,000 to upgrade its cybersecurity and enterprise software capabilities following the 2017 breaches, according to financial filings made with the SEC.
Jessica Billingsley, chief executive officer of Akerna, told CNN Business in December that the company no longer uses the software targeted in the attack and the next generation program is far more robust.
In January, internet security researchers for vpnMentor reported a breach at THSuite, a cannabis point-of-sale provider. The vpnMentor researchers said that more than 30,000 individuals had their information exposed, including photo IDs, addresses and protected health information.
Officials for THSuite did not return multiple calls and emails for comment. Some of the dispensary clients identified in the vpnMentor report told CNN Business that they were quickly taking action to determine how much of their customers' information might have been affected.
RJ Starr, compliance director for Bloom Medicinals, said he was aware that his company's technology vendor experienced a data breach and was conducting a thorough investigation.
"Once we've identified any affected patients, we will notify each individual patient and follow HIPAA breach notification protocols," Starr said. "Bloom Medicinals serves tens of thousands of patients in multiple states, and we take patient privacy very seriously. Rest assured, we will implement any corrective action necessary to both remedy and ensure that this doesn't happen again."
Consumers and companies can be proactive in protecting themselves from fraud and cybercriminal activity, Avergun and Bruemmer said.
Avergun said that consumers should check the price history of companies' stocks and research the background of the advisers and executives who are selling shares and running the company.
"If it sounds too good to be true, it probably is -- as with any investment," she said.
As for business investors, it comes down to due diligence.
"There is nothing to substitute for adequate research into company financials, its state compliance policies and processes, and its management before investing in an emerging cannabis company," she said, noting to be aware of special state-specific risks. "If a manager or owner of a cannabis company was previously operating before cannabis was state legal, that causes problems with licensing in state and may raise the risk of federal prosecutions."
Bruemmer highlighted three key tips for companies to button-up their security: Ensure that everyone -- not just the information technology experts -- keeps data security in mind and not make simple mistakes such as clicking on a nefarious link; research and employ credible security technology but don't be reliant on solely the software; have a proactive plan in place if a security breach occurs.
"A lot of businesses think about it as an after-thought," he said. But they should pre-plan."
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The cannabis industry's next big threat: Hacks and fraud - WICZ