NewsScan Daily, 14 January 2005 ("Above The Fold")

NewsScan Daily, 14 January 2005 ("Above The Fold")
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"ABOVE THE FOLD"
        Apple Sues Student for Divulging Secrets
        Squeezing More Out of JPEG
        Wireless Hotmail in India
        Cellery Worm Plays Games With Victims
        Paint on a Little Wi-Fi Security

FEATURES
        Flash Card
        Honorary Subscriber: Allan Pinkerton
        Safe & Sound in the Cyber Age

APPLE SUES STUDENT FOR DIVULGING SECRETS
      Nicholas Ciarelli launched what has become one of the most 
influential Apple-focused Web sites when he was 13 as a hangout for fellow 
Mac enthusiasts, but his penchant for posting trade secrets has gotten the 
now-19-year-old Harvard student, who publishes online under the name Nick 
dePlume, in hot water. Apple filed a lawsuit Jan. 4 against ThinkSecret.com 
and its unnamed tipsters, charging: "Apple is informed and believes that 
Defendant Nick dePlume is an individual who uses the pseudonym 'Nick 
dePlume' but whose true name and identity cannot be confirmed at this 
time." Apple, known for its highly secretive culture, says it believes 
ThinkSecret obtains its information by illegally soliciting information 
about unreleased Apple products from individuals who violate their 
confidentiality agreements. In fact, on Dec. 28 the site correctly 
predicted Apple's debut of its $499 Mac Mini and a low-cost iPod. In 
response to Apple's accusations, Ciarelli replies, "I didn't do anything 
wrong. My reporting practices are the same that any journalists use. I talk 
to sources, I confirm details, I follow up on tips and leads that I get." 
It will be difficult for Apple to prove that Ciarelli's coverage has 
violated its trade secrets, says an intellectual property attorney, noting 
that trade secrets usually refer to the formula behind products, not simply 
the details about their release. (Wall Street Journal 14 Jan 2005)
<http://online.wsj.com/article/0,,SB110566157500825906,00.html> (sub req'd)

SQUEEZING MORE OUT OF JPEG
      Allume Systems, based in California, says the new version of its 
StuffIt compression technology can reduce JPEG files by an additional 28% 
without loss of quality. The announcement met with some skepticism among 
compression specialists, but researchers have previously suggested that 
significant improvements -- perhaps as high as 30% -- were possible by 
enhancing certain aspects of the JPEG technology. Data compression is 
achieved by finding replicated patterns in data and encoding them so that 
they can be represented by a smaller amount of data. Allume would like to 
see its new StuffIt Image Format (SIF) replace JPEG as the dominant method 
for storing files, noting that it could save significant storage space for 
those with very large digital image collections. But some experts point to 
the new, improved JPEG2000, which could provide comparable benefits. "It is 
not only technically advanced, but is royalty and license-free as well," 
says Mike Reddy, a compression expert at the University of Glamorgan in 
Wales. (New Scientist 12 Jan 2005)
<http://www.newscientist.com/article.ns?id=dn6876>

WIRELESS HOTMAIL IN INDIA
      Microsoft has inked a deal with two Indian wireless carriers to 
deliver e-mail and instant messages via text messaging. BPL Mobile and 
Airtel launched two new services on Thursday -- Mobile-mail and MSN 
Messenger over SMS -- but have not released details on whether or how much 
they plan to charge. Microsoft is not the first to offer Indian consumers 
such services -- Yahoo already has similar arrangements with wireless 
carriers serving India, including Orange, Hutch and Airtel. (CNet News.com 
13 Jan 2005)
<http://news.com.com/Hotmail+goes+mobile+in+India/2100-1036_3-5535294.html>

CELLERY WORM PLAYS GAMES WITH VICTIMS
      Users are being warned about the Cellery worm -- a Windows virus that 
piggybacks on the hugely popular Tetris game. Rather than spreading itself 
via e-mail, Cellery installs a playable version of Tetris on the user's 
machine. When the game starts up, the worm seeks out other computers it can 
infect on the same network. The virus does no damage, but could result in 
clogged traffic on heavily infected networks. "If your company has a 
culture of allowing games to be played in the office, your staff may 
believe this is simply a new game that has been installed -- rather than 
something that should cause concern," says a spokesman for computer 
security firm Sophos. (BBC News 13 Jan 2005)
<http://news.bbc.co.uk/1/hi/technology/4170903.stm>

PAINT ON A LITTLE WI-FI SECURITY
      Tired of worrying whether your wireless hotspot is hosting "drive-by" 
users? Force Field Wireless has developed a do-it-yourself DefendAir paint 
"laced with copper and aluminum fibers that form an electromagnetic shield, 
blocking most radio waves and protecting wireless networks." One coat of 
the water-based paint "shields Wi-Fi, WiMax and Bluetooth networks 
operating at frequencies from 100 megahertz to 2.4 gigahertz," while two or 
three applications are "good for networks operating at up to five 
gigahertz." Force Field Wireless warns that the paint must be applied 
carefully -- too little, and the radio waves will "leak"; too much and you 
risk hindering the performance of radios, televisions and cell phones. And 
while the only color available is a dreary gray, DefendAir can also be used 
as a primer so you can paint over it with your favorite hue. (The Register 
13 Jan 2005)
<http://www.theregister.com/2005/01/13/wi_fi_paint/>

[Publishing Schedule: In honor of the Martin Luther King Jr. national 
holiday we will not be publishing NewsScan Daily on Monday, January 17th.

*****

FLASH CARD
      "Very few of us are what we seem." (Agatha Christie)

HONORARY SUBSCRIBER: ALLAN PINKERTON
      Today's Honorary Subscriber is the private detective Allan Pinkerton 
(1819-1884), who founded the fabled detective agency bearing his name.
      The Pinkerton National Detective Agency and its operatives, commonly 
called "Pinkertons," almost single-handedly defined the role of the private 
investigator, a new figure in 19th century society. Pinkerton led his 
agency to national prominence by a steady stream of successful 
investigations. These began with the capture of the principals in a 
$700,000 Adams Express Company theft in 1866 and the thwarting of an 
assassination plot against President-elect Lincoln in February 1861 in 
Baltimore. During the Civil War, under the name E.J. Allen, Pinkerton 
headed an organized effort to gather military information in the Southern 
states. After the war Pinkerton returned to providing detective services, 
mostly investigations of railroad thievery.
      The Pinkerton Agency also became embroiled in controversial 
strikebreaking actions, most notably its investigation of the Molly 
Maguires, a coal miners organization accused of terrorism. Today, the 
Pinkerton Detective Agency is commonly viewed as having anticipated many of 
the investigative activities that are now institutionalized in the Federal 
Bureau of Investigation and Interpol. To promote a positive image of his 
agency, Pinkerton told the story of its accomplishments in a series of 
autobiographical books: "The Molly Maguires and the Detectives"; "Criminal 
Reminiscences and Detective Sketches"; "The Spy of the Rebellion"; and 
"Thirty Years a Detective."
      Pinkerton was born the son of a police sergeant in Glasgow, Scotland. 
After completing an apprenticeship as a cooper, he emigrated to the United 
States in 1842 and settled in Chicago, the next year setting up a cooper's 
shop in nearby Kane County. While cutting wood on a deserted island one 
day, he discovered and later captured a gang of counterfeiters. This led to 
his being appointed deputy sheriff, first of Kane County and then of Cook 
County, with headquarters in Chicago. Soon Pinkerton became a detective on 
the newly formed Chicago police force, but in 1852 he resigned to start a 
private detective agency, specializing in railway theft cases. His success 
in solving train robbery cases brought him his first fame, which was 
greatly increased in 1861 when he became Abraham Lincoln's personal 
bodyguard following the discovery of the pre-inauguration assassination plot.
      After Pinkerton's death his agency continued to be active in taking 
the side of management in combating the then-fledgling American labor 
movement. Pinkerton agents were widely criticized for their part in such 
labor disturbances as the 1894 Pullman Strike and the 1914 Colorado Ludlow 
Massacre. These actions somewhat overshadowed the Pinkerton Agency's long 
record of suppressing criminal activity, such as the 1868 capture of the 
Reno brothers gang of train robbers.

[To find a library copy of "The Molly Maguires and the Detectives," visit 
RLG's RedLightGreen service at: <http://tinyurl.com/5sb5o> -- or to 
purchase a copy of a biography of Pinkerton by James Mackay go to: 
<http://tinyurl.com/4ka43> Note: We donate all revenue from our book 
recommendations to adult literacy programs.]

SAFE & SOUND IN THE CYBER AGE
"Microsoft the Security Company?"
[by Stephen Cobb and Chey Cobb]
                      ***
      Ever wonder why car companies don't make tires? A new Porsche doesn't 
come with Porsche tires even though Porsche engineers are some of the 
smartest in the world. We recently bought an almost-new Nissan and it came 
with the original tires, made by Goodyear. Of course, there are close 
relationships between car companies and tire companies, and they all have 
to work together on a variety of constantly evolving standards to make sure 
that the rubber that meets the roads fits the wheels on the wagon, so to 
speak.
      What has this got to do with computer security? Some alert NewsScan 
readers will have guessed already: Microsoft has planted its feet firmly in 
the computer security business. Now think of Microsoft as the GM of 
computing (actually a closer approximation of Microsoft's position in the 
IT world would be a mega-GM that had absorbed Ford, Toyota, Honda, and 
Daimler Chrysler). In other words, Microsoft makes most of the world's 
operating system software and most of the world's application software, 
which together make up the "cars" we are talking about.
      The safety of those cars, the rubber on the road in our analogy, is 
currently entrusted to a wide range of companies, big and small, companies 
like Symantec, Computer Associates, McAfee, Trend Micro, ZoneAlarm, Sygate, 
Grisoft, et al. These companies make their money selling products that help 
us to use Microsoft's products without skidding, crashing, or otherwise 
going off the virtual highway. For the most part they manage to perform 
this function without negatively impacting performance or the usability of 
our systems, while constantly evolving to meet new threats, many of which 
arise from defects in the very car they ride on, Microsoft's Windows OS and 
Office applications.
      However, through a series of recent announcements, Microsoft has 
indicated that it would like a slice of the revenue these security 
companies earn from protecting users of Microsoft products. Some Wall 
Street analysts have declared that this is a good move for Microsoft, and 
bad news for all those security companies that will lose market share to 
Microsoft. Given the slavish, sheep-like manner in which some investors 
follow the words of Wall Street analysts, it could indeed be good news for 
Microsoft, a sort of self-fulfilling investment prophecy, until the world 
wakes up to what a bad idea it is for Microsoft to make the tires for its cars.
      The last time Microsoft tried this, the results, for users, were 
dismal. Of course, these days it is hard to find a Wall Street analyst with 
a memory longer than the last four quarters, so you probably won't see many 
references to Microsoft's 1993 vintage Anti-Virus for DOS in current 
discussions of Microsoft's security ventures (but you can find a very 
detailed critique of the product, written about ten years ago by the late 
Yisrael Radai of the Hebrew University of Jerusalem, at cobb.com/pclan, or 
just Google "MSAV").
      We would like to quote from the first paragraph of this review:
      "The very fact that such software [Microsoft AV] is supplied with DOS 
makes it likely that it will become one of the most widely used AV packages 
in the world and the de facto standard, regardless of its quality. 
Precisely for this reason, it will be specifically targeted by virus 
writers. If there are any weaknesses whatsoever in the software, they will 
be ruthlessly exploited by these people."
      In fact, Microsoft's implementation of anti-virus back then was so 
bad it never gained traction in the market place, but that does not 
undermine the serious implications of Mr. Radai's very astute observations. 
During the last ten years Microsoft has become more effective at forcing 
its software on users -- flaws and all (you will know this if you have ever 
tried to remove Internet Explorer from your Windows computer).
      Of course, today's malicious code writers frequently target products 
by Symantec, McAfee, et al. But the very fact that there is still an "et 
al." provides a depth of protection that will be eroded by any further 
expansion of Microsoft into the security arena. Perhaps the best outcome 
will be a repeat of the Firefox phenomenon, in which increasingly 
sophisticated users decide that the best way to deal with systemic security 
flaws in Microsoft's browser is to use a different browser. This has 
already produced a significant decline in market share for Internet 
Explorer. Heck, with Apple now selling a very powerful Mac for less than 
$500, complete with cool applications like Garage Band and Appleworks, some 
people may decide to drive the Internet highway in a completely different 
vehicle, on tires of their own choosing.
      [Chey Cobb, CISSP, wrote "Network Security for Dummies" and has 
provided computer security advice to numerous intelligence agencies. Her 
e-mail address is chey at soteira dot org. Stephen Cobb, CISSP, wrote 
"Privacy for Business" and helped launch several successful security 
companies. He can be reached as scobb at cobb dot com.]

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