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The RCMP arrests 19-year old Heartbleed hacker

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April 17, 2014

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The Canadian RCMP (Royal Canadian Mounted Police) has arrested a 19-year old teenager who allegedly used the Heartbleed Internet bug to hack into Canada's revenue tax agency in the last week.

Shortly after the Internet bug was discovered and revealed to the whole world last week, the Canada Revenue Agency suffered a data breach that leaked the Social Insurance Numbers of about 900 Canadian taxpayers.

The revenue agency was forced to shut down its website temporarily to prevent further theft of sensitive personal information.

Today, the RCMP said it arrested Stephen Arthuro Solis-Reyes at his London, Ontario home Tuesday. During the police raid, federal agents seized computer equipment as criminal evidence.

Solis-Reyes now faces two counts of federal computer-related crimes. He is scheduled to appear in an Ottawa courtroom tomorrow. The arrest appears to be the first related to the Heartbleed bug since it was discovered last week.

Assuming the federal police arrested the right individual, Solis-Reyes could go down in hacking history. Whoever committed the breach single-handedly delayed the country's tax-return deadline by nearly a week.

Canada's taxing authority pushed back its tax-filing deadline from April 30 to May 5, a potentially costly wait. The RCMP, who function as federal law enforcement officers, were "working tirelessly over the last four days analyzing data, following leads, conducting interviews, obtaining and executing legal authorizations," said Assistant Commissioner Gilles Michaud.

In the meantime, the tax agency is carefully combing through its computer systems to determine the extent of the damage.

"We are currently going through the painstaking process of analyzing other fragments of data, some that may relate to businesses, that were also removed," the Canada Revenue Agency said in a statement.

To address similar concerns in the United States, the IRS assured taxpayers its systems were secure. The IRS last week told taxpayers to ignore Heartbleed and file their returns anyway.

In other internet security news

It's reported this morning by Der Spiegel that Germany’s space research centre in Cologne has been the victim of a co-ordinated and covert targeted attack carried out by state-sponsored hackers.

The paper's article says that last Sunday the German Aerospace Centre contacted the National Cyber Defence Centre in Bonn after it found malware on computers used by researchers and system admins in the Centre.

The attack was co-ordinated and systematic with some of the Trojans used designed to self-destruct on discovery, while other malware lay silent for several months before being activated, according to Der Spiegel.

Although Chinese characters have been found in some of the malicious code recovered and some recurring typos may suggest an attacker from the Middle Kingdom, this could be mere camouflage, an insider told the paper.

As such, the NSA can’t be completely ruled out, he said. The news set alarm bells ringing all over Berlin as DLR not only researches space and aeronautics systems but also armament and rocket technologies as well.

Given the United States’ pre-eminent global position in space exploration, it’s unlikely but not impossible that it would resort to such tactics.

China would seem more likely at first glance. This is despite the fact that Germany became the first foreign country to collaborate with the Middle Kingdom on its space missions when a DLR-developed SIMBOX project was carried out on the Shenzhou 8 mission in 2011. DLR signed a deal with China on co-operation in space as far back as 2008.

In other internet security news

In the last few years, several web portals and testing tools have popped up to check whether servers and other equipment are vulnerable to OpenSSL's 'Heartbleed' bug, and that's fine. The only problem is that those tools have unearthed several anomalies in computer crime law on both sides of the Atlantic.

Both the U.S. Computer Fraud and Abuse Act and its British equivalent, the Computer Misuse Act, both make it illegal to test the security of third-party websites without prior permission.

Specifically, testing to see what version of OpenSSL a website is running, and whether it also supports the vulnerable Heartbeat protocol, would be legal. But doing anything more active – without permission from website owners – would take security researchers on the wrong side of the law, making it a federal crime.

Chris Wysopal, co-founder of Veracode and former member of the celebrated Boston-based hacking crew Lopht, was among the first security researchers to raise the issue-- "I would say it would certainly contravene the Computer Misuse Act in Britain," said computer security researcher David Litchfield, a celebrated expert in database security issues.

"This is no different than testing to see if a site is vulnerable to SQL injection. It's not legal without permission," he added.

Unauthorised security probing is illegal under section 3 of Britain's Computer Misuse Act of 1990, whatever the intent, as case law has established.

Information technology lawyer Dai Davis, a solicitor at Percy Crow Davis & Co says that actively scanning for the Heartbleed vulnerability would violate the U.K. computer crime laws, even though this "violation" is unlikely to be enforced. But it can be, nevertheless.

"Under current British law, you could argue that running scans is just about criminal," Davis added. "It's not in the spirit of the law but the Computer Misuse Act is badly written, but that's how it stands today, like it or not."

Some security researchers argued that there ought to be an exemption to these laws if the activity is "helpful", while others say that this aspect of computer crime law is not being enforced or is, in any case, being ignored.

"It’s not legal, but vast numbers of otherwise ethical security professionals are testing every site on the internet. And that's being done every single day," tweeted Martin McKeay, a security researcher at Akamai.

Heartbleed is a catastrophic flaw in widely used OpenSSL that creates a means for attackers to lift passwords, crypto-keys and other sensitive data from the memory of secure server software, 64 KB at a time.

This huge internet security vulnerability was patched earlier this week, and software should be updated to use the new version, 1.0.1g. But to fully clean up the security issue, system admins of at-risk servers should generate new public-private key pairs, destroy their session cookies, and update their SSL certificates before telling users to change every potentially compromised password on the vulnerable systems.

In other internet security news

A new security flaw has exposed millions of internet passwords, credit card numbers and other sensitive data to potential theft by computer hackers who may have been secretly exploiting the issue before its discovery this morning.

The security breach affects the encryption technology that is supposed to protect online accounts for emails, instant messaging and a wide range of electronic commerce services.

Internet security researchers who uncovered the threat, known as "Heartbleed," are particularly concerned about the issue because it went undetected for more than two years, giving hackers plenty of time to do some very nasty things.

Although there is now a method to close that security flaw, there are still plenty of reasons to be concerned, said David Chartier, CEO of Codenomicon, a security company based in Finland.

A team at Codenomicon diagnosed Heartbleed while working independently with a Google researcher who also discovered the threat.

"I don't think anyone that had been using this technology is in a position to definitively say they weren't compromised," Chartier said.

Chartier, and other computer security experts, are advising people to consider changing all their online passwords. "I would change every password everywhere because it's possible that something was sniffed out," said Wolfgang Kandek, chief technology officer for Qualys, a maker of security-analysis software.

"You simply don't know since an attack wouldn't have left a distinct footprint anywhere," he added. But changing the passwords won't do any good, these experts said, until the affected services install the software released Monday to repair the issue.

That places the onus on the Internet services affected by Heartbleed to alert their users to the potential risks and let them know when the Heartbleed repair patch has been installed so they can change their passwords.

"This is going to be difficult for the average person to understand, because it's difficult to know who has done what and what is safe or not," Chartier added.

Yahoo, which boasts more than 800 million users globally, is among the Internet services firm that could be potentially hurt by Heartbleed. The company said most of its popular services including sports, finance and Tumblr had been fixed, but work was still being done on other services that it didn't identify in a statement late yesterday.

"We're focused on providing the most secure experience possible for all our users and are continuously working to protect our customers' data," Yahoo said.

To be sure, Heartbleed creates an opening in SSL/TLS, an encryption technology marked by the small, closed padlock and "https:" on Web browsers to signify that internet traffic is secure. The security hole makes it possible to snoop on Internet traffic even if the padlock had been closed.

Potential attackers could also take the keys for deciphering encrypted data without the website owners knowing the theft had occurred, according to security researchers.

The security vulnerability affects only the variant of SSL/TLS known as OpenSSL, but that happens to be one of the most common on the Internet used today.

About 68.4 percent of all Web servers rely on OpenSSL, Chartier said. That means the data passing through hundreds of thousands of websites could be compromised, despite the protection offered by SSL encryption technology.

Beside emails and chats, OpenSSL is also used to secure virtual private networks, which are used by employees to connect with corporate networks seeking to shield confidential information from prying eyes.

Heartbleed exposed a weakness in encryption at the same time that major Internet services such as Yahoo, Google, Microsoft and Facebook are expanding their usage of technology to reassure the users about the security of their personal data.

The additional measures are being adopted in response to mounting concerns about the U.S. government's surveillance of online activities and other communications.

The snooping has been revealed during the past ten months through a series of leaked documents from former NSA contractor Edward Snowden.

Despite several worries raised by Heartbleed, Codenomicon said that many large consumer sites aren't likely to be affected because of their conservative choice of equipment and software.

"Ironically, smaller and more progressive services or those who have upgraded to the latest and best encryption will be affected most," the security company added.

Although it may take several months for smaller websites to install the Heartbleed fix, Chartier predicted all the major Internet service providers will act quickly to protect their reputations.

In a Tuesday post announcing it had installed the Heartbleed fix, Tumblr offered its users some blunt advice. "This still means that the little lock icon (HTTPS) we all trusted to keep our passwords, personal emails, and credit cards safe, was actually making all that private information accessible to anyone who knew about the exploit," Tumblr said.

"This might be a good day to change your passwords everywhere, especially your high-security services like email, file storage, and banking, which may have been compromised by this security vulnerability," he added.

In other internet security news

The numbers were compiled Thursday and confirm what many system admins already had suspected.

DDoS (distributed denial of service) attacks have more than tripled since the start of 2014, according to a new study released on Thursday that underscore zombie networks as the primary source of junk traffic that can be used to flood websites and other internet properties.

Overall, about 29 percent of all botnets are located in either India, China and Iran, while some are located in the U.S.

The study, by DDoS mitigation firm Incapsula, ranks the United States as number five in the list of “Top 10” attacking countries.

Several zombie networks have been deployed in multiple attacks. More than a quarter of botnet attacks happen more than 50 targets a month, according to Incapsula. And the trend appears to be increasing.

Traffic volumes are growing and 20 Gbps attacks are rapidly becoming normal. About 32.4 percent of all DDoSs is above 20 Gbps and 81.7 percent of assaults feature multiple strands of attack.

A normal SYN flood and large SYN flood combo is the most popular multi-vector attack-- a one-two punch technique that crops up in 75 percent of all attacks. NTP reflection was the most common large-scale attack method in January and February 2014.

The Incapsula study is based on hundreds of attacks on websites and other internet properties that use the company’s DDoS Mitigation service.

If you need reliability when it comes to SMTP servers, get the best, get Port 587.

Get a powerful Linux Dual-Core dedicated server for less than $2.67 a day!

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Source: The Royal Canadian Mounted Police.

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