Wednesday, December 25, 2013

Microsoft manager charged with insider trading

SEC says Brian Jorgenson, friend, reaped $393,000 in effort to start hedge fund

A Microsoft portfolio manager and his business partner are charged with insider trading that profited them $393,125.

According to the SEC, Brian Jorgenson of Lynwood, Wash., leaked confidential information about upcoming Microsoft announcements to his partner Sean Stokke of Seattle in order to parlay profits, which they then split.

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Their goal, the SEC says, was to stockpile enough cash to start a hedge fund.

“Abusing access to Microsoft’s confidential information and generating unlawful trading profits is not a wise or legal business model for starting a hedge fund,” said Daniel M. Hawke, chief of the SEC Enforcement Division’s Market Abuse Unit and director of the SEC’s Philadelphia Regional Office.

The U.S. Attorney in Washington is seeking criminal charges.

The SEC cited three instances when the pair conspired to commit insider trading.

The first, from April 2012, called for investing $14,000 in Microsoft just before it announced it was investing $300 million in Barnes & Noble’s e-reader, Nook. That reaped them $185,000 when Microsoft’s stock rose after the announcement.

The second instance was that they bought $50,000 of Microsoft stock options in July 2013 at a low price just before Microsoft announced its quarterly earnings would be off more than 11% from what was expected. When the stock dropped after the announcement, Stokke sold at a profit of $195,000.

The third charge says Jorgenson told Stokke Microsoft’s quarterly earnings in October 2013 would be higher than expected. They bought more than $45,000 in a fund that included Microsoft stock, then sold it when the fund went up on the release of the news. They netted $13,000.

The SEC wants the pair to pay back their ill-gotten gains and fines, and to bar Jorgenson from becoming a director or officer of a corporation.


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Friday, December 13, 2013

Meet WISP, the wireless future of Internet service

No cable or phone line required. No satellite lag. Traditional ISPs should be nervous.

The Internet connection we all rely on is about to change, now that WISP is coming to town.
Most people get Internet service from either a telephone company or a cable company because those providers already provide physical connections to their homes and businesses.A A WISP (wireless Internet service provider) doesn't need to bring wire to your location, making it a good solution for serving rural areas where telcos and cable companies couldn't be bothered to invest. WISP was unable to match the speed and reliability of DSL and cable modems, however, until recently. As wireless technology has evolved, WISPs are beginning to compete in urban areas on speed and price. Here's how it works.

What makes a WISP
A WISP is distinct from other wireless services we currently use. Most cell-phone service providers offer wireless Internet service--with 4G LTE being the fastest current technology--but that doesn't make them WISPs. Cell-phone service providers don't expect you to use their service 24/7, and most place very low caps on the amount of data you can transfer over their networks each month (and charge hefty fees if you exceed that amount). Being able to access the Internet while you're out and about is a distinct advantage, but LTE data rates are relatively slow, and coverage can be spotty--especially away from large metropolitan areas.

Satellite TV providers that also provide wireless Internet service, such as Dish Network, are closer to being WISPs. They can deliver wireless Internet service to any home that has a clear view of the southern sky. But the data must travel very long distances, which limits the service's speed, and lag can be a big problem--especially for playing games.

A true WISP is a mix of cellular provider and satellite provider elements. Like a cell provider, it mounts antennas on towers (or atop buildings) to transmit signals, and it installs an antenna--or in some cases, a dish--on the customer's home or building. Like a satellite service provider, it typically delivers service to a fixed location.

Comparing pricing and features
Most WISPs offer tiered service levels, charging higher fees for faster speeds and/or more bandwidth. Like telcos, cable companies, and other ISPs, WISPs typically require you to commit to a one- or two-year contract, and they charge an installation or activation fee.

Most WISPs are regional operators that serve limited areas. Netlinx, for instance, serves residential and business customers in southern Pennsylvania. The company's prices for residential service range from $30 to $80 per month. At the low end, you get download speeds of up to 1 mbps, with speed bursts of up to 3 mbps. Upload speeds at this tier are 512 kilobits per second. At the high end, you get download speeds of up to 15 mbps (with bursts up to 30 mbps) and upload speeds of 3 mbps.

Many WISPs provide faster upload speeds than the typical 5 to 10 mbps that most cable and DSL providers offer. That can be useful for businesses with remote offices, offsite PC or server backup requirements, or other applications where upload speeds are just as important as download speeds.

Like other ISPs, some WISPs limit how much data you can use per month, but these limits tend to be more generous than what cell, satellite, and even some cable providers offer. A few, such as Wisper ISP (serving southern Illinois and eastern Missouri), provide uncapped service.

Utah-based Vivint, a newcomer to the WISP market, is offering wireless Internet service at upload and download speeds of 50 mbps for just $55 per month. But the company--best known for its home-security/automation services--has only just begun to roll out its service, which is not widely available outside Utah.

Finding a WISP
If you think a WISP might be a better option for you than your current ISP is, you can check a number of online directories to find a WISP that provides coverage in your area, including the WISPA Member Directory,A WirelessMapping.com, and Broadband Wireless Exchange. Some WISPs provide a coverage map on their website. Others describe only the general coverage area, and you must call or fill out an online form to get coverage details for a particular address.

The time when a WISP was an ISP of last resort--because nothing else was available in a particular area--is coming to an end. As the new class of WISP service spreads, the resulting competition should force telcos and cable companies to step up their game, cut their prices, or both!



Rackspace banks on DevOps to help companies automate cloud management

The DevOps Automation Service will first be available in the U.S. on a limited basis

Rackspace Hosting is extending its support offerings to include DevOps tools such as Chef to help enterprises automate the management of their clouds.

Through its new DevOps Automation Service, Rackspace will provide support for DevOps tools that help enterprises deploy and scale applications running on Linux. The service will soon work with Windows as well, Rackspace said on Thursday. DevOps is a software development concept that aims to smooth out the interaction between development and operations departments.

Although the service can be used by anyone, it fits best when enterprises need to scale up infrastructure quickly or expect to do so in the future. Enterprises can, for example, turn to Rackspace to get help with infrastructure automation using Chef or with monitoring using StatsD, Graphite and New Relic, the company said on its website. Rackspace also offers support for tools used for workflow automation, log aggregation and source control.

Rackspace can write, test and maintain so-called cookbooks for Chef. Cookbooks are used to describe how systems should be configured. Software such as Hadoop and MySQL can be installed, configured and optimized using the cookbooks. The vendor can also help analyze how a company's performance improves or worsens in response to code changes and other events.

The reasoning behind the offering is that enterprises find it hard to recruit and train DevOps talent, and Rackspace has learned a lot from managing its own infrastructure, according to the company.

The DevOps Automation Service will at first be offered to a limited number of U.S. customers that have a working knowledge of Chef. General, global availability is anticipated in early next year, according to Rackspace. The company didn't reveal any pricing, but users can apply for the Limited Availability Program on Rackspace's website.



Tuesday, December 10, 2013

Data-stealing malware pretends to be Microsoft IIS server module

Most antivirus products aren't detecting the malware, called "INS"

Trustwave's SpiderLabs researchers have found a piece of malware that collects data entered into Web-based forms, pretending to be a module for Microsoft's Internet Information Services (IIS) web-hosting software.

The malware, which is dubbed "ISN," hasn't been widely seen, but its characteristics are interesting, wrote Josh Grunzweig, a Trustwave malware researcher, on a company blog.

ISN is a malicious DLL (dynamic link library), which is installed as a module for IIS, Grunzweig wrote. ISN's installer contains four versions of the DLL, one of which is served up depending on whether a victim uses the 32- or 64-bit version of IIS6 or IIS7+.

"This module is of particular concern as it is currently undetectable by almost all anti-virus products," Grunzweig wrote.

If ISN's installer is detected, it's usually through "general heuristic detection," Grunzweig wrote, which means security software is looking at aspects of it that are suspicious and flagging it, such as if it is sending data to another server.

"I'm using this post as a way of notifying anti-virus vendors so that specific detections for this malware may be written," he wrote, adding that he thinks the malware is "pretty neat."

ISN collects data from POST requests, Grunzweig wrote. The stolen information is lifted from within IIS itself, which circumvents encryption, and then sent elsewhere. The malicious module can be configured to monitor information from specific URIs (uniform resource identifier), he wrote.

The malware has so far been "seen targeting credit card data on e-commerce sites, however, it could also be used to steal logins, or any other sensitive information sent to a compromised IIS instance," he wrote.

"Overall, this malware does not appear to be widely spread and has only been seen in a few forensic case instances," Grunzweig wrote. "However, the extremely low detection rate in collaboration with the malware's targeted functionality makes this a very real threat."

 

Fatal distraction: 7 IT mistakes that will get you fired

It's hard to get a good job in IT these days, but it's all too easy to lose one.

There are lots of reasons for instant termination. Failure to fulfill your obligation to protect your employer's digital assets or abusing your vast powers for your own nefarious ends are two sure ways to end up on the unemployment line. You could be fired for opening your mouth at the wrong time or not opening your mouth at the right one. Spying on the boss, lying to your superiors, or being directly responsible for the loss of millions of dollars in downtime through your own negligence are all excellent ways to end up on the chopping block.

Everyone messes up at some point. But some screwups are almost always fatal -- to jobs, if not entire careers.

Here are seven true tales of IT pros who screwed up big and got fired quick -- even if some were terminated for the right reasons. The names have been withheld to protect the guilty. Don't let their fatal mistakes become yours.

Fatal IT mistake No. 1: Slacking on backup

It was 10:30 on a Thursday night when Eric Schlissel's phone rang. On the line was the chief operating officer of a midsize clothing manufacturer with whom Schlissel had never spoken before. The COO, who found his company's phone number via Google, was frantic. His plant's ERP system had been wiped out by a virus, and they had a major deadline in the morning.

Schlissel, CEO of managed service provider GeekTek IT Services, hopped in his car and headed down to the L.A. garment district to handle the situation personally.

"Within three minutes of logging in, I realized there was nothing on the server," says Schlissel. "All the data files were gone, the database was gone, and the ERP software was nowhere to be found. I told him this was no virus. Someone had purged the system."

It turned out a disgruntled IT contractor had enacted revenge by wiping the garment maker's servers. But worse news was yet to come. The backups, which were supposed to run every night, hadn't been working for a very long time. The most recent data Schlissel could find was a year old, making it virtually worthless.

The company only survived because someone in accounting, who did not trust technology, had kept paper copies of everything. It took Schlissel and his team six months to restore all the data by hand.

"It was a $10 or $12 million company, and they probably lost $2 million as a result of this," he says. "It was the most catastrophic IT disaster I've ever seen."

The factory's general-purpose IT guy, who was responsible for ensuring backups were made, had simply forgotten about them. He was on the unemployment lines the next day.

Failure to maintain backups is an all too common screwup, and the mistake is often fatal to one's job security, Schlissel says.

"The first thing we do when we visit a new client is to check the backups," Schlissel says. "This is a classic IT horror story, one we often tell clients. We're not trying to scare them, we just want to make sure their assets are protected."

Moral of the story: A backup in hand is worth two bushels of paper.

Fatal IT mistake No. 2: Snooping on the boss

A few months ago, Oli Thordarson got a call from the CFO of a midsize health care provider in Southern California. As CEO of Alvaka, an advanced network management services company, Thordarson and his staff are often asked to act as a virtual CIO for small businesses and to perform forensic investigations.

The CFO told Thordarson he thought someone was secretly reading his email, and he had a pretty good idea who it was: the director of IT.

The CFO said that, over the past two years, this guy had made comments about things he had no business knowing, says Thordarson. "The running joke was that the director of IT knew more about what was going on inside the company than anybody else," he says.

Thordarson had one of his techs modify a real-time network probe so that it would send a silent alert if anyone was reading emails they shouldn't be accessing. Within a few days, Alvaka discovered that the director of IT was indeed reading the CFO's email -- as well as messages from the CEO, the chairman, and other top brass. The next day he was reading the want ads at Monster.com.

This problem is more common than you might think, Thordarson adds. In roughly two-thirds of the companies Alvaka advises, techs have the ability to read any employee's email, including that of top executives.

"Did they do it to enable support and then forget to undo it, or did they do it because they wanted to snoop?" asks Thordarson. "We don't really know."

Moral of the story: A fool and his job are soon parted.

Fatal IT mistake No. 3: Covering up the crime

It was a mistake that could have happened to anyone. The IT staff at a major financial institution needed to replace a disk tray for an older storage array. A staffer called the vendor and had one shipped out. But the junior sales guy at the vendor made a mistake and shipped the wrong tray -- one for a newer array that was incompatible with the old one.

The array then failed catastrophically, taking the entire bank's system offline for nearly a week and costing millions of dollars in lost transactions. That's when they called in Anthony R. Howard to troubleshoot.

There were three big screwups, says Howard, a best-selling author ("The Invisible Enemy: Black Fox") and independent technology consultant for Fortune 50 companies and the U.S. military. One, of course, was that the vendor shipped the wrong unit. The second was that the bank's IT staff tried to install the array itself without waiting for the vendor to send out a qualified technician to do it for them.

The third problem was the big one, though. Almost everyone involved in this screwup lied about it, says Howard. Only one staffer had the courage to admit what really happened.

"When the IT staff saw their jobs were in danger, they began to try to protect themselves and blaming the tech support staff of the vendor," says Howard. "After the bank's internal team was done with its investigation and found out that only one person told the truth, he was the only one who managed to keep his job."

Moral of the story: If the crime doesn't get you, the cover-up will.

Fatal IT mistake No. 4: The porn identity

Late one evening a couple years back, a network admin for a Fortune 100 firm was looking for an empty backup tape. He grabbed one from the desk drawer of a senior system administrator and popped it into the drive, but was surprised to find it was already full of data. What, he wondered, could be on it? So he looked at it.

You can guess what he found.

"It was filled with porn," says Dave Amsler, president and CIO of Foreground Security, which was called in to handle the incident. "And so were dozens of other 'blank' tapes in the admin's desk. There was nothing illegal on any of the tapes, thank goodness. Still, he was terminated on the spot."

Yet that's hardly the worst Amsler has seen in his 14 years with Foreground, which provides managed security services for major U.S. corporations and government agencies. Amsler says he's been called in to deal with porn problems for at least 10 clients. Twice he found IT employees running adult sites on company servers. In those cases, the personnel suddenly found themselves with lots more spare time to pursue their hobbies.

Porn filters are useless against this kind of behavior because the IT guys know how to turn them off. Even when organizations have strict policies and filters in place, high-level admins often exempt themselves from these restrictions, says Amsler.

"Sometimes rightfully so," he adds. "Often high-level admins need to get to sites that would normally be blocked in order to do their jobs. But that doesn't mean they shouldn't at least be monitored. Even good people end up doing things they normally wouldn't when they think no one's watching. If the admin knows he's being watched, that would eliminate a significant portion of this behavior."

Moral of the story: Some things are better done at home.

Fatal IT mistake No. 5: Keeping the wrong secrets

Until recently, Dana B. was a network engineer at a major U.S. Internet provider. One day, a former colleague was told to change the IP addresses on some production routers. Because these changes could impact Internet subscribers, taking them briefly offline, the ISP typically made such changes overnight.

But this engineer didn't like to stay late, so he changed the addresses at the end of the day before he went home, then turned off his phone so that nobody would disturb him during his off-hours.

That was his first mistake. His bigger mistake was that he consistently refused to document anything he'd done, says Dana. That meant he had no idea which IP addresses he had already used in the past -- and neither did anyone else.

After he left, the interfaces failed to come up because their IP addresses had already been used, leaving nearly 5,000 subscribers without Internet access. When other engineers tried to call him to figure out what went wrong, they couldn't reach him.

"It took a team of five network engineers several hours to find the issue and correct the problems," says Dana. "The next day he came in and was promptly walked out."

Moral of the story: Some secrets are better left unkept.

Fatal IT mistake No. 6: Unmitigated disaster

They thought they were ready for anything. An organization in a heavily regulated industry had spent millions building out a comprehensive disaster-recovery plan, including a dedicated fail-over data center humming with hundreds of virtual hosts and a Gigabit Ethernet connection.

But when an unplanned network outage cut the connection to its primary data center, the money the organization spent on its DR solution was for naught.

"The CTO did not have the confidence to activate the disaster-recovery plan, because they had never tested it," says Michael de la Torre, vice president of recovery services product management for SunGard Availability Services, which was called in by the organization later to shore up its DR strategy. "Instead, he stood by for more than a day hoping the circuit would be repaired. Everyone was offline that entire time. Employees had no access to email or data files, and the organization took a pretty big hit to its reputation."

Shortly thereafter, the CTO's career also suffered an unplanned outage.

More than half of all organizations with disaster-recovery plans in place fail to adequately test them, notes de la Torre. Even those that do test uncover an average of five critical errors in the people, process, and tools needed to make DR work.

Disaster recovery is neither glamorous nor easy, but it's vital to the survival of your company, he adds.

"Protecting the business may never get you promoted. But failing to do so will almost always get you fired."

Moral of the story: Test your umbrella before the **** hits the fan.

Fatal IT mistake No. 7: Speaking truth to power

Ten years ago, "Bob" was working for a payday loans franchise with more than 1,000 locations nationwide. (Bob asked that his real name be withheld from this story.) He had been hired to rearchitect the chain's ASP-based system, which was running ancient code on servers in every store. But first he had to prove himself by converting the stores' dozens of Web-based legal forms into a database.

One Friday afternoon, six months into the job and two weeks before his initial trial was over, the vice president of IT came into the weekly staff meeting to present his five-year vision for the company. The veep's two-hour speech could be summed up in four bullet points, says Bob:

Stay the course

Fix bugs

Don't rock the boat

No new technology

"I was floored," says Bob. "I thought, 'What about all the stuff they hired me for?' They were spending millions of dollars a year maintaining creaky sites written by 50 different people."

Later that afternoon, Bob went into the VP's office and closed the door.

"He asked me, 'So what do you think of my vision?'" Bob says. "I said, 'Frankly, sir, you don't have one. What you just described was a maintenance plan.'"

The VP thanked him for his candor and complimented him on his courage. The following Monday when Bob returned to his office his key no longer worked. He was gone.

"I drove home whistling," he says. "I've never been so happy to be unemployed. I decided I would never have my career depend on an empty suit ever again. The next day I started my own business, which has kept me busy ever since."

Moral of the story: Sometimes getting yourself fired is the right thing to do.