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Home » Cyber-warfare » Your Credit Card Could be Funding Terrorism

Your Credit Card Could be Funding Terrorism

credit-card.jpg

It is hard to pick up a tech pub­li­ca­tion with­out find­ing a story about another secu­rity breach that has com­pro­mised credit card infor­ma­tion. According to Identity Theft Resource Center there were 167 data breaches in the first three months of this year. At least 8.3 mil­lion records con­tain­ing sen­si­tive infor­ma­tion were poten­tially com­pro­mised in the same time period.

One Recent Event: Data from 4 Million credit cards stolen. Recently, Hannaford announced what secu­rity experts call a sophis­ti­cated attack on their com­puter net­work that resulted in the theft of credit and debit card account information.

When we think of credit card data theft and fraud you don’t think about ter­ror­ism — but that is indeed the case. Al Qaeda is a skilled prac­ti­tioner at using the Internet for a mul­ti­tude of rea­sons. According to FBI Director Robert Mueller, “The Internet has been used by the likes of Al Qaeda to recruit, to train, to com­mu­ni­cate.” The arrest of Al Qaeda’s top cyber ter­ror­ist pro­vided hard evi­dence of their use of stolen credit card data for fund­ing. In one case, ter­ror­ist groups use the stolen credit card infor­ma­tion to pur­chase $3 mil­lion of mate­ri­als to carry out ter­ror­ist attacks. Al Qaeda’s top cyber ter­ror­ist 23 year old Younes Tsouli (online name — Irhaby007), recently admit­ted con­spir­ing to defraud banks, credit card com­pa­nies and charge card companies.

For addi­tional infor­ma­tion about ter­ror­ist cyber attack capa­bil­i­ties you may want to down­load this CRS Report to Congress titled: Terrorist Capabilities for Cyber Attack.

Overview and Policy Issues:

The game has changed! Information secu­rity as it relates to sen­si­tive data, like credit card infor­ma­tion, has now risen because of the link to ter­ror­ist financ­ing. Imagine the psy­cho­log­i­cal impact if you were to find your credit card was used to finance a ter­ror­ist attack that resulted in the death of inno­cent civil­ians. Imagine the dam­age to a corporation’s brand and pos­si­ble back­lash from their cus­tomers. Significant improve­ment in all aspects of secu­rity is needed to cut off this fund­ing source.

– Kevin Coleman

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April 8th, 2008 | Cyber-warfare | 277215 Comments »http://defensetech.org/2008/04/08/your-credit-card-could-be-funding-terrorism/Your+Credit+Card+Could+be+Funding+Terrorism2008-04-08+15%3A19%3A08Ward You can skip to the end and leave a response. Pinging is currently not allowed.

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  1. demophilus says:
    April 8, 2008 at 12:41 pm

    I guess that explains all those charges on my account for Semtex, track suits, and shower shoes.

    Reply
  2. Christian says:
    April 8, 2008 at 12:56 pm

    Nice, demophilus.…

    Reply
  3. Camp says:
    April 8, 2008 at 12:59 pm

    When you say “Hannaford”, I take it you’re refer­ring to this.…
    “Hannaford Breach May Presage ’08 Trend“
    http://​blog​.wash​ing​ton​post​.com/​s​e​c​u​r​i​t​y​f​i​x​/​2​0​0​8​/​0​3​/​h​a​n​n​a​f​o​r​d​_​b​r​e​a​c​h​_​m​a​y​_​p​r​e​s​a​g​e​_​0​.​h​tml
    “While the pay­ment card indus­try stan­dards require retail­ers to encrypt pay­ment data when it tra­verses pub­lic net­works, that require­ment does not nec­es­sar­ily apply to a company’s own inter­nal, non-​​public net­works, Sartin said.
    “I would say a trend we’re see­ing hit­ting a lot of retail­ers right now is that these orga­ni­za­tions can be [com­pli­ant with the credit card indus­try secu­rity stan­dards] and still have cus­tomer data stolen,” Sartin said. “The data in tran­sit is allowed to tra­verse pri­vate links and inter­nal infra­struc­ture with­out being encrypted, and the attack­ers are tak­ing advan­tage of that.“
    Sartin declined to say whether this dynamic was at work in the Hannaford case (his com­pany had been retained by a party involved in the breach). But he noted that Cybertrust has found with a num­ber of very recent com­pro­mises that attack­ers have seized con­trol over the very ter­mi­nals that con­trol cash reg­is­ters or point-​​of-​​sale sys­tems within a retail store, or the server through which all reg­is­ters con­nect to pass trans­ac­tion data out across the Internet to the store’s pay­ment proces­sor.“
    Whether it’s the cause or not, I think Encrypted LANs (NICs with Crypto ASICs) should be the stan­dard prac­tice and not an excep­tion. The above story is also prob­a­bly just another push towards a Dynamic Credit Card Model.
    Regarding “Al Qaeda’s top cyber ter­ror­ist 23 year old Younes Tsouli”. According to the Washington Post arti­cle, he was basi­cally a web admin who “stole via phish­ing scams and the dis­tri­b­u­tion of Trojan horses”. The word­ing leads me to believe that he didn’t even write the Trojan apps, but instead just used off-​​the-​​shelf code.
    As for “The game has changed!… Imagine the psy­cho­log­i­cal impact…Imagine the dam­age to a corporation’s brand”. I have to dis­agree. Theft has funded crim­i­nal orga­ni­za­tions & mur­der since before civ­i­liza­tion, how is this any dif­fer­ent? Unless some­body gets a bill for a sui­cide bomb­ing, or a spe­cific entity was inten­tion­ally financ­ing ter­ror­ism… peo­ple prob­a­bly won’t even notice. Heck, the 9/​11 plot­ters uti­lized basic U.S. bank­ing ser­vices, and with the excep­tion of United Airlines (who are still in busi­ness) I don’t recall any other brands.
    “Al Qaeda funded the hijack­ers in the United States by three pri­mary and unex­cep­tional means: (1) wire or bank-​​to-​​bank trans­fers from over­seas to the United States, (2) the phys­i­cal trans­porta­tion of cash or traveler

    Reply
  4. Kevin says:
    April 8, 2008 at 1:09 pm

    To Camp — Finally some­one who gets it. Security for our sys­tems can­not be piece­meal and must go end to end. Encryption is one way to increase the secu­rity of our net­works and our data. I am not sure you knew this but, crim­i­nal enter­prises have been estab­lished to sell soft­ware exploits, tro­jans, viruses and other mal­ware to any­one who want them. They have become the new arm deal­ers. While the gov­ern­ment is laser focused on their sys­tems and DoD capa­bil­i­ties, we will not really make a big dif­fer­ence in secu­rity until busi­nesses are made to increase their secu­rity.
    Thanks for read­ing the arti­cle and your posting

    Reply
  5. b says:
    April 8, 2008 at 2:23 pm

    Coleman is a pro­pa­gan­dist who sells him­self for $5,000 a gig, cur­rently for doing “cyber­scare” but even­tu­ally for any­thing that might be prof­itable for HIM.
    This has lit­tle to do with Defense or Technology, thus doesn’t belong on this ever dete­ri­o­rat­ing blog, and a lot to do with hyp­ing his busi­ness.
    If some 23 year old geek con­fessed (under tor­ture?!) to be the “mas­ter­mind” of Al Qaeda’s inter­net oper­a­tion I cer­tainly have no fear for the world to be taken over by those.

    Reply
  6. Kevin says:
    April 8, 2008 at 2:43 pm

    b YOU JUST DON’T GET IT! Until you pro­tect the mas­sive sys­tems used in busi­ness and the sen­si­tive data they col­lect and store the coun­try is at risk. Read “UnRestricted Warfare” it will help you under­stand our enemy. Oh by the way, I retired from Netscape and donate about 70% of my time to help­ing other deal with strate­gic tech­nol­ogy issues. Just for the record.

    Reply
  7. SPY GUY says:
    April 8, 2008 at 3:38 pm

    All any­one has to do is read the news and you will see just how exposed our infor­ma­tion sys­tems are cur­rently. I guess “b” can’t read! Symantec just announced inter­net threats rose over 400% in 2007 from 2006 num­bers. We really need to address this!

    Reply
  8. TrustButVerify says:
    April 8, 2008 at 3:52 pm

    I keep wait­ing for one of these data breaches to cat­alyze a good ol’ American class-​​action law­suit which ruins a major com­pany and thereby scare every­one else into behav­ing respon­si­bly, but so far it hasn’t happened.

    Reply
  9. DopplerDave says:
    April 8, 2008 at 4:23 pm

    Just as an FYI, I got a phone call adver­tis­ing a 6.5% inter­est rate for my credit card. Interestingly, it did not say which credit card, i.e. bank and card com­pany. The caller ID revealed that the call orig­i­nated from a Middle Eastern coun­try, Bahrain.
    I’m con­vinced it was a credit card scam. Was it ter­ror­ist related? I don’t know, but I wouldn’t be surprised.

    Reply
  10. mk says:
    April 8, 2008 at 9:29 pm

    I attended the RSA con­fer­ence and wanted to say that U.S. Secretary of Homeland Security Michael Chertoff said almost word for word what you have been say­ing on here since you two began this blog. I think he is lis­ten­ing so both of you keep it up!
    THANK YOU FOR YOUR EFFORTS

    Reply
  11. Christian says:
    April 9, 2008 at 4:47 pm

    b,
    You’re just a big fat meanie!

    Reply
  12. dickIn says:
    April 14, 2008 at 7:13 am

    yeah…cyberscare or “pump my…budget” ?

    Reply

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