Ellipsis Case Study by Kopis

 

CAPTCHA-like tests are annoying, frustrating and costly to online businesses. At Ellipsis, we’re changing the game with our proprietary web security technology that invisibly verifies human site visitors while protecting against harmful bots.

Ellipsis Case Study: http://www.kopisusa.com/case-studies/ellipsis/

ReBreakCaptcha: Hacking Google’s reCAPTCHA

East-EE, a security researcher, has discovered that Google’s reCAPTCHA is susceptible to a robot attack that leverages its own speech recognition service.

In 2016, another team of security researchers from Columbia University, identified flaws in the technology that would enable hackers to influence the risk analysis, bypass restrictions, and deploy large-scale attacks. Source.

East-EE posted a proof-of-concept script of the hack on GitHub. Using the Python programming language which enables an attacker to automatically bypass reCAPTCHA fields used to protect websites from spam and bot traffic. ReBreakCaptcha works in three stages, which you can find on East-EE’s blog.

 

19% of shoppers would abandon a retailer that’s been hacked

Survey also shows majority of retailers haven’t invested in cybersecurity in the past year

By

Nearly a fifth of shoppers would avoid at a retailer that has been a victim of a cybersecurity hack, according to a survey.

The 2016 KPMG Consumer Loss Barometer report surveyed 448 consumers in the U.S. and found that 19% would abandon a retailer entirely over a hack. Another 33% said that fears their personal information would be exposed would keep them from shopping at the breached retailer for more than three months.

The study also looked at 100 cybersecurity executives and found that 55% said they haven’t spent money on cybersecurity in the past yearand 42% said their company didn’t have a leader in charge of information security.

Those responses confirmed worries that retailers are falling behind other industries like financial services and technology on cybersecurity issues.

“There is a lot at stake here for retailers,” Mark Larson, KPMG business leader for consumer markets, said in a statement. “Retailers that don’t make cybersecurity a strategic imperative are taking a big gamble.”

Tony Buffomante, cybersecurity leader for KPMG, said many retailers are not doing enough to protect their businesses from cyberattacks or react to them when they do occur. Paying more attention to cybersecurity could help their businesses, he added.

The survey results, posted Tuesday online, found that retail and automotive industries were laggards in appointing leaders to assess cyberthreats and opportunities. The financial services and tech industries were leaders.

Cyberattacks were also called “rampant” in the survey, showing that retail executives reported the most malware and internal and botnet attacks of the four industries (financial services, tech, retail and automotive).

KPMG advised companies to think about cybersecurity less as an IT-managed risk and more as a strategy issue. “Branding, loyalty, sales, overall customer relationships and business agility all hang in the balance,” KPMG said.

The survey findings and KPMG’s conclusions echo other surveys and comments by analysts who have called on businesses generally to focus more squarely on cybersecurity protections.

Original: www.computerworld.com/article/3111447/cybercrime-hacking/19-shoppers-would-abandon-a-retailer-thats-been-hacked.html

The Surprisingly Devious History of CAPTCHA

primary_242                                                                    Image credit: iStock / Public Domain

Article by: Kate Horowitz

Life in the Information Age changes so fast and so often that we often don’t even notice. Take, for example, the CAPTCHA system of internet user authentication, which became ubiquitous, then kind of sinister, then began to fade away.

The word CAPTCHA is an acronym for “Completely Automated Public Turing test to tell Computers and Humans Apart.” The original system was developed in the early 2000s by engineers at Carnegie Mellon University. The team, led by Luis von Ahn (who calls himself “Big Lou”), wanted to find a way to filter out the overwhelming armies of spambots pretending to be people.

They devised a program that would display some form of garbled, warped, or otherwise distorted text that a computer couldn’t possibly read, but a human could make out. All a user had to do was type the text in a box, and access was theirs.

The program was wildly successful. CAPTCHA became a ubiquitous tool and an accepted part of the internet user experience.

Unfortunately, the designers overlooked one very human trait: a need to get paid. Before too long, spam-sponsored CAPTCHA farms were popping up all over the internet, especially in poor countries, offering workers money to solve CAPTCHA boxes by the thousands.

Even with these spam farms, CAPTCHA was a solid product. But the engineers weren’t satisfied. Millions of people were voluntarily translating nonsensical images into text, which seemed, to von Ahn, like a waste of perfectly good free labor.

Speaking toThe New YorkTimes in 2011, von Ahn remembered thinking, “’Can we do something useful with this time?”

After some more tinkering, reCAPTCHA was born and implemented on sites all over the internet. The general user experience was pretty much the same: type the letters and numbers you see onscreen. But rather than randomized words, reCAPTCHA asked users to translate images of real words and numbers taken from archival texts. Computers are pretty good at reading old documents, but smeary ink and damaged paper may make some words hard to read. Fortunately for von Ahn, humans can still read those words just fine.

They started with the archives of The New YorkTimes, then sold the technology to Google, who began using it to transcribe old books. That’s right—you have likely worked for free for Google and The New YorkTimes. Those grainy images of old-timey text are real words from real pages.

Von Ahn was pleased with the new version and confident that reCAPTCHA was here to stay. “We’ll be going for a long time,” he told the Times. “There’s a lot of printed material out there.”

But, as we said, this is the Internet Age. Most of the programs and online behaviors that we take for granted today will be extinct in a few years, and the CAPTCHA dynasty is no exception.

In 2014, a Google analysis found that artificial intelligence could crack even the most complex CAPTCHA and reCAPTCHA images with 99.8 percent accuracy, rendering the programs useless as security devices.

In their place, Google unveiled the now-familiar “No CAPTCHA reCAPTCHA” system, which relies not on a users’ ability to decipher text, but on their online behavior prior to the security checkpoint. While a user is on a page, an invisible algorithm is monitoring how they interact with the content to determine if they’re human or robot.

Then, at the checkpoint itself, users are asked to confirm a single statement: “I am not a robot.”

If the program believes you’re a human, all you have to do is check the box and move on. If you’re suspected of spambot tendencies, checking the box will open up a new challenge, like identifying all the kittens in a photo array.

The arms race between internet security experts and spambots may never end. In time, No CAPTCHA reCAPTCHA will be outsmarted, then replaced. And when that happens, pay attention.

http://mentalfloss.com/article/81927/surprisingly-devious-history-captcha

Ellipsis Technologies teams with Bill Mahoney and WTM Development

billmahoney

GREENVILLE, SC – Ellipsis Technologies, which launched its Human Presence technology in 2015, announced that Bill Mahoney, former CEO of SCRA and current CEO of WTM Development, will join Ellipsis as a Senior Advisor to the Board of Directors. Mr. Mahoney will assist the Ellipsis board and team with both capital structure and strategic partner relationships. Bill West, the Ellipsis Chairman and CEO stated, “Bill is very well known for his work in fostering technology growth in South Carolina and increasing technology employment across multiple industry sectors in our state.”

“Ellipsis’ extensible architecture shows particular promise in serving both commercial and government cybersecurity segments,” said Mahoney. “I am very pleased to be working with this team to meet evolving needs in rapidly-moving markets.”

Ellipsis Human Presence is a web security software technology that identifies human website visitors through human behavior analysis and proprietary machine learning algorithms. Ellipsis enables website owners to validate the presence of human visitors to their sites while flagging and deflecting traffic from automated, and often malicious “bots.” With the Ellipsis Human Presence solution, site owners can improve the user experience for human visitors by eliminating the need for Turing tests like CAPTCHA while taking action to prevent site scraping, click fraud and other malicious activity from bots.

While Ellipsis is initially focused on website security, new products currently in beta or design phase include individual identity management for access controls and pure university and military research focused on concussion and traumatic brain injury studies.

Ellipsis has recently been selected as an SCLaunch company and has been approved by the State of South Carolina for an angel tax credit for investors in the company. Ellipsis has additionally been approved as an IBM Security Partner and an Amazon Web Services Technology Partner. The Ellipsis Human Presence technology is also now available as an app in the WordPress app store.

There could be more of these suits in the coming years, Ellipsis helps you avoid this annoyance

Google Ducks Gmail CAPTCHA Class Action

5 Cybersecurity Predictions for 2016

As cyberattacks become more frequent and sophisticated, RSM advisors discuss how to protect your organization against 2016’s emerging cyberthreats.

As companies become increasingly reliant on technology to improve efficiency, productivity and mobility, vulnerabilities to cyberattacks are growing. While breaches at large organizations make headlines, no organization is too small to be a valuable target, and most companies will likely suffer a cybercrime at some point. Criminals and attack methods are evolving and becoming more sophisticated, so organizations and individuals must fully understand emerging threats and proactively plan to protect themselves.

Security and privacy advisors at RSM US LLP, a national accounting, tax and consulting firm, have developed a list of five cybersecurity items that will likely emerge as significant threats to individuals and organizations in 2016. The five predictions are:

1. Cybercriminals will not just go after bits and pieces of data, as has been common practice in the past. Instead, cybercriminals will increasingly seek to build entire profiles from data collected and sell it as entire identities for monetization or for nation states to use for their targeted attacks.

This means cybercriminals are no longer going after just credit cards, health care data or even personally identifiable information (PII). They are building a complete victim profile and then selling it to the highest bidder. A complete profile could include traditional information forms (bank account data, credit card data and health information), but also social media information, past residence addresses, dependent information and more.

This threat calls for increased controls necessary to protect traditionally stolen information, as well as safeguards consumers must take to ensure they do not provide too much information through social media. It also brings into question the publication of traditional public information such as property tax, permitting and other public records.

2. The “Internet of things” is still growing as seemingly everything (vehicles, appliances, children’s toys, safety systems and others) a business or consumer purchases is “Internet ready.” Unfortunately, we continue to read about these systems being broken into and either remotely controlled in disturbing ways or used to gather information on businesses or families without their knowledge.

In general, most of these systems have a portal hosted by the product’s manufacturer or provider, or one of their business partners, and have relatively weak authentication controls that require only a username and password. For example, the next time you see your Internet-connected intelligent thermostat adjust the temperature in your home, ask yourself if it changed the temperature because it was needed or did someone break into the portal account and now is experimenting with your thermostat?

Best practice security measures for the portals are to use similar security controls equivalent to online banking and credit card portals with multifactor authentication, forced password changes and account lockout.

3. Cybercriminals will continue to use social engineering to facilitate their system breach efforts. Postmortem breach reviews indicate that many successful breaches are dependent on attacking the organization’s employees, customers or business partners through social engineering efforts.

People will likely be the weak link in security in the foreseeable future; and efforts to improve social engineering defenses must be implemented. Many organizations have security awareness programs and RSM advisors say they are slowly seeing improvement in the responses to their social engineering testing, but there is still room for improvement.

To improve security awareness, RSM advisors recommend conducting social engineering training and testing more than once a year, and then validating the effectiveness of the training through testing.

4. Health care information has more value per stolen record than most other forms of data theft (bank account, credit card, PII). Health care information is often tied to a social security number, and it is difficult to get a new number issued that does not tie back to the original number. It simply isn’t as easy as getting a new credit card.

RSM advisors anticipate more breaches will occur in the health care industry in 2016, as more eligible professionals and hospitals move to electronic health record systems. As the industry continues this transition, an increase in hacking events will occur due to medical data being shared via electronic exchanges.

5. System security configuration issues continue to be a common source of security incidents and potential breaches. RSM continues to see too many weak security implementations for servers, workstations and other network devices during testing. New systems should be implemented using a National Institute of Standards and Technology (NIST) security reference or other guidelines to create a “base” image. That base image should then be used as a starting point when new systems are implemented.

A short list of common “wall of shame” security issues (practices not to do) follow:

a.     Using default administrative credentials. Most default credentials can be Googled.

b.    Improper administrator password usage. Many companies use the same local administrator password on all workstations and servers.

c.     Storing passwords insecurely. While conducting security testing for clients, RSM advisors find passwords on workstation shares, in text files, work documents and file names,           and written on the side of monitors and keyboards.

d.    Running services on servers with administrative rights. If the service is compromised, the attacker would have administrative rights in the system.

e.     Weak passwords. Too often vendors use the same credentials on all of their customer systems.

All forms of data have value to cybercriminals, and hackers are using new methods and continually attempting to access sensitive information. Ignoring, or not properly addressing, security vulnerabilities can leave companies and individuals exposed to a breach with significant financial and reputational consequences. Understanding and addressing these emerging threats is critical to protecting your information, and reducing the potential for a data breach in the coming year.

America’s Tallest Man Has World’s Smallest Problem

It’s annoying when websites require you to prove you’re human — and not a robot — by asking you to type a word or phrase. But we do it all the time because it’s a part of modern living.

But what if you were asked to type a word or phrase that offends you?

That’s what happened last week to Igor Vovkovinskiy, the tallest man in America, when he tried to change his password on the website for Electronic Arts, a leading video games manufacturer.

EA uses Captcha, a program that protects against bots. When Vovkovinskiy was asked to type a string of words into a box, he was shocked to find that those words were “mysemen.”

The Guinness-certified, 7-foot 8-inch man’s reaction proved that he is definitely human …. and sensitive.

EA.com via Igor Vovkovinskiy

“I was very offended,” Vovkovinskiy told The Huffington Post. “I didn’t feel a company as reputable as EA would allow words like this to be used on their Captcha. I realize it was not on purpose, but words like this shouldn’t be an option.”

Vovkovinskiy reached out to EA via Twitter on Sunday but said he received no response.

Days later, EA spokeswoman Sandy Goldberg told HuffPost the company knows about this issue and is working on a fix.

“We have been flagging issues to our Captcha vendor in hopes that they can find a way to block inappropriate combinations of letters that may appear in the password reset,” Goldberg to HuffPost by email. “We do use a third-party service …  And, unfortunately, at this time they do not offer the ability to block certain combinations.”

The company has since apologized to Vovkovinskiy through Twitter.

Jarin Udom, a San Diego-based systems engineer, said the naughty phrase was randomly generated and not intentionally meant to offend.

“The non-random Captchas are usually a book scan or a photo of an address or sign,” Udom told HuffPost. “That one is generated by a computer and then distorted to make it harder for a computer to read.”
Jerry Irvine, a member of the National Cyber Security Task Force, said it’s possible other potentially offensive phrases might pop up on the Captcha box at EA.com’ssite.
“Unfortunately, short of creating your own proprietary Captcha application or purchasing a professional version from a reputable vendor, there is little to do to limit the potential for specific words or phrases,” Irvine told HuffPost by email.
That worries Vovkovinskiy because he’s a fan of EA games, many of which are family-friendly. And he doesn’t want a child to go through what he did.
“What if a young kid gets a word like this?” he said.

The Current State of Machine Intelligence

(the 2016 update to this post can be found at: https://medium.com/@shivon/the-current-state-of-machine-intelligence-2-0-a9e0bab95511#.ffmh59x3o)

I spent the last three months learning about every artificial intelligence, machine learning, or data related startup I could find — my current list has 2,529 of them to be exact. Yes, I should find better things to do with my evenings and weekends but until then…

Why do this?

A few years ago, investors and startups were chasing “big data” (I helped put together a landscape on that industry). Now we’re seeing a similar explosion of companies calling themselves artificial intelligence, machine learning, or somesuch — collectively I call these “machine intelligence” (I’ll get into the definitions in a second). Our fund, Bloomberg Beta, which is focused on the future of work, has been investing in these approaches. I created this landscape to start to put startups into context. I’m a thesis-oriented investor and it’s much easier to identify crowded areas and see white space once the landscape has some sort of taxonomy.

What is “machine intelligence,” anyway?

I mean “machine intelligence” as a unifying term for what others call machine learning and artificial intelligence. (Some others have used the term before, without quite describing it or understanding how laden this field has been with debates over descriptions.) I would have preferred to avoid a different label but when I tried either “artificial intelligence” or “machine learning” both proved to too narrow: when I called it “artificial intelligence” too many people were distracted by whether certain companies were “true AI,” and when I called it “machine learning,” many thought I wasn’t doing justice to the more “AI-esque” like the various flavors of deep learning. People have immediately grasped “machine intelligence” so here we are. ☺

Computers are learning to think, read, and write. They’re also picking up human sensory function, with the ability to see and hear (arguably to touch, taste, and smell, though those have been of a lesser focus). Machine intelligence technologies cut across a vast array of problem types (from classification and clustering to natural language processing and computer vision) and methods (from support vector machines to deep belief networks). All of these technologies are reflected on this landscape.

What this landscape doesn’t include, however important, is “big data” technologies. Some have used this term interchangeably with machine learning and artificial intelligence, but I want to focus on the intelligence methods rather than data, storage, and computation pieces of the puzzle for this landscape (though of course data technologies enable machine intelligence).

Which companies are on the landscape?

I considered thousands of companies, so while the chart is crowded it’s still a small subset of the overall ecosystem. “Admissions rates” to the chart were fairly in line with those of Yale or Harvard, and perhaps equally arbitrary. ☺

I tried to pick companies that used machine intelligence methods as a defining part of their technology. Many of these companies clearly belong in multiple areas but for the sake of simplicity I tried to keep companies in their primary area and categorized them by the language they use to describe themselves (instead of quibbling over whether a company used “NLP” accurately in its self-description).

If you want to get a sense for innovations at the heart of machine intelligence, focus on the core technologies layer. Some of these companies have APIs that power other applications, some sell their platforms directly into enterprise, some are at the stage of cryptic demos, and some are so stealthy that all we have is a few sentences to describe them.

The most exciting part for me was seeing how much is happening in the application space. These companies separated nicely into those that reinvent the enterprise, industries, and ourselves.

If I were looking to build a company right now, I’d use this landscape to help figure out what core and supporting technologies I could package into a novel industry application. Everyone likes solving the sexy problems but there are an incredible amount of ‘unsexy’ industry use cases that have massive market opportunities and powerful enabling technologies that are begging to be used for creative applications (e.g., Watson Developer Cloud, AlchemyAPI).

Reflections on the landscape:

We’ve seen a few great articles recently outlining why machine intelligence is experiencing a resurgence, documenting the enabling factors of this resurgence. (Kevin Kelly, for example chalks it up to cheap parallel computing, large datasets, and better algorithms.) I focused on understanding the ecosystem on a company-by-company level and drawing implications from that.

Yes, it’s true, machine intelligence is transforming the enterprise, industries and humans alike.

On a high level it’s easy to understand why machine intelligence is important, but it wasn’t until I laid out what many of these companies are actually doing that I started to grok how much it is already transforming everything around us. As Kevin Kelly more provocatively put it, “the business plans of the next 10,000 startups are easy to forecast: Take X and add AI”. In many cases you don’t even need the X — machine intelligence will certainly transform existing industries, but will also likely create entirely new ones.

Machine intelligence is enabling applications we already expect like automated assistants (Siri), adorable robots (Jibo), and identifying people in images (like the highly effective but unfortunately named DeepFace). However, it’s also doing the unexpected: protecting children from sex trafficking, reducing the chemical content in the lettuce we eat, helping us buy shoes online that fit our feet precisely, and destroying 80’s classic video games.

Many companies will be acquired.

I was surprised to find that over 10% of the eligible (non-public) companies on the slide have been acquired. It was in stark contrast to big data landscape we created, which had very few acquisitions at the time.

No jaw will drop when I reveal that Google is the number one acquirer, though there were more than 15 different acquirers just for the companies on this chart. My guess is that by the end of 2015 almost another 10% will be acquired. For thoughts on which specific ones will get snapped up in the next year you’ll have to twist my arm…

Big companies have a disproportionate advantage, especially those that build consumer products.

The giants in search (Google, Baidu), social networks (Facebook, LinkedIn, Pinterest), content (Netflix, Yahoo!), mobile (Apple) and e-commerce (Amazon) are in an incredible position. They have massive datasets and constant consumer interactions that enable tight feedback loops for their algorithms (and these factors combine to create powerful network effects) — and they have the most to gain from the low hanging fruit that machine intelligence bears.

Best-in-class personalization and recommendation algorithms have enabled these companies’ success (it’s both impressive and disconcerting that Facebook recommends you add the person you had a crush on in college and Netflix tees up that perfect guilty pleasure sitcom). Now they are all competing in a new battlefield: the move to mobile. Winning mobile will require lots of machine intelligence: state of the art natural language interfaces (like Apple’s Siri), visual search (like Amazon’s “FireFly”), and dynamic question answering technology that tells you the answer instead of providing a menu of links (all of the search companies are wrestling with this).Large enterprise companies (IBM and Microsoft) have also made incredible strides in the field, though they don’t have the same human-facing requirements so are focusing their attention more on knowledge representation tasks on large industry datasets, like IBM Watson’s application to assist doctors with diagnoses.

The talent’s in the New (AI)vy League.

In the last 20 years, most of the best minds in machine intelligence (especially the ‘hardcore AI’ types) worked in academia. They developed new machine intelligence methods, but there were few real world applications that could drive business value.

Now that real world applications of more complex machine intelligence methods like deep belief nets and hierarchical neural networks are starting to solve real world problems, we’re seeing academic talent move to corporate settings. Facebook recruited NYU professors Yann LeCun and Rob Fergus to their AI Lab, Google hired University of Toronto’s Geoffrey Hinton, Baidu wooed Andrew Ng. It’s important to note that they all still give back significantly to the academic community (one of LeCun’s lab mandates is to work on core research to give back to the community, Hinton spends half of his time teaching, Ng has made machine intelligence more accessible through Coursera) but it is clear that a lot of the intellectual horsepower is moving away from academia.

For aspiring minds in the space, these corporate labs not only offer lucrative salaries and access to the “godfathers” of the industry, but, the most important ingredient: data. These labs offer talent access to datasets they could never get otherwise (the ImageNet dataset is fantastic, but can’t compare to what Facebook, Google, and Baidu have in house). As a result, we’ll likely see corporations become the home of many of the most important innovations in machine intelligence and recruit many of the graduate students and postdocs that would have otherwise stayed in academia.

There will be a peace dividend.

Big companies have an inherent advantage and it’s likely that the ones who will win the machine intelligence race will be even more powerful than they are today. However, the good news for the rest of the world is that the core technology they develop will rapidly spill into other areas, both via departing talent and published research.

Similar to the big data revolution, which was sparked by the release of Google’s BigTable and BigQuery papers, we will see corporations release equally groundbreaking new technologies into the community. Those innovations will be adapted to new industries and use cases that the Googles of the world don’t have the DNA or desire to tackle.

Opportunities for entrepreneurs:

“My company does deep learning for X”

Few words will make you more popular in 2015. That is, if you can credibly say them.

Deep learning is a particularly popular method in the machine intelligence field that has been getting a lot of attention. Google, Facebook, and Baidu have achieved excellent results with the method for vision and language based tasks and startups like Enlitic have shown promising results as well.

Yes, it will be an overused buzzword with excitement ahead of results and business models, but unlike the hundreds of companies that say they do “big data”, it’s much easier to cut to the chase in terms of verifying credibility here if you’re paying attention.

The most exciting part about the deep learning method is that when applied with the appropriate levels of care and feeding, it can replace some of the intuition that comes from domain expertise with automatically-learned features. The hope is that, in many cases, it will allow us to fundamentally rethink what a best-in-class solution is.

As an investor who is curious about the quirkier applications of data and machine intelligence, I can’t wait to see what creative problems deep learning practitioners try to solve. I completely agree with Jeff Hawkins when he says a lot of the killer applications of these types of technologies will sneak up on us. I fully intend to keep an open mind.

“Acquihire as a business model”

People say that data scientists are unicorns in short supply. The talent crunch in machine intelligence will make it look like we had a glut of data scientists. In the data field, many people had industry experience over the past decade. Most hardcore machine intelligence work has only been in academia. We won’t be able to grow this talent overnight.

This shortage of talent is a boon for founders who actually understand machine intelligence. A lot of companies in the space will get seed funding because there are early signs that the acquihire price for a machine intelligence expert is north of 5x that of a normal technical acquihire (take, for example Deep Mind, where price per technical head was somewhere between $5–10M, if we choose to consider it in the acquihire category). I’ve had multiple friends ask me, only semi-jokingly, “Shivon, should I just round up all of my smartest friends in the AI world and call it a company?” To be honest, I’m not sure what to tell them. (At Bloomberg Beta, we’d rather back companies building for the long term, but that doesn’t mean this won’t be a lucrative strategy for many enterprising founders.)

A good demo is disproportionately valuable in machine intelligence

I remember watching Watson play Jeopardy. When it struggled at the beginning I felt really sad for it. When it started trouncing its competitors I remember cheering it on as if it were the Toronto Maple Leafs in the Stanley Cup finals (disclaimers: (1) I was an IBMer at the time so was biased towards my team (2) the Maple Leafs have not made the finals during my lifetime — yet — so that was purely a hypothetical).

Why do these awe-inspiring demos matter? The last wave of technology companies to IPO didn’t have demos that most of us would watch, so why should machine intelligence companies? The last wave of companies were very computer-like: database companies, enterprise applications, and the like. Sure, I’d like to see a 10x more performant database, but most people wouldn’t care. Machine intelligence wins and loses on demos because 1) the technology is very human, enough to inspire shock and awe, 2) business models tend to take a while to form, so they need more funding for longer period of time to get them there, 3) they are fantastic acquisition bait.

Watson beat the world’s best humans at trivia, even if it thought Toronto was a US city. DeepMind blew people away by beating video games. Vicarious took on CAPTCHA. There are a few companies still in stealth that promise to impress beyond that, and I can’t wait to see if they get there.


Demo or not, I’d love to talk to anyone using machine intelligence to change the world. There’s no industry too unsexy, no problem too geeky. I’d love to be there to help so don’t be shy.

I hope this landscape chart sparks a conversation. The goal to is make this a living document and I want to know if there are companies or categories missing. I welcome feedback and would like to put together a dynamic visualization where I can add more companies and dimensions to the data (methods used, data types, end users, investment to date, location, etc.) so that folks can interact with it to better explore the space.


Deloitte’s top 8 business technology trends of 2015

‘Report also includes six exponential technologies, including artificial intelligence, robotics and additive manufacturing’

 

Across industries and geographies, business strategy is being transformed by the rapidly changing technology landscape, according to Deloitte’s sixth annual tech trends report, released today.

As technology and business become ever more intertwined, the report outlines the top macro technology developments that will disrupt businesses in the next 18 to 24 months.

This year’s theme is inspired by a fundamental transformation in the way business C-suite leaders and CIOs collaborate to harness disruptive change, chart business strategy and pursue opportunities.

>See also: The 2015 cyber security roadmap

1. Ambient computing

As the Internet of Things (IoT) is maturing from its awkward adolescent phase, ‘ambient computing’ is the backdrop of sensors, devices, intelligence and agents that can put the concept to work. For example, getting a vending machine to trigger an order replenishment from the supply chain, through embedded sensors tracking stock levels. Practical applications in UK industries include those within healthcare and life sciences (remote monitoring patient care in the community), within transport (accident response sensors on the roadside), and within energy (smart metering in homes).

2. IT worker of the future

The scarcity of technical talent on multiple fronts is a significant concern across many industries. Having access to the right number of people, with the exact skills, who can cope with the very latest innovations, whilst maintaining legacy systems, will require business leaders to access a new type of employee. The IT worker of the future will have habits, incentives and skills that are inherently different from those in play today. Design lies at the heart of this new generation, and requires new skill sets such as graphic designers, user experience engineers and behavioural psychologists. IT leaders should add an “A” for fine arts to the science, technology, engineering, and math charter. Aiming for “STEAM”, not just “STEM”, skills.

3. CIO as chief integration officer

In a world that is being reconfigured by technology, CIOs should be at the centre of this change. As technology transforms existing business models and gives rise to new ones; the role of the CIO is evolving rapidly, with integration at the core of its responsibility. CIOs must view their responsibilities through an enterprise-wide lens to ensure that critical domains like digital, analytics and the cloud do not negatively affect other departments. In this shifting landscape of opportunities and challenges, CIOs can be not only the connective tissue, but the driving force for intersecting, IT-heavy initiatives.

4. Dimensional marketing

Marketing has evolved significantly in the last half-decade. The evolution of digitally-connected customers lies at the core, reflecting the dramatic change in the dynamic between relationships and transactions. A new vision for marketing is being formed as Chief Marketing Officers (‘CMOs’) and CIOs invest in technology for marketing automation, next-generation omnichannel approaches, content development, customer analytics, and commerce initiatives. This modern era for marketing is likely to bring new challenges in the dimensions of customer engagement, connectivity, data and insight.

>See also: 4 data science predictions for 2015

5. Amplified intelligence

Analytic techniques are growing in complexity and companies are looking to new areas such as machine learning and predictive modelling to help process increasingly large and complex data sets. Artificial intelligence is now a reality. Its more promising application, however, is not replacing workers – but for amplifying their abilities. Amplified intelligence is focused on deploying tools at points when a business really needs it for effective decision-making. Examples include techniques like natural language processing (allowing conversational interaction with a complex system), visualisation tools (letting individuals explore data on their own terms and find new patterns of discoveries), or advanced analytics mobile solutions (such as those embedded inside smartphones or tablets).

6.  API economy

Application programming interfaces (APIs) have been elevated from a development technique to a business model driver and a boardroom consideration. An organisation’s core assets can be reused, shared and monetised through APIs. The focus is shifting from internal APIs between applications to public APIs, which have doubled in the past 18 months.

A number of industries have embraced APIs, including telecommunications and media, finance, travel, tourism and real estate. The Internet of Things is also contributing to this trend, as the number IoT applications across a number of industries expand at a rapid pace. APIs should be managed like a product – one built on top of a potentially complex technical footprint that includes legacy and third-party systems and data.

7. Software-defined everything

Amid the excitement surrounding digital, analytics and cloud, it is easy to overlook advances currently being made in infrastructure and operations. The entire operating environment – server, storage, and network – can now be virtualised and automated. The data centre of the future represents the potential for not only lowering costs, but also dramatically improving speeds and reducing the complexity of deploying and maintaining technology footprints. Software-defined everything can elevate infrastructure investments, from costly plumbing to competitive differentiators.

8. Core renaissance

Organisations have significant investments in their core systems, both built and bought. Beyond running the heart of the business, these assets can form the foundation for growth and new service development – building upon standardised data and automated business processes. To this end, many organisations are modernising systems to pay down technical debt, replatforming solutions to remove barriers to scale and performance, and extending their legacy infrastructures to fuel innovative new services and offerings

>See also: Gartner identifies the top 10 strategic technology trends for 2015

The report also includes a section dedicated to six exponential technologies – innovative disciplines evolving faster than the pace of Moore’s Law – whose impact may be profound. These include: artificial intelligence, robotics, additive manufacturing, quantum computing, industrial biology and cyber security.

– See more at: http://www.information-age.com/it-management/strategy-and-innovation/123459151/deloittes-top-8-business-technology-trends-2015#sthash.Xb4nbDr3.dpuf

Is security really stuck in the Dark Ages?

By

Amit Yoran’s colleagues didn’t agree with everything the RSA President said at his keynote last month. But most say he got the essentials right – things are bad and getting worse, and the industry needs a new mindset
It had to be a bit of a jolt for more than 500 exhibitors and thousands of attendees at RSA Conference 2015 last month, all pushing, promoting and inspecting the latest and greatest in digital security technology: The theme of RSA President Amit Yoran’s opening keynote was that they are all stuck in the Dark Ages.
To make the point “visually,” Yoran even spent his first minute or so on stage speaking in pitch darkness, “stumbling around,” backed by the sound of an ominous, moaning wind.

This, he insisted, was an apt metaphor, “for anyone trying to protect and defend a digital infrastructure today. Every alert that pops up is like a bump in the night,” he said. “Often we don’t have enough context to realize which ones really matter and which ones we can ignore.”

It is easy to make the case statistically. The Identity Theft Resource Center reported in January that there were 738 data breaches in 2014, up 25% from the prior year.

Or, as Yoran put it, 2014 was, “yet another year of the breach. Or, have we agreed to call it the year of the mega breach? That might connote that things are getting worse, not better,” he said, adding sardonically that 2015 is likely to become, “the year of the super-mega breach. At this pace we are soon going to run out of adjectives.”

That, he contended, is because the defensive mindset of Internet security today is “fundamentally broken … (and) very much mimics the Dark Ages. We’re simply building taller castle walls and digging deeper moats.”

All of which may have sounded a bit insulting to hundreds of vendors and experts who have been saying for years that “the perimeter is dead.” Or, that, “it’s not a question of if you’ve been breached, but when.” Or, that intruders are quite likely inside your organization right now, and that a stronger perimeter will do nothing to eliminate them.

Indeed, many of them were there promoting solutions to detect and respond to insider threats.
But Yoran insisted that the rhetoric is not matched by actions. “We say we know the perimeter is dead, we say we know the adversary is on the inside, but we aren’t changing how we operate,” he said.

In an email interview this week, Yoran acknowledged that the industry is beginning to move in the direction of monitoring and response, but said, “today’s reality” is that, “by every measure, a vast, supermajority of security expenditures focus on prevention.”

Citing his military training at West Point, he said in his keynote that the security industry is trying to use “maps” that no longer apply to the current threat landscape.

The result, he said, is that attackers, “are winning by every possible measure.”

Really?

His colleagues in the industry may not agree with all of that, but most think he got the essentials right. John Pirc, chief strategy officer at Bricata, said he “totally agrees” that the perimeter mindset is still too prevalent. “Security needs to move deeper within the network. The need is for visibility in the data center rather than on premise or the cloud,” he said.

Anton Chuvakin, research director, security and risk management at Gartner for Technical Professionals, is another. “Sadly, he is mostly correct regarding many companies that are still in the ‘prevent the attack,’ or ‘don’t let them in’ mentality,” he said, even though the, “more mature and enlightened have known for years, if not decades, that the attackers will occasionally break in and that you will need to be prepared.”
Yes, the PC endpoint is lost indeed. But strangely enough, a mobile endpoint is a bright area – despite all the whining about Android malware, iOS and Android are relatively unscathed.
said Anton Chuvakin, research director, security and risk management, Gartner for Technical Professionals
Chuvakin said virtually every security pro has been, “taught the prevention/detection/response mantra, but at many places the spend is mostly on prevention, and preventative technology gets the attention.”

Muddu Sudhakar, CEO of Caspida, said he agrees that adversaries are winning, noting that, “the FBI Cyber Division head commented last week that while they used to learn about a large-scale breach every two to three weeks, it is now every two to three days.”

But he said context is important. “The bad guys only have to succeed once, while defending data has to succeed 100% of the time,” he said.

Rob Kraus, director of security research and strategy at Solutionary, also said context matters. He said simply declaring that the “good guys” are losing neglects the ebb and flow of the battle.

Lost in the clouds: Your private data has been indexed by Google
“As advances are made by the good guys, the enemy will re-evaluate and re-deploy capabilities in a way that can circumvent their attack or defensive postures. The challenge with the cyberworld focus is that the battle moves much more quickly, and is even more multi-dimensional.”

But he agrees with Yoran that there is still too much reliance on defending perimeters. “Many organizations are still locked into the concept that the castle walls will protect the bad guys from getting in,” he said. “Most are not thinking about those who climbed over or tunneled under those walls.

“It could be much worse than Amit describes, but it could also be much better,” he said.

He said breaches, while they are an increasing fact of life, are no longer the most important challenge for the industry. “Hacking data alone isn’t getting a huge response from the public,” he said. “The next level we are moving to is real cyber warfare or cyber terrorism.”
And Gary McGraw, CTO of Cigital, said Yoran was “stating the obvious” when he said the adversaries are winning, but was missing the more important point – that too many systems don’t even have a good perimeter to defend. “Perimeter security only works if you have a perimeter,” he said, “and that starts with building things that don’t suck. He’s got the cart before the horse, and the cart is in a different state.”

You can spend your time with a whole army tracking termites, or you can change your building material from wood to steel.

In his keynote, Yoran said a major reason the security industry needs a new “map” is because, “we can neither secure nor trust the pervasive, complex, and diverse endpoint participants in any large and distributed computing environment, let alone the transports and protocols through which they interact.”

His colleagues say that while they agree endpoint protection is a problem, they think a blanket statement like that is overly broad.

“Yes, the PC endpoint is lost indeed,” Chuvakin said “But strangely enough, a mobile endpoint is a bright area – despite all the whining about Android malware, iOS and Android are relatively unscathed.”
And Gula said it doesn’t apply to all business sectors. “Manufacturer of ATMs who run their own network, write their own code, etc., would completely disagree,” he said. “ISPs that carry their customer’s data would disagree as well.”

There were also mixed views on Yoran’s five recommendations (see sidebar) for the industry to “reprogram itself for success.” Two of them are to, “stop believing that advanced protections work,” and to, “adopt a deep and pervasive level of visibility everywhere, from the endpoint, to the network to the cloud – what SIEM (Security Information and Event Management) isn’t, but was meant to be.”

Reprogramming security for success
Amit Yoran gave these five recommendations for the future of the security industry.

Stop believing that advanced protections work. While they do have value, they will fail some of the time.
Adopt a deep and pervasive level of visibility everywhere, from the endpoint, to the network to the cloud – what SIEM isn’t, but was meant to be.
In a world with no perimeters, and fewer anchor points, authentication and identity matter more, not less, since most attacks use stolen credentials, not malware.
Leverage external threat intelligence with machine-readable format for increased speed and agility to respond and identify those threats that might matter most to the organization.
Categorize and prioritize assets: Understand what is really mission critical to your organization.
mobile survival

Chuvakin said that just because something is not 100% effective doesn’t mean it doesn’t work.

“Try this for size,” he said. “A bulletproof vest does not work, since you can be shot in the head or burned or shot with an armor piercing bullet. Nobody thinks like that.”
But he and others agree with the need for more visibility. Pirc said that, “what you can’t see will in fact hurt you in the long run,” he said. “That’s why you need visibility throughout your entire infrastructure.”

Sudhakar notes, however, that saying visibility and achieving it are two different things. “A big part of the problem is that while we have a handle on known threats, we do not have a good handle on unknown or hidden threats,” he said.

And McGraw said visibility, while a good thing, doesn’t matter that much if systems lack security by design. “You should do that, but build good stuff first,” he said, likening it to tracking termites in a house built of wood. “You can spend your time with a whole army tracking termites, or you can change your building material from wood to steel,” he said.

But, he said, “the good news is that RSA already has a robust software security approach. It’s being run by Eric Baize, and he’s doing a great job.”
Gula and others say the industry is moving in the right direction, through compliance with regulatory regimes like SOX (Sarbanes-Oxley Act) and PCI DSS (Payment Card Industry Data Security Standard) that, “require least use of privilege, no admin accounts, etc. – these are directed against insiders. Also, there is a move by many organizations with cloud assets to have centralized authentication, such as single sign-on, which is also a large deterrent and form of detection of insiders,” he said.

But they also offered a few additional suggestions for what Yoran said should be the goal – a new “Age of Enlightenment” in security.

Chuvakin said that good visibility should be supported by, “effective security incident planning.”

According to Sudhakar, organizations should be using, “behavioral analytics and machine learning to uncover hidden threats and vulnerabilities.”

He added that since IT security people are hard to find and retain, organizations should, “automate to the maximum degree possible so that you can do more with less. Automation can also change the internal dynamic, as IT security staff can become threat hunters instead of being the hunted.”

Kraus also said planning is important. In war, he said, “does the U.S. simply give soldiers guns and point them to the battlefield? Or, is it more likely that they train their soldiers and appoint leaders to drive the battle to a successful outcome?”

Overall, as tough as the message was, it was welcome. Yoran said this week that while he had been uncertain about what the response to his keynote would be, “I was actually a bit surprised by seemingly unanimous support from colleagues and even competitors. Many people have come up to me or tweeted since that I said what needed to be said, and that they hoped that the speech served as a catalyst for necessary and significant change in the industry’s mindset.”

The origins of ‘Bad Bots’: Which countries to worry about

This is a contributed piece from Rami Essaid, Co-Founder and CEO of Distil Networks

Almost 60% of today’s internet traffic is non-human, up more than 30% in the past year alone, and more than a third of that non-human bot traffic is malicious. The Distil Networks 2015 Bad Bot Landscape Report revealed that certain countries and service providers have become productive host environments for bot generators.

Bots are the key culprits behind web scraping, brute force attacks, competitive data mining, brownouts, account hijacking, unauthorized vulnerability scans, spam, man-in-the-middle attacks, and more. They place a huge tax on IT security and web infrastructure teams, and their variety, volume and sophistication wreak havoc across online operations big and small.

Mobile bots arrive in drives, beware of China

For the first time, the Android Webkit Browser appeared on the top five list of user agents leveraged by bad bots to hide their non-human identity at 4.87%. Mobile sites tend to be easier to scrape because they provide bots with more structured access to data.

China leads the world in bad bot mobile traffic at 30.64%, and the three mobile carriers with the highest percentage of bad bot traffic are all based in China. On this side of the world, for the first time we’re seeing a US mobile carrier (T-Mobile USA) appear in the top 20 list of ISPs serving bad bot traffic — 19.7% of the traffic was by bots.

1

Tracking “Bad Bot GDP”

While the United States is the source of more than 50% of bad bots with its thousands of low-cost hosting providers, absolute numbers can be misleading. Measuring the number of bad bots per online user provides another view into country-specific traffic risk; this is the number we’ve dubbed the Bad Bot GDP of a country.

As an example, the Maldives served up almost 16 bad bots per internet user in 2014. Of course, Bad Bot GDP numbers spike faster with smaller populations. In the summer of 2014, notorious Russian hacker Roman Seleznev was arrested in the Maldives and extradited to the US for allegedly stealing millions of dollars’ worth of credit card information.

2

Closer examination of the top three Bad Bot GDP countries helps justify their rankings:

  • Singapore tops the list with a Bad Bot GDP of 152.87 bad bots per online user. According to the 2014 Global Information Technology Report by the World Economic Forum, Singapore has the best network-ready environment in Asia, so it’s a popular choice as a data center hub for China and Southeast Asia. Its small population relative to its well developed infrastructure boosts its Bad Bot GDP.
  • Israel, with a Bad Bot GDP of 34.12, has a similarly small population and the most complete data center and internet infrastructure in the Middle East. A 2013 US National Intelligence Estimate on cyber threats ranked Israel the third most aggressive intelligence service against the U.S., behind only Russia and China.
  • Slovenia, at 29.69, found itself in a similar situation to the Maldives. Slovenia was the site of a high-profile hacker arrest when Matjaz Skorjanc, the developer of the Mariposa botnet, was arrested there after his malware hijacked more than 12 million computers around the world.

China and Russia most blocked countries

3

For 2014, China and Russia were the most blocked countries. Geo-IP Fencing is an effective website security tactic for those organizations with well-defined geographical markets.

A more widely dispersed bad bot landscape

Bad bot threats have taken on less predictable patterns. Bots are now attacking from a more broadly dispersed set of global points of origin. 14 countries, almost double the number in 2013, originated at least 1% of bad bot traffic volume in 2014.

4

In 2013, the hour-by-hour bad bot data made it look like the attackers were waiting for IT personnel to leave work before launching their attacks. Not so for 2014, as attacks were much more evenly spread throughout the day.

5

Human or not? The bot dilemma

Some bad bots make little or no attempt to hide their identities, which makes them easy to spot using basic IP blocking or user agent integrity checks. Identifying bad bots becomes much more challenging when they mimic human behavior – which, at 41% of all bad bots tracked in 2014, is alarmingly high.

6

Mitigating bad bots in 2015 and beyond

The bad bot landscape is continuing to evolve rapidly with the dramatic growth in mobile bot traffic, increasingly sophisticated obfuscation techniques, and an expanding range of geographic and ISP points of origin. This is a clear challenge to IT security and web infrastructure teams under increasing pressure to forecast infrastructure demands and protect their online data. Without insight into bad traffic, the challenge is exacerbated

Most hated internet innovations of all time: Pop-ups, spams, captchas, cookies and more

7 most hated internet innovations
A man types on a computer keyboard(Reuters)

While they are noteworthy inventions from technology geniuses, pop-ups, viruses, spams and captchas are widely considered as headaches for the internet community.

Despite the fact that some of the innovations are used by marketers to generate more revenue, they create a lot of frustration for net surfers and have drawn customers’ wrath.

Given below is an infographic produced by NeoMam Studios, detailing the seven most hated internet innovations.

Pop-up ads, invented by Ethan Zuckerman, tops the list with 70% of internet people finding it the most annoying type of advertisements online.

The next on the list is virus. Cybercrimes using viruses are estimated to have cost the global economy about $400bn ($629bn) in 2014.

Another annoying innovation is Captcha — a method by which websites ensure that their users are really human. It is estimated that we are spending 500,000 hours a day on the internet to prove that we are really human.

The other innovations on the list include regional censorship, cookies, spams and cybersquatting — the practice of buying a domain name in bad faith of another person’s trademark.

The 7 most hated internet innovations of all time

Podec is 1st trojan to trick Captcha into thinking it’s human

Podec is 1st trojan to trick Captcha into thinking it's human

From Asia One.

SINGAPORE – Kaspersky Lab has said it has discovered the first malware that can outwit the Captcha image recognition system into thinking that it is a human, so that it can subscribe a person’s infected smartphone to premium-rate services.

The Trojan-SMS.AndroidOS.Podec reportedly forwards Captcha requests to real-time online human translation service Antigate.com, which converts Captcha images to text.

Kaspersky also said that the trojan can bypass the “Advice on Charge” system that informs users about the price of a service and requires authorisation before payment.

So, the trojan is signing up users of infected phone to costly services without their knowledge, bypassing systems designed to verify the subscription.

According to Kaspersky, Podec targets Android devices.

The trojan is being spread primarily through Russia’s popular social network VKontakte (vk.com) and some Russian websites. Most victims have been detected in Russia and surrounding countries to date, Kaspersky said. Infection generally occurs through links to supposedly cracked versions of popular computer games, such as Minecraft Pocket Edition.

It also said that the trojan is still being worked on and the code is being changed to add new capabilties.

– See more at: http://digital.asiaone.com/digital/news/podec-1st-trojan-trick-captcha-thinking-its-human#sthash.8u1wmIRG.dpuf

Identity Fraud Rises; 61 Percent of Breaches Caused by Stolen Credentials

Last year, 13.1 million consumers suffered from identity fraud; the second highest number on record according to Javelin Strategy & Research’s 2014 Identity Fraud Report: Card Data Breaches and Inadequate Consumer Password Habits Fuel Disturbing Fraud Trends.

One of the trends includes an increase in existing card account fraud and losses. Existing card accounts refer to both account numbers and/or the actual cards for existing credit and card-linked debit accounts. Losses due to existing account fraud grew 45% to $16 billion, accounting for 88% of all U.S. fraud losses.

Online Consumer Data At Risk

According to the report, increasing online availability of consumer account information has made existing account fraud more attractive to criminals due to quicker and cheaper prospecting.

And how do criminals access consumer’s online accounts? By leveraging poor password security. One of the major factors in identity theft is the ability to use a single stolen password to access multiple accounts that store or transmit them, according to the report.

KrebsonSecurity.com reports on a healthcare vendor exploit that included the breach of a third-party payroll and HR management provider, Ultimate Software (UltiPro Services). Criminals used stolen credentials to collect patient data from health systems and other healthcare organizations in order to submit fraudulent tax refund requests. They were able to do so by stealing employee W-2s from the HR and payroll departments that used the software. Find out more about the exploit in Lax Healthcare Vendor Security Leads to Data Breaches & Tax Fraud.

And according to a different report by Javelin Strategy & Research, The Consumer Data Insecurity Report (PDF), defrauded data breach victims overwhelmingly (61%) attribute their fraud to the breach of their credentials. These findings strengthen the need for greater security around endpoint access with stronger authentication.

The National Criminal Justice Reference Service reported that government documents/benefits fraud was the most common form of reported identity theft (34%), followed by credit card fraud (17%) and phone/utilities fraud (14%).

According to the NCJRS, the majority of identity theft incidents (85%) involved the fraudulent use of existing account information, such as credit card or bank account information.

The Consumer Affect

An interesting personal account of identity theft contributed to Forbes.com Personal Finance details her discovery of ongoing theft and the aftermath. While retail organizations, hospitals, and banks suffer, so do consumers – and they’re less likely to be loyal to companies that leak their information.

Javelin Research & Strategy reports that breaches affect consumer confidence in a big way – six in 10 victims whose information was compromised in a retailer breach said their level of trust in the retailer declined significantly. Another one in five victims avoid doing business with organizations after his or her information is breached.

And retail organizations are the source of most breached data (50%), as can be seen below, with credit card issuers (22%), primary financial institutions (16%) and healthcare providers (14%).

Retail Breach Graph

Additionally, 64 percent of identity fraud victims think that they should be able to take legal action against the organization that leaked their personal information, which often happens in civil and class-action lawsuits. Nearly 60 lawsuits were filed by affected customers after the Target breach, while dozens of lawsuits brought by banks and credit unions were also filed, asking Target to pay for fraud and card replacement fees.

Another surprising fact is that victims often don’t even know where their information was compromised, nearly half at 49 percent. While there should be data breach regulations for every type of industry and in every state, it varies greatly, and in a few states, they don’t even require organizations to report breaches. As I wrote about in California Breaches Increase 30 Percent in 2014; 84 Percent Retail, 47 states have breach notification laws requiring both private companies and states to notify consumers if they’ve been breached, while three have no security breach laws – including Alabama, New Mexico and South Dakota.

With identity theft on the rise and password theft the main cause, consumers and businesses alike should focus on strengthening their authentication security to avoid becoming a statistic. Find out more about securing against modern risks in the retail industry in our new eBook, A Modern Guide to Retail Data Risks: Avoiding Catastrophic Data Breaches in the Retail Industry.

@Thu_Duo
Thu Pham
Information Security Journalist

Thu Pham covers current events in the tech industry with a focus on information security. Prior to joining Duo, Thu covered security and compliance for the infrastructure as a service (IaaS) industry at Online Tech. Based in Ann Arbor, Michigan, she earned her BS in Journalism from Central Michigan University.

Google’s new CAPTCHA security login raises ‘legitimate privacy concerns’

The “CAPTCHA” has infuriated web users for years: It’s that login test that asks you to type in a hard-to-read sequence of letters or numbers in order to prove are not a robot. Get one letter wrong and you’ll be denied access.

In a bid to ease that irritation, Google launched what it dubbed the “No Captcha ReCAPTCHA” in December, which it claims has the ability to verify a human user by looking at things like the behavior of their mouse movements and the way they type.

But device recognition company AdTruth believes it has found evidence Google’s CAPTCHA killer is collecting far more information than mouse coordinates alone, and that it could use the security tool to inform its advertising services too. The new tool isn’t overtly labeled as a Google service, yet anyone clicking through it “consents” to be tracked by Google’s cookies, AdTruth found. And while the service is intended to do only one thing — determine whether you are a human or not — it is also able to identify a lot more information about which specific human you are.

All of this is poorly disclosed to users, AdTruth believes.

Google declined to comment when reached by Business Insider.

The original CAPTCHA was designed to protect websites from spam and bots, but Google research found that artificial intelligence technology has now become so sophisticated it can solve even the most distorted of text at 99.8% accuracy.

That is why it created the “No CAPTCHA reCAPTCHA” which simply asks users to click a check box, or complete another task, such as selecting all the cats in a selection of images, to confirm they are not a robot. Google says its risk assessment software uses behavioral cues, such as where users click, how long they linger over a checkbox, and their typing cadence, to work out whether they are human or not. Google created this video to explain how the process works, and you can try out a demo of No CAPTCHA reCAPTCHA for yourself here .

No CAPTCHA reCAPTCHA seems so easy and reliable that companies such as Snapchat, BuzzFeed, WordPress, and Humble Bundle immediately signed up to adopt it.

But according to research from AdTruth, seen by Business Insider, Google’s No CAPTCHA reCAPTCHA appears to be collecting personally identifiable additional data beyond mere behavioral cues about their users, too.

Here’s all the data No CAPTCHA reCAPTCHA collects
mobile nocaptcha recaptcha
Google

AdTruth’s lead engineer Marcos Perona was skeptical of Google’s claim to look for “human behavior” to distinguish a real person from a bot and decided to investigate. He wanted to find out what Google actually “captures” from a machine with the No CAPTCHA to work out whether a user is a bot or not.

After taking a close look at the embedded code for the No CAPTCHA product, he found that the system used a re-purposed version of Google’s Botguard technology, which was originally intended for anti-spam and bot detection within Gmail. On top of that, No Captcha uses a level of encryption that hides what the mechanism is doing, by constantly changing the No CAPTCHA code and encryption keys, making it difficult for bot makers to crack (and it also has the by-product of making it difficult for researchers like Perona to uncover exactly how the No CAPTCHA works.)

But Perona and other anonymous programmers from information security backgrounds, believe they have decoded the new CAPTCHA system and the information it pulls from a browser when a user says they are not a robot. (AdTruth points out to Business Insider that it is not releasing any information that could help botmakers circumvent the No CAPTCHA reCAPTCHA.)

According to Perona, Botguard first takes a look at whether you already have a Google cookie on the machine. The No CAPTCHA reCAPTCHA then drops its own cookie from Google into your browser. It then takes a pixel-by-pixel fingerprint of the user’s browser window at that time, pulling information such as:

Screen size and resolution, date, language and browser plug-ins (all Javascript objects)
IP address
CSS information from the page you are on
A count of mouse and touch events
In addition, Google’s new CAPTCHA will also make use of any cookies that have been set by other Google properties — like Gmail, Search, Analytics, and so on — in the last six months. The belief is that humans use Google’s services in certain “human” ways, whereas bots do not, and those patterns can be detected.

All of this personally identifiable information gets encrypted and sent back to Google.

The reCAPTCHA gives Google “a very high level of entropy when it comes to distinguishing an individual”
wordpresscaptchaWordpressHere’s how the NoCAPTCHA reCAPTCHA appears on WordPress.

Perona told us: “The use of Google.com’s domain for the CAPTCHA is completely intentional, as that means Google can drop long-lived cookies in any device that comes into contact with the CAPTCHA, bypassing third-party cookie restrictions [like ad blockers] as long as the device has previously used any service hosted on Google.com.”

He added: “The mix of a fingerprint and first-party cookies is pervasive as Google can give a very high level of entropy when it comes to distinguishing an individual person.”

The way the new CAPTCHA works also seems to support this theory, as there appears to be at least three main CAPTCHA types, according to AdTruth’s research:

If Google cookies are present, and your fingerprint is obtained, you will often see the checkbox that asks you to prove whether you are a human.
If you delete all your Google cookies, the CAPTCHA will likely ask you to fill in a two-word CAPTCHA.
If you are using a form of anti-fingerprinting plugin, Google will likely ask you to fill in a two-word CAPTCHA, regardless of your cookies.
The implication is that Google isn’t just looking to identify whether you’re a human with its No CAPTCHA, but potentially exactly which human you are. The combination of first-party cookies and a browser fingerprint can be tied back to an individual — and most individuals simply clicking “I’m not a robot” won’t know this is happening behind the scenes.

AdTruth EMEA managing director James Collier told us: “This is a way for Google to indirectly link activity outside of Google’s properties – collected under the guise of security – to Google’s knowledge of that individual, without providing the consumer an opt out for the security fingerprint. When they went to market with reCAPTCHA they spoke about humanity and transparency. But in reality, their intentions appear hidden, as was the case with the collection of location data for traffic maps. It’s a question of trust: Google have developed a digital ecosystem that relies on them without question, and as the stakes get higher, consumers and industry alike should wake up to the risk of relying on companies that don’t transparently handle clear conflicts of interests in relation to their data.”

The No CAPTCHA reCAPTCHA privacy policy: “We also use the information to offer you tailored content”
Captcha websiteGoogle

Another red flag AdTruth noticed was the privacy policy that appears underneath the No CAPTCHA reCAPTCHA. It’s the same global privacy policy Google uses universally across all its services.

And it’s also the same policy that refers to unique device identifiers and states: “We also use the information to offer you tailored content — like giving you more relevant search and ads.”

It potentially means Google could be using the data collected from what is meant to be security software (which, remember, is also placed on sites other than its own), to improve services beyond anti-spam security, like advertising.

Google combined 60 of its privacy policies into one in 2012. Indeed, in January this year, the UK’s Information Commissioner’s Office ordered Google to sign a formal undertaking to improve the information it provides to people about how it collects personal data in the UK. The ICO’s three-year investigation found Google was “too vague” when describing how it uses personal data gathered across its web services and products.

Business Insider contacted the ICO with AdTruth’s findings on Google’s No CAPTCHA product. The ICO provided us with this statement: “The Data Protection Act requires organizations to be clear and open about the way they are using people’s information. We are currently looking into the information you have provided to establish full details.”

Of course, the privacy concerns raised by No CAPTCHA are not limited to the UK or Europe; its products and services are used by hundreds of millions of users across the world.

No CAPTCHA reCAPTCHA raises “some legitimate privacy concerns”
attached imageEFFJeremy Gillula, staff technologist at the Electronic Frontier Foundation

You’ll have noticed lots of “cans” and “coulds” in this story. It’s extremely hard to verify how often Google is collecting fingerprinting data and how or if the company is using it. But two prominent privacy researchers told Business Insider they found AdTruth’s preliminary conclusions “concerning.”

Jeremy Gillula, staff technologist at the Electronic Frontier Foundation, told us: “It’s definitely concerning that Google is conflating the privacy policies of their security systems like reCAPTCHA with their other products. Many website relied on reCAPTCHA to prevent spam, and just because I want to post on one of those websites doesn’t mean I want it connected to Google’s profile on me.”

He adds that if Google were to commit to not using data collected via No CAPTCHA reCAPTCHA for any purpose other than further developing No CAPTCHA reCAPTCHA, this aspect wouldn’t be so bad.

But there would still be issues: “My bigger concern is that by over-identifying whether or not someone is a human by figuring out precisely which human they are, Google is contributing to the trend of making the web harder to use for people who value their privacy. In essence, Google is assuming you’re only human if you’re part of their system. If you choose not to use Google services, or if you choose to preserve your privacy, then you’re essentially classified as a second class citizen.”

Steven Murdoch, principal research fellow in the information security research group at University College London’s department of computer sciences, agreed that AdTruth’s research into the No CAPTCHA does raise “some legitimate privacy concerns.”

But he emphasized that it’s unlikely to be a conspiracy. Murdoch told us: “In terms of the way that the No CAPTCHA detector works, I think the reason it collects so much information is likely because the detection algorithm is machine-learning based rather than written by hand. Such systems are generally designed by collecting all information which might be of use then letting the machine learning system come up with an optimal decision.”

Google did not provide Business Insider with a statement but did point us towards the Google DoubleClick policy which explicitly prohibits the use of browser fingerprinting for ad targeting. However, this is a policy for Google’s partners, not Google itself, although it probably suggests Google abides by these rules too.

There is no evidence Google is doing, or is planning to do, anything nefarious with the information the new No CAPTCHA reCAPTCHA scans and collects — and it’s unlikely Google ever would use the data scraped through the software for advertising purposes.

The software looks at engagement “before, during, and after” an interaction
james collier ad truthAdTruthJames Collier, AdTruth EMEA managing director.

However, as AdTruth’s Collier pointed out, the key issue is a question of trust: Google’s own marketing around the launch of the No CAPTCHA reCAPTCHA is scant on details about the user data the software assesses, although the company did acknowledge in a blog post in 2013 that the software looks at engagement “before, during, and after” a CAPTCHA interaction.

Business Insider could only find one article, from Wired, in which it was explained that Google also examines cookies and IP addresses alongside mouse movements and typing behaviour (but nothing to do with a fingerprint) to determine whether that user “is the same friendly human Google remembers from elsewhere on the web.”

Essentially, even if you are really interested in discovering more about the mechanics behind the No CAPTCHA reCAPTCHA, it’s extremely difficult to find an explanation on the web.

The No CAPTCHA reCAPTCHA is an intelligent tool which will no doubt help cut through the deluge of spam and bots attacking sites across the web. But it may be in Google’s interest to set out exactly — and more prominently — how that tool is so clever at telling the difference between bots and humans.

Read more: http://www.businessinsider.com/google-no-captcha-adtruth-privacy-research-2015-2#ixzz3SItqU1n5

Data Breach Statistics from IBM

1.5 million. Monitored cyber attacks in the United States in 2013. IBM Security Services 2014 Cyber Security Intelligence Index, April 2014
Quantifying the data breach epidemic
Data breaches are among the most common and costly security failures in organizations of any size. In fact, studies show that companies are attacked an average of 16,856 times a year, and that many of those attacks result in a quantifiable data breach. And with today’s data moving freely between corporate networks, mobile devices, and the cloud, data breach statistics show this disturbing trend is rapidly accelerating.
Building a business case for security investment begins with quantifying the threat. Data breach statistics abound on the web. But not all data breach statistics are reported, and some victims aren’t even aware they’ve been compromised. IBM conducts its own research – in part collected from the thousands of clients whose networks we monitor – and we share our data breach statistics in the reports you’ll find on this page. And we can assure you — the data breach threat is very real, and very costly. To learn more about today’s critical threats and how companies are responding, download one of our comprehensive data breach statistics reports.

Estimate of 88% of digital ads are clicked by bots

New study suggests that over 88% of digital ads are clicked by automated programs, not humans, costing advertisers billions of dollars. Bots evolving to circumvent current detection technology.

LUXEMBOURG, Feb. 3, 2015 /PRNewswire/ — Oxford BioChronometrics, the Luxembourg-based company specializing in Human Recognition Technology, has conducted a study on fraud in digital advertising engagement that suggests between 88% and 98% of digital ad engagement is fraudulent. The results differ greatly from recently published studies claiming much lower percentages.

The study, conducted by Oxford BioChronometrics Chairman & Chief Technology Officer Adrian Neal and his team, involved placing digital ads on the Google, Yahoo, Facebook and LinkedIn advertising platforms. The ads were then monitored for engagement by automated programs known as bots as well as interaction by human beings.

The best performance the study saw was on the LinkedIn ad network, which had 88% fraudulent activity by bots. Google’s ad network was the worst with 98% bot fraud, while Yahoo and Facebook were tied for second at 94%. The study goes on to note that the team’s ads were billed for these fraudulent clicks and impressions.

“We didn’t make this press release lightly and we’re keenly aware of the ire it will draw,” explained Neal. “However, we believe that the integrity of the online community must be served and felt we had no choice but to go public with our findings. Advertisers make many online communities possible and it’s critically important to ensure the integrity of their online experience if we expect them to remain engaged. Only transparency can accomplish this and the time has come to shine a light on an area few are motivated to look at.”

“BioChronometrics represents an entirely new way of analyzing user/device interaction and, until now, the technology simply wasn’t available. Given the increased sophistication of automated programs and the subsequent increase in online click fraud, it’s not surprising that previous means of detection were unable to catch this level of fraud,” added Sander Kouwenhoven, the company’s Managing Director of Information and Technology.

Adding to the challenges faced by advertisers and internet advertising agencies, Neal and his team also emphasized the fact that bots are getting better. “We classified 6 different categories of bots, from Basic to Highly Advanced, including one that we can only classify as Humanoid.”

Humanoid bots can only be detected through deep behavioral analysis with particular emphasis on attempts to subsequently introduce measures of random behavior that mimic natural human behavior. “What this means,” Neal explained, “is that people who deploy the bots that commit ad fraud are getting ahead of the standard methods of detecting them. The common tools and methods of detection are no longer enough.”

This study is in-part driven by Google’s recommendation in their Nov. 2014 report “The Importance of Being Seen” that advertisers should aim for above 50% viewability rather than simple impressions rendered as a metric. “The threshold of 50% strikes us as too low,” stated David Scheckel, the company’s CEO. “Especially because we know our Digital Ad Protection Technology can achieve near 100% viewability and guarantee actual human clicks.”