This is just ridiculous. Of course the bad guys will use all the communications tools available to the rest of us. They have to communicate, after all. They'll also use cars, water faucets, and all-you-can-eat buffet lunches. So what?

This commentary is dead on:

Steven Aftergood, a veteran intelligence analyst at the Federation of the American Scientists, doesn't dismiss the Army presentation out of hand. But nor does he think it's tackling a terribly seriously threat. "Red-teaming exercises to anticipate adversary operations are fundamental. But they need to be informed by a sense of what's realistic and important and what's not," he tells Danger Room. "If we have time to worry about 'Twitter threats' then we're in good shape. I mean, it's important to keep some sense of proportion."

• Moderator: Jim Metzler, Vice President, Ashton, Metzler & Associates
• Rowan Snyder, CIO, KPMG
• David Michael, CIO, United Business Media Group
• Joanna Young, Chief Information Officer, Corporate Information Systems & Enterprise Services, Liberty Mutual

Jim: Is the CIO a technical job anymore? For example, inside Liberty there are business projects with an IT component.

Joanna: We are organized to partner with internal business clients or vendors who provide objectives and business requirements. We strive to figure out the smallest amount of an IT investment we can make to get this to work.

Rowan: We have both. Part of the dilemma is that the thing that sells the best is fear. I don’t want to use that to get business.

Joanna: One good example is security from an application perspective. It’s hard to talk about security investments in business terms. We put it into terms like “this is what it will cost us if we DON’T do this.” For example, a solution for spam required us to do research into what it was costing us overall. Once we put it together, the business was all for it. You have to put your business hat on and think “how can I make this important for a businessperson?” If you can’t, you may need to ask yourself why you’re pushing services on them that they may not need.

Jim: Can you give us insight into business-IT alignment? What about governance?

Rowan: Governance is the hardest part of IT. It’s not like the technology is easy. If it’s a business project with an IT component, I don’t usually get involved. It comes down to overall budget. The infrastructure we own and let people know exactly what it will cost to do it. We are a distributed IT firm, there are multiple groups. This is the most distributed and risk-prone organization I’ve worked in. It can be difficult for the business to exert control. It demonstrates risk, in security, compliance, methodologies, etc.

Joanna: Governance has become a word that nobody wants to use. It suddenly implies that IT is the holder of all the money and they are the ones that get to decide. We stopped using that word and position IT as a strategic business partner.

David: We have a highly decentralized IT set-up. We have about 600 globally and around 40 in the headquarters. We have 10 CIOs for each division, and within each division it is decentralized. We try to run each unit as autonomous. This is a close alignment with IT and business. However, then the problem of how do you have commonality between divisions and collaboration?

Jim: How can you minimize risk in distributed environment using standards and procedures?

David: The reality is it can be impractical for an organization. You end up with a patchwork of platforms and technologies. We have to accept that we’ll have multiple solutions. We can attempt to push a standard, but overall have a much more relaxed approach to manage everything. There is a lot of equality between divisions in what they can choose to purchase.

Joanna: Standards are easier to apply the further down the staff you are. The most important thing with any of this is to understand why you are making the decisions. If there is a process and pros and cons are identified, there is a clear record of why decisions were made.

Audience Poll: Everyone raised their hand that MORE standards were needed.

Audience Question: Are there inefficiencies in the data center in terms of energy and green IT? What are you doing about it?

Joanna: Everyone focuses on cars for carbon footprints. But, it’s really buildings…and then data centers. The data center has the same importance as any other efficiency. They need to be running as cheaply as possible. Corporations have a responsibility to make sure they are energy efficient.

Rowan: We recently did a carbon footprint analysis, and found that half of carbon comes from electricity, with half of that from the data center.

David: Every company does have a responsibility to look at its carbon emission globally. Consider international travel, flying, etc. As much as possible, we are not building data centers. We are using other people’s data centers in an effort to get out of the data center business.

Audience Question: How do you balance the good from standards with agile development and possible roadblocks?

Joanna: Luckily agile development is under the CIO’s control. You can see the lifecycle and savings that occur. When I look, I check what the standards are that I’m measuring by.

Jim: Does web 2.0 have any business meaning in your environment? If so, what are you doing about it?

Joanna: I’ve been in IT for 20 years. It’s another component to business IT investment, and has to be presented as such. As IT professionals we have a responsibility to identify what Web 2.0 is, and then translate to see if there is anything the company should be doing with it. Monitor it based on your current portfolio, and consider its impact.

David: It’s pretty important to our business as a media company. I don’t think it means one thing, it’s a term people use to talk about the web and what’s going on online. From mobile, to ajax, cloud computing or mashups - you can draw multiple conclusions. More and more business is being done online. We have a lot of growth opportunities online.

Rowan: Compliance, security, and privacy issues just explode with Web 2.0.

I think a good litmus test of the mental and moral quality at any large institution [with significant derivatives exposure] would be to ask them, "Do you really understand your derivatives book?" Anyone who says yes is either crazy or lying.

It is crazy to allow things to get too big to fail, run with knavery. As an industry, there is a crazy culture of greed and overreaching and overconfidence trading algorithms. It is demented to allow derivative trading such that clearance risks are embedded in system. Assets are all “good until reached for” on balance sheets. We had $400m of that at general re, “good until reached for”. In drug business you must prove it is good. It is a crazy culture, and to some extent an evil culture. Accounting people really failed us. Accounting standards ought to be dealt with like engineering standards.

There are distinct parallels between phishing / retail payments, and the bigger investment mess. In both cases, banks would argue these are core business. In both cases, they have applied risk-based security models, and accepted some loss. In both cases, they have the ability to apply substantial experience to the monitoring, allocating and absorbing risks and losses.

In both cases, they watched and did nothing as the risks started from low, and migrated upwards. Are we at the point where regulation has killed the ability of banks to apply their (arguable) one core skill, to whit, risk-based analysis? Are banks that far out of banking that they no longer have it?

The following excellent discussion is reposted from Streaming SQL approaches insist in ignoring causality by PatternStorm.

The recent paper “Towards a Streaming SQL Standard” by Oracle and Streambase unifies and generalizes two different execution models of Streaming SQL: Oracle’s and StreamBase’s.

While it’s true that the generalization succeeds in overcoming the unability of both execution models of producing correct results for astonishing simple queries (showing evidence of the actual limitations of these two Streaming SQL languages) it is also true that the generalization is closer to being overly complex than natural and intuitive.

The root cause behind the actual limitations of these two Streaming SQL languages is that their execution models “hardcode” the way events can be related to each other: in the Oracle case events are partially ordered by timestamp, in the StreamBase case events are totally ordered by time of arrival. These design decisions (natural in a stream oriented lamguage) have strong implications on what queries can be answered correctly, particularly when these queries involve joins of derived streams.

The generalization, of course, mainly consists in providing a new operator that allows the user to establish custom ordering relationships among the events (the SPREAD operator), which is good news but takes us to the fundamental issue: event processing cannot be reduced to stream processing, that is, to the processing of events that are totally or partially ordered by a pre-defined relationship (as Oracle and StreamBase actual implementations do), on the contrary, no particular ordering can be assumed because the user needs to be able to order the events in different ways in order to solve different problems. This is what event processing is about and the paper provides evidence that Streaming SQL approaches have found the need to move towards that direction and are having trouble in their way.

For instance, one of the queries used in the paper as an example of a query that StreamBase cannot solve (but Oracle can) is the following: correlate the stream that contains the total number of cars on the road for each time interval with the stream that contains the total average speed of the cars on the road for each time interval in order to detect the situation where the avergae speed is below 45 and the total number of cars is two or more. This query can be very easily and more robustly solved if you order the events by causality rather than by time, that is, if you have each position report update the average speed stream and the total number of cars stream and then you causally relate each position report to the new average speed event and the new total number of cars event that it generates; then the query is just a matter of detecting all report speeds that are causally related both to an average speed event below 45 and a total number of cars event of two or more (notice that this approach is more robust than Oracle’s time-based one because it works without requiring derived streams to be synchronized with the report speed stream)

Conclusions:

• Event Processing is a generalization of Stream Processing (as the paper shows)
• Event Processing requires providing the ability to the user of creating custom relationships among events and then define patterns/queries using those custom relationships.
• Causality is more often than not a more robust and easier criteria to order events than time or order of arrival.
• Event Processing Languages should support causality.

Regards,
PatternStorm

When we boarded a little later, I asked for the ninny's name. He refused and hissed, "If you make a scene, I'll call the pilot and you won't be flying tonight."

The credit controller, from Gloucester, says he now suffers "appalling" abuse from the authorities and public who doubt his motives. The bus-spotter, officially known as an omnibologist, said: "Since the 9/11 attacks there has been a crackdown. "The past two years have absolutely been the worst. I have had the most appalling abuse from the public, drivers and police over-exercising their authority. Mr McCaffery, who is married, added: "We just want to enjoy our hobby without harassment. "I can deal with the fact someone might think I'm a terrorist, but when they start saying you're a paedophile it really hurts."

Israeli authorities are investigating why a Palestinian resident of Jerusalem rammed his bulldozer into several cars and buses Wednesday, killing three people before Israeli police shot him dead. Israeli authorities are labeling it a terrorist attack, although they say there is no clear motive and the man -- a construction worker -- acted alone. It is not known if he had links to any terrorist organization.

Turns out the ninja was actually a camp counselor dressed in black karate garb and carrying a plastic sword. Police tell the Asbury Park Press the man was late to a costume-themed day at a nearby middle school.

Amsterdam police say 15 camels, two zebras and an undetermined number of llamas and potbellied swine briefly escaped from a traveling Dutch circus after a giraffe kicked a hole in their cage.

I went to the salon today to ‘get my nails did’ and was greeted with quite a ruckus. The entire staff is Vietnamese- no big surprise there- but the owners and most employees speak English extremely well and so everyone is always chit-chatting throughout the salon.

The wife side of the husband-wife team was especially giddy as she shared a little gem of a story with me today… and I didn’t feel I’d be doing you justice to keep it to myself. 

They (the salon staff) all live in one of the larger cities here in NC. One of their friends (a middle-aged guy) was out shopping Monday and was sitting in his car in a parking lot during a coming- or going- to a store. A young girl (mid-20’s) came up to his car and motioned to ask for use of his cell phone.

Now, at this point in the story, I could have told you the rest…

He opened the window a bit and the young lady asked to borrow his phone for a moment to call a family member. Turns out she had some car troubles and needed a ride. Being the nice gentleman that he is, he lent her the phone and she took a couple of steps away to make the call. Only… she didn’t stop. Evidently she got about 4 cars down the row before our chivalrous guy got out of the car and gave chase.

When he got in reach, she pushed him down to the ground and - yep - ran back to his car, phone still in hand… and drove away.

He now has no car and no phone. So, ironically enough, he then had to approach a stranger and politely ask for the use of their cell to phone home and let the group know he was bamboozled. A few tears were shed, but his wife assured him it would be fine and he shouldn’t be scared. (No, I’m not making that up).

I was giggling right along with her (and the guy’s wife, who happened to be there).

Moments later I thought to myself, “I hope that doesn’t happen to me!” Almost in the same instant I realized… it probably wouldn’t. I’ve been a bit of a paranoid freak since I was little, thanks probably in most part to having two ex-military intelligence parents. For all my life I’ve been raised with ‘the security mindset’ as Schneier refers to it.

Always suspicious… always calculating… always aware… and certainly never underestimating a situation.

And so then I had to muse… WHAT WAS HE THINKING leaving the car running and unlocked to go after the siren with the cell? For the sake of politeness, I kept my question to my ‘inside voice’, but I do have to wonder why you’d sacrifice the security of a vehicle for a $50 cell phone.

The moral of the story…  There are two. 1) Involve someone with a ‘security mindset’ and 2) Your security is only as strong as your people. A sweet damsel in distress… social engineering at it’s finest…

# # #

Boston ferries gain Wi-Fi: The MTBA has put Internet access on its 11 commuter boats that serve 4,500 daily riders. Ridership is way up this year.

Bangkok builds slow Wi-Fi network, free for first year: The details are a bit sketchy, but the government has built a 15,000-hotspot network that offer 64 Kbps connections, and will be free (with an access card) for the first year. The government is handing out 500,000 such cards at shopping malls before this week's launch.

Yes, the New York Police Department provided an escort, but during more than eight hours on Saturday, one of the great hoards of coins and currency on the planet, worth hundreds of millions of dollars, was utterly unalarmed as it was bumped through potholes, squeezed by double-parked cars and slowed by tunnel-bound traffic during the trip to its fortresslike new vault a mile to the north.

In the end, the move did not become a caper movie.

“The idea was to make this as inconspicuous as possible,” said Ute Wartenberg Kagan, executive director of the American Numismatic Society. “It had to resemble a totally ordinary office move.”

[...]

Society staff members were pledged to secrecy about the timing of the move, and “we didn’t tell our movers what the cargo was until the morning of,” said James McVeigh, operations manager of Time Moving and Storage Inc. of Manhattan, referring to the crew of 20 workers.

From my book Beyond Fear, pp. 211-12:

At 3,106 carats, a little under a pound and a half, the Cullinan Diamond was the largest uncut diamond ever discovered. It was extracted from the earth at the Premier Mine, near Pretoria, South Africa, in 1905. Appreciating the literal enormity of the find, the Transvaal government bought the diamond as a gift for King Edward VII. Transporting the stone to England was a huge security problem, of course, and there was much debate on how best to do it. Detectives were sent from London to guard it on its journey. News leaked that a certain steamer was carrying it, and the presence of the detectives confirmed this. But the diamond on that steamer was a fake. Only a few people knew of the real plan; they packed the Cullinan in a small box, stuck a three-shilling stamp on it, and sent it to England anonymously by unregistered parcel post.

This is a favorite story of mine. Not only can we analyze the complex security system intended to transport the diamond from continent to continent­the huge number of trusted people involved, making secrecy impossible; the involved series of steps with their associated seams, giving almost any organized gang numerous opportunities to pull off a theft­but we can contrast it with the sheer beautiful simplicity of the actual transportation plan. Whoever came up with it was really thinking­and thinking originally, boldly, and audaciously.

This kind of counterintuitive security is common in the world of gemstones. On 47th Street in New York, in Antwerp, in London: People walk around all the time with millions of dollars’ worth of gems in their pockets. The gemstone industry has formal guidelines: If the value of the package is under a specific amount, use the U.S. Mail. If it is over that amount but under another amount, use Federal Express. The Cullinan was again transported incognito; the British Royal Navy escorted an empty box across the North Sea to Amsterdam -- ­where the diamond would be cut­ -- while famed diamond cutter Abraham Asscher actually carried it in his pocket from London via train and night ferry to Amsterdam.