IDC also found that although 80 percent of CEOs believe their security teams are being held formally accountable for their contributions to business growth and innovation, only 44 percent of security leaders believe they are being measured on their contributions to innovation. This finding points to a surprising lack of alignment between the expectations of C-level management and the priorities of security professionals...

Examples include:

• GSM mobile phones have an identifier for the phone (separate from the identifier for the user) that can be blacklisted when the phone is stolen.
• Some car radios will stop working when the battery is disconnected, and only start working again when a numeric code is entered. This is intended to deter theft of the radio.
• In Windows Vista, Bitlocker can be used to encrypt files. One of the intended applications for this is that if someone steals your laptop, it will be difficult for them to gain access to your encrypted files.

Ross told a story of what happened when he needed to disconnect the battery on his car: the radio stopped working, and the code he had been given to reactivate it didn’t work - it was the wrong code.
Ross argues that these reactivation codes are unecessary, because other measures taken by the car manufacturers - such as making radios non-standard sizes, and hence not refittable in other car models - have made them redundant.

I described how the motherboard on a laptop had needed to be replaced recently. The motherboard contains the TPM chip, which contains the encryption keys needed to decrypt files protected with Bitlocker. If you replace the motherboard, the files on your hard disk will become unreadable, even if the disk is physically OK. Domain-joined Vista machines can be configured so that a sysadmin somewhere within your organization is able to recover the keys when this happens.

Both of these situations suffer from classic usability problems: the recovery procedures are invoked rarely (so users may not know what they’re supposed to do), and, if your system is configured incorrectly, you only find out when it is too late: you key in the code to your radio and it remains a doorstop; the admin you hoped was escrowing your keys turns out not to have the private key corresponding to the public key you were encrypting under (or, more subtly: the person with the authority to ask for your laptop’s key to be recovered is not you, because the appropriate admin has the wrong name for the laptop’s owner in their database).

I also described what happens when an XBox 360 is stolen. When you buy XBox downloadable content, you buy two licenses: one that’s valid on any XBox, as long as you’re logged in to XBox live; and one that’s valid on just your XBox, regardless of who’s logged in. If a burglar steals your Xbox, and you buy a new one, you need to get another license of the second type (for all the other people in your household who make use of it). The software makes this awkward, because it knows that you already have a license of the first type, and assumes that you couldn’t possibly want to buy it again. The work-around is to get a new email address, a new Microsoft Live Account, and a new Gamer Tag, and use these to repurchase the license. You can’t just change the gamertag, because XBox live doesn’t let the same Microsoft Live account have two gamertags. And yes, I know, your buddies in the MMORPG you were playing know you by your gamertag, so you don’t want to change it.

For the third year in a row, the government’s overall FISMA grade improved. But don’t get too excited; the grade only improved from a C- to a C this year. (And D+ in 2005).

But there’s a lot to hide in an “average grade”. Turns out that the reality is a split between overachievers and underachievers.

The agencies/departments with a grade of A-, A or A+:

• Department of Justice
• US AID
• EPA
• NSF
• SSA
• HUD
• OPM (I would hope so)

And, sadly the ones that got an F:

• Department of the Interior
• Department of Treasury
• Nuclear Regulatory Commission
• Department of Veterans Affairs
• Department of Agriculture

FISMA (Federal Information Security Management Act) became a federal law back in 2002 as part of the E-Government Act. Six years later, there has been improvement, but there’s still clearly a long way to go.

So what’s the disconnect? Speaking from a vendor perspective, we’ve had first-hand experience with the lack of actionable, concrete guidelines around FISMA – for processes, monitoring and check-list assessment items. We even contacted NIST directly to get more guidance on how their very broad guidelines should be translated to actual features and reporting in something like our monitoring solution. The end goal, after all, is to help our government customers not only meet the FISMA requirements but also to be seen/assessed as meeting those requirements. As we do for other compliance/governance requirements like Sarbanes-Oxley, the more that EM7 can automate and report on, the better.

But that leads to the second issue here. How accurate is the FISMA scorecard? SC Magazine writes, “Many have seen organizations get an A when they believe they should have received an F, and vice versa” and some experts “blame this on the lack of a standardized evaluation, as well as censorship among auditors.” There’s talk about language ambiguities and opinions that the scorecard is not “one size fits all” – that small agencies face different IT security challenges than the big guys.

So what’s right about FISMA? We can point to a heightened awareness about the importance of security and the “security picture” in each federal agency. Certainly, from our own survey at FOSE, we saw the difference just from last year to this one:

• 91% surveyed said FISMA was important (up from 66% last year)
• Over 50% had solutions installed to help with FISMA (up from only 14% last year)

Based on these numbers, we’re not surprised to see the FISMA average grade go up, but we expected it to be even higher. So what will it take to get the government on the honor roll? From Rep. Tom Davis, “We need to seriously consider incentives for agency success and funding penalties and personnel reforms for agencies that don’t measure up…We need a bill with teeth, and we need agencies to understand the goal is to keep information safe, not to check a statutory box.”

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How long before this device is in the hands of the hacker community? Days? Months? They had it before it was released?

EDITED TO ADD (4/30): Seems that these are not Microsoft-developed tools:

COFEE, according to forensic folk who have used it, is simply a suite of 150 bundled off-the-shelf forensic tools that run from a script. None of the tools are new or were created by Microsoft. Microsoft simply combined existing programs into a portable tool that can be used in the field before agents bring a computer back to their forensic lab.

Microsoft wouldn't disclose which tools are in the suite other than that they're all publicly available, but a forensic expert told me that when he tested the product last year it included standard forensic products like Windows Forensic Toolchest (WFT) and RootkitRevealer.

With COFEE, a forensic agent can select, through the interface, which of the 150 investigative tools he wants to run on a targeted machine. COFEE creates a script and copies it to the USB device which is then plugged into the targeted machine. The advantage is that instead of having to run each tool separately, a forensic investigator can run them all through the script much more quickly and can also grab information (such as data temporarily stored in RAM or network connection information) that might otherwise be lost if he had to disconnect a machine and drag it to a forensics lab before he could examine it.

And it's certainly not a back door, as TechDirt claims.

But given that a Federal court has ruled that border guards can search laptop computers without cause, this tool might see wider use than Microsoft anticipated.

[Evan] The "suspicious e-mail" is the second phase of the attack.  The credit card number, cardholder name, and expiration date were already obtained in the first phase.  This spear phishing attack now aims to get the CVV2 code, which makes this much more valuable to the attacker.  I am curious about how many people actually fell for this second phase.

• Notified credit card issuers
• Purged or masked credit card data on its servers
• Changed all user names and passwords on the system
• Hired a leading provider of information security to conduct a full forensic security audit as required by the major credit card issuers
• Notified various law enforcement agencies including the FBI and Secret Service