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Recently in Cybercrime Category

Is The Hacker World Targeting Your Law Firm?

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It seems that hackers are on the prowl for sensitive information that your law firm has. The AP reports that the FBI has sent out an advisory that warns law firms and PR companies that there is a complex emailing scheme going on that steals their data. The FBI has said that this scheme is just part of a larger growing trend.

The compromises in cyber security typically comes from what is known as "spear phishing". According to the FBI's official website, this is defined as a virtual trap set up by hackers who send out offical looking emails in order to lure you to fake websites in the hopes that you will reveal your personal information. Spear phishing specifically targets a group that has something in common. For example, a group of employees from the same company, bank at the same bank, or attended the same alma mater.

FindLaw columnist Eric Sinrod writes regularly in this section on legal developments surrounding technology and the internet.

Like nomads searching for oases, we roam in our quest to find Wi-Fi hotspots from which to connect to the wireless world. Unfortunately, these cozy areas where everything seems so right actually can be black holes where our private data can be siphoned away.

Indeed, BBC's Watchdog reports that connections provided by three major Wi-Fi networks in the United Kingdom are susceptible to hacker attacks, making network users vulnerable to potential fraudulent activities. Watchdog, in a recent program, indicated that literally thousands of UK hotspots, in places such as airports, trains and food establishments, are not as secure as people may think.

FindLaw columnist Eric Sinrod writes regularly in this section on legal developments surrounding technology and the internet.

Our nation can be threatened not only by physical attacks on terra firma, but also in Cyberspace. Indeed, Cyber attacks could threaten all sorts of mission critical systems.

For this reason, aides to Senator Jay Rockefeller reportedly have been working recently on a revised draft Senate bill that would give the President broad powers in the event of a Cybersecurity emergency, and that apparently would go so far as allowing the President to temporarily seize control over computer networks in the private sector.

Banks Liable For Cyber Criminals?

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FindLaw columnist Eric Sinrod writes regularly in this section on legal developments surrounding technology and the internet.

The Internet has made life easier in so many ways, including the ability to shop and conduct financial transactions online. Of course, just like in the world of bricks and mortar, criminals also lurk in Cyberspace, seeking to steal identities, data and money. While Cyber criminals, of course, are responsible as a matter of criminal and civil law for their own wrongdoing, the question arises as to whether others also can be deemed responsible for the harm suffered as a result of this illegal conduct.

The recent case of Patco Construction Company, Inc. v. People's United Bank d/b/a Ocean Bank, filed in state court in Maine, tees up this very question for resolution.

Two Developments in the Law of MySpace

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Two important things happened around MySpace in the past few days.  First, a California appellate court ruled in favor of the company in a consolidated negligence action based on allegations that the company didn't do enough to protect underage users.

Second, a federal district court judge in Los Angeles threw out Lori Drew's conviction for accessing computers without authorization.  That case arose out of the notorious events surrounding Megan Meier's tragic suicide.  Prosecutors allege that Drew, the mother of one of Megan's peers, used the social networking site to create a fictional teen boy to humiliate Megan. 

The appellate ruling relied on Section 230 to find that the plaintiff's claims were based on communications between users.  As such, they were prohibited by Section 230's immunity for interactive service providers.

The federal district court judge in the Drew case held that if Drew "is to be found guilty of illegally accessing computers, anyone who has ever violated the social networking site's terms of service would be guilty of a misdemeanor. That would be unconstitutional, he said."  The judge made his ruling tentative until he issues the written order.  The prosecutors announced their plans to appeal the decision to the 9th Circuit.

All in all, quite a week for MySpace jurisprudence.
FindLaw columnist Eric Sinrod writes regularly in this section about legal developments surrounding technology and the internet.

Lest you think the FTC is sitting back and letting rogue Internet Service Providers run wild in cyberspace, please consider the FTC's recent shutdown of Pricewert LLC.

According to the FTC, Pricewert knowingly hosted and actively participated in the distribution of spam, child pornography, and other harmful electronic content. 
Click-fraud involves the manipulation of clicks on Internet advertisements.  Most websites charge their advertisers for each click that their ads receive.  In one form of click-fraud, fraudsters run up the number of clicks on a company's ads in order to drive up costs and exhaust the company's advertising budget.  That opens up room for the ads from the fraudster's company, or a company that hired the fraudster, to show up on the site. 

That's exactly what Microsoft alleges that three people did for insurance and World of Warcraft ads.  The investigation went on for more than a year, and involved a game of cat and mouse where Microsoft would erect defenses against the manipulation, the alleged click-fraudsters would learn how to evade them, Microsoft would come up with new defenses and the process would repeat.
As expected, President Obama announced today that he would create a Cybersecurity Czar to coordinate efforts to protect the nation's digital infrastructure.  Labeling the country's data networks a "strategic national asset," President Obama also announced a report containing strategies to increase cybersecurity, although actual policies will come later.

The President's speech didn't contain any indication about who he will eventually select as Cybersecurity Czar.  He did say, however, that the office will work with the Office of Management and Budget to make sure that departments make room in their budgets for cybersecurity priorities.  The czar will also coordinate the nation's response in the event of a major cyber attack.
The Feds have dropped a proposal to classify the use of proxy servers as a sign of sophistication when determining the proper sentence for those convicted of a crime.  For the time being, anyway.

The idea is likely to resurface once refinements are made to protect innocent uses of proxy servers that aren't related to the crime underlying the sentence.