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TOP STORIES FOR MONDAY, MAY 02, 2005
  Proposed Database Worries Security Experts
  Spurned Again, Qwest Withdraws Bid for MCI
  Time Warner Reports Data Loss


PROPOSED DATABASE WORRIES SECURITY EXPERTS
Amid a rash of corporate and institutional data breaches recently,
security experts are questioning whether a "unit record" database
proposed by the Department of Education could be kept secure. Currently
the department collects aggregate data on college students and
graduation rates. A unit record database would track individual
students through their college careers, presenting what some see as an
extremely tempting target for hackers. The current system would force a
hacker to "compromise several databases," according to Eugene Spafford,
professor of computer sciences and electrical and computer engineering
at Purdue University, whereas with a database like the one proposed,
"it's possible to attack it from any point in the system." Barbara
Simons, former president of the Association for Computing Machinery,
was also concerned about a unit record database, suggesting that it
might not be the safest way to accomplish the department's goals.
Grover Whitehurst, director of the Institute of Education Sciences at
the Education Department, said the agency is investigating security
options for the proposed database and welcomes suggestions. He noted
that the system might not use Social Security numbers as identifiers
and said that if the information in the system were limited in scope,
it would not be very appealing to hackers.
Chronicle of Higher Education, 6 May 2005 (sub. req'd)
http://chronicle.com/prm/weekly/v51/i35/35a03701.htm

SPURNED AGAIN, QWEST WITHDRAWS BID FOR MCI
After the board of MCI once again said it favored a lower bid from
Verizon Communications, Qwest Communications withdrew its bid, accusing
the MCI board of bowing to pressure from Verizon and failing to serve
the interests of shareholders. Qwest's withdrawal brings to an end a
three-month battle to acquire MCI, which has repeatedly expressed a
preference for Verizon, depite consistently lower bids. Members of the
MCI board argued that regardless of the face value of the bids, Verizon
represents a better choice "from the standpoint of risk versus reward."
A statement from MCI noted that some of its largest customers had
indicated a sufficiently stronger preference for Verizon that they
would terminate their business if Qwest's bid were accepted. Some
shareholders of MCI disagreed with the board, however, including Leon
Cooperman of Omega Advisors, which owns about 12 million shares of MCI.
Cooperman said the MCI board should have "treated [Qwest] better and
not allowed themselves to be emasculated by Verizon."
New York Times, 2 May 2005 (registration req'd)
http://www.nytimes.com/2005/05/02/business/02cnd-phone.html

TIME WARNER REPORTS DATA LOSS
A company that handles data storage for Time Warner lost tape backups
containing personal information for about 600,000 employees. Iron
Mountain Inc., based in Boston, reportedly lost the tapes during
transport. Officials from Time Warner said the tapes did not contain
customer information. In a statement, Larry Cockell, chief security
officer at Time Warner, said that although no evidence exists that the
data have been accessed or misused, "we are providing current and
former employees with resources to monitor their credit reports while
our investigation continues." Time Warner owns America Online, HBO, and
Warner Brothers.
Reuters, 2 May 2005
http://www.reuters.com/newsArticle.jhtml?storyID=8363208

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