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TOP STORIES FOR WEDNESDAY, MAY 25, 2005
  IBM to Provide Open Source Resources to Higher Education
  FTC Fighting Zombies
  Spreading Spyware through an Affiliate Program
  House Takes Two Steps Against Spyware
  FBI Tries Again to Replace Computer Systems


IBM TO PROVIDE OPEN SOURCE RESOURCES TO HIGHER EDUCATION
Long a backer of open source technologies, IBM has announced several
initiatives to promote open source in higher education. The company
will expand its partnership with Linux reseller Red Hat to help higher
education develop job skills on Linux as well as IBM products.
According to IBM, the program involves institutions ranging from
research universities to vocational schools. Separately, IBM will
provide open source training and curriculum resources worth $7 million
to the Sam M. Walton College of Business at the University of Arkansas.
That program is renewable for up to four years at a value of $1.2
million per year. IBM also said it will offer a course to institutions
in its Academic Initiative program, which focuses on teaching
open-standards technology skills. The course, called Services Sciences,
Management, and Engineering, addresses skills needed for a
service-based economy.
ZDNet, 24 May 2005
http://news.zdnet.com/2100-3513_22-5718616.html

FTC FIGHTING ZOMBIES
The Federal Trade Commission (FTC) will appeal to 3,000 Internet
service providers (ISPs) worldwide to help identify and cut off service
to hijacked computers. Such "zombies," as they are commonly called, are
used by spammers to send millions of unsolicited e-mails. By some
accounts, zombie machines send 50 to 80 percent of all spam. Though not
requirements, the FTC's recommendations include monitoring subscriber
accounts for large amounts of e-mail coming from a particular machine
and helping those customers with hijacked computers clean their
systems. The FTC said that 25 other countries are participating in the
effort, though China--the country believed to be the source of a large
percentage of the world's spam--is not one of them. Dave McClure,
president of the U.S. Internet Industry Association, said that most
U.S. ISPs already do most or all of the things recommended by the FTC.
He noted that ISPs are forbidden by law from reading subscriber
e-mails, saying that it can be difficult to distinguish between "spam
coming across your network and your local charitable organization
sending out its monthly newsletter."
Reuters, 24 May 2005
http://www.reuters.com/newsArticle.jhtml?storyID=8592338

SPREADING SPYWARE THROUGH AN AFFILIATE PROGRAM
A business based in Russia is adopting the affiliate-program approach
to spreading spyware around the globe. Called iframeDOLLARS, the
company is offering Web site operators 6.1 cents for every computer on
which the Web site installs code that exploits vulnerabilities in
Windows and Internet Explorer. Microsoft has issued patches for the
weaknesses, but unpatched computers remain at risk. The malicious code
includes backdoors, Trojans, spyware, and adware. Operators of the
iframeDOLLARS site claim to have paid out nearly $12,000 last week
alone, which would translate to nearly 200,000 infected computers.
Although spyware expert Richard Stiennon called the tactic "brazen" and
said iframeDOLLARS might be making quite a bit of money from its
scheme, Dan Hubbard, the head of security at Websense, gave
iframeDOLLARS less credit. He noted that the company has been around
for a while, trying various methods to install malicious code, and he
said a number of others have tried similar affiliate programs to
accomplish the same thing.
TechWeb, 24 May 2005
http://www.techweb.com/wire/security/163700705

HOUSE TAKES TWO STEPS AGAINST SPYWARE
The House of Representatives overwhelmingly passed two separate bills
this week designed to address the growing problem of spyware. HR 29,
introduced by Mary Bono (R-Calif.), would impose stiff fines on anyone
found guilty of distributing computer code that results in browser
hijacking, modifying bookmarks, collecting personal information without
permission, and disabling security mechanisms. Violators can be fined
as much as $3 million per incident. One of only four Representatives
who voted against Bono's bill, Zoe Lofgren (D-Calif.) had introduced
another bill, HR 744, that also prohibits installing spyware.
Lofgren's bill, which passed 395 to 1, would impose fines and jail
time to anyone found guilty. Both bills now go to the Senate, which
failed to act on a spyware bill sent by the House last year. Senators
have said they will not allow a similar situation this year.
CNET, 23 May 2005
http://news.com.com/2100-1028_3-5717658.html

FBI TRIES AGAIN TO REPLACE COMPUTER SYSTEMS
After spending several years and $170 million on a failed computer
system, the FBI said it now has a new system in the works, the first
part of which will be operational by the end of 2006. After September
11, 2001, federal officials identified a need for a computer system
that would allow various agencies to share information efficiently to
help prevent similar attacks in the future. The FBI's Virtual Case
File, designed to meet that need, was riddled with problems and
ultimately was not viable. At a Senate Appropriations subcommittee
meeting, FBI Director Robert Mueller conceded that Virtual Case File
would not be implemented and expressed his regret that so much time and
money were wasted on it. The new electronic information management
system will be called Sentinel.
Reuters, 24 May 2005
http://www.reuters.com/newsArticle.jhtml?storyID=8593132

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