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CYBER WARS
FBI renews call for wider wiretap powers
by Staff Writers
Washington (AFP) Oct 16, 2014


Cost of cyber atacks jumps for US firms: study
Washington (AFP) Oct 15, 2014 - Cybercrime costs are escalating for US companies and attacks are becoming more complicated to resolve, a study showed Wednesday.

A survey of 59 US firms by the Ponemon Institute with Hewlett-Packard found the average annual cost of responding to cyber attacks was $12.7 million, up 96 percent over the previous five years.

The organizations saw a 176 percent increase in the number of cyber attacks, with an average of 138 successful attacks per week, compared to 50 attacks per week when the study was initially conducted in 2010.

The average time to detect an attack was 170 days, and it took on average 45 days to resolve a cyber incident, costing an average of $1.6 million, according to the researchers.

The costs of cyber attacks include detection and data recovery, as well as loss of information and disruption to business, the report said.

The report comes following news of high-profile data breaches affecting millions of customers at retailers such as Target and Kmart, and banks including JPMorgan Chase.

"Adversaries only need to be successful once to gain access to your data, while their targets must be successful every time to stop the barrage of attacks their organizations face each day," said HP enterprise security vice president Art Gilliland.

"No amount of investment can completely protect organizations from highly sophisticated cyber attacks, but improving and prioritizing your organization's ability to disrupt the adversary... can significantly improve attack containment and reduce the overall financial impact."

Ponemon, an independent research firm which studies cybersecurity, surveyed 59 major US companies and organizations in fields including finance, education, defense, consumer products and health care.

FBI chief James Comey renewed a call Thursday for broader authority to tap into emerging technologies, saying the Edward Snowden revelations have led to unwarranted mistrust of law enforcement.

Comey said revelations about widespread surveillance have led to a climate which could hinder the ability to catch criminals and terrorists, underscored by new efforts to encrypt smartphones to make them inaccessible to investigators, even with a warrant.

"Perhaps it's time to suggest that the post-Snowden pendulum has swung too far in one direction -- in a direction of fear and mistrust," Comey said in a speech at the Brookings Institution.

"There will come a day -- and it comes every day in this business -- where it will matter a great deal to innocent people that we in law enforcement can't access certain types of data or information, even with legal authorization. We have to have these discussions now."

Comey's comments sought to renew the debate about the FBI "going dark," or being unable to access encrypted calls and messages from new apps and services which fall outside the traditional realm of "wiretaps."

The FBI had been calling for changes to the US law covering wiretapping in 2013, but that debate was shelved after the revelations from former NSA contractor Snowden in June last year about vast surveillance of telephone and online communications.

Comey said the leaked Snowden documents exaggerated the capabilities of agencies like the Federal Bureau of Investigation.

"In the wake of the Snowden disclosures, the prevailing view is that the government is sweeping up all of our communications. Of course, that's not true," he said.

"And if the challenges of real-time interception threaten to leave us in the dark, encryption threatens to lead all of us to a very dark place."

- 'Front door' access -

Comey said the announcements in recent weeks by Apple and Google that they would encrypt their smartphones so that law enforcement cannot access them, even with a warrant, provided a "catalyst" for him to revive the debate from 2013.

The encryption initiatives "energized me to say we have to have a conversation about this," he said.

Comey last month warned that the new encryption by default could lead to problems for law enforcement, even as privacy activists applauded the efforts by the companies.

In his Brookings comments, Comey said he was not looking for a "back door" into devices and systems that could be exploited by malicious actors.

"We want to use the front door, with clarity and transparency, and with clear guidance provided by law," he said.

"We are completely comfortable with court orders and legal process -- front doors that provide the evidence and information we need to investigate crime and prevent terrorist attacks."

Comey said he wants Congress to update the law covering FBI wiretap authority, but also hopes companies will cooperate in this effort "so that criminals around the world cannot seek safe haven for lawless conduct."

"An adversarial posture won't take any of us very far down the road," he added.

- Swift criticism -

Comey's remarks drew swift criticism from civil liberties activists.

Laura Murphy of the American Civil Liberties Union said Comey "is wrong" about encryption.

"Whether the FBI calls it a front door or a back door, any effort by the FBI to weaken encryption leaves our highly personal information and our business information vulnerable to hacking by foreign governments and criminals," she said in a statement.

"We applaud tech leaders like Apple and Google that are unwilling to weaken security for everyone to allow the government yet another tool in its already vast surveillance arsenal."

Nuala O'Connor, president of the Center for Democracy and Technology, also opposed efforts to give special access to law enforcement.

"We debated and settled the question of whether law enforcement should have back doors into communications networks more than 20 years ago," she said.

"Now, more than ever, we need strong security to combat malicious hackers and deter overly intrusive government surveillance. Companies are providing more encryption because it is exactly the type of protection the public wants and needs."

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