Friday, December 14, 2007

CRM Collaboration Firm SPSS Notes MarketBridge

MarketBridge, a vendor of sales and marketing services, has announced it was named SPSS (News - Alert) Systems Integrator Partner of the Year 2007 at the annual SPSS Directions User Conference in Orlando.

MarketBridge took home the Systems Integrator honor for developing joint products with SPSS, a vendor of predictive analytics software, to solve such marketing and sales problems as marketing mix optimization, improving B2B pipeline performance and leveraging "passive" market research techniques to estimate the attitudinal effects of marketing activities.

To read the Marketing Sciences white paper, ''Putting the Relationship Back in Relationship Marketing,'' detailing methods such as predictive analytics for building Relationship Marketing programs click on this link: http://www.market-bridge.com/Forms2/Relationship_Marketing.html.

This summer MarketBridge (News - Alert) and SPSS formed a partnership to develop and implement marketing and sales products.MarketBridge delivers the marketing and sales optimization side of things, customizing and installing customers' marketing analytics applications, while SPSS has the platform required to satisfy the complexity of a multi-channel marketing model.Using SPSS' Predictive Enterprise architecture, MarketBridge has implemented a "collaborative CRM" program for a computer hardware vendor, allowing channel partners to "take advantage of the power of analytics and OEM data to build, deploy and measure campaigns," MarketBridge officials say.

The partnership is being driven by the development of joint products designed to solve several marketing and sales problems, including marketing mix optimization, improving B2B pipeline performance and using passive market research techniques to estimate the attitudinal effects of marketing activities.

"For the last 15 years, MarketBridge has been increasingly focused on using analytics," says Andy Hasselwander, Vice President of Marketing Sciences. "SPSS' suite of predictive analytics products is a natural fit, for both our internal project work and for deployment within client environments."

Patrick McCue, Vice President of Worldwide Alliances for SPSS, said embedding SPSS technology inside of MarketBridge's pay-for-performance execution programs "has allowed MarketBridge to attain peak levels of performance by using predictive analytics."

Palestinian leader calls for end to Gaza sanctions

RAMALLAH, West Bank: In a departure Thursday from previous policy, the moderate government of the Palestinian Authority in the West Bank publicly called on Israel to lift economic restrictions on the Gaza Strip, which is ruled by the Islamic group Hamas.

At a news conference in Ramallah, the Palestinian prime minister, Salam Fayyad, presented the core elements of his Palestinian Reform and Development Plan before an important meeting of international donor nations, set to convene Monday in Paris. Fayyad emphasized that the plan was "for Gaza and the West Bank together," that the Gaza Strip is "an inseparable part" of the Palestinian homeland.

To that effect, a written statement from Fayyad's office distributed at the news conference noted that the authority "has indicated its willingness to manage the crossings in and out of the Gaza Strip if Israel agrees to lift its blockade," adding: "The blockade must be lifted."

Hamas seized control of Gaza last June in a brief factional war, routing the rival Western-backed forces of Fatah. The Palestinian president and Fatah chief, Mahmoud Abbas, set up a caretaker government headed by Fayyad, an independent economist, whose writ extends only to the West Bank.

After the Hamas takeover, Israel sealed its border crossings with Gaza, on grounds that the Fatah forces had fled and were no longer providing security on the other side. Israel, like the United States and European Union, lists Hamas as a terrorist organization and refuses any dealings with it.

Israel also decided to press the Hamas regime by allowing into Gaza only the minimum amount of goods required to avert a hunger or health crisis among its population of 1.5 million, and to prohibit most exports.

"Hamas's popularity is suffering, because it cannot deliver," said Mark Regev, a spokesman for Prime Minister Ehud Olmert of Israel. A combination of military pressure, diplomatic isolation and economic leverage "is leading to an erosion of their strength," Regev said.

The Palestinian Authority says the restrictions have led to a collapse of the private sector in Gaza, which represents more than half the job market there. But it had so far maintained a public silence on the closure and privately had supported it, leading Hamas to accuse it of collusion.

A Hamas leader in Gaza, Mahmoud Zahar, said this week that "People realize now that the Ramallah government is responsible for the suffocation of Gaza."

Ala al-Araj, an economic adviser to Ismail Haniya, the Hamas chief in Gaza, said that the group has been "willing since July for the United Nations or a private company to take control of the crossings" but that "Israel and the Ramallah government don't accept that."

He added that Hamas would "not reject any party that is acceptable to Israel," as long as it is "transparent and credible" - a veiled reference to widespread charges of corruption when Fatah was in control.

Israel is unlikely to agree to change its policy, but Regev did not rule out change at some point. "If a new reality emerged on the other side of the crossings," he said, that could lead to a change in the Israeli position.

Violence continued Thursday on the border. A rocket fired from Gaza hit a house in the Israeli border town of Sderot, wounding a woman. Soon after, three Palestinians were killed in an Israeli airstrike in Gaza, medical officials there said. One was identified as a militant belonging to Islamic Jihad.

Army officials said the strike targeted a cell that had fired rockets at Israel.

Taghreed El-Khodary contributed reporting from Gaza City.

Hi-tech tools divide social sites

Social network sites are moving to make it much easier for software developers to write add-ons for the hugely popular web destinations.

Bebo, Facebook, Meebo and Friendster have unveiled plans to help them become more than places to keep in touch.

The add-ons will allow users to add extras, such as video and music clips, to the personal profiles they maintain.

The alliances behind the technologies also reveal the fierce competition between social sites for users.

Tough choices

In one of the broader announcements Bebo unveiled its Open Application platform which will produce a set of common interfaces that developers can use to create programs and applications that will work with the social network site.

At the launch Bebo unveiled partnerships with more than 40 developers, including NBC Universal, Flixster and Gap. A sample application produced using the tools allows Beboers to create an interactive avatar that models Gap clothes.

Significantly, Bebo's interface tools will work with Facebook's already announced development system. This will make it possible for the many developers who have written applications for Facebook to use their code almost unchanged for the Bebo network.

Despite the tie-up on tools, Bebo and Facebook will not become a unified network.

SOCIAL SITES: DAILY VISITORS
MySpace - 29 million
Facebook - 15 million
Friendster - 5.9 million
Orkut - 9.6 million
Bebo - 4.8 million

Source: ComScore July 2007Bebo said it would also support Google's Open Social initiative which aims to create a unified system of tools that can be used on any and every social network site. The Open Social tools are due to appear in early 2008.

Social networking giant MySpace is backing Google's initiative.

In a further boost for Facebook instant messaging network Meebo announced its support for the tool set. Meebo said it had no plans to support Google's initiative.

At the same time Friendster announced that its development tools would be "open" so they can work on as many networks as possible. It has declared its support for Google's Open Social initiative.

Finally, Facebook has announced plans to license its development system to other sites. Since it was announced in May 2007 more than 7,000 applications have been written for Facebook.
This series of announcements shows how keenly contested this sector of the hi-tech market has become.

The deals and technological tie-ups are all about building up as large an audience as possible in a bid to dominate the sector.

Thursday, December 13, 2007

At Grand Epoch City near Beijing on December 12 and 13, the United States and China held the third Strategic Economic Dialogue (SED)

As special representatives of President George W. Bush and President Hu Jintao, Treasury Secretary Henry M. Pauslon, Jr. and Vice Premier Wu Yi served as co-chairs of the SED.

Discussions at the third SED led to a number of results that strengthen and deepen the bilateral economic relationship, including:

In product quality and food safety, the United States and China committed to expand their dialogue and information-sharing to enhance the infrastructure of laws, policies, programs and incentives that allow for effective government oversight of exports of food, drugs, medical products, and consumer goods. To this end, the two countries signed memorandums in eight areas intended to improve the safety of exports. These included:

Food and feed: Memorandum of agreement between the U.S. Department of Health and Human Services (HHS) and China's General Administration of Quality Supervision, Inspection, and Quarantine (AQSIQ), signed on December 11, 2007;

Drugs and medical products: Agreement between the U.S. Department of Health and Human Services (HHS) and China's State Food and Drug Administration (SFDA), signed on December 11, 2007;

  • Environmentally compliant exports/imports: Memorandum of understanding signed between the U.S. Environmental Protection Agency (EPA) and China's AQSIQ;
    Food safety: The U.S. Department of Agriculture (USDA) and China's AQSIQ agree to upgrade their food safety memorandum of cooperation to a ministerial-level;
    Alcohol and tobacco products: Memorandum of understanding between the U.S. Department of the Treasury and China's AQSIQ, signed on December 11, 2007; and,
    Additional areas: Toys, fireworks, lighters, and electrical products; motor vehicle safety; and pesticides tolerance and trade.

    In financial services, China agrees to announce before SED IV that the China Securities Regulatory Commission (CSRC) will conduct a careful assessment on foreign participation in China's securities firms and its influence on China's securities market and based on the results of its assessment, will make a policy recommendation on the issue of adjusting foreign equity participation in China's securities firms. The China Banking Regulatory Commission (CBRC) is currently conducting a scientific study of foreign participation in China's banking sector, that will be completed by December 31, 2008. By that time, based on the policy assessment's conclusions, the CBRC will make policy recommendations on foreign equity participation. China agrees to allow, in accordance with relevant prudential regulations, qualified foreign-invested companies, including banks, to issue RMB denominated stocks; qualified listed companies to issue RMB denominated corporate bonds; and qualified incorporated foreign banks to issue RMB denominated financial bonds. The United States and China welcome the recently approved application by China Merchants Bank to establish a branch in the United States. The U.S. government remains committed to apply national treatment to Chinese banks, confirms that applications by Chinese banks will be evaluated consistent with the principle of national treatment, and applies the same prudential standards to all applications by foreign banks to establish branches or subsidiaries or to acquire stakes in existing U.S. banking institutions. The U.S. notes China's request that the relevant U.S. regulators process expeditiously the applications of Chinese banks according to relevant regulations and procedures. The U.S. government also remains committed to apply national treatment to Chinese broker-dealers and investment advisers seeking to register and operate in the United States. China Banking Regulatory Commission (CBRC) and the U.S. Securities and Exchange Commission (SEC) have agreed in principle that the signing of an exchange of letters will be done in the near future on information sharing in connection with the cross border activity of financial institutions licensed by either the CBRC or SEC.

    In energy and the environment, the United States and China signed a memorandum of understanding strengthening cooperation in the area of biomass resources conversion for fuel, and negotiated a memorandum of understanding to cooperate on combating illegal logging and associated trade in order to promote sustainable forest management. China will develop and implement a nationwide program on SO2 emission trading in the power sector, and the U.S. will provide technical assistance for this program, as well as for basic water management programs and for adopting clean fuels and vehicle policies. The United States and China reaffirm our commitment "to reduce, or as appropriate, eliminate tariffs and non-tariff barriers to environmental goods and services" in the WTO.

    In transparency, the United States and China agree that transparency in administrative rule-making has been increased and public participation has been strengthened. They also agree to respect and build upon their international obligations on transparency, including their APEC and WTO commitments. Each country will:
    When possible, publish in advance any measure covered by its WTO obligations that are proposed for adoption, and provide where applicable interested persons a reasonable opportunity to comment on such proposed measures. Each country may comply with this obligation by regularly publishing such proposed measures in its designated official journal or by posting and permanently maintaining these measures on an official website;

    Publish in its designated official journal any final measure covered by its WTO obligations before implementation or enforcement.
    In rebalancing growth, both the United States and China commit to communicate on measures to address U.S.-China economic imbalances through dialogue and consultation, including discussions under the U.S.-China Joint Economic Committee. Both sides agreed to put great emphasis on opposing trade and investment protectionism. The United States and China welcome efforts both in the U.S. and internationally to assess the challenges created by the recent turbulence in the U.S. sub-prime market and in other global financial markets. The two countries agree to continue communication and information sharing in a timely manner on systemically significant economic and financial developments. Financial supervisory agencies in both countries agree to continue exchanges on supervisory measures. On December 13 and 14, 2007, Chinese Customs and U.S. Customs and Border Protection officials will hold technical discussions to agree on the joint validation procedure of the Customs-Trade Partnership Against Terrorism (C-TPAT) pilot project in China, which is expected to begin in early January 2008, with joint validations led by China Customs and technical input provided by U.S. Customs and Border Protection.

    In innovation, the United States and China co-hosted an Innovation Conference on December 10, 2007 in Beijing. Both sides discussed the factors contributing to a successful ecosystem for innovation, the appropriate roles of the public and private sectors in fostering innovation, and how to encourage the creation, protection and dissemination of intellectual assets. The two sides agreed to sustain dialogue, jointly host public-private innovation discussions, and other cooperation as outlined in the SED III Innovation Conference Outcomes document.

    Both sides decided to prioritize work during the next six months. The two countries will:

  • Further intensify dialogue and exchanges in the areas of product and consumer safety, including food, feed, and drug and medical products, through new and existing bilateral cooperation mechanisms.
  • Conduct extensive cooperation over a ten-year period that will address energy and the environment. This ten year collaboration will advance technological innovation, adoption of highly-efficient, clean energy technology and technology in addressing climate change, and promote the sustainability of natural resources.
  • We will establish a working group in order to start planning as soon as possible.
  • Meet early next year and work together to jointly promote the negotiation in the WTO on the reduction or, as appropriate, the elimination of tariffs and non-tariff barriers to environmental goods and services to achieve results as soon as possible, recognizing the urgency of environmental challenges.
  • Expand cooperation on development of a detailed plan to gradually reduce the sulfur content in fuels to 50 ppm or lower and introduce corresponding advanced vehicle pollution control technology, for incorporation into China's 12th Five Year Plan.
  • Strengthen cooperation on construction and management of strategic oil stocks through the exchanges of information and technologies, as well as training, including cooperation with the International Energy Agency.
  • Begin a high-level exchange of investment policies, practices, and climates.
  • Intensify ongoing discussions regarding the prospects for negotiating a Bilateral Investment Treaty.
  • Continue consultations in a cooperative manner on China achieving market economy status.
  • Continue cooperation through the JCCT High Technology and Strategic Trade Working Group by positively implementing "Guidelines for U.S.-China High Technology and Strategic Trade Development" and taking appropriate constructive measures and working out an action plan to expand and facilitate bilateral high-tech and strategic trade.
  • Relevant departments of the two sides have agreed to meet or hold a digital video conference (DVC) in the field of rules of origin.
  • Explore the scope of respective international obligations on transparency.
  • Continue to exchange information on reviewing and responding to comments received during the rulemaking process.
  • Establish a communication mechanism to exchange information regularly on the conditions, procedures and timeframes for granting administrative licenses in areas of the Chinese market of interest to the United States and areas of the U.S. market to China.

    The fourth SED will be held in Washington in June 2008.

Remarks of Assistant Secretary of Cybersecurity and Communications Greg Garcia at the New York Metro Infragard Alliance Security Summit

"New York is such a fitting place to hold a security summit. With its storied history and thousands of financial institutions, it is the world's financial nucleus. All of you, as leaders in your respective companies and organizations, understand the full weight of your responsibilities to New York City itself, the nation, and quite honestly, the world. Because as Wall Street goes, so does the rest of the world. That is quite a responsibility to shoulder.

Yet you have continuously demonstrated your understanding and commitment to upholding this reputation. Time and again, whether facing a natural disaster or terrorist attack, you have found ways to ensure that roughly five and a half trillion dollars flows unabated through our financial systems each and every day. That's five and a half trillion dollars a day in activities that are critical to our citizens' basic needs and our Nation's economy.

It's the delivery of paychecks, utility bill payments, ATM withdrawals, and the over $733 million of Internet sales that occurred this past cyber Monday -- the first Monday after Thanksgiving, which is considered the most active online shopping day of the year.
As New Yorkers know, our adversaries will stop at nothing to destroy the infrastructures we have all worked so hard to build and protect. Whether they are cyber criminals, hacktivists, or nation states, our adversaries are pursuing ever more sophisticated and determined cyber attacks on U.S. government and private sector networks.

I'm watching as companies – household names with huge market capitalization and seemingly tremendous resources – expose their networks and data to infiltration and information theft. I'm seeing the same with government agencies on a regular basis. So we're all at risk, and we're all responsible. We have made some progress but there is much more we all have to do to protect our critical systems.

So let me tell you what we're doing at DHS to make the United States the most difficult and dangerous place in the world to conduct cyber crime. I think you will see that you each have a very important role to play in helping to make this happen.

Let me start with an overview of the threats as we see them at DHS. As you all know, the threats are real. Hackers are becoming more sophisticated and focused in their efforts. Criminal computer code is now written at the PhD level, and sold cheaply on the Internet.

Hackers are making massive efforts to compromise computer systems on a global scale. What was once a nuisance committed by various individuals years ago has now progressed into organized efforts by highly skilled professionals.

Today's professional hackers develop and sell malware toolkits to other criminals on the black market. In turn, the buyers of these toolkits can conduct online scams and spread malware more proficiently than ever before.

Why do they do this? Because cyber crime is big business. The number of hackers attacking banks worldwide jumped 81 percent over the past year. Botnets, spear phishing, key loggers, and other attacks make up the more-than-$100 billion global market for cyber-crime –¬ surpassing drug trafficking from a monetary perspective. Worst of all, the money obtained through cyber crime can be used to finance terrorism.

The numbers don't lie. From October 1, 2006, through September 30, 2007, our US-CERT— which I'll describe in more detail in a moment—handled more than 37,000 incidents, compared with almost 24,000 the year before. This increase can be attributed to not only more attacks on our public and private networks, but also better situational awareness levels and reporting rates.

I'll tell you now: many of these malicious attacks are designed to steal information and disrupt, deny access to, degrade or destroy critical federal or private sector information systems. Our adversaries are also seeking our intellectual capital and proprietary information, which we have spent years— and billions of dollars—developing.

Unfortunately, none of this will dissipate if we do not have the same level of organization and coordination that our adversaries are using against us. This dynamic underscores the absolute necessity for IT security and the importance of a nationwide call to secure cyberspace. It's something we can't afford not to do.

Our mission is clear. Securing the systems that maintain and operate critical infrastructures is vital to national security, public safety, and economic prosperity.

How do we do this? Collaboration and information sharing. It's a common theme in many of the speeches you hear because public/private partnerships, like InfraGard and the Financial Services and Multi-State Information Sharing and Analysis Centers (ISACs), are essential to protecting our critical infrastructures.

Let's be realistic. Private industry owns and operates more than 85 percent of the United States' critical infrastructures. That means the Federal Government cannot address cyber threats alone. Obviously, if a cyber attack occurs, the larger percentage of potential immediate victims will also be in the private sector. This includes the financial services industry. So not only does it make sense to collaborate with each other, it is an absolute necessity.

At DHS, one of our best information sharing mechanisms is the United States Computer Emergency Readiness Team, or US-CERT. The nation's cyber watch and warning center, US-CERT coordinates the defense against and response to cyber attacks in coordination with the private sector.

It also analyzes and reduces cyber threats and vulnerabilities, disseminates cyber threat warning information, and manages incident response activities with a wide range of stakeholders. US-CERT's activities allow us to see potential trends and coordinate appropriate deterrence and response activities across sectors.

A prime example of this occurred just last month when the US-CERT served as the key data gathering and distribution center for a potential cyber threat to both government and private sector systems maintaining critical infrastructures.

By taking advantage of its information-sharing relationships, US-CERT distributed a notice defining the malicious activity and addressing how partners could detect and prevent it from affecting their networks. This directly strengthened the security and resilience of our nation's critical infrastructures.

The key lesson here is that by sharing our knowledge, we can better protect our nation. But we also know that this information sharing relationship is not as mature yet as it can be.
The feedback we received from our private sector partners after this information notice was, overall, very positive and appreciative.

But it included a reminder that such notices would be more useful if DHS could provide more threat-based context – that is, what is the nature of these attacks? Where do they come from?
What is their intent?

Well, we continue to be limited in what we can share with partners who don't have appropriate security clearances, (indeed that's an issue within the U.S. government agencies as well). And we have to find better, quicker ways to get you relevant information that you can act on.

And, from our perspective, when we provide you information you already have, we realize both sides need to better calibrate our exchange of information so we make most effective use of our limited time and resources.

So we're learning, and we're working to improve our information sharing. That's one of InfraGard's key tenets and the ultimate goal for all our actions.

As we move into the discussion portion of this event, I'm very interested to hear your ideas about other ways we can share useful and relevant information between sectors.

In addition to sharing information with its public and private partners, one of US-CERT's most important responsibilities is increasing the Federal Government's awareness of its own network activity.

We know from our friends in law enforcement that situational awareness is the primary method a beat cop uses to protect a neighborhood. As I'm sure Joe can recall from his days on the force, a veteran officer works to deter crime wherever possible and catches criminals by understanding their environment, watching for trends and patterns, and knowing the rhythms of the community.

We know the same is true for cyber first responders. So we created an early warning system that watches for malicious patterns in network traffic and notes irregular activity. Just as in neighborhood policing, out-of-the-ordinary events or activities can tip off agency cyber responders to potential trouble.

EINSTEIN, as it is known, is that early warning system. It monitors participating agencies' network gateways for traffic patterns that indicate the presence of computer worms or other unwanted traffic. By collecting this information, EINSTEIN gives our analysts a big-picture view of potentially malicious activity on federal networks.

Prior to EINSTEIN, it took cyber security responders four to five days to gather and share critical data on federal government computer security risks. Today, we can produce that information in as little as four to five hours.

By analyzing network traffic for potential cyber threats before they can exploit vulnerabilities, EINSTEIN makes it more difficult, more time consuming, and more expensive for cyber criminals to reach and impact their intended targets. EINSTEIN provides us with unique traffic pattern analysis that US-CERT, as appropriate, can share with its partners. Now another program that exemplifies knowledge sharing in action is the National Vulnerability Database.

Sponsored by my office and the National Institute of Standards and Technology (NIST), the National Vulnerability Database or NVD puts the more than 28,000 known cyber security vulnerabilities into a single publicly available resource. NIST analysts then score them according to the severity of their risk.

Accessed at a rate of 48 million hits a year, the NVD's data enables all organizations to automate their vulnerability management, security measurement, and compliance activities through a series of security checklists and metrics.

Recently, your colleagues in the payment card industry recognized the value of the database to their cyber risk management efforts. Last June, the industry's data security standards required that all credit card processing vendors use the National Vulnerability Database to evaluate the security of their payment systems.

Essentially, it says that vendors must ensure that their systems do not include vulnerabilities that score higher than a pre-determined NVD number. This greatly enhances the security of every credit card transaction, prevents disruptions of key operating systems, and protects consumer information.

The value of the NVD is not limited to the credit card processing industry. If you haven't investigated the potential beneficial uses of this program in your companies, I strongly encourage you to do so immediately. You can access it by going to US-CERT's homepage (www.USCERT.gov) and searching for “NVD.”

The NVD is a wonderful example of an industry-lead adoption of a valuable government tool. And it also underscores our role in the federal government, to provide resources that help all of you do your jobs more effectively.

Let's move to another example of collaboration and information sharing. You know, in many ways, the enemy is already at the gate. So if we are going to secure cyberspace, we must marshal our defenses, learn from each other, and work together as never before. I'm a true believer in the phrase, “you play how you train.” This is why exercises are critical to our national and financial security.

InfraGard members already understand this. The Vermont InfraGard is a key planner in the state of Vermont's first ever cyber exercise, which my office is helping to design and implement. The lessons learned from next month's exercise will aid in the development of a cyber annex to the state of Vermont's emergency operations plan.

At the national level, we are actively planning for the March 2008 national cyber exercise, Cyber Storm II, which follows the highly successful cyber storm I held in February 2006. This exercise examines our response and coordination mechanisms against a simulated cyber event affecting international, federal, state, and local governments, and the private sector.

By organizing and executing an exercise such as cyber storm, DHS is able to test our planning, information sharing and response to attack scenarios, assess our strengths and weaknesses in those areas, and learn how to improve response capabilities.

I am thrilled that the financial services sector, through the financial services ISAC, is once again fully engaged in the planning and execution of the cyber storm exercise.

Their participation in the exercise demonstrates their firm commitment to cyber preparedness and I hope sends a signal to other sectors that cyber security measures need to be taken seriously.

Throughout the country, at every level of government and within the private sector, people are dedicating themselves to ending cyber crime. To do this at CS&C it's necessary for my office to engage in robust collaboration and information sharing with our law enforcement partners. We do this through a liaison office in the US-CERT, which houses liaison officers from the U.S. Secret Service and FBI.

For example, maintaining the necessary division of authorities, US-CERT and the FBI worked closely together to identify and investigate cyber criminals and threats during Operation Bot Roast II. An ongoing and coordinated initiative, Operation Bot Roast finds and captures the criminals that overtake people's computers to conduct criminal activities.

Since it began last June, the FBI, with US-CERT's technical input, captured eight individuals responsible for infecting over one million compromised computers. We estimate the economic loss to be at more than $20 million to date. As the investigation continues, I have no doubt those numbers will increase.

At DHS, we know that online payment systems are profitable money makers for criminals. A recent 24-month Secret Service investigation of e-gold, an online payment system favored by criminals, resulted in the seizure of over $16 million.

In Miami, a Secret Service's cyber crime fraud investigation recovered more than 200,000 stolen credit card account numbers at a potential loss exceeding $75 million.

And here in New York, a Secret Service investigation with the Manhattan District Attorney's office led to the indictment of 17 people and a company called Western Express, a digital currency transmittal service.

The defendants are facing charges related to global trafficking in stolen credit card numbers, cyber crime, and identity theft. Based on the over 1.3 terabytes of digital evidence it obtained from search warrants and subpoenas, the Secret Service estimates that approximately $15 million flowed through Western Express' digital currency accounts. Additional judicial action is ongoing with respect to targets identified overseas.

We're starting to really hurt the criminals. Eventually, they are going to realize that it is just too expensive – both financially and in potential jail time – to “conduct business” in the United States.

In addition to catching the criminals, my office also works closely with the Departments of Justice and Defense to prepare for and, if necessary, respond to a national-level cyber incident.

As co-chairs of the National Cyber Response Coordination Group (NCRCG), we work with 19 different federal agencies, including the FBI and the Secret Service, to ensure that the full range and weight of the Federal Government's cyber capabilities are deployed in a coordinated and effective fashion.

For example, the NCRCG recently convened to address and respond to the denial of service attack against the government of Estonia, a NATO ally. Additionally, the NCRCG will be an active participant in Cyber Storm II.

Effective cyber and communications risk management requires us to be prepared for a national crisis beyond those caused by terrorists or criminals. Now, I've talked a lot about cyber viruses. But we still have to contend with the more traditional biological virus – that is, the potential effects of a public health crisis, such as an outbreak of pandemic flu.

The spread of pandemic disease across the U.S. will be rapid and unpredictable. We estimate that as much as 40 percent of the workforce will be unable to report to work during peak periods of an outbreak – and you don't get to pick which 40 percent that could be.

Naturally, telecommuting will be a key mechanism to keeping our businesses and government operational during a pandemic flu.

Preparing for the increase in telecommuting is a demonstration of public-private collaboration in action. A working group led by my one of my components— the National Communications System—and including experts from the Federal Reserve Board, the Department of the Treasury, the Financial and Banking Information Infrastructure Committee, and the Financial Services Sector Coordinating Council, meets monthly to plan for the potential communications consequences of a pandemic influenza.

What the working group found is that, while the telecommunications backbone is unlikely to experience congestion, the so-called last mile – to the home and the enterprise – could experience disruptive congestion. But it concluded that this disruption could be mitigated if certain safeguards and practices are implemented by enterprises and telecommuters.
In collaboration with major internet service providers (ISPs), telecommunications carriers, and equipment and service vendors, the working group developed the following best practices that we strongly encourage businesses and government agencies to consider:

  • Limit remote access to users critical to maintaining business continuity;
  • Limit access to business critical services through the enterprise connection;
  • Adjust or retime automatic desktop backup software and software updates for telecommuters;
  • Obtain a telecommunications service priority (TSP) for enterprise;
  • Subscribe to government emergency telecommunications service (GETS) cards and/or wireless priority service (WPS) capabilities for critical it staff; and
  • Enhance your cyber security posture due to increased reliance on communications and it, reduced support staff, and increased threat of cyber attack.

Implementing these practices will help reduce significant impacts on our nation's economy. All of us must do everything possible to keep our nation operating and delivering critical services under even the most challenging circumstances.

I consider everyone in this room today a key partner in the effort to strengthen our nation's cyber infrastructure. You understand that the Internet, and the many enterprise networks that depend on it, is one of the central platforms for business operations, supply chain management, and business continuity.

However, I'm more concerned about the people who aren't in this room because, as a recent business roundtable report suggests, they don't understand that this is a matter of their own business survival. Cyberspace is a profitable marketplace and enabler of market activity. But if businesses, whether in the financial services sector or otherwise, haven't made the investment in the people, processes, and technologies that will keep them operational in a crisis, our economy, in fact our very way of life, is at stake. We can't let this happen.

So here's what we all need to do.

First, memorize US-CERT's website address – www.USCERT.gov – and give it to everyone who needs it. Tell your partner organizations and businesses to sign up for the cyber security alerts and to report any potential cyber incident, threat, or attack they find.

We can only act upon the information we know about. The information our partners provide increases our understanding and awareness of the health of the overall cyber infrastructure and improves our response and protective measures.

Second, encourage your partners to participate in public-private partnerships like InfraGard and the financial services ISAC. These collaborations act as force multipliers for increasing awareness of cyber security challenges as well as implementing actionable and enduring solutions.

Additionally, they serve as an easily accessible mechanism to educate people on how cyber vulnerabilities can have real world consequences to our physical infrastructures.

Finally, encourage your colleagues to make security a part of their everyday business operations. It doesn't take long for cyber events to have real world consequences. Have them look at every step of their business lifecycle—from system configuration to in-house software development—to see if common security practices are being followed and that response plans are prepared accordingly. Help them realize that when they build a culture of security within their organizations they make great strides in ensuring the resilience of their business operations.

Laws such as Sarbanes-Oxley, the Gramm-Leach-Bliley Act, and the Health Insurance Portability and Accountability Act (HIPAA) place a fiduciary responsibility on them to ensure the security of their customers' information and their systems. However, in reality, these recommendations are simply the right thing to do for their companies, their customers, their fellow citizens, and the nation as a whole. So let's work together to make it happen.

Before I close, I would like to make one last comment. Thank you for your commitment to cyber security and your active participation in InfraGard. I have had a chance to work with members across the country and know what an important role you all play in our cyber security awareness efforts.

I urge you to use the time at this meeting to learn as much as you can, and then share your knowledge with your colleagues, professional networks, friends and families.

Cyber security is a complex problem, yes, but the dangers are easily understood, and the solution is simple: you can't guard all of cyberspace, but you can protect your piece of it."

Wednesday, December 12, 2007

Bios of the other speakers at the Business Resilience Forum in London

Dr Sandra Bell, Senior Research Fellow, Royal United Services Institute

Sandra received a BSc (Hons) in Mathematics and Physics from the University of London before studying for a doctorate at the Royal Military College of Science, Cranfield University where she received a PhD in Military Science with a thesis in "Personnel Blast Protection". In 1991 Sandra took up an appointment as a scientist at the Defence Research Agency, which subsequently became QinetiQ, Europe's largest Defence and Security science and technology organization.

Sandra initially specialized in personnel protection and acoustic stealth for ships and submarines and subsequently became Technical Director (Innovation & Strategy) where she was responsible for technology management and strategy within QinetiQ. Immediately prior to joining RUSI, Sandra headed QinetiQ's Technology & Business Strategy Consultancy Business with a suite technology strategy consulting services to help organizations, both corporate and government, harness technology for business benefit.

Kevin Blythe, Head of UK Security and Asset Protection, Eli Lilly & Company Ltd.

From 1981 to 2004 Kevin Blythe served as a Cambridgeshire Police Officer. Sixteen of his twenty three years police service were spent on secondment with No 5 Regional Crime Squad, The South East Regional Crime Squad and The National Crime Squad. In the last five years of his service he spent time working under the management of the Anti Terrorist Squad at New Scotland Yard, the National Crime Squad Professional Standards Unit and two years engaged in the pro-active targeting of animal rights extremists.In March 2004 he left the police service to take up his current position with Eli Lilly where he now has responsibility for all aspects of site, personnel, product and supply chain security across a number of facilities in the UK ranging from R&D, manufacturing and bulk chemical plants to the UK affiliate Headquarters.In January 2006 he accepted the position as Chair of the Pharmaceutical Industry Security Forum, an organisation responsible for controlled exchanges of information regarding security amongst the pharmaceutical, biopharmaceutical and related industries.

Ian Cameron, Head of Operations, Met Office

Ian joined the Met Office in 1983 and originally trained as a weather forecaster. His early years were spent forecasting for the RAF and Army, including a spell in the RAF Reserve to provide weather support to the Balkans conflict and the first Gulf War. In recent years he has led the Met Office's operations to all its customers both Government, Public, Defence and commercial business customers.Ian has a wide range of experience in delivering services to minimise business and personal risks during events such as planning for the cold winter of 05/06.

Recently Ian represented the Met Office in COBR meetings during the floods of July 2007 and the recent storm surge in Eastern England. Ian is a lead in providing Met Office expertise into strategic infrastructure and personnel plans for severe weather and the influences of climate change in the UK and around the world.

Frederick Chedham, Head of Business Resilience, Detica

Frederick trained as an army officer at the Royal Military Academy Sandhurst. Before retirement as a colonel, he served in command and staff appointments around the world. He undertook 11 tours of duty in Northern Ireland and served in the Balkans, Africa, Far East and Middle East. Frederick served in both Gulf wars with United States forces and commanded an infantry battalion on operations in Afghanistan. He served as an instructor at the military staff colleges of the UK and the USA.Prior to joining Detica Frederick ran a niche security consultancy conducting threat and risk assessments on organisations within the UKs Critical National Infrastructure. He gained extensive experience in advising clients on resilience planning and risk mitigation.

Steve Cummings, Director, Centre for the Protection of National Infrastructure

Steve Cummings is the Director of the Centre for the Protection of National Infrastructure (http://www.cpni.gov.uk/) which began operating in February 2007. He was previously the Director of the National Infrastructure Security Coordination Centre (NISCC). He is also the senior responsible owner of the Critical National Infrastructure Protection Plan under the Government counter terrorist strategy, CONTEST.Steve has been a security professional for over 20 years fulfilling a range of operational and corporate positions. He was awarded the OBE in 1996.

Dan Hooton, Group Head of Security, Prudential PLC.Dan joined Prudential in September 2005, after 10 years in the Royal Navy, and 3 years in the security industry. During his time in the Armed Forces, Dan served in a number of countries including Norway, USA, The Caribbean and the Mediterranean. He also served on exchange with the British Army in Northern Ireland. As a consultant, he has worked extensively in the maritime security sector, primarily carrying out risk assessment and mitigation.Dan graduated from the School of Management, Southampton University in 2005 where he undertook an MSc in Corporate Risk and Security Management, covering amongst other subjects, risk management, crisis management, operational risk and strategic planning.Dan currently manages operational security for Prudential PLC, which is defined as political, personal and physical risk. A number of resources, both external and internal as well as commercial and public information sources are used for this purpose. Each risk is then managed by developing a flexible framework to which applies a level of security relevant to the threat faced by the subject in question.

Richard Lovell-Knight, Managing Director - Corporate Security & Business Continuity, Deutsche Bank

Richard Lovell-Knight joined the Corporate Security and Business Continuity (CSBC) department at Deutsche Bank in September this year. He holds the posts of global head of business continuity, and head of the CSBC region covering UK, Eire, Russia, East Europe, Africa and the Middle East. Before September, he worked for three years in the Group Security Department of ABN AMRO Bank in Amsterdam, responsible for the global protective security function. Richard served in the UK Royal Military Police and as a military intelligence officer until 1992; he then joined UK Central Government in a security advisor's role, since subsumed into the new Centre for the Protection of National Infrastructure (CPNI).

Mark McCombe, CEO, HSBC Group Investments

Mark McCombe succeeded Alain Dromer as CEO of Group Investment Businesses with effect from 31st March 2007, leaving his previous role as Chief Executive Officer of HSBC Private Bank UK, Channel Islands & Luxembourg which he has occupied since 2005. Mark has had a 20 year career internationally at HSBC, with the exception of the period between 1990 and 1992, when he worked for Wells Fargo Bank in California. Prior to his current role, Mark was Deputy Chief Executive Officer of HSBC Turkey since March 2003. Having opened its first office as recently as 1990, HSBC Turkey grew to become the largest wholly owned foreign bank in the country with close to 2 million clients serviced across a network of 160 branches. As well as the retail business, HSBC Turkey offers a full range of banking services from corporate and commercial banking, to corporate finance advisory and treasury and capital markets. From 1998 to 2005, Mark worked in Paris, where he was Chief Executive Officer of HSBC Private Bank (France) SA. This business grew through the merger of HSBC's private banking operations with those of Republic National Bank of New York, which was acquired by HSBC in 1999. It offered a full range of tailored investment management solutions and discretionary portfolio management. Mark was also appointed a Director of HSBC Asset Management (Europe) during 2001.Prior to working in France, Mark spent six years in Hong Kong. The first part of this was spent in a Strategic Planning role, with responsibility for assessing new business initiatives and acquisition opportunities across Asia Pacific. Latterly Mark took up a responsibility for Property and Construction financing for some of Hong Kong's largest companies. During this time, he was able to be involved in a number of flagship construction projects, including financing related to Hong Kong's new airport.Mark is married with 3 children. He received his MA degree from Aberdeen University and also attended Wharton Business School. He was awarded an OBE in the Queen's New Year Honours list in 2006.

Simon Riggs, Global Head of IT Security, Reuters

Simon is accountable for ensuring security and service resilience across the Reuters operational domains. In doing so, he makes sure that it is innovative, transparent and driven by the core business goals of trust, immediacy and integrity.

Working with his global teams, as well as key trusted external partners, Riggs directs the strategic network security, threat and vulnerability, incident management and security governance agendas.

Riggs represents Reuters at the UK Security Service’s Critical National Infrastructure Protection forum. He sits on the Skybox Customer Advisory Board and Microsoft UK Security Council, as well as regularly speaking at industry events.

Having joined Reuters in 1997 Riggs has been based in both in London and New York undertaking a series of internal consultative reviews, before forming the IT Governance function and more recently, heading up the IT Security organisation. Riggs adopts a no-nonsense approach to security and focuses on execution and business need.

He previously spent 5 years working for Pepsi as a Business Analyst and Programme Manager, and is a passionate advocate of aligning security and IT service management.

David Roberts, Head of Sustainable Development & Business Group, Foreign and Commonwealth Office

David is a senior UK diplomat with over 30 years’ experience of delivering government policy and services in London and overseas. With a career providing wide exposure to international business, financial and economic affairs he is a specialist on Western Europe and Latin America. His various postings have included First Secretary (EU and Financial Affairs), British Embassy, Paris, Deputy Head of Hong Kong Department, FCO, and Deputy Ambassador, and Director of Trade & Investment and Consul General to Switzerland/LiechtensteinAs Deputy Ambassador and Consul General in Santiago, Chile, David was in charge of political and consular relations. In 1999 when Pinochet was suddenly arrested in London David succeeded in keeping staff, UK nationals and their families safe during the 16 months of his detention, amid huge demonstrations, bomb threats (up to 16 in one day) and the probability of reprisals from pro-Pinochet extremists had he died in custody. With business-as-usual suspended, he worked on contingency and evacuation planning, while preparing for an eventual return to normality using bilateral social projects and discreet political contacts with all factions (including the military and far Right). In 2005 David was appointed Head of Sustainable Development & Business Group, at the Foreign & Commonwealth Office. In this role he planned and executed the merger and downsizing of two former policy groups, setting new strategic direction and boosting the FCO’s engagement with the private sector by introducing new services for firms. He wrote the UK Government’s first-ever strategy on international corporate responsibility and put it into effect.

Mark Stollery, Director, Security Information Service for Business Overseas (SISBO)

Mark Stollery joined the Security Information Service for Business Overseas (SISBO) in March 2007, with the task of enhancing the Service over a three-year transition period. He was previously Director of Research and Intelligence at a prominent London-based business risk consultancy, joining when it had 6 employees and leaving it four years later when it had 2500.

Before that, he had a career in the Foreign Office (FCO), specialising in counter-terrorism from 1988-2003, based in London and Islamabad; during that period he was at the heart of the UK's response to 9/11 and other incidents, was a founder member of the Joint Terrorism Analysis Centre (JTAC), and received a commendation from FBI Director Louis Freeh for operational work. He previously dealt with Latin America, southern Africa, the EU and multilateral economics. In his early career he was an officer in the Royal Navy, and is (just) old enough to have fought in the Falklands, where he was a Spanish interpreter and wrote the surrender document. As Head of SISBO, Mark is based at the FCO but is a consultant funded by the private sector. This, together with his experience of both commercial consulting and central Government, puts him in an ideal position to straddle the divide between Government and business, educating each side about the other and breaking down traditional barriers of unfamiliarity and misunderstanding.

Mark is a member of the Risk and Security Management Forum (RSMF) and one of the UK's three Government representatives in the International Security Management Association (ISMA). He holds degrees in languages and politics from Cambridge University, and an MBA from the London Business School. He is fluent in French, passably rusty in Spanish, and dreadful in Urdu. In his spare time he sings choral music in the Chapel Royal and elsewhere, researches family history, and sits as a JP in south-west London.

Harold W. Taylor, Manager, Security Data Research and Analysis, FedEx

Harold W. Taylor has managed and led a group of Agents, Analysts and Security Data System Specialists at the FedEx family of companies since 1994, providing strategic and tactical intelligence to hundreds of security investigators and management, and assistance to law enforcement agencies around the world.

Prior to FedEx, Harold was Director of Loss Prevention, Safety and Security for Fred P. Gattas Stores, Inc., worked in various management roles at Burlington Coat Factory Stores, managed a Research Lab at the University of Memphis, and completed the Law Enforcement Ranger Program at the University of Memphis. He has been a practitioner of analytical security and loss prevention since 1986.Harold recently completed an eighteen-month mobilization as the Personal Security Detail (PSD) Team Leader for General Augustus Leon Collins, United States Army, in support of the 2nd Marine Division, USMC, in Iraq. During the same OIF 3 deployment, he also managed the day to day operations of the Force Protection Platoon for Forward Operating Base Kalsu in North Babil Province, Iraq (Babylon). Harold led hundreds of combat missions, trained hundreds of Iraqi Police and Military Personnel, and won many decorations, including the Army Bronze Star. Previous military leadership included military intelligence and reconnaissance. He is now proudly retired from military service.

Harold has merged computer programming, statistical analysis, econometrics, business intelligence, military, law enforcement, security and loss prevention backgrounds to form a unique blend of business and organizational resilience. The time has now come for the convergence of protective and risk management organizations, mass collaboration and analytical decision-making sciences. He is currently a leader in that convergence at FedEx Corporate Services.

Steve Willis, Head of Insurance Risk and Business Continuity, RWE npower

Steve Willis has worked in utility insurance for most of his working life, having seen the change in the electricity industry from Government ownership to PLC to acquisition by an oversees parent, including a period looking after Thames Water Insurance interests. He is Head of Insurance Risk and Business Continuity for RWE npower and his role encompasses heading up crisis planning and security, including crisis management and scenario exercises at executive level. He is project manager for the pandemic preparedness programme. A counsel member of AIRMIC (Association Of Insurance and Risk Managers) he chairs the Electricity Special Interest Group. He is a member of Lloyds Fly Fishing Society and his other interests include looking after six newly acquired chickens and a part ownership of a small herd of Dexter steers.


On November 28th I presented to the Business Resilience Forum in London, England I had the priveledge of meeting with some of the top people in this field, and I'll feature some of their information in here over the next few days. My agenda was:

  • Innovating information sharing across the enterprise
  • Understanding how a new approach to intelligence gathering can facilitate the security of a global corporation and aid key external partners
  • Creating the conditions for information on threats, vulnerabilities, and challenges to be sourced and shared throughout every level of the enterprise
  • Enfranchising the entire employee-base with the ability to contribute to corporate security