US Govt proposal to classify Security Tools as Weapons of War w/ Export Regulations.

This would be devastating to US business and security products.

In 2013, WA agreed to add the following to their list of dual-use goods: systems, equipment or components specially designed for the generation, operation or delivery of, or communication with, intrusion software; software specially designed or modified for the development or production of such systems, equipment or components; software specially designed for the generation, operation or delivery of, or communication with, intrusion software; technology required for the development of intrusion software; Internet Protocol (IP) network communications surveillance systems or equipment and test, inspection, production equipment, specially designed components therefor, and development and production software and technology therefor. BIS, the Departments of Defense and State, as well as other agencies have been discussing the best way to add these items, which we have named “cybersecurity items,” to the Commerce Control List (CCL) (Supplement No. 1 to part 774 of the Export Administration Regulations) without reducing encryption controls and while balancing the national security and foreign policy. For resource planning purposes, as well as license requirements, license exceptions, license submission requirements, and internal license reviews and processing planning purposes, this rule is published as a proposed rule.


Deadly Cyberattacks Highlight the Need for a Cybersecurity Upgrade

2009 Sayano-Shushenskaya hydro accident

It was Aug. 17, 2009 — just over four years ago. The location was Siberia, at the sixth largest hydro-dam in the world. It’s a place called Sayano-Shushenskaya.

The tips of the turbine that the witness saw spinning moved at near-supersonic speed, generating 475 megawatts of power. That’s enough electricity to light up a city of more than half a million people. And then the entire device blew straight up, right out of its housing. Within moments, the death toll at Sayano-Shushenskaya was 75. The entire hydro-dam electrical output, totaling 6,400 megawatts — about the equivalent of three nuclear power plants — went offline, representing an immediate loss of over 10% of the power in the Russian Far East.

According to Gen. Keith Alexander, head of the U.S. National Security Agency, a power grid operator nearly 500 miles away sent a rogue command to the Sayano-Shushenskaya hydro-dam control complex. Basically, the grid managers who control the Siberian region wanted more electricity in the wires to meet the load. Evidently, the distant signal caused floodgates to open. This allowed more water to pass through to Turbine No. 2. But the increased water flow caused a “hammer” effect on the spinning machinery, which exceeded the design parameters for this particular element of the complex. Turbine No. 2 accelerated too fast.

The point to keep in mind is that the Sayano-Shushenskaya hydro-dam disaster was a cyberattack. You can characterize it as an accident in the nature of “friendly fire.” But overall, this cascading wave of destruction was triggered by a bad computer command.

Deadly Cyberattacks Highlight the Need for a Cybersecurity Upgrade.

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Controlling contagion by restricting mobility in a bioterrorist attack or an epidemic

Massachusetts Institute of Technology

Responding to an epidemic or bioterrorist attack with moderate travel restrictions could effectively control contagion in densely populated areas, according to a study published on Wednesday in the Journal of the Royal Society Interface.

The Massachusetts Institute of Technology study compared contagion rates in two scenarios, one with travel restrictions and one without the restrictions. Previous research showed that individuals who become aware of an epidemic travel by taking the shortest route to avoid infected areas, even if they are already infected. The behavior, known as selfish behavior in game theory, exposes people in uninfected areas to disease.

The researchers found that restricting individuals to specific travel routes would lower infection rates by as much as 50 percent. The research team called the difference between infection rates in the two scenarios the “price of anarchy.”

Controlling contagion by restricting mobility – MIT News Office.

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Cyber Warfare Systems Market Expanding to US$19.4Bn by 2023

English: VIRGINIA BEACH, Va. (May 14, 2010) Re...

With the increasing importance of information and communication technologies both on and off the battlefield, new research forecasts continued robust global spending on cyber warfare systems until 2023, with the market expanding from US$11.1 billion in 2013 to US$19.4 billion by 2023 – a CAGR of 5.77%. This significant growth is further fuelled by a surge in the number of cyber attacks, the pressure of austerity measures on Western defense budgets, and the relentless advancement in cybercrime technologies.$194Bn_by_2023.htm

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Advanced cyber security for C4ISR computer systems is aim of Air Force cyber program

English: United States Air Force Security Serv...

U.S. Air Force researchers are asking industry for ideas on a broad range of computer and information technologies to enable U.S. and allied warfighters to avoid, fight through, survive, and recover from advanced cyber threats. Researchers are asking industry for white papers that describe technologies for innovative and potentially disruptive technologies that support trusted architectures for high-assurance, secure, and resilient computing for command, control, communications, computer, intelligence, surveillance and reconnaissance (C4ISR).

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White House proposes formation of a cybersecurity insurance market


A new study found that 31% of companies have cybersecurity insurance policies, while 39% planned to purchase a policy in the future. The study, released Wednesday by information services group Experianplc, underscores the quick development of the nascent industry, which has picked up speed in recent years as companies wake up to a pervasive cyber threat.“There is a definite expansion of cyber insurance, and growing interest in it,” said Michael Bruemmer, vice president at Experian Data Breach Resolution.

White House proposes formation of a cybersecurity insurance market.

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Cybersecurity? It will never happen to me — Real corporate espionage

American Superconductor

A Chinese energy firm offered big money and access to women to entice an engineer at a U.S. company to launch a cyber raid on his employer, stealing sensitive computer codes and “thereby cheating (the firm) … out of more than $800 million…” An Austrian court has convicted American Superconductor’s rogue employee, Dejan Karabasevic, and already sentenced him to a year in jail and two years of probation.  He sold trade secrets to Chinese wind turbine maker Sinovel.  American Superconductor is now able to reveal some of what happened to so damage the company and its stock.

Karabesevic sold the companies unencrypted software code for $1 million and the promise of women.

AMSC revenues dropped 90% to only $9 million in the first quarter compared with a restated $97 million in Q1 2010.  That matches the 90% drop in the stock price from 44 in January 2010 to under 5 right now.  Sinovel went public on Jan. 13, 2011 just as its own growth was slowing.  Its stock has traded in a range from 45 to a low of 22 this week in U.S. dollars. In other words, it too has dropped by half.

Every company is a rich target that is why BiON Smartfile is so important.

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