Health Advisory Council Member Updates | June 2017

Lindsay Clarke, Alliance for Aging Research
The Alliance for Aging Research is continuing to produce educational “pocket films” on a variety of topics, including safe use of OTC pain medications, vaccination in older adults, and volunteering for a clinical trial. The films can be found online at www.youtube.com/allianceforaging, and the Alliance encourages partners, academics, HCPs, and more to use the films in their outreach and education for patients.

The Alliance has also been continuing to focus on geriatric cardiovascular disease and the unique needs of older adults. On February 22, the Alliance hosted the first-ever National Heart Valve Disease Awareness Day, focused on raising awareness about this deadly disease. A national public opinion survey found that three out of four people know little to nothing about heart valve disease, underscoring the need for a nationwide awareness campaign. More information is available at www.ValveDiseaseDay.org.

Last September—during AFib Awareness Month—the Alliance launched a campaign to help patients and healthcare providers better understand AFib-related stroke risk, and celebrate every year lived with a non-event. We are aware that older AFib patients at heightened stroke risk often don’t receive the treatment they need due to fears of frailty and falls. This campaign at www.YearWithoutaStroke.org seeks to change the conversation about stroke risk reduction in AFib.

In October, the Alliance will host a geriatric mental health roundtable, in partnership with the UC San Diego Center for Healthy Aging. The discussion will focus on mental health issues accompanying dementia, depression and suicide, and serious mental illness and alcohol abuse. The results of the discussion will be released in a white paper.

Finally, the Alliance is continuing its work on healthcare-associated infections, and will be releasing a white paper on HAIs in long-term care facilities. 

For additional information on any of these projects, please contact Lindsay Clarke at lclarke@agingresearch.org.

Lisa Coen, AMAG Pharmaceuticals
AMAG Pharmaceuticals is working to expand beyond its focus on maternal health to the broad spectrum of women’s health. 

Naomi Michaelis, American Society of Health-System Pharmacists (ASHP)
ASHP reported that legislation addressing access to care in medically underserved areas is gaining support in Congress. Efforts to advance H.R. 592 and S. 109 (The Pharmacy and Medically Underserved Areas Enhancement Act) continue as the Patient Access to Pharmacists’ Care (PAPCC) Coalition makes a push to include the bill in a future Medicare legislative package. While the long term agenda for Congress remains somewhat unclear, PAPCC believes there may be an opportunity to insert the bill language into a must pass health care bill such as the Children’s Health Insurance (CHIP) reauthorization. Further, the bills have widespread bipartisan support with more than 180 cosponsors in the House and more than 40 in the Senate. The PAPCC (http://pharmacistscare.org/) is a multi-stakeholder and interdisciplinary initiative. Membership is comprised of organizations representing patients, pharmacists, and pharmacies, as well as other interested stakeholders, including NCL.

In addition, ASHP joins many health care and consumer stakeholders in expressing concern over skyrocketing prescription drug prices. As a lead member of the Campaign for Sustainable Rx Pricing, ASHP has been urging Congress to explore public policies to address this growing problem. CSRxP (http://www.csrxp.org/) is a non-partisan coalition comprised of hospitals, physicians, nurses, consumers, health plans, pharmacists, and employers.

Sara Skubikowski, Association for Accessible Medicines (AAM)
To better reflect its mission, the Generic Pharmaceutical Association rebranded itself as the Association for Accessible Medicines in February. On June 7, the Biosimilars Council, a division of AAM, partnered with The Atlantic for the third in a series of biosimilar breakfast briefings as part of The Atlantic’s Politics & Policy series. On June 12, AAM released its ninth annual Generic Drug Access & Savings in the U.S. report, which found that generic drugs generated $253 billion in savings for patients and taxpayers in 2016, and $1.67 trillion over the last decade. On the policy front, AAM is supporting the CREATES Act (S. 974/H.R. 2212) and the FAST Generics Act (H.R. 2051), which would address abuses by certain brand companies of the Risk Evaluation and Mitigation Strategies (REMS) and other non-FDA mandated restricted access drug programs to prevent generic competition, which CBO estimates will cost taxpayers between $2.8-$3.3 billion over the next decade.

Christeen Moburg, Astellas
Entering its second year, the Astellas Oncology C3 Prize® is once again calling for applicants from all over the world and from all backgrounds to submit their ideas for innovations to change cancer care. The C3 Prize, which aims to inspire and foster innovative, non-medical, non-treatment ideas, is offering $100,000 in unrestricted grants and access to mentorship to bring the brightest ideas to life. The Grand Prize Winner will receive a personal business consultation with Robert Herjavec, star of ABC’s Emmy Award-winning television show Shark Tank, technology entrepreneur, and cancer caregiver. Each runner-up will receive a $12,500 grant from Astellas, and all the finalists will receive a one-year nights and weekends membership to MATTER, a healthcare innovation community. Applications are being accepted at www.C3Prize.com through August 21, 2017.

Mark Gibbons, Caregiver Action Network (CAN)
Caregiver Action Network (CAN) recently released a video series on Chronic Obstructive Pulmonary Disease (COPD), and will be releasing another series on Multiple Sclerosis (MS). With a grant from the Patient-Centered Outcomes Research Institute (PCORI), CAN just completed its first training in its Equipping You for Success: Training for Family Caregivers in Team-Based Medical Decisions program. The training program is designed to help caregivers and patients be better informed and thus better prepared to make treatment decisions based on comparative effectiveness research.

Mary Leonard, Consumer Healthcare Products Association (CHPA)
Know Your Dose Campaign: The Know Your Dose (KYD) campaign’s latest cold and flu rally was a resounding success. Since launching in November 2016, the rally has generated nearly 77 million impressions—more than triple the previous year’s rally. Dr. John Whyte of U.S. FDA’s Center for Drug Evaluation and Research has been highly engaged, recently authoring OTC Medicines: What Parents Need to Know, which highlights the importance of safe use, storage, and disposal of over-the-counter medicines. In March, the foundation released the findings of its nationwide survey showing a positive trend in consumer knowledge of acetaminophen safe use. Over the past six years: more people than ever are aware of how to use products containing acetaminophen safely and effectively, while avoiding the risks of accidental overdose and liver damage.

Up and Away Campaign: Poison Prevention Week: The CHPA Foundation partnered with CDC’s Medication Safety Program to reinforce awareness of safe medicine storage during Poison Prevention Week (March 19-25). The campaign featured a digital toolkit and educational materials that were disseminated and shared through the PROTECT Initiative, an innovative collaboration bringing together public health agencies, private sector companies, professional organizations, consumer/patient advocates, and academic experts to develop strategies to keep children safe from unintentional medication overdoses. The efforts garnered more than 2 million impressions and featured pickup from media outlets throughout the nation.

Sloane Salzburg, Council for Affordable Health Coverage (CAHC)
The Council for Affordable Health Coverage (CAHC) has issued recommendations to ensure insurance market stabilization and longer-term health care reform. CAHC has recently launched a new initiative called Prescriptions for Affordability, which is advocating for bipartisan policy solutions to lower drug costs. Prescriptions for a Healthy America (P4HA) is advocating for a medication adherence-specific regulatory safe harbor to the anti-kickback statute. In addition, P4HA recently celebrated a win when the Senate Finance Committee included an amendment to S. 870, the Creating High-Quality Results and Outcomes Necessary to Improve Chronic (CHRONIC) Care Act, which would provide Medicare Parts A and B claims data to Part D Plans in order to enhance the effectiveness of current and future medication management programs.

Marsha Henderson, FDA Office of Women’s Health (FDA/OWH)
FDA/OWH’s Diverse Women in Clinical Trials Initiative continues to raise awareness about women of different ages, races, ethnic backgrounds, and health conditions participating in clinical trials. In May, OWH released new foreign language clinical trials factsheets. A research paper on women and cardiovascular disease trials is forthcoming. OWH’s Resources for You and Your Baby initiative is also working to provide consumers with information on safe medication use. The Medicines and Pregnancy webpage was updated with new consumer tips and graphics in English and Spanish. OWH also released new web buttons that partners can use to connect pregnant women who use medicines to FDA’s Pregnancy Exposure Registry web portal.

Lastly, OWH is supporting new activities mandated by the 21st Century Cures Act, including the HHS taskforce on the inclusion of pregnant and lactating women in clinical trials and the response to the opioid epidemic—with a focus on women and pain management.

Tom Wallace, Eli Lilly and Company
Eli Lilly remains committed to developing an Alzheimer’s treatment and is also involved in raising awareness of the disproportionate impact Alzheimer’s has on women, both as patients and as caregivers. People might not know it, but Eli Lilly is the second largest animal health company. As such, Lilly is working on antibiotic resistance and food security issues.

Kelly Cox, Johnson & Johnson
J&J has a diverse portfolio of products, ranging from Ebola and HIV vaccines to OTC sunscreen and acetaminophen. As a result, J&J is working on a broad spectrum of issues, including improving standards for cosmetic safety and supporting the reauthorization of the Prescription Drug User Fee Act (PDUFA) and the Medical Device User Fee Amendments (MDUFA). Ebola highlighted the risk of pandemics that currently exists, and J&J cosponsored a June 20 discussion of Unseen Enemy—a documentary that recently aired on CNN about the increased threat of epidemics and the important policy challenges facing our country and our global allies. In addition, in February 2017, Janssen Pharmaceuticals released its 2016 U.S. Transparency Report that includes information on pricing and other business practices, covering everything from discovery to the commercialization of pharmaceuticals.  

Lee Lynch, Lynch Advocacy Solutions/Reservoir Communications Group
Lee is currently working with the Modern Medicaid Alliance to raise awareness of the value provided by Medicaid. She is also working on the safe distribution of drugs and behavioral health screenings.    

Brian Isetts, University of Minnesota College of Pharmacy
Since his Health Policy Fellowship at CMS, Dr. Isetts has maintained a focus on national initiatives to help patients and families become confident medication users. Here are a couple of links that provide helpful information in support of our national Patient-driven Medication Management agenda: CMS Campaign for Meds Management and the American Society of Health-System Pharmacists’ Medication Use Recommendations to the Choosing Wisely Campaign.

Bruce A. Leicher, Momenta Pharmaceuticals
Momenta is focused on the development of generic versions of complex drugs, biosimilar and potentially interchangeable biologics, and on the discovery and development of novel therapeutics for autoimmune indications. The company currently has seven biosimilars in development. On the policy front, Momenta seeks to use innovation to develop affordable medicine for patients. A current policy initiative is to support proposed legislation (Fast Generics Act or the CREATES Act) to end the anticompetitive practices of some companies that deny access to their products for use in generic or biosimilar development programs.

Anne Wilson, Mylan
Mylan has one of the broadest and most diverse generic medicine portfolios, with more than 7,500 marketed products in areas including oncology, cardiovascular disease, diabetes, HIV, and autoimmune diseases. Mylan is committed to making high-quality medicines available to everyone who needs them, and manufactures 80 billion doses of medicine annually. On the policy front, Mylan supports a robust biosimilar pathway and reimbursement, as well as pathways for complex generics.

Michael Wittke, National Alliance for Caregiving
In February, the National Alliance for Caregiving released a research report titled Dementia Caregiving in the U.S. Dementia caregivers shoulder more caregiving responsibilities than do other caregivers. They help with a wider variety of activities and spend more hours per week providing care. On average, dementia caregivers provide care for 28 hours per week. Dementia Caregiving in the U.S. analyzes the experiences of providing unpaid care in the United States to a relative or friend diagnosed with Alzheimer’s disease, dementia, or other mental confusion, with the goals of both understanding the experiences of people caring for someone with dementia and identifying approaches to enhance and support this unique caregiving experience. The National Alliance for Caregiving draws its analyses from the nationally representative study Caregiving in the U.S. For more information on the National Alliance for Caregiving, please visit www.caregiving.org.   

Gay Johnson, National Association of Nurse Practitioners in Women’s Health (NPWH)
NPWH’s fourth annual Women’s Sexual Health Course for NPs took place June 8-11, 2017, in Baltimore, MD. Registration is now open for the 20th annual Premier Women’s Healthcare Conference, being held October 11-14 in Seattle, WA. NPWH is one of four partners in the ACOG-led Women’s Preventive Services Initiative, dedicated to improving the well-being of women across the country by providing updated recommendations, and developing new ones, for the Women’s Preventive Services Guidelines. NPWH is also working to address the shortage of women’s health providers, and is committed to bringing WHNPs voice to the table. Finally, Healthy at Any Age: A Summit on Women’s Health After 50 will reconvene in the fall.

Susan Pilch, National Community Pharmacists Association (NCPA)
NCPA is currently working on Medicare Part D and fees charged to pharmacists by Pharmacy Benefit Managers (PBMs) after the point of sale. This practice raises out-of-pocket costs to beneficiaries and is disruptive to pharmacists.

Deborah Davidson, National Council on Patient Information and Education (NCPIE)
Celebrating its 35th anniversary, NCPIE recently launched its new website, www.bemedwise.org. With a grant from Pfizer Consumer Health, NCPIE will release a report on self-care in the coming weeks.

Erin Mackay, National Partnership for Women & Families (NPWF)
As Theresa Chalhoub mentioned during the Panel discussion at NCL’s Health Advisory Council meeting, the National Partnership for Women & Families is on the Steering Committee of the Protect Our Care coalition, which is focused on protecting the Affordable Care Act. In addition, the National Partnership is working on delivery system reform and improving access to medical records for patients. Unfortunately, patient portals, as they currently exist, often cause confusion and frustration for patients. The Partnership is also participating in efforts to reconcile and exchange digital medication lists, which will help improve medication adherence and care coordination.

Ernie Boyd, Ohio Pharmacists Association (OPA)
As the Script Your Future – Ohio Coordinator, the Ohio Pharmacists Association (OPA) is well aware that only about one-half of Americans take their medications as prescribed. This contributes to the overall burden and toll of chronic disease on the population and to a vast portion of unnecessary health care and costs. These issues motivated Ohio-based CareSource, one of the country’s largest Medicaid managed care plans, to offer a medication therapy management (MTM) benefit to all of its beneficiaries. Total savings from the program, including avoided hospitalizations, emergency department visits, and other unnecessary health care consumption, yielded an ROI of $4.40 for every $1 spent. Building on these results, Ohio has been working to have pharmacists recognized and reimbursed as healthcare providers. In Ohio, pharmacists can now administer all CDC-recommended vaccinations as well as long-acting mental health medications. Another new law allows collaborative agreements with physicians, allowing pharmacists to manage and modify a patient’s drug therapy, including prescribing and ordering lab tests for medication management. OPA is also actively engaged in trying to address the opioid abuse epidemic, which claimed the lives of 4,000 Ohioans last year.

Myisha Gatson, Pharmaceutical Research and Manufacturers of America (PhRMA)
PhRMA recently launched its Go Boldly campaign on biopharmaceutical innovation, which highlights innovative research and technological breakthroughs of America’s biopharmaceutical industry and the people behind the fight to prevent, treat, and cure disease. PhRMA is working to secure policies that will support the modernization of the drug and discovery process, as well as value-driven healthcare purchasing. PhRMA is working to ensure additional oversight and reforms to the 340 B program. Finally, PhRMA is working to educate the public and policy makers on the dangers of drug importation.

Amy Sonderman, U.S. Pharmacopeial Convention (USP)
Responding to the concern and need for consistent quality in dietary and nutritional supplements, USP founded the Dietary Supplements Quality Collaborative (DSQC). This multi-stakeholder partnership is pursuing consensus-based initiatives focused on public and private efforts to improve the quality of products marketed as dietary supplements. In addition to DSQC, USP is working on updating its sterile compounding standards. USP also launched the Quality Institute, a major new initiative that will generate research and evidence to better inform conversations relating to the value of quality. 

The #DataInsecurity Digest | Issue 48

Issue 48 | June 21, 2017

#DataInsecurity Digest: Massive RNC leak exposes vulnerability of political profile data; WannaCry could’ve been much worse

By John Breyault (@jammingecono, johnb@nclnet.org)
NCL Vice President of Public Policy, Telecommunications and Fraud

Subscribe here. Tell us what you think.

Editor’s Note: The intricacy of personal profiles compiled by modern political campaigns received some unwanted attention this week thanks to a breach at a contractor for the Republican National Committee that exposed 198 million potential voter records. This massive breach revealed voters’ names, addresses, and information about their suspected opinions on a variety of issues. Meanwhile, on the Hill, cybersecurity was front and center last week with five different cybersecurity hearings, where, we learned that the WannaCry ransomware attack was meant to be much worse–almost 7 million computers worse. In a historic testimony before the Senate Intelligence Committee, former FBI Director James Comey stated that he has no doubts that Russia launched a hacking effort aimed at nonprofits and political parties. Not to be forgotten, point-of-sale breaches continued to garner headlines as fashion retailer The Buckle became the latest victim.

And now on to the clips!

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RNC exposes personal information of 198 million potential voters. Security researcher @VickerySec found nearly 200 million unsecured potential voter profiles posted online by an IT contractor for the Republican National Committee. These profiles contained “names, addresses of voters and an ‘RNC ID’ that can be used with other exposed files” to determine individuals’ political preferences, “such as a voter’s likely positions on 46 different issues ranging from how likely it is the individual voted for Obama in 2012, whether they agree with the Trump foreign policy of ‘America First’ and how likely they are to be concerned with auto manufacturing as an issue, among others.” (Source: The Hill)

Former CIA Director: Urge Congress to pass cybersecurity legislation. Last week, former CIA Director John Brennan urged Americans to take action to improve cybersecurity, stating “You all need to continue to put the pressure on your elected representatives in Congress to take this matter seriously … People frequently say it’s going to take a 9/11 in the cyber realm in order for us as a country to be able to come to terms and deal more effectively with cyber challenges.” (Source: Cyber Scoop)

WannaCry was meant to be much worse… Salim Neino, the founder of Kryptos Logic told legislators last Thursday that while the virus infected nearly 300,000 computers worldwide, if the “kill switch” had not been found, 7 million computers in the United States alone could have been infected. “It could have been much, much worse,” said former Obama Administration Chief Information Officer Ret. Air Force Brig. Gen. Gregory T. Touhill, while testifying in the House last Thursday. “I view WannaCry as a slow-pitch softball whereas the next one may be a high and tight fastball coming in. We need to be ready.” (Source: McClatchy)

NSA: North Korea behind WannaCry ransomware attack.  The Washington Post is reporting that the NSA is “moderately confident” that the DPRK was behind the first computer worm to be used in a ransomware attack. @nakashimae states that North Korea’s motivation behind the WannaCry attack was financial, as it appears to have been “an attempt to raise revenue for the regime.” (Source: Washington Post)

Tax identity thieves get help from Equifax’s lax cybersecurity practices. @briankrebs is reporting that thanks to the Equifax’s lax security, “crooks were able to reset the 4-digit PIN given to customer employees as a password and then steal W-2 tax data after successfully answering personal questions about those employees.” This breach of sorts affected employees whose employers used TALX, an Equifax subsidiary that provides online payroll, HR, and tax services.” Data security advocates argue that TALX “should have required customers to use stronger two-factor authentication options, such as one-time tokens sent to an email address or mobile devices,” as with a little research, security questions can often be cracked by a dedicated hacker. (Source: Krebs on Security

Breach du Jour: The Buckle. For nearly six months, the clothing store The Buckle was infected with POS malware that was quietly collecting customers’ credit card numbers, names, and expiration dates. (Source: International Business Times)

James Comey: ‘There was a massive (hacking) effort to target government and nongovernmental agencies, like nonprofits.’ In the high-profile Senate hearing, Comey also commented that while “we found no indication of any change in vote tallies… There [were] efforts aimed at voter registration systems.” (Source: New York Times)

A major security flaw at Molina Healthcare exposed countless medical records. @briankrebs is reporting that the Fortune 500 company @molinahealth did not require user authentication to access their records. The security flaw created a situation where “having access to a single hyperlink to a patient record would allow an attacker to enumerate and download all other claims,” simply by changing a single number in the hyperlink. (Source: Krebs on Security)

Canadian spy agency: It is ‘very likely’ that hackers will try to influence upcoming Canadian elections. @LeahSchnurr and @5thEstate report that the Canadian spy agency believes that “politicians and the media are more vulnerable to cyber threats than elections themselves, given that federal elections are largely paper-based.” (Source: Reuters)

National Consumers League
Published June 21, 2017

The #DataInsecurity Digest | Issue 47

Issue 47 | June 7, 2017

#DataInsecurity Digest: Credit unions pushing for retailer standard; Kmart and OneLogin breaches

By John Breyault (@jammingecono, johnb@nclnet.org)
NCL Vice President of Public Policy, Telecommunications and Fraud

Subscribe here. Tell us what you think.

Editor’s Note: Credit unions, which incurred an average of $226,000 each in costs responding to data breaches in 2014, are ramping up pressure on Congress to pass a data security standard for retailers, as new breaches were announced at Kmart and OneLogin. Consumers themselves got a bit of a break recently, as Target agreed pay out a record-breaking $28.5 million settlement with numerous state attorney generals, stemming from its massive 2013 breach. Meanwhile, the FDIC was once again put on notice by the Government Accountability Office for not using strong enough encryption methods. Finally, a group of Democratic senators is calling on the FBI to investigate a DDoS attack on the FCC’s electronic filing system, which may have prevented consumers from filing comments in the agency’s ongoing net neutrality proceeding.

And now, on to the clips!

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Credit unions: Time for a retailer data security standard. The fact that banks must abide by the Gramm-Leach-Bliley Act’s strict data security standard while retailers (whose point of sale systems are a key target for criminal hacking) are exempt has long rankled the banking industry. That’s one reason why the National Association of Federally-insured Credit Unions (NAFCU) is ramping up the pressure on Congress to pass a retailer data security standard law. NAFCU head @BDanBerger writes that “[e]very time there is a retailer data-security breach, credit unions step forward to make their members whole. A NAFCU survey found that its member credit unions paid an average of $226,000 each in costs associated with retailer data breaches in 2014.” (Source: Credit Union Journal)

Data breaches will cost business $8 trillion in the next five years. @JuniperNetworks’s new report also forecasted that “the number of personal data records stolen by cybercriminals will reach 2.8 billion in 2017, almost doubling to 5 billion in 2020, despite new and innovative cybersecurity solutions emerging.” (Source: Juniper)

Breach du jour: Kmart. @briankrebs is reporting that Kmart suffered from its second point-of-sale data breach in three years. Kmart’s parent company, Sears, would not comment “on how many of Kmart’s 735 locations nationwide may have been impacted or how long the breach is believed to have persisted, saying the investigation is ongoing.” (Source: Krebs on Security)

Target pays out $18.5 million to settle 2013 data breach investigations. Target’s 2013 breach “affected more than 41 million customer payment-card accounts and exposed contact information of more than 60 million customers.” The settlement represents the largest multi-state accord ever reached over a data breach. The $18.5 million settlement is in addition to the $10 million Target has already paid out to harmed consumers in 2015. (Source: Bloomberg)

GAO puts FDIC on notice regarding cybersecurity. The agency charged with insuring our bank deposits was found to have “significantly deficient” cybersecurity by the Government Accountability Office. Among other things, the GAO faulted the Federal Deposit Insurance corporation for “not using strong encryption when users connect to certain sensitive systems.” (Source: Next Gov)

Democratic senators request FBI investigation into FCC DDoS attack. On May 8, the FCC claimed that the crash of its electronic filing system, which prevented consumers from filing comments on net neutrality, was the result of a distributed denial of service (DDoS) attack. Last week, Democratic Senators Brian Schatz (D-HI), Al Franken (D-MN), Patrick Leahy (D-VT), Ed Markey (D-MA), and Ron Wyden (D-OR) sent a letter to acting FBI Director Andrew McCabe requesting an investigation, stating that “[a]ny cyberattack on a federal network is very serious.” (Source: The Hill)

Quick hit: Ransomware insurance claims more than double. A year ago, ransomware insurance claims were “just over a tenth of cyber insurance claims, but that figure is now almost a quarter, according to data from insurer CFC Underwriting.” (Source: Financial Times)

Breach du Jour part deux: OneLogin. The identity management firm that “secures connections across all users, all devices, and every application” announced that a “threat actor” had accessed database tables including “information about users, apps, and various types of keys,” which may have allowed them to decrypt customers’ encrypted information. This marks the second breach OneLogin has suffered in the last year. (Source: Ars Technica)

National Consumers League
Published June 7, 2017

The #DataInsecurity Digest | Issue 46

Issue 46 | May 24, 2017

#DataInsecurity Digest: The WannaCry issue

By John Breyault (@jammingecono, johnb@nclnet.org)
NCL Vice President of Public Policy, Telecommunications and Fraud

Subscribe here. Tell us what you think.

Editor’s Note: Is the WannaCry ransomware attack the “big one” that security experts have been warning about since information about the NSA’s cyber weapons were leaked? The massive ransomware attack, which many are pinning on North Korea, affected at least 75,000 computers in 99 countries and resulted in patients being turned away from hospitals and assembly lines shutting down. It remains to be seen if the reforms outlined in President Trump’s long-awaited cyber order will move the needle in terms of protecting consumers from similar attacks in the future. Congress isn’t sitting still however, as a bipartisan group of Congressmen have introduced legislation to get the NSA and other intelligence agencies to come clean about their stockpiles of zero-day vulnerabilities. Those calls for reform could get a big boost from Microsoft, which is using the WannaCry attack to reiterate its call for data security reform in the United States and elsewhere. Let’s just hope that whatever reforms come about, they make American consumers more secure than Trump properties’ leaky Wi-Fi networks.

And now, on to the clips!

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WannaCry ransomware attack “unprecedented in scale.” At least 75,000 computers in 99 countries were hit by the WannaCry ransomware attack, which reportedly relied on Windows exploits originally identified in leaked documents from the National Security Agency (NSA). The impacts were widely felt in critical industry sectors across the globe. For example, automaker Renault’s assembly lines were shut down in France, National Health Service offices in the UK were forced to turn away patients, and more than 1,000 computers at the Russian Interior Ministry were affected. (Source: BBC News)

Despite initial reporting, old Windows XP installs were not primary target. While Microsoft did roll out a patch for its old Windows XP operating system in March to address the vulnerability that would later be exploited by the WannaCry attack, the obsolete OS was not the primary target, according to Kaspersky Labs. @phonesolder writes, “[a]ccording to data recently published by the security firm, an astonishing 98 percent of the affected devices were running some or the other version of Windows 7. On the other hand, less than one in a thousand were powered by Windows XP making it almost insignificant for the discussion.” (Source: TechPP)

Signs increasingly point to North Korea’s elite hacking group as WannaCry culprit. The reclusive regime has long trained elite cyberwarfare groups which often operate through other countries to maintain plausible deniability. While details remain sketchy, North Korea is increasingly viewed as the source of last week’s devastating WannaCry ransomware attacks. “Cyber security researchers have also said they have found technical evidence that could link North Korea with the global WannaCry “ransomware” cyber attack that infected more than 300,000 computers in 150 countries this month,” write @juminism and @pearswick. “The crux of the allegations against North Korea is its connection to a hacking group called Lazarus that is linked to last year’s $81 million cyber heist at the Bangladesh central bank and the 2014 attack on Sony’s Hollywood studio.” (Source: Reuters

Microsoft: “[A]ttack is a wake-up call for all of us.” Microsoft’s President and Chief Legal Officer Brad Smith was on the front lines of the company’s response to the WannaCry attack. While urging technical fixes, Smith was blunt about the need for government action. “As cybercriminals become more sophisticated, there is simply no way for customers to protect themselves against threats unless they update their systems,” wrote Smith. “The governments of the world should treat this attack as a wake-up call. They need to take a different approach and adhere in cyberspace to the same rules applied to weapons in the physical world.” (Source: Microsoft)

Congress responds to WannaCry with PATCH Act. In response to the unprecedented WannaCry ransomware attack, a bipartisan group of Congressmen introduced legislation that would require federal intelligence agencies to turn over their stockpile of zero-day vulnerabilities to an independent technical review board. The board would in turn determine if the vulnerabilities could be made public and fixed in order to improve overall cybersecurity. The Protecting Our Ability to Counter Hacking (PATCH) Act is sponsored by Sen. Brian Schatz (D-HI) and co-sponsored by Sen. Corey Gardner (R-CO), and Reps. Ted Lieu (D-CA), and Blake Farenthold (R-TX). (Source: ZDNet)

White House cyber order largely builds on Obama-era programs. The Trump Administration’s long-awaited cyber order is officially out, but it appears to offer little that wasn’t already in the pipeline under the Obama Administration. “My initial reaction to the order is, ‘this is great,'” former National Security Council Director for Cybersecurity Policy Ben Flatgard told Ars. “Trump just endorsed Barack Obama’s cybersecurity policy.” Flatgard was one of the principal authors of the Obama administration’s Cyber National Action Plan (CNAP), published in February of 2016. (Source: Ars Technica)

Three things to know about Ohlhausen and data security. Privacy and data security law-focused law firm Foaley Hoag offers their take on three things to expect from FTC Chairman Maureen Ohlhausen when it comes to data security at the Commission. “She agrees with the new cybersecurity executive order.” … “She’s not a fan of aggressive CIDs (civil investigative demands.)” … “The FTC’s definition of cyber injury might be shifting.” (Source: Foaley Hoag)

Mar-a-Lago an easy target for hackers. Wherever the President is is a tempting target for hackers of all stripes. Unfortunately for President Trump, the so-called “Winter White House” at Mar-a-Lago resort in Florida, as well as other favorite retreats are unusually insecure. “We parked a 17-foot motorboat in a lagoon about 800 feet from the back lawn of the Mar-a-Lago Club in Palm Beach and pointed a 2-foot wireless antenna that resembled a potato gun toward the club,” write @thejefflarson, @suryamattu, and @JuliaAngwin. “Within a minute, we spotted three weakly encrypted Wi-Fi networks. We could have hacked them in less than five minutes, but we refrained.” (Source: ProPublica

Breach du jour: Zomato. Restaurant app Zomato announced on May 18 that account information for approximately 17 millions users was compromised. The data that was disclosed included user IDs, names, usernames, email addresses, and hashed and salted passwords. The company claims it has been in touch with the hacker involved, who has promised to destroy the data and take down the dark web marketplace set up for the breached information. (Source: Zomato)

Breach du jour part deux: Brooks Brothers. High-end menswear retailer Brooks Brothers is the latest retailer to have its payments system breached. While exact numbers have not been announced, the retailer disclosed that the breach occurred over nearly a one-year period from April 2016 to March 2017 and compromised payment data, but not Social Security numbers or other personal information. (Source: Reuters)

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Upcoming events

Today! May 24, 2017 – Planning for the Future: A Conference About Identity Theft – Washington, DC
The FTC will host an all-day conference to take a comprehensive look at how identity theft has evolved over the last decade and what can be done to address this challenge in the future. The conference will be used to gather input from academics, business and industry representatives, government experts, and consumer advocates. Participants will look at the current state of identity theft, examine potential future challenges, and discuss how to address these issues.

May 25, 2017 – Workshop on Technology and Consumer Protection (ConPro ’17)  San Jose, CA
At this year’s 38th IEEE Symposium on Security and Privacy, a Workshop on Technology and Consumer Protection (ConPro’17) will explore computer technology’s impact on consumers, with a special focus on privacy and ways in ”which computer science can prevent, detect, or address the potential for technology to deceive or unfairly harm consumers.” ConPro’17 aims to bring together academic and industry researchers along with government officials.

National Consumers League
Published May 24, 2017

The #DataInsecurity Digest | Issue 45

Issue 45 | May 10, 2017

#DataInsecurity Digest: Macron hacked; Google Docs attack hits 1 million users

By John Breyault (@jammingecono, johnb@nclnet.org)
NCL Vice President of Public Policy, Telecommunications and Fraud

Subscribe here. Tell us what you think.

Editor’s Note: The hacking of French President-elect Emmanuel Macron’s campaign last week has all the hallmarks of another Russia-based attempt to affect a Western election. Although, security experts are cautioning that we shouldn’t rush to judgment just yet. On the government data security front, the Trump Administration’s long-rumored cyber order has leaked. The new strategy document unsurprisingly gives a big role to the National Institute of Standards and Technology’s cybersecurity framework. Not to be outdone, the Department of Homeland security (DHS) has a new report warning federal workers to beware of the security vulnerabilities in their government Blackberrys and iPhones.

And now to the clips!

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Macron campaign hack: Signs point to Russians, but not conclusive yet. The massive hack of French President-elect Emmanuel Macron’s En Marche party was front-page news in the waning hours of its campaign. While similarities to the hacks of the Hillary Clinton campaign last year immediately raised suspicion of Russian involvement, many data security experts are cautioning against a rush to judgment. @a_greenberg reports, “‘I do think this is more likely than not a Russian operation, but I’d put this at more like 60 percent at this stage,’ says [Kings College London Professor Thomas] Rid, who recently testified at a Senate hearing about Russian interference in the US presidential election. In that case, by contrast, Rid says he has zero doubt that the Kremlin—and specifically a hacking group known as Fancy Bear, or APT 28—was the culprit. But in the Macron case, Rid says, ‘none of the pieces of evidence that has come out so far is particularly strong in forensic terms. We only have circumstantial evidence. We can’t exclude the possibility that someone is trying to frame someone else.’” (Source: WIRED)

Google Docs phishing attack affects 1 million Gmail users. Think twice before clicking on that automated email from Google Docs . Last week’s attack was quickly shut down by Google, but not before approximately 1 millions users received the spammed messages. @mike_mimoso writes, “The messages were a convincing mix of social engineering and abuse of users’ trust in the convenience of mechanisms that share account access with third parties. Many of the phishing messages came from contacts known to victims since part of the attack includes gaining access to contact lists.” (Source: Threatpost)

New Trump cybersecurity order draft similar to February draft. An updated draft of the long-delayed Trump Administration’s cybersecurity order is making the rounds and the outlines show some broad changes from the previous version. @Joseph_Marks_ reports, “…some of the language has been changed significantly, especially on a plan to foster international cooperation in cyberspace. … Those similar elements include mandating federal agencies adopt cybersecurity best practices outlined in the National Institute of Standards and Technology’s cybersecurity framework and a requirement that government leaders be held accountable for cyber lapses at their agencies.” (Source: NextGov)

Insecure government mobile devices raise alarm bells at DHS. A new report from the Department of Homeland Security (DHS) is calling attention to the security vulnerabilities of mobile devices used by many federal government employees. “The federal government also comprises only a small fraction of mobile carriers’ customer base so it cannot exert significant market pressure on carriers to boost security,” writes @Joseph_Marks_. “The government should mitigate those weaknesses by focusing efforts where it does wield power, such as promoting cross-government mobile security standards and working cooperatively with industry,” the DHS report stated (Source: NextGov)

Anatomy of a breach: Hackers exploited known vulnerability for months. It seems simple. Hackers develop an attack based on a new bug. The software vendor fixes the problem and ships a security update. The hackers move on to the next exploit. But as Microsoft security flaw CVE-2017-0199 demonstrated, it’s not always that easy. @josephmenn reports, “The bug was unusually dangerous but of a common genre: it was in Microsoft software, could allow a hacker to seize control of a personal computer with little trace, and was fixed April 11 in Microsoft’s regular monthly security update. But it had traveled a rocky, nine-month journey from discovery to resolution, which cybersecurity experts say is an unusually long time. … The saga shows that Microsoft’s progress on security issues, as well as that of the software industry as a whole, remains uneven in an era when the stakes are growing dramatically.” (Source: Reuters)

Breach du jour: Chipotle. Mexican-American restaurant chain Chipotle is investigating a data breach “on a system used to help process payments for purchases made inside its restaurants, though offered no details on specific locations that may have been affected.” Chipotle does not know which locations have been affected yet, but the suspicious activity occurred between March 24 and April 18. (Source: The Hill)

Are more breaches to come? @Bing_Chris reported that the same group behind the Chipotle breach (FIN7) is also targeting other national restaurant franchises, such as Baja Fresh and Ruby Tuesday. The article also found that, “More than 20 U.S.-based hospitality companies — the sector that includes hotels and restaurants — have been successfully hacked by FIN7 since the summer of 2016.” (Source: Cyberscoop)

Democrats urge OPM to streamline cybersecurity hiring. In a letter to OPM’s acting director, the New Democrat Coalition’s Cybersecurity Task Force stated that while “our country faces unprecedented cybersecurity challenges… the federal government struggles to recruit and retain qualified cyber professionals.” The letter further urged OPM to fill the empty cybersecurity jobs by exploring “ways to adjust job requirements and streamline the hiring process for federal cybersecurity jobs, including looking to the private sector for ideas.” (Source: The Hill)

180,000 patient records breached. TheDarkOverlord (the same hacker that dumped free bootleg copies of Netflix’s Orange is the New Black and is threatening to do the same for other Netflix shows) dumped 180,000 records from three separate hacks last week. Patients of Aesthetic Dentistry in New York City, OC Gastrocare in California, and Tampa Bay Surgery Center all had their personal medical information compromised. (Source: databreaches.net)

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Upcoming events

May 24, 2017 – Planning for the Future: A Conference About Identity Theft – Washington, DC
The FTC will host an all-day conference to take a comprehensive look at how identity theft has evolved over the last decade and what can be done to address this challenge in the future. The conference will be used to gather input from academics, business and industry representatives, government experts, and consumer advocates. Participants will look at the current state of identity theft, examine potential future challenges, and discuss how to address these issues.

May 25, 2017 – Workshop on Technology and Consumer Protection (ConPro ’17)  San Jose, CA
At this year’s 38th IEEE Symposium on Security and Privacy, a Workshop on Technology and Consumer Protection (ConPro’17) will explore computer technology’s impact on consumers, with a special focus on privacy and ways in ”which computer science can prevent, detect, or address the potential for technology to deceive or unfairly harm consumers.” ConPro’17 aims to bring together academic and industry researchers along with government officials.

National Consumers League
Published May 10, 2017

The #DataInsecurity Digest | Issue 44

Issue 44 | April 26, 2017

#DataInsecurity Digest: White House still has no cyber plans; Shoney’s, Intercontinental Hotels breaches roll in

By John Breyault (@jammingecono, johnb@nclnet.org)
NCL Vice President of Public Policy, Telecommunications and Fraud

Subscribe here. Tell us what you think.

Editor’s Note: Saturday marks President Trump’s 100th day in office. Data security watchers can only hope that the Administration’s cyber order’s release is just around the corner and that Trump puts his team in place to create a 90-day cyber plan, even though we are well past its promised delivery date.

As the White House grapples with creating its promised cybersecurity plans, data breaches rage on. Intercontinental Hotel Group’s “small” breach is now believed to have compromised more than 1,000 hotels. Shoney’s Restaurant is now also investigating a breach of its own, and hundreds of YouTube channels were hacked. With numerous data breaches, and the lack of executive action to create a data security standard, it is perhaps little wonder that consumers are forming a class action against Bose for collecting and selling their data without their consent.

And now to the clips!

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Trump falls short in creating a 90-day cyber plan. Back in January, President Trump promised to “appoint a team to give me a plan within ninety days of taking office” that would stop hackers and provide data security. @IsaacDovere reports that last Thursday, “Trump hit his ninety-day mark. There is no team, there is no plan, and there is no clear answer from the White House on who would even be working on what.” (Source: Politico)

The wait continues for the White House’s cyber order. Nearly three months after the expected release of the White House’s cyber order, it has yet to release one. @frankentele reports that a former White House staffer didn’t “think the delay is due to any real substantive revisions going on at this point.” In this official’s view, “the delay is more a matter of the White House continuing to confront staffing issues and other more pressing political and policy challenges. The former official said the last leaked draft looked close to a finished document that had buy-in from many in industry.” (Source: FCW)

Intercontinental payment breach grows to at least 1,175 hotels. Back in February, Intercontinental Hotel Group (IHG), announced it had suffered a payment systems breach at a dozen of its hotels. Now the hotel chain is stating that at least 1,175 of its 5,000 U.S. hotels have been compromised. @ChristianSonne is reporting that the breach affected several of the IHG brand names, including Holiday Inn Express (781), Holiday Inn (176), Candlewood Suites (120), Staybridge Suites (54), Crowne Plaza (30), Hotel Indigo (11), and Holiday Inn Resort (3). (Source: Krebs on Security)

Class action filed against Bose Headphones for spying on users without their consent. The Illinois lawsuit was filed after the plaintiff learned that Bose sent “all available media information” collected from the Bose app and headphones to third parties. In addition to financial compensation, the plaintiff is seeking an end to Bose’s data collection practices. (Source: Reuters

Was Shoney’s Restaurant breached? @briankrebs is reporting that the restaurant chain may be the latest subject of a data breach. Details are not yet clear on how many of the chain’s 140 stores were affected, but “sources in the financial industry say they’ve received confidential alerts from the credit card associations about suspected breaches at dozens of locations, although it remains unclear whether the problem is limited to those locations or if it extends company-wide.” (Source: Krebs on Security)

Breach du jour: Hundreds of YouTube accounts. A group of hackers who call themselves “Our Mine” struck again. This time, instead of targeting the social media accounts of public figures such as Facebook CEO Mark Zuckerberg or hacking Sony’s Twitter feed to spread fake news that Britney Spears had died, the hackers targeted hundreds of large and small YouTube accounts. “The compromised channels were of different sizes, and some of them were big guns as well. Most notable of them was Studio 71, which was a niche of a wide network of websites. RomanAtwoodVlogs, JustKiddingNews and Wranglerstar and several other channels were hacked for a short period.” (Source: Hack Read)

Cyber thieves steal $14.2 million from Hong Kong stock exchange. In the past 18 months, the Hong Kong stock exchange suffered 20 cyber attacks netting cyber thieves $14.2 million. In response, regulators are requiring “all [brokers] to invest more to enhance the cybersecurity of their computer systems after customers lost up to HK$110 million from hacker attacks.” (Source: Cyber Scope)

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Upcoming events

May 24, 2017 – Planning for the Future: A Conference About Identity Theft – Washington, DC
The FTC will host an all-day conference to take a comprehensive look at how identity theft has evolved over the last decade and what can be done to address this challenge in the future. The conference will be used to gather input from academics, business and industry representatives, government experts, and consumer advocates. Participants will look at the current state of identity theft, examine potential future challenges, and discuss how to address these issues.

May 25, 2017 – Workshop on Technology and Consumer Protection (ConPro ’17)  San Jose, CA
At this year’s 38th IEEE Symposium on Security and Privacy, a Workshop on Technology and Consumer Protection (ConPro’17) will explore computer technology’s impact on consumers, with a special focus on privacy and ways in ”which computer science can prevent, detect, or address the potential for technology to deceive or unfairly harm consumers.” ConPro’17 aims to bring together academic and industry researchers along with government officials.

National Consumers League
Published April 26, 2017

The #DataInsecurity Digest | Issue 43

Issue 43 | April 12, 2017

#DataInsecurity Digest: Q&A with Koskinen, Trump rolls back broadband privacy protections, more woes for Arby’s

By John Breyault (@jammingecono, johnb@nclnet.org)
NCL Vice President of Public Policy, Telecommunications and Fraud

Subscribe here. Tell us what you think.

Editor’s Note: With Tax Day right around the corner, we are excited to bring you a timely interview with IRS Commissioner John Koskinen as part of our #DataInsecurity Thought Leaders series. Cmmr. Koskinen answered a range of questions about the agency’s success at reducing tax identity fraud rates and dealing with fraudsters using stolen data. Excerpts from our chat are below and the full interview is available here.

Bucking sweeping public opinion, President Trump signed a repeal of the FCC’s broadband privacy rule last week. As a result, ISPs will be able to collect and sell user’s browsing history and precise location without first obtaining consent. The repeal also exempts ISPs from the Rule’s proposed data security and breach notification requirements. While the ISPs say this will allow for a level playing field and less confusion for consumers, advocates were outraged at the move and are vowing to continue the fight. Don’t look for help from Congress any time soon, however, as the Administration says not to expect movement on comprehensive privacy legislation for the foreseeable future. Meanwhile, eight different banks and credit unions are suing Arby’s as a result of its February data breach. In addition, Scottrade customers became the latest data breach victims, when their Social Security numbers were left in the cloud unsecured. Finally, data security was the cover story this month in The Economist, which said that greater government involvement to prod companies to better protect data security could be beneficial.

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Preview of #DataInsecurity Thought Leaders interview with IRS Commissioner John Koskinen

We are pleased that IRS Commissioner John Koskinen was kind enough to take a break at the height of tax season to answer a series of questions about tax identity fraud and the link between data breaches of tax information and scams. Here’s an excerpt; read the full interview here.

NCL: Tax identity fraud remains a top concern for many consumers. For example, employment or tax-related identity fraud remains the top type of ID theft complaint filed with the FTC. For its part, the IRS has shown significant progress in reducing rates of tax identity fraud in recent years. To what do you credit this success and what remains to be done?

Commr. Koskinen: We made tremendous progress in stopping fraudulent returns. Because we did a better job keeping bad returns from ever entering our systems, we saw a 30 percent drop in the number of confirmed identity theft returns caught by our filters. We saw a 50 percent decrease in the number of questionable refunds being issued and stopped by banks. And, most importantly, we saw a 46 percent decline in the number of taxpayers reporting to us that they were victims of tax-related identity theft.

The amount of progress we made is tremendous, but we are not declaring victory. There is still much work to be done. We enacted even more “trusted customer” features for the 2017 tax season and, though we have limited data, we believe we are on the right path and are continuing our progress. Congress also gave us a tremendous tool. They passed legislation requiring Form W-2s to be filed with the IRS in January instead of March. This helps us match the income information, which is very helpful to stopping identity theft and fraud.

Read our full interview with IRS Commissioner John Koskinen.

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This edition’s clips

Economist cover: ‘How to manage the computer-security threat.’ The Economist magazine devoted its lead this week to the need for governments to take a stronger role in prodding industry to take data security seriously. “Firms should recognise that, if the courts do not force the liability issue, public opinion will. Many computer-security experts draw comparisons to the American car industry in the 1960s, which had ignored safety for decades. … [I]magine the clamour for legislation after the first child fatality involving self-driving cars.” (Source: The Economist)

Trump signs repeal of FCC’s broadband privacy rules. After partisan votes in both the House and Senate advanced a Congressional Review Act resolution to repeal the FCC’s broadband privacy rules, President Trump signed the repeal into law last week. @davidshepardson reports that the rules “would have required internet providers to obtain consumer consent before using precise geolocation, financial information, health information, children’s information and web browsing history for advertising and marketing.” The CRA prevents the FCC from ever reintroducing similar rules without direct Congressional approval. (Source: Reuters)

Quick Hit: Nearly 75 percent of Republicans and Democrats wanted Trump to veto the repeal of the broadband privacy rule. A Huffington Post/YouGov poll found that just 8 percent of Republicans, Democrats, and Independents wanted Internet providers to share their personal information; 83 percent% did not want their data collected. (Source: Huffington Post)

White House lowers expectations for privacy protections. Proponents of repealing the FCC’s privacy protections argued that the rules were unfairly stricter than protections in place for websites. Privacy advocates now have to hope that the rule’s repeal will push Congress to move toward providing comprehensive privacy protections for both ISP users and website visitors. @TonyRomm reports, however, that the White House is signalling that a comprehensive new rule will be unlikely in the short term as “the Trump administration’s chief legislative aide cast doubt on the idea, stating that ‘we were content right now on pulling back’ on the previous FCC’s privacy rules.” (Source: Recode)

Eight data breach lawsuits filed against Arby’s. Banks, credit unions, and customers have filed lawsuits against Arby’s claiming damages from the fast food chain’s February data breach. One of the credit unions suing Arby’s–North Alabama Educators Credit Union–stated in its lawsuit that “hundreds of thousands, if not millions, of credit and debit cards… were compromised due to Arby’s severely inadequate security practices… Arby’s actions and omissions left highly sensitive Payment Card Data of the Plaintiff’s customers exposed and accessible for hackers to steal for nearly three months.” (Source: Associated Press)

Breach du Jour: 20,000 Scottrade accounts. The stock trading company Scottrade accidentally left sensitive information unprotected in the cloud. The information included Social Security numbers, plain text passwords, and employee credentials used to obtain credit reports. Scottrade Bank stated that “it believes contact information was the primary goal of those responsible for compromising the database where the data was stored.” (Source: CSO)

GameStop investigates possible data breach. @briankrebs is reporting that retailer GameStop is investigating a possible credit card hack after credit cards used on its website were found for sale on the Dark Web. The alleged breach occurred between September 2016 and February 2017 and is believed to have compromised “customer card numbers, expiration dates, names, address and card verification values (CVV2), usually a 3-digit security code printed on the backs of credit cards.” (Source: Krebs on Security)

95,000 Canadian McDonald’s job applications stolen. Job applications submitted by anyone who applied for a job at a Canadian McDonald’s between March 2014 and March of 2017 have been stolen by hackers. @neuwaves reports that “McDonald’s seems to be a bit of a target for hackers lately, since its corporate Twitter account was allegedly compromised earlier in March.” (Source: Motherboard)

Are software developers responsible when their products are misused? The FBI recently arrested Taylor Huddleston for aiding hackers after the software he created — “Net Seal” — was used by hackers for fraudulent purposes. It seems that while Huddleston designed his software to remove fraudulently purchased programs from computers, hackers used the remote access feature of the software as a way to breach computers. Huddleson made a point of preventing his software from being used improperly. “Whenever he saw evidence that a particular buyer was using the product to hack, he’d log in to Net Seal and disable that user’s copy, cutting the hacker off from his infected slaves.” In spite of this, Huddleson faces jail time should the FBI succeed with its prosecution. (Source: The Daily Beast)

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Upcoming events

May 24, 2017 – Planning for the Future: A Conference About Identity Theft – Washington, DC
The FTC will host an all-day conference to take a comprehensive look at how identity theft has evolved over the last decade and what can be done to address this challenge in the future. The conference will be used to gather input from academics, business and industry representatives, government experts, and consumer advocates. Participants will look at the current state of identity theft, examine potential future challenges, and discuss how to address these issues.

May 25, 2017 – Workshop on Technology and Consumer Protection (ConPro ’17)  San Jose, CA
At this year’s 38th IEEE Symposium on Security and Privacy, a Workshop on Technology and Consumer Protection (ConPro’17) will explore computer technology’s impact on consumers, with a special focus on privacy and ways in ”which computer science can prevent, detect, or address the potential for technology to deceive or unfairly harm consumers.” ConPro’17 aims to bring together academic and industry researchers along with government officials.

National Consumers League
Published April 12, 2017

Thought Leaders series: Interview with IRS Commissioner Koskinen

IRS Commissioner John Koskinen

National Consumers League: Tax identity fraud remains a top concern for many consumers. For example, employment or tax-related identity fraud remains the top type of ID theft complaint filed with the FTC. For its part, the IRS has shown significant progress in reducing rates of tax identity fraud in recent years. To what do you credit this success and what remains to be done?

Koskinen: The problem of tax-related identity theft really exploded from 2010 to 2012, and for a time overwhelmed the IRS and others in law enforcement. We took a series of actions such as improving identity theft filters, creating partnerships with banks to stop suspicious refunds and offering an Identity Protection Personal Identification Number (IP PIN) for victims. We were making progress, but as we evolved, so did the nature of this crime. Initially, tax-related identity theft was a crime of opportunity committed by unscrupulous tax preparers and other individuals. But then we began to see the presence of national and international criminal syndicates. They deployed sophisticated cybercriminals who prepared and planned for tax filing season, acquiring massive amounts of data from sources outside the IRS to impersonate taxpayers, file false returns and claim fraudulent refunds. It was clear we could not fight this enemy alone.

In 2015, we convened the Security Summit, an initiative that brought together the IRS, state tax agencies and members of the tax industry. We decided to identify a series of actions that, together, we could put in place quickly for the 2016 filing season. For example, we put in place stronger password requirements for tax software products to protect taxpayers from account takeovers. And, the tax software industry agreed to share a series of data elements from tax returns with the IRS and states, to help us detect computer-generated fraudulent returns. Our focus has been on “trusted customer” features that help us have confidence that the person filing the tax return is who they say they are.

The final results from 2016 are now here. We made tremendous progress in stopping fraudulent returns. Because we did a better job keeping bad returns from ever entering our systems, we saw a 30 percent drop in the number of confirmed identity theft returns caught by our filters. We saw a 50 percent decrease in the number of questionable refunds being issued and stopped by banks. And, most importantly, we saw a 46 percent decline in the number of taxpayers reporting to us that they were victims of tax-related identity theft. 

The amount of progress we made is tremendous, but we are not declaring victory. There is still much work to be done We enacted even more “trusted customer” features for the 2017 tax season and, though we have limited data, we believe we are on the right path and are continuing our progress. Congress also gave us a tremendous tool. They passed legislation requiring Form W-2s to be filed with the IRS in January instead of March. This helps us match the income information, which is very helpful to stopping identity theft and fraud.

Our various Security Summit working groups will meet again soon and decide what additional actions we will consider for 2018. One area we want to improve is in identifying suspicious returns and reducing false positives. We have been casting a pretty wide net, and we want to be able to reduce the number of legitimate taxpayers who must call us and verify their identities. Another area that holds great promise is the Identity Theft Tax Refund Fraud Information Sharing and Analysis Center (ISAC), which we began this year. This will allow all Summit partners to immediately share details on emerging schemes and allow the IRS and states to share information to protect taxpayers. It’s like a radar array or early warning system against identity thieves. The ISAC holds great promise for the future of our cooperative efforts against identity thieves and will be a focus of our efforts going forward. So, while we still have a lot of work to do, I definitely think we are on the right road, and we’re on the right road because we are working with all of our partners in this fight. 

NCL: One of the reasons that tax identity fraud remains a big problem is that it’s easier than ever for fraudsters to get their hands on consumers’ personal information thanks to rampant data breaches that compromise that information. What role do you see the IRS playing in efforts to get companies and other organizations to better protect the security of that data?

Koskinen: Our message is that we all have a role in preventing identity theft. In 2015, as the Security Summit first gathered, it was clear to all of us that to be truly successful, we needed the involvement of everyone.  In the fall of 2015, we launched the “Taxes. Security. Together.” campaign aimed at increasing security awareness among taxpayers. This is critical because here’s what’s happening: as the Security Summit makes progress against identity theft, these cybercriminals need more and more personal data to better impersonate taxpayers. A few years ago, if the thief just had a name and a Social Security number, they might be successful in filing a fraudulent return, but that is no longer the case. We’ve secured the front door and our filters are more sophisticated. But as we’ve changed, so have the cybercriminals. They increasingly are targeting companies and their employees’ W-2 forms.

One of the most dangerous phishing scams we’ve seen involves criminals posing as a company executive and emailing a payroll employee to request a list of employees and their W-2s. Thousands of W-2s have been stolen so far this year using this scheme. We’ve issued repeated warnings, and I think we are increasing awareness. Businesses can visit our web page, www.irs.gov/identitytheft, to learn more about this scam and how to report it to us. All employers must educate their employees about phishing scams, how to recognize them and how to avoid them. We are trying to do everything we can to raise the alarm and to give taxpayers the tools and information they need to be more secure.

NCL: NCL’s advice to consumers about the best way to reduce their risk of tax identity fraud has been to file as early in tax filing season as possible so as to get ahead of the fraudsters. In your opinion, do you think that’s sound advice? Understanding that there’s no “silver bullet” to preventing tax ID fraud, what frustrates you most about what consumers could be doing — but maybe aren’t — in order to reduce their risk?

Koskinen: We advise taxpayers to file their returns only when they have all the information and documentation they need to file accurately. If they file trying to “beat” the fraudsters, they may increase their chances of making an error or not having all their documentation, which could either delay their refund or require them to file an amended return. It’s our job to identify and stop fraudulent tax returns, protect tax revenue and the nation’s taxpayers. I want to make clear that there is no blaming the victim here. I also want to make clear that this is not just an IRS issue or a tax fraud issue. Tax fraud is just one way criminals try to quickly monetize their stolen data.

But, as noted, we do need everyone’s help. There’s a saying that applies here: “Treat your personal data like you do your cash; don’t leave it lying around.” Consumers can take a series of easy and simple steps to help make sure their information is secure. Example: Use anti-malware software to protect yourself on the web. Use long, unique and complex passwords to protect each of your accounts and don’t use the same user i.d. and password on all of your accounts. Learn to recognize and avoid phishing emails. Don’t fall for the “update your account now” email scam that seeks to steal your password. Don’t open any links or attachments from suspicious emails. As part of our “Taxes. Security. Together.” campaign to increase awareness, we created Publication 4524, Security Awareness for Taxpayers, that gives a quick overview of steps everyone can take to be safer. Last December, we held our first National Tax Security Awareness Week, and we hope to do that again this year. 

NCL: Millions of consumers rely on professional tax preparers to help them prepare and file their taxes every year. What do you think the tax preparation industry could do to better protect their clients from tax ID fraud? 

Koskinen: Tax professionals are among our most important allies in the fight against identity theft. Both the tax software industry and the tax practitioners are working with us and state tax agencies every step of the way. And, what we’ve seen in recent years is that both the tax software providers and the tax practitioners increasingly are targeted by these criminal syndicates. Phishing scams target taxpayers and tax preparers in an effort to steal their username and passwords to access their tax software accounts. Scammers posing as potential clients try to download keystroke-tracking software onto preparers’ computers. We’ve even seen cases where cybercriminals were able to gain remote control of preparers’ computers, find clients’ tax returns, finish and file the returns, and redirect refunds to the criminals’ accounts. As a follow-up to the “Taxes. Security. Together.” Campaign, we launched a “Protect Your Clients; Protect Yourself” effort aimed at increasing awareness among tax professionals. The phishing scams that are specifically targeting tax professionals are becoming more common and more elaborate. Every tax preparer should be aware that they are in the crosshairs of these criminals and that they have an obligation to protect their clients’ data. There is a need to increase security awareness among some in the tax professional community, just as there is for the taxpayers at large.

NCL: 2017 was the first year that EITC and ACTC-eligible consumers were affected by the PATH Act’s requirement that the IRS hold their refunds until February 15. The delay was intended to give the IRS additional time to spot and stop tax ID fraud and other types of tax fraud. In its first year of effect, do you think the PATH Act is having its intended effect?

Koskinen: We know having this additional time to review tax returns will be helpful.  However, we won’t be able to quantify how useful until the filing season is over.  At that point, we will have better information about the impact of the refund holds. The PATH Act also contained a provision that required Form W-2s to be sent to their IRS in January instead of March, which is a great help as well.

This has already allowed us to authenticate and release more quickly legitimate tax returns and refunds that our filters stopped because of suspicious characteristics.

NCL: Are there other topics related to tax identity fraud and/or data breaches that we didn’t cover, but you think consumers should be aware of?

Koskinen: Every day, there are more than one million attempts to breach the IRS systems. I want to reassure individual and business taxpayers that our main files with taxpayer accounts remain secure. But protecting our systems requires resources and it requires personnel. Congress recognized that, and in 2016 gave us our first budget increase in six years in part to fight identity theft. That was very helpful.

I also would be remiss if I did not mention one of the most vexing scams and its various mutations: the IRS impersonation call, email and text.  Thousands of people have lost millions of dollars to the phone scam alone. The telephone call often comes from another country, but because of computer technology, criminals can mask the phone number to make it appear as if it’s coming from Washington, D.C. or your home state. The caller generally threatens their victim with jail or a lawsuit unless they immediately pay by a debit card.

I want people to realize it’s easy to tell the scammers from the IRS. First, a phone call is not our first contact with taxpayers who owe a tax payment. We send a letter before we call. Second, we never threaten people. Third, payments are made to the U.S. Treasury by check or electronically – not a debit card. If you are ever in doubt about whether a person who called you is really from the IRS, you can check by calling our toll-free telephone helpline and talking to one of our customer service representatives. Another variation of the IRS impersonation scam is a letter threatening a lien or levy unless payment is made immediately. If you get a suspicious call, letter or email out of the blue, please check it out and please keep in mind the IRS never asks for a specific payment method, such as a debit card.

The need to be aware of phone scams is especially important now, because the IRS is beginning a private-debt collection program. Under that program, we have contracted with several private collection firms that will contact a limited number of taxpayers about back taxes they owe. I want everyone to know that the taxpayers whose accounts are selected have already been contacted by the IRS multiple times and know they have a tax debt. Plus, these taxpayers will first be notified by the IRS by letter that they have been selected, even before they hear from the private collection firm. We are very concerned scam artists could use this program as a cover to swindle taxpayers. So if you believe you’re current on your taxes and you get a call from someone demanding you pay an overdue federal tax bill, that’s a sure sign of a scam. Once again, I would urge everyone to do everything possible to protect their personal and financial information.

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Published by National Consumers League’s #DataInsecurity Digest
April 12, 2017 

Thank you for purchasing Trumpeter tickets

Thank you for purchasing tickets to the 2019 Trumpeter Awards Dinner!

We appreciate your support and look forward to a wonderful evening of celebration.

You should receive email confirmation and a receipt shortly.

When
October 22, 2019 at 6pm

Where
The Mayflower Hotel
1127 Connecticut Ave NW, Washington, DC 20036

For questions about your purchase or about the Trumpeter Awards generally, contact

Molly Harman
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The #DataInsecurity Digest | Issue 42

Issue 42 | March 29, 2017

#DataInsecurity Digest: Congress uses CRA to roll back broadband privacy and data security rule, Trump cyber order delays

By John Breyault (@jammingecono, johnb@nclnet.org)
NCL Vice President of Public Policy, Telecommunications and Fraud

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Editor’s Note: Congress has voted to roll back the FCC’s broadband privacy rule, which would have given consumers more choice over how Internet service providers (ISPs) use their personal data, such as browsing history. The move, which was blasted by privacy advocates (including NCL), will also remove the data security requirements the FCC’s rule imposed on ISPs. The measure now heads to the desk of the President, who has signaled he will sign it. President Trump’s proposed budget allocates $1.5 billion to the Department of Homeland Security to beef up its cybersecurity programs. But Trump cyber chief Tom Bossert is telling data security experts not to hold their breath waiting for the President’s much-rumored cybersecurity executive order, suggesting that it could be “weeks or months” before the order is published. And now, on to the clips!

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Congress uses CRA to remove privacy protections. Both houses of Congress voted along party lines to repeal the FCC’s broadband privacy rule, sending the measure on to the White House, where President Trump has indicated he will sign it. The rule would have required Internet service providers to limit data collection and abide by data security standards. (Source: POLITICO)

Advocates blast vote to remove broadband privacy rules. Consumer advocates such as @dallashpk expressed disappointment over the rule’s removal, stating that “These were the strongest online privacy rules to date, and this vote is a huge step backwards in consumer protection writ large…The rules asked that when things were sensitive, an Internet service provider asked permission first before collecting. That’s not a lot to ask.” (Source: New York Times)

NCL: “[It’s]…inconceivable that the Senate would seek to eviscerate strong data security standards…” NCL was equally critical of the Senate’s vote. “Not a day goes by that we aren’t reminded of the costs of failing to secure consumers’ data from criminal and state-sponsored hacking,” we noted. “It is clear that data breaches raise the risk of identity fraud for millions of consumers. This being the case, it is inconceivable that the Senate would seek to eviscerate strong data security standards put in place by the FCC’s broadband privacy rules.” (Source: National Consumers League)

Trump budget gives $1.5 billion to DHS cyber protection programs. The programs would fend off cyber attacks on critical infrastructure. Rep. Jim Langevin (D-RI), founder and co-chair of the House Cybersecurity Caucus, spoke for many when he expressed concern that it is too early to tell if the budget goes far enough, as there is “too little detail in the ‘skinny budget’ released [March 16] to adequately assess the Trump Administration’s commitment to cybersecurity.” (Source: Morning Consult)

‘For sale: one billion Yahoo accounts, $200,000 or best offer.’ @vindugoel reports that, “After federal prosecutors unsealed indictments (last) week against four men they say were responsible for a 2014 intrusion into Yahoo’s systems that affected 500 million user accounts, data on one billion accounts — stolen in another attack on the company a year earlier — appeared to remain available on underground hacker forums on Friday.” The New York Times reports that while the passwords may no longer work, “The dates of birth, telephone numbers and security questions could still be useful to an adept cyberthief.” (Source: New York Times)

More delays for Trump’s cyber order. Trump’s top homeland security advisor Tom Bossert lowered expectations for a speedy release of comprehensive cyber executive order. @Joseph_Marks_ reports that while speaking at Center for Strategic and International Studies, Bossert cautioned not to “expect a multibillion-dollar investment that will modernize government cybersecurity in one fell swoop… Also, don’t expect a long-rumored executive order that outlines Trump’s cybersecurity plan in the near future, he said, suggesting it will be weeks or months before the order is released in its final form.” (Source: Next Gov)

Breach du jour: Saks Fifth Avenue exposes personal information of tens of thousands of customers. The high-end fashion retailer left the records of many of its customers on a publicly available website. The action compromised customers’ emails, the merchandise they were interested in purchasing, IP addresses, and sometimes their phone numbers. Cyber security expert @ErrataRob commented that “[t]his is as bad as security gets… Everyone is vulnerable.” (Source: BuzzFeed)

Defense Point Security’s W-2 breach reminds us that phishing attacks can fool even the best of us. The federal cyber security contractor informed its “employees that their W-2 tax data was handed directly to fraudsters after someone inside the company got caught in a phisher’s net.” (Source: Krebs on Security)

Missing: A Secret Service laptop with information on Trump Tower, Hillary Clinton, and Pope Francis. Fortunately, although a laptop stolen from a Secret Service vehicle contained sensitive security information, it featured “multiple layers of security including full disk encryption and was not permitted to contain classified information.” Security experts are still considering the incident a breach of national security. (Source: ABC News)

Upcoming events

May 24, 2017 – Planning for the Future: A Conference About Identity Theft – Washington, DC
The FTC will host an all-day conference to take a comprehensive look at how identity theft has evolved over the last decade and what can be done to address this challenge in the future. The conference will be used to gather input from academics, business and industry representatives, government experts, and consumer advocates. Participants will look at the current state of identity theft, examine potential future challenges, and discuss how to address these issues.

May 25, 2017 – Workshop on Technology and Consumer Protection (ConPro ’17)  San Jose, CA
At this year’s 38th IEEE Symposium on Security and Privacy, a Workshop on Technology and Consumer Protection (ConPro’17) will explore computer technology’s impact on consumers, with a special focus on privacy and ways in ”which computer science can prevent, detect, or address the potential for technology to deceive or unfairly harm consumers.” ConPro’17 aims to bring together academic and industry researchers along with government officials.

National Consumers League
Published March 29, 2017