Good people leaving good online newsites

Leaving AOL
[Via Daring Fireball]

Paul J. Miller:

I’d love to be able to keep doing this forever, but unfortunately Engadget is owned by AOL, and AOL has proved an unwilling partner in this site’s evolution. It doesn’t take a veteran of the publishing world to realize that AOL has its heart in the wrong place with content. As detailed in the “AOL Way,” and borne out in personal experience, AOL sees content as a commodity it can sell ads against. That might make good business sense (though I doubt it), but it doesn’t promote good journalism or even good entertainment, and it doesn’t allow an ambitious team like the one I know and love at Engadget to thrive.

[More]

In my opinion, Engadget is much better than several other tech sites. Its reporting was less exploitive for the purpose of getting page hits. Too many other sites are like the Enquirer, posting whatever rumors will bring in the ad traffic.

I had noticed recently that Engadget had started hopping on the page-view train. Seeing this, I wonder if AOL was pushing editorial changes to become more like the popular tabloid sites rather than a tech site.

I’ll keep reading Engadget for the moment but I will seriously be looking at its content more to see how far down this dark road it is going.



That is how an iPad was for me

ipadby tomt6788

Director DJ Caruso on using iPads to make I Am Number Four
[Via The Unofficial Apple Weblog (TUAW)]

Here’s yet another example of the iPad excelling in a place it was never intended to actually go: Making movies. Director DJ Caruso did an interview in an Apple Store recently, and he says that he used the iPad to help make his new movie “I am Number Four” in all kinds of ways, from controlling on-set lights with an app to seeing scripts, marking up storyboards, and even scouting out locations. Caruso says the initial purchase was more for fun, but as he used the iPad more and more, he found he was doing a lot of his filmmaking work on it as well. “I got it, I don’t want to say as a toy,” he says, “but then I realized about a week into prep that my storyboards were coming on it, my previs was on it, my script was on it, I don’t carry my script anymore.”

[More]

Just like Caruso, my first uses of the iPad were more playful then useful. But as time went on I found myself using it quite a bit for my day. Once multi-tasking was included ot has become invaluable.

I no longer take my laptop to meeting; just my iPad. While everyone else is tethered to an outlet in order to take notes, I can sit anywhere and use SoundNote to take notes with. It records the meeting while I simply take simple notes which are linked to the audio.

I only need my laptop when I am on the move and need to do some heavy lifting with writing or presentations. There are still some things that a lap top is really useful for but  I find that I carry most of my documents on my iPad, using DropBox and other  approaches to move things to my iPad.

I have actually gone weeks without needing a pen to write anything but checks with. The iPad is, for me, much more transformative than the iPhone. The iPhone made using a mobile phone trivial.

But the iPad has completely changed my workflow during the day.

Jazz versions of Disney tunes

disney album

I found this on iTunes today. Some very nice jazz versions of Disney songs. It makes a very nice versions to listen to.

Currently playing in iTunes: Feed the Birds (Tuppence a Bag) by Kurt Rosenwinkel from Disney Jazz: Everybody Wants to Be a Cat, Vol. 1

Not a good time to show the effects if a migraine

Docs Say a Migraine—Not a Stroke—Caused Reporter’s On-Air Babbling
[Via Discoblog]

It turns out that the news reporter who suddenly began speaking gibberish as she covered the Grammy Awards wasn’t suffering from a stroke–doctors conclude that a migraine is to blame.

Serene Branson, a reporter for KCBS-TV, began speaking incoherently during her coverage of the annual music awards ceremony. “As soon as I opened my mouth I knew something was wrong,” Branson told MSNBC. “I was having trouble remembering the word for Grammy…. I knew what I wanted to say but I didn’t have the words to say it.”

Many internet viewers thought she was stricken by an on-air stroke, but physicians from the University of California at Los Angeles scanned her head and tested her blood, and discovered that she was simply the victim of a migraine. It all started with a strong headache, Branson told MSNBC, but then it escalated

[More]

I never knew a migraine could have that effect. I am glad she is doing okay but that must have been a scary thing to see live.

Watson cheated by reading books illegally?

copyrightby MikeBlogs

Did Watson Succeed On Jeopardy By Infringing Copyrights?
[Via Techdirt]

An anonymous tipster points us to a really interesting comment by Peter Hirtle on a Laboratorium.net post discussing Watson, the Jeopardy-playing computer, where he asks whether or not Watson infringes on copyrights:

From IBM’s Watson Supercomputer Wins Practice Jeopardy Round in Wired Magazine: “Researchers scanned some 200 million pages of content — or the equivalent of about one million books — into the system, including books, movie scripts and entire encyclopedias.”

It seems unlikely that IBM got permission to scan one million books. Can we expect soon a lawsuit from the Author’s Guild against IBM and the producers of Jeopardy! (which, after all, is profiting from this scanning)?

This is a really good point and (once again) highlights the ridiculousness of copyright in certain circumstances. Of course, your viewpoint on this may depend heavily on whether or not you believe Google’s book scanning infringed on copyright (I don’t). But, for those who do, do you believe that IBM’s scanning of books does infringe? Technically, it’s the same basic process. In fact, you could argue that with Watson it’s much more involved, because Watson then actually made use of the actual data to a much greater extent than Google did with Google books.

[More]

This opens up some interesting legal aspects. Inputting all that data into Watson involved copying lots of books, books protected by copyright from being copied. That information stored in those books just won Watson $1 million (which was donated) but also gave IBM millions in free publicity for the success.

A success insured by violating the rights of authors. Watson would not have won without the hard work of all those writers whose works appear to have been simply copied without their input. All to make more money for IBM.

IBM had better have gotten permission or I expect a big cease and desist order to appear. But then a lawyer could make the argument that the process the IBM techs went through was a transformative one, changing the copyrighted works into another form. If so, then copyright is not maintained.

Our copyright laws are so stupid.

Dead cop still certifying tickets

Dead Baltimore Cop Signed and ‘Certified’ Red Light Camera Tickets
[Via Techdirt]

Joseph was the first of a few of you to point us to the story of how the police in Baltimore have been sending out thousands of redlight camera tickets that were signed and certified by a police officer who died last fall. The law requires that each of the tickets be reviewed and certified by a human before being sent out. The fact that they were done so by someone who was deceased for many months would seem to suggest that no one was actually reviewing these tickets. The police department insists that it was just a “computer glitch,” and that the tickets were reviewed and certified, but they seem to be saying “trust us.” I would imagine that anyone who got one of these tickets is likely to be able to get out of it in court by pointing to the deceased officer’s “certification.”

[More]

Looks like it was a nice scheme while it lasted. But now we know – it is very unlikely that anyone actually looked at the tickets or else why would a dead cop’s signature be on them.

Red light cameras seem like such a racket.

No Windows ecosystem, no Windows

broken windowby Editor B

Where is the Windows Phone Tablet?
[Via asymco]

The Windows Phone platform currently has hardware specifications that imply a cellular phone device. What is interesting in light of the new WebOS TouchPad, the newly announced Android tablets, the RIM Playbook and the iPad is that this supposed “third horse” of Windows Phone has no hint of presence or future presence in the tablet form factor.

That might have something to do with the plans to move Windows to the tablet form factor. Perhaps Microsoft thinks that pocket size devices deserve a separate operating system, platform and ecosystem than portable mobile computers. Perhaps Microsoft plans to have two separate interfaces for these tablets (slates vs. tablets?) Then again, Ballmer held up a Windows Phone and said “This is Windows too.”

It gets confusing.

[More]

Apple has created an almost seamless ecosystem from mobile devices to desktop, from tablet to laptop. The operating systems are very similar – essentially just subsets of each other. Developers can create apps very rapidly.

They can create an app for a cell phone, move it to the tablet and then, with just a few man-hours, be ready to sell it for the desktop. And they can sell huge numbers of units. Selling more in 20 days than in the previous year gets people’s attention.The app economy is supercharged by Apple.

No one else can provide this. Not Android, with its fragmented market on mobile devices and no robust desktop model. Not Microsoft with its different OS for mobile and desktop.And no easy way for developers to move between them. And no tablet strategy at all.

I do not think Microsoft will ever be able to catch up with this ecosystem Apple has created. It may just end up a gaming company.

Another nail in the denialist’s coffin even as they continue to rise from the dead

mansionby cliff1066™

Distributed computing project blames floods on climate change
[Via Ars Technica]

Has climate change already caused extreme weather events? It’s a tough question to answer, and not only because the public debate over the prospect has been hotter than the climate itself. A couple of papers in this week’s edition of Nature attempt to tackle the issue and show that extreme weather events are becoming more common in our warming world. In one case, the challenge of doing so was so high, it was “beyond available conventional supercomputing resources,” so the researchers turned to a distributed computing system that ran climate models as screensavers.

Logically, a warming climate would be expected to increase the rate of extreme weather events. A higher atmospheric temperature represents an increased energy content; it can also mean an increased content of water vapor, which could lead to excessive precipitation. Still, extreme weather events have been with us throughout Earth’s history, so attributing any single one to a warming climate isn’t a simple thing.

[More]

Two nice papers that look at two different things – 1) climate trends in the Northern Hemisphere ; and, 2) recent flooding in England. Both indicate that the increase in extreme weather events is best explained by anthropogenic warming.

They add a nice drapery or two to the mighty mansion that is the scientific model of climate change.

Science works by constructing models to explain the natural world. These models often start out as crude lean-tos, providing a little shelter while more investigations are done. Often new research allows a crude hut to be created but many times the whole structure has to be torn down as new information reveals its flaws.

As time goes on, a very robust house emerges, one that does a good job explaining the world. As more information is examined, the house gains is stature, adding stronger walls and more bedrooms. If the foundation is strong, the model created by science can weather most any storm that comes against it.

In fact, the stronger the storm , the stronger the structure that survives.

The model for climate change has had very strong storms hurled against it by those with the most to gain by its destruction –  climate scientists with alternative models who want their own hut to become the mansion.

They have so far failed. Now we are to the point where every investigation serves to enhance the house, perhaps adding a few draperies to the interior design.

Read the comments at Ars. There are no serious arguments against the new papers themselves. Only rehashed old ones. Stating a priori that models cannot be believed under any circumstances reveals a tremendous misunderstanding of science. Saying there are conspiracies between scientists so that the data can be ignored reveals a disdain for how research works and a desire to refrain from any further investigations.

All science is based on models because all we can do is construct our best simulacra of Nature. We do not yet have the ability to create Nature in its fullness. The best models, the best mansions, survive because they come closest to Nature and allow us to examine truthfully the world around us.

Or as close to truth as we can get. And scientists always strive to get even closer.

Denialists do not strive to get closer to truth, to gain a better understanding of nature. They inhabit Cargo Cult Worlds where further investigation is simply stopped. They create a world where certain facts can be ignored, allowing them to simply stop trying to understand. Because to understand would result in the end of their Cargo Cult World, just as the scientist’s hovel is torn down by new facts.

Rational people realize when facts no longer match their model of the world so they change the model. But not denialists. They’d rather remain in their hovels in their Cargo Cult Worlds.

These people really do not want any further investigations or to gain a firmer  understanding of the world. For them, ‘Here be Dragons’ and they go no further. They often fit directly into Carlo Cipolla’s defintion of stupid: “A person is stupid if they cause damage to another person or group of people without experiencing personal gain, or even worse causing damage to themselves in the process.”

As I mentioned before, stupid people are the most dangerous to our society. Skeptics are not stupid. But denialists almost always are.

Skeptics want to learn more, to find out what is actually going on. Denialists never want to learn more because the Cargo Cult World they have constructed requires that they do not. To learn would mean tearing down the Cargo Cult World.

They are happy to remain in their huts in their Cargo Cult Worlds, throwing rocks at the windows of the mansions created by scientists. They imagine that breaking a few of these windows means the entire mansion is destroyed. All that happens is that the windows get replaced, often with stronger glass.

Denialists have not been able to do much damage to the mansions that represent the best scientific models, such as evolution or climate change. Scientists would have prevented the mansions from being constructed long ago by their own much more potent axes, backhoes, and shaped-charges.

What denialists have been able to do is convince some people that it is better to live in the leaky hut residing in their Cargo Cult World than in the mansion of the natural world.

That is the real harm of denialists and their Cargo Cult Worlds. A society that embraces the stupid is a society that will fail.

Superbowl a waste of money for Android

moneyby photosteve101

Biggest 2011 Super Bowl ad loser Android’s lesson: Don’t mess with Apple
[Via MacDailyNews]

“Repetition and the reliance on a winning formula were the keys to success in this year’s Super Bowl. And no, we’re not talking about the Green Bay Packers passing game or its tenacious blitzing defensive schemes. We’re talking Doritos and Snickers, this year’s clear winners in the annual YouGov Polimetrix BrandIndex study of the Super Bowl, which measures the brand buzz gained in the days following the game’s very expensive commercials,” Michael Bush reports for AdAge.

[More]

Yep, Android showed the biggest drop of any advertisers. Not a good use of money. The ads served to drive down interest in Android, not increase it.

What is interesting was the demographic breakdowns. Number 1 Snickers were huge for women, going up almost 15 points. For men it was Doritios that went up 19.

Both liked cars but for women, the best was  Hyundai while for men it was the Kia. Chrysler did well with both; in fact, going from  -0.3 to 7.8 for men.

The 18-34 demographic loved the Snickers ad, lifting the brand up a;most 30 buzz points to the highest for any brand. They also loved the E-trade babies, as well as the premium cars, Chrysler and BMW.

For the 35-49 demo, Go-Daddy was number one.Must love the sex innuendos or really love Joan Rivers. For the 50+, Doritos was number one. But they already loved them going from  23-33 buzz points.Yep, the old folks saw the least amount of change in their choices based on the days following the ads. The number 10 for the youth demo shot up  12.2 points which was higher than the oldsters best.

Not too surprisingly, ads work best on youngsters.

As for the bottom 5 – I’d think most were in the range of error. Coke went from 26 to 24. At 26 it is already one of the highest positive brands to begin with. Even down to 24 it is still higher than all the top ten except for Doritos and Snickers. Its doing alright.

Same with Bud Light and Chevrolet. Just msall drops. But GM saw a drop twice as large as the others going from 10.3 down to 4.4. Its 10.3 would have put it way up in the before.Its drop was pretty signficant.

And Android dropped  almost 8 points!

Bug lets humans grab Daily Double as Watson triumphs on Jeopardy

bugby odolphie

Bug lets humans grab Daily Double as Watson triumphs on Jeopardy
[Via Ars Technica]

Note: In this article, Jeopardy’s “answers” are referred to as “questions” and vice versa.

The humans tried to hold on in the second game of Jeopardy against the IBM computer, but ultimately were no match. Watson finished with a two-game total of $77,147 to Ken Jennings’ $24,000 and Brad Rutter’s $21,400. Jennings and Rutter managed to make a larger dent in Watson’s progress in the second game, but the computer managed to take both Daily Doubles away from the human contestants, not affording them enough of an opportunity to make up for Watson’s $25,000 lead from the first game. Still, there were a few aspects of the game that gave the humans some ins, including a bug that let Ken Jennings score the first Daily Double.

During a panel at Rensselaer Polytechnic Institute’s Experimental Media and Performing Arts Center, Dr Chris Welty, a member of Watson’s algorithms team, noted that the start-and-stop nature of filming the episode got Watson mixed up and allowed a bug to surface. Watson begins every round looking for Daily Double clues, because they are crucial to progress in the game. After one filming pause in the first round when Watson had been made to stop and then pick up again, Welty said Watson began again thinking the Daily Double had already been found. So it stopped looking for the clue, allowing Jennings to find it first.

[More]

This article does reveal one of the really important aspects of Watson – it uses gaming strategy throughout. So, it starts by looking for Daily Doubles. Almost every other contestant starts by taking the easier ones to get confidence about the category.

Ken Jennings won so many games because he was one of the few to pursue a search for the Daily Double strategy. This is a very strong approach because if one gets them there is a two-fold benefit – one gets to add a large amount of money to one’s account, potentially removing any chance of capture in Final Jeopardy; and, it prevents one’s opponents from doing the same. Getting one or two Daily Doubles, in the right situation, can put the game away.

Even if the Daily Double is the first thing one finds, it still prevents an opponent from using it to catch up.

It is not a coincidence that Jennings got one Daily Double yesterday and also had a total amount close to what Watson had for the day. Whoever finds the Daily Doubles probably has a huge chance of winning. Then after getting a lead with those, eat up the chances of anyone coming back by chewing up the rest of the board.

I also bet that Watson is much better at situational gaming. If he uses up all the high values looking for the Daily Double, he prevents his opponents from having any chance of coming back. I’m sure that Watson easily can figure out the total amount of money left on the board at any time, allowing him to make the best possible bet based on his amounts and his opponents. Add in better confidence levels and the ability to NOT buzz in when not certain enough and you have a pretty potent contestant.

A human can have a hard time with this. So, even if Watson was not getting an advantage with the buzzer, as some have discussed, it had a much more sophisticated strategy for the game than most humans and also could play situational Jeopardy better than they could.

I’d expect that searching for the Daily Double will become a much more common strategy for winners on Jeopardy.

Using RFID as an e-wallet is so passe

Use of RFID in Apple’s iPhone 5 expected to have a ‘unique’ twist
[Via AppleInsider]

Apple is expected to include near-field communications technology like radio-frequency identification (RFID) in its next-generation iPhone, but with a different approach to the feature than has been seen in RFID-powered Android phones, according to a new report.

[More]

You bet Apple will have something new to offer. Others offering RFID in their phones have all looked to use it with a, so far, failing approach – swipe it past a receiver at the checkout line and it’ll pay for your groceries, for example. I bet Apple’s will do the same.

But swiping will be the least of what this will do, I think.

Apple will be doing something different. One suggestion, with the right permissions and security, you can sit down at any Mac with your iOS device handy and boom, and the Mac is configured for you, with all your settings in place. Access email, get your calendar, etc.

Think about that in an enterprise setting. Any Mac in the building could be instantly. Sit down, turn it on and you can access the corporate databases just as though it was your own computer. Think this might sell some computers. ANd which other hardware maker could tie together its own desktop and its own mobile device?

This is another benefit of having created its own ecosystem from mobile devices to desktop.

We will not be on the road to recovery until these guys are in jail

Wall streetby epicharmus

Why Isn’t Wall Street in Jail? | Rolling Stone Politics
[Via Rolling Stone]

Over drinks at a bar on a dreary, snowy night in Washington this past month, a former Senate investigator laughed as he polished off his beer.

“Everything’s fucked up, and nobody goes to jail,” he said. “That’s your whole story right there. Hell, you don’t even have to write the rest of it. Just write that.”

I put down my notebook. “Just that?”

“That’s right,” he said, signaling to the waitress for the check. “Everything’s fucked up, and nobody goes to jail. You can end the piece right there.”

Nobody goes to jail. This is the mantra of the financial-crisis era, one that saw virtually every major bank and financial company on Wall Street embroiled in obscene criminal scandals that impoverished millions and collectively destroyed hundreds of billions, in fact, trillions of dollars of the world’s wealth — and nobody went to jail. Nobody, that is, except Bernie Madoff, a flamboyant and pathological celebrity con artist, whose victims happened to be other rich and famous people.

[More]

If you want a discouraging look at what is wrong with America and how the very wealthy are different than us – because they can fraudulently destroy entire nations, commit crimes that investigators can prove and never go to jail.

Read about AIG and Joe Cassano. This is partly why our system is so screwed up, why the corruption of money not only affects our legal system but our political. A different brand of justice for different types of people, while often present, is very corrosive when it is so blatant.

Nothing will be done because they own the government. We see this when so much of what the government wants to do is make life easier for these guys rather than charge them with crimes. Give these frauds more tax breaks and never do anything about their crimes. Let them control our Social Security because they need those trillions of dollars to jack up their bonuses at our expense.

How in the world can anyone expect privatization of Social Security could be a good thing with these crooks in control? Their only concern is their own wealth. They know they can fraudulently lose all our money while accomplishing their personal goals. No one will stop them.

No one seems to understand digital business models

newsletterby SFTHQ

Google launches ‘One Pass’ for publishers as Apple’s iOS payments frustrate
[Via AppleInsider]

Google on Wednesday announced a new Web subscription service for publishers called “One Pass,” in which the search giant will keep just 10 percent of revenues in transactions, compared to Apple’s 30 percent cut of iOS content.

[More]

Reading the commentary on much of this is pretty interesting. I am not a business expert but here is my take.

At the moment, publishers need a certain amount of subscriber payments, selling of personal data and advertising income (maybe a few others) to pay for the infrastructure and fixed costs of their business. Every subscription past that represents profit. Any subscription below that and they lose money.

So, for each subscriber above that floor, what is the marginal cost for servicing them? If it is all digital, the marginal costs rapidly decrease to zero. The main costs will come from finding the new subscribers.

For every subscriber that they now add, how much marketing, etc. do they have to pay? Would it be fair to say that for every $1 of income they get for each new subscriber, they spend more then 30%? If so, then getting subscribers through Apple would be cheaper than doing it themselves.

Netflix recently lowered their overall subscription acquisition costs to $20 per new subscriber. But just a few years ago these costs were over $45 a subscriber. At $10 a month, it would take 15 months of revenue from the subscriber before their acquisition costs to  drop below 30%. Yet Netflix still made close to $50 million in profits. So subscriber acquisition costs of 30% can still result in large profits, even from Netflix.

Perhaps new subscribers from the Apple App Store are now more expensive to Netflix than ones they get themselves.  But these subscriptions are initially additional ones that they had to do no work for and incur no other expenses. So, getting $0.70 for each subscriber without having to spend any money at all is $0.70 they did not have before. Through very little added cost to the publisher.

This is all found money for them with one big caveat –  they must maintain enough ‘full’ subscribers on their own to meet their fixed costs. Where they might get hurt is if all their subscribers moved to the App Store, if this moved them below their fixed costs. It would also in one fell swoop make their “acquisition costs”  30%.

Their main worry it seems to me, which I have not seen raised, is what affect this has on their retention costs. These are harder to find broken out and there are all sorts of myths about how much cheaper it is to retain than acquire.

How much per subscriber do the publishers spend to retain a subscriber? Through Apple it would be 30%. This might be higher than before but it is hard to find good numbers.

This report looks at acquisition vs. retention under different business models. Not wanting to pay $45 for the full paper, the abstract does tell us that even if acquiring a new customer costs 5X more than retaining, it all depends on whether average or marginal costs are being looked at. If one is looking at marginal costs, then the organization should spend more on retention that it is currently.

I feel that the 30% cut to Apple for retaining subscribers may be harder for the publishers to swallow than the 30% for acquiring. But I think they just have to be a little inventive here.

They have to look at their business model and see if they can find ways to attract full ride subscribers. Or lower fixed costs so a 70% cut will still provide them a profit.

Where this all gets turned on it head is for new digital publishing models. How about writers forming a collective magazine? Or a financial newsletter? It would be very hard for small subscriber-based efforts to get the money to produce an analog version.

But a digital format to millions of possible subscribers? That might work. Say five writers get together and publish a newsletter every week for $0.99. After Apple’s cut, they would have $36.40. Get 10,000 subscribers and that results in each of the 5 grossing $72,800.

And there might be a business opportunity for a company to store and package these newsletters for Apple subscribers. Maybe create an app to aggregate purchases of all these newsletters.This could then really lower the fixed costs for the newsletter authors.

This is an opportunity for new people to create novel business models. Not to simply move old ones into a new place.

More ramifications of the poor security at HBGary

FoxNews.com – Anonymous Hackers Release Stuxnet Worm Online
[Via Fox News]

The group of anonymous “hacktivists” that made headlines for online cyberattacks in December just released a bombshell online: a decrypted version of the same cyberworm that crippled Iran’s nuclear power program.

[More]

Amongst the files found when Anonymous infiltrated the HBGary servers, using pretty simple techniques, was this one.

Makes one really wonder about sophisticated cyber-espionage when a security company who has had ties with the NSA and others can so easily be broken into. It is like hearing that the plans for the stealth bomber were stolen from the file cabinet by drilling the lock. The breakin was pretty simple stuff.

And they were mainly able to do it because the CEO and COO appeared to disregard standard security protocols with passwords. Kind of bad for business when the guys at the top are the idiots who fail.

What were they doing with stuxnet to begin with? They received it in July 2010, shortly after its discovery. Interestingly, by September, it was ready to deny that it knew anything about the worm.

I wonder if anyone at the NSA is sweating about what else Anonymous may have found lying around the HNGary servers? Just think about what might have happened if Anonymous had gotten stuxnet before it brought down the Iranian nuclear effort?

Now think about what might happen with stuxnet or other information now in the hands of hackers like Anonymous.

One should not piss off hackers when one’s own house is so poorly protected.


How not to protect your computers when you are a computer security company

anonymousby munichnom

Feature: Anonymous speaks: the inside story of the HBGary hack
[Via Ars Technica]

It has been an embarrassing week for security firm HBGary and its HBGary Federal offshoot. HBGary Federal CEO Aaron Barr thought he had unmasked the hacker hordes of Anonymous and was preparing to name and shame those responsible for co-ordinating the group’s actions, including the denial-of-service attacks that hit MasterCard, Visa, and other perceived enemies of WikiLeaks late last year.

When Barr told one of those he believed to be an Anonymous ringleader about his forthcoming exposé, the Anonymous response was swift and humiliating. HBGary’s servers were broken into, its e-mails pillaged and published to the world, its data destroyed, and its website defaced. As an added bonus, a second site owned and operated by Greg Hoglund, owner of HBGary, was taken offline and the user registration database published.

Over the last week, I’ve talked to some of those who participated in the HBGary hack to learn in detail how they penetrated HBGary’s defenses and gave the company such a stunning black eye—and what the HBGary example means for the rest of us mere mortals who use the Internet.

[More]

This is a really interesting story regarding the details of a computer hack. What is surprising, and yet not so surprising, is that even a company devoted to computer security issues can have people who are just human.

HBGary was hacked not by sophisticated or arcane tools but by some of the simplest bolts in the hackers quiver: unpatched servers, poor passwords, reuse of passwords across systems and social engineering.

These allowed Anonymous to gain more and more information until it had the ability to root the servers, gaining access to the website, databases and even company emails.

Even some rudimentary precautions would have prevented much of this. But humans are humans and that is what hackers rely on most.

I imagine that there are a lot of  organizations having security audits done on their systems right now. As with many things, you may not be able to stop a determined thief – I remember reading about someone using a networked fax machine to get into the mainframe and root it, getting complete access – it is possible to slow them down enough to make it not worth their time.

Here, though, a security company that was not very concerned with its own security. Ironic.


Follow

Get every new post delivered to your Inbox.

Join 166 other followers