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Bitcoin has split, and there are now two versions of the popular cryptocurrency – Quartz

Bitcoin has just undergone a contentious hard fork that cleaved it into two separate entities for the first time in the cryptocurrencys nearly nine-year history. In addition to the first version of bitcoin, there is now a new cryptocurrency called bitcoin cash that offers an eight-fold increase in transaction capacity.

For the last several years, the bitcoin infrastructure has been struggling to handle a growing number of transactions, and technical experts have said a new implementation of the currency will solve its back-logging issues.

That is what bitcoin cash promises. Like the original bitcoin, it uses the currencys principal innovation: the blockchain, an immutable ledger of all the transactions ever performed with the cryptocurrency. Now that there are two versions of the ledger, however, there could be some practical problems, like vanishing coins, and philosophical ones, like a communal agreement on which blockchain represents the one, true, bitcoin.

The first bitcoin cash block on its own blockchain was successfully created at exactly 2:12 p.m. ET, and the new currency is already trading at $210 USD per coin.

Read next: Bitcoins civil war threatens to blow up the cryptocurrency itself

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Is A Cryptocurrency Like A Stock? The SEC Weighs In – Seeking Alpha

When it comes to regulation, what exactly is a cryptocurrency? Is it a currency? Is it a piece of software? Is it more like an equity? And if it is an equity, does that mean it should be regulated like any other security?

The U.S. Securities and Exchange Commission (SEC) recently weighed in. How regulators like the SEC define and treat cryptocurrencies is important because it affects both the value of cryptocurrencies, and how likely it is that blockchain technology will thrive in a particular jurisdiction. For example, if a countrys regulatory body decides that cryptocurrencies should be banned, then this will drag down prices (depending on the size of the country) and blockchain technology companies will avoid setting up shop or investing there they wont feel welcome.

The SEC has been notably quiet on the subject of cryptocurrencies. Other regulatory bodies and governments, primarily in Asia, have been extremely proactive in outlining how they will treat and regulate bitcoin and cryptocurrencies as an asset class. In May, I told you that the SEC would eventually step into this market, "especially as the financial stakes increase". Now, it looks like the SEC is on the ball.

Earlier this week, the SEC issued the results of an investigative report into the details surrounding a cryptocurrency initial coin offering ("ICO") called the DAO in the first half of 2016. An ICO is when a new cryptocurrency token is offered for sale to the public, similar to an initial public offering ("IPO") in the stock market.

The DAO intended to be a fully decentralized cryptocurrency venture capital fund. It would raise money (in the form of a cryptocurrency called ether), issuing DAO tokens in return. It would then allocate those raised ether funds to various business ventures by way of voting amongst the DAO token holders.

The DAO raised US$150 million worth of ether from some 11,000 investors. But then disaster struck. Despite assertions that the DAOs code had been analyzed by one of the worlds leading security audit companies and that no stone was left unturned during those five whole days of security analysis, DAO was hacked. US$50 million of ether was stolen.

The SECs investigative report wasnt about trying to identify the culprit behind the attack. Instead, it was focused on whether or not DAO tokens constituted a security (that is, a stock) and should therefore be regulated under existing securities laws.

The straightforward answer is maybe. The fact is, every cryptocurrency token has its own attributes. As the SEC report put it;

U.S. federal securities law may apply to various activities, including distributed ledger technology, depending on the particular facts and circumstances, without regard to the form of the organization or technology used to effectuate a particular [cryptocurrency] offer or sale.

In other words, it just depends. But on what?

To answer that, we turn to the Howey Test, which was created by the Supreme Court as a means of determining whether certain transactions qualify as investment contracts.

[The test refers to a precedent from a case the SEC levied against Florida companies W. J. Howey Co. and Howey-in-the-Hills Service, Inc. that sought to determine whether or not a particular land-related deal constituted an investment contract under the Securities Act of 1933.]

If certain transactions meet the criteria, then they are deemed securities and subject to a raft of regulatory requirements. Without going through all the checks, Ill just include some of the pertinent ones that the SEC included in its report.

So, investing money (cryptocurrencies included) in a token with an expectation of profit (dividend or simple value increase) derived from the managerial efforts of other people points to a cryptocurrency being a security, and that its required to be regulated as such.

The report was a warning. The SEC stated that charges would not be brought against anybody involved with the DAO. But that the report serves to caution the industry and market participants.

Given that there are no charges to be brought against the DAO, its likely that existing cryptocurrencies are safe from securities regulation for now, although that wont be the case for long. The primary focus of the SEC will be newcomers to the market, with the starting point being the Howey Test criteria, some of which are listed above.

There has been little to no impact on the broader cryptocurrency market from this report from the SEC. As someone whos personally been involved in the cryptocurrency token distribution process, the Howey Test is already a key component of any legal diligence on a cryptocurrency.

However, some cryptocurrencies are flying a little too close to the sun, especially those that specify dividend-style payouts for token holders. The SEC is very clear that just because something is virtual, it doesnt exempt it from being a security. And when cryptocurrencies inevitably start falling under SEC jurisdiction, investors (particularly U.S. investors) will need to ensure that whatever they are buying is compliant with U.S. securities laws.

So you shouldnt invest in cyrptocurrencies on the assumption that they arent (or wont ever) be deemed securities. And when you evaluate different blockchain companies that issue their own cryptocurrencies, check the characteristics against those Howey Test criteria. SEC regulation was always expected to occur sooner or later, and this SEC report didnt contain anything out of the ordinary it really just reiterated the criteria with which cyrptocurrencies will be measured with when it comes to regulation.

But I suspect we will start to see more global cryptocurrency offerings that specifically prohibit U.S. investors because nobody likes having to deal with U.S. regulations if they can avoid it. Still, I dont envision this having any big impacts on general cryptocurrency prices in the immediate future.

Disclosure: I am/we are long BITCOIN.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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investFeed switch to cryptocurrency token sale brings mainstream demographics on board – Crypto Insider (press release) (blog)

This is a sponsored piece.We encourage thorough due diligencefrom our readers before acting on any given information.

investFeed is a New York based community powered social trading network making the switch from US equities to cryptocurrency. Marketing itself as the worlds first social investment network for the cryptocurrency community, investFeed aims to develop cryptocurrency infrastructure for the industry. This is establishing a much-needed framework ready for the mainstream adoption of cryptocurrency.

Their pivot to digital currencies is described as a key move to cater to an exponentially growing industry, Weve been a social investment platform since 2014 and over the last few months weve had a huge demand from our user-base to integrate cryptocurrencies onto our platform We really see that [cryptocurrencies] are the future going forward, said Ron Chernesky, investFeed CEO on the live Post-Cable Network, Cheddar. Keeping the momentum and buzz around the token sale up, last week the investFeed team announced that they brought on ex-NFL football player, Jovan Haye, as an investor as well as emerging technologies and blockchain-focused VC entrepreneur, Steven Neryaoff, as an advisor.

On the point of corporate interest, one of Crypto Insiders recent pieces noted that there was huge increase in cryptocurrency attention from the Big Four accounting firms. Deloitte, EY, KPMG and PwC reps all stated that both existing and prospective clients are beginning to ask questions about initial coin offerings (ICOs), the process by which public blockchain technologies can be leveraged to create custom cryptocurrencies that are subsequently sold to fund projects. With investFeeds platform supporting cryptocurrency trading infrastructure, it has the potential to appeal to big enterprise looking to jump into the market.

CTO Drew Freeman was quoted on Finextra to have said, The switch from equities to cryptocurrencies will also target a millennial user base that has shown disinterest in traditional investments. So while the big movers of the corporate world are turning their focus to the crypto market and enterprise-facing players, investFeed has the potential to also capture the attention of the sizable youth demographic, empowering them through the decentralization featured in blockchain technology capitalizing on the best of both worlds in the process.

Having been involved in US equities trading since 2008, one thing that can be said for investFeed is that their team has a track record of operating as a cohesive unit which is in sharp contrast to the majority of token sale groups capitalizing on the ICO bandwagon. The platform will introduce old-school and traditional stock traders to the fast-paced world of cryptocurrency market investment in a familiar way through the investFeed skin and tools.Despite the ICO craze slowing down, investFeed has a high possibility of reaching its target they have a solid track record, a detailed whitepaper and a reasonable hard cap at 28,000 ETH. At the time of publishing, investfeed has raised 35% of its limit, and has until August 7th, 2017 when the sale closes out.

Featured image sourced from Wikimedia commons

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Top 5 Internet Security Practices to Staying Safe Online – The Merkle

When Tim Berners-Lee was designing the technology that would herald the Information Age, he searched for a name that would complement the intricate network of linked pages and sites. He eventually settled onthe termweb, which is how the World Wide Web got its name.

However, the words web and net both have negative connotations. A web is what a spider weaves to trap unsuspecting flies, while a net is used for catching fish. If you know anything about Snowdens leaks, you would realize how apposite the name is.

Thats right! The World Wide Web is one giant trap that lures in more than two billion flies every year. It is a place where everything you do leaves a digital trail. And that trail leaves you open to monitoring and surveillance.

So what must you do to feel at ease whilewillingly wandering around this web? Here are a few things you can use more cautiously to keep your personal data safe from online snoopers:

Search engines log your browsing history, geo-location and preferences, and then build your personalized profile. Your profile is then sold either to third parties that want to sell you their products or to law enforcement agencies. Make it a point to use a search engine that does not log your history and keeps your browsing activities private.

Today, we use clouds to store all sorts of personal data from photos and videos to office memos and Excel sheets. However, using cloud services based in the U.S., UK and France and a number of other countries can leave your personal data open to snooping. Thats because these countries are known to be tolerant to snooping by law enforcement agencies. Hence, make it a point to check which country yourcloud service is based in, and dont forget to read itsterms and conditions before you start saving data on it.

When it comes to emails, simply follow one rule: DO NOT use free emails services! Free emails are abundant, and that in itself is quite suspicious to begin with. However, you want to know what should be more suspicious? A U.S.-based free email service. Yes! Any email service based in the U.S. or UK is a no go since theyre more vulnerable to government surveillance and snooping in the name of national security. So instead of going for a free email service, try out a paid one.

For many movie junkies, the best type of entertainment is free. Its no wonder then why torrenting has become so popular over the years. However, with increasing DMCA scrutiny over torrentingactivities, it would really pay to remain anonymous when downloading your favorite movies and TV shows. One of the simplest, most effective ways to do so is with a Torrent VPN. A Torrent VPN shields your IP address and anonymizes your online activity so you can go about your daily online activities without the fear of DMCA scrutiny.

Lastly and most importantly, make sure you do not save passwords in your browser or on your desktop or hard drive. Instead, use a paid password-management app to save all your login credentials foryour favorite sites. While youre at it, make sure you work on password complexity by using a combination of uppercase letters, lowercase letters, and numerals. This will make them virtually impossible to crack.

As a rule of thumb, try to convince yourself that you can no longer trust any commercial company that handles electronic communication for free. And, with the recent surge in cybercrimes and government surveillance, it would certainly pay off to be extra vigilant when using the internet.

We hope you found these online security tips useful. Do let us know or leave us a comment to let us know what you think is the most important online security tip of 2017. Until next time, ciao!

Author Bio:

Anas Baig is a Cyber Security Journalist & Tech Reporter. He has been featured on major media outlets including TheGuardian, Lifehacker Australia, CIO, ITProPortal, Infosec Magazine, Tripwire and many others. He writes about online security and privacy, IoT, AI, and Big Data. If youd like to get in touch, please send an email to [emailprotected] or follow him on Twitter@anasbaigdm.

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Every day is Internet Security Day | Opinion | thenewsherald.com – Southgate News Herald

Being safe online is important every day.

There may be days devoted to internet security awareness, but you need to be careful every time you go online.

Do you know what it takes to be safe online? You probably connect daily to get information, shop, socialize or work. Every time you go online, you need to avoid the risk of theft or fraud. Here are some tips to use while visiting the Social Security website and the other websites you use.

Use Strong Passwords. Strong passwords have at least eight characters and include capital letters, numbers and non-letter characters. These passwords make it harder for someone to hack your account.

Dont Recycle Passwords. Although it requires effort to think of new passwords constantly, it provides safety when you do. What if you use the same password for every site and you lose your password? If someone finds it, they could get access to all your accounts. Many people choose to reuse dont be one of them.

Take Advantage of Multifactor Authentication. Many websites offer the option to use a second factor or method in addition to just a username and password to ensure that only you access your information. Using more than one factor to establish identity makes it harder for someone to get into your account and steal your personal information. Beginning June 10, Social Security now requires multifactor authentication to access a my Social Security account. Customers choose whether to receive a one-time security code to either their phone or email in order create a new account or sign into their account. Visit this link to find out more about how to secure your personal my Social Security account: socialsecurity.gov/myaccount/verifyandprotectid.html. Consider using multifactor authentication whenever its offered to protect your information.

Read Scam Alerts. For information about fraudulent activities related to Social Security, you can find information at our blog Social Security Matters under the Newsroom section at blog.socialsecurity.gov. One way to avoid identity theft is to create your own my Social Security account, if you havent already. When you have an account, no one else can set up an account using your information. Social Securitys Office of the Inspector General investigates fraud involving Social Security and they publish Fraud Advisories at oig.ssa.gov/newsroom/news-release. The Federal Trade Commission website publishes information about scams that appear in the news at consumer.ftc.gov/scam-alerts. Youll want to be aware of current scams to avoid being tricked.

Review Your Online Accounts and Credit Reports. Just as you review your earnings record with Social Security for accuracy at socialsecurity.gov/myaccount, you should review your bank and credit card accounts for accuracy. Get a free copy of your credit report available annually from the three credit reporting agencies Experian, Equifax, and Transunion at annualcreditreport.com and check it for incorrect entries.

Protecting your identity can be daunting. Guarding your personal information requires investing some time, but is worth it.

Discourage theft and fraud by adopting these security practices when you use the internet.

Erin Thompson is a public affairs specialist for the Social Security Administration.

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Security This Week: The Very Best Hacks From Black Hat and Defcon – WIRED

As they do every year, hackers descended on Las Vegas this week to show off the many ways they can decimate the internet's security systems. Here's a collection of some of our favorite talks from this week's Black Hat conference, including some we didn't get the chance to cover in depth.

Before the week even began, we took a look at how $15 worth of magnets could overcome a "smart" gun's protections, turning it into just a regular ol' gun. Similarly, a popular safe turned out to be anything but against a homemade robot safecracker. Also not so secure? Some of the popular tools hackers use to control other people's systems, which turn out to be riddled with vulnerabilities themselves. Radioactivity sensors are easy to hack and not likely to get fixed. Entire wind farms can be shut down or hijacked with some lock picking tools and a proof-of-concept worm. And a bug in a Broadcom chip that lives inside every iPhone and lots of Android devices ended up exposing a billion or so smartphones to Wi-Fi attacks. Yes, billion.

At least some people are doing it right. Netflix managed to DDoS itself, but on purpose, and to help other services defend against the same obscure (for now) attack. After months of trying, Google finally patched the tricky Cloak & Dagger attack that threatened Android users, and still does if you're not on Android O, which, uh, no one is yet. They also stopped some highly sophisticated malware, likely from a cyberarms dearly, that impacted a handful of high-value targets. Some researchers are open-sourcing a tool that might help fix the SS7 vulnerability that has plagued cell networks for years. But others demonstrated a cheap and easy way to ferret out zero-days from IoT devices, so it evens out. Also? Evil bubbles! Just trust us.

Otherwise, we watched shotguns shoot down some poor unfortunate drones. Which seems like an appropriate way to go out. Here are the rest of the talks we found interesting but didn't get to cover in depth.

Leave it to hackers to turn the wholesome American institution of the carwash into a horrifying death trap. Security researchers Billy Rios and Jonathan Butts have offered a vivid new demonstration the consequences of connecting industrial equipment to the internet, hacking an automatic carwash to close its doors around a victim vehicle and repeatedly strike it with the system's robotic arm. They found that they could locate 150 of the carwashes publicly on the internet, guess their default usernames and passwords, and even disable a safety feature meant to prevent the carwash's equipment from touching a vehicle. They convinced one family carwash to let them test their attacks, but didn't actually try them on a vehicle to avoid causing damage to the arm. But they did create a kind of proof-of-concept video (below) showing the carwash door repeatedly slamming on the hood of their pickup truck.

In September of last year, security researchers at the Keen Labs group of the Chinese tech giant Tencent pulled off an impressive feat of automotive hacking, completely undermining the security of a Tesla S to disable its brakes after it automatically connected to their rogue Wi-Fi hotspot. Tesla responded with a batch of security fixes, and even added a new security measure to its vehicles known as codesigning, which requires that any code installed on the car's head unit be signed with an unforgeable key held only by Tesla. Now, less than a year later, the same hackers have struck again, this time finding a path into the Tesla X's innards that works via not just a Wifi connection, but via a cellular signal, vastly increasing its range. And after defeating Tesla's codesigning protection and installing their own firmware on the vehicle to take control of its brakes, they added a wonderfully unnecessary flourish, captured in the video below.

One group of hackers has modernized the old party trick of the woman singing a high pitched note at the perfect frequency to break a wine glass. With nothing but soundwaves emitted from a small "gun" device they created, they were able to vibrate the MEMS sensors that function as accelerometers and gyroscopes that stabilize everything from quadcopter drones to hoverboards to the image inside an Oculus Rift headset. By merely firing resonant sound waves at exactly the right frequency at those devices, the hackers say they could cause the hoverboard to tip, making the image inside the Oculus shake nauseatingly, and potentially knock a drone out of the sky. But the hackers, who work for Chinese e-commerce firm Alibaba, didn't exactly carry out all those dramatic attacks; They tested their drone hacking technique on a non-moving drone with its rotors removed for safety, and had to install the sonic emitter inside the hoverboard's case to make that attack work. But they argue those demos nonetheless prove their attack works, and could be made more powerful with larger, more expensive sonic equipment.

On Wednesday, FBI Cyber Division Unit Chief Tom Grasso gave a Black Hat audience details of the December Avalanche takedown orchestrated by a group of international law enforcement agencies. It took four years of work to eliminate the sophisticated online criminal infrastructure known as "Avalanche." The platform could act as a botnet, and was also used to power malware distribution, launch phishing attacks, and move stolen money. The initiative involved sinkholing more than 800,000 malicious domains, Grasso said, and in January 2016 when Avalanche administrators moved one of their private domain registration servers from Moldova to the US, officials got a search warrant and ultimately accessed administrator email addresses and a list of more than 200 clients.

Grasso particularly emphasized the crucial role of international cooperation in the operation. In addition to the necessity of law enforcement collaboration, the private sector also contributes to the FBIs cyber crime work, offering everything from threat intelligence to technical help. In the case of Avalanche, numerous third parties including the Shadowserver Foundation and the German application research firm Fraunhofer contributed to the investigation. And Grasso made a plea for further assistance. If you think you want to go out and take down a threat yourself but youre like, I dont know if that would be legal, we can make it legal for you to do that. We can take your good ideas and formulate them into a sound legal plan.

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‘Internet of things’ hackers raise cloud of fear – E&E News

Attendees at the DEF CON security conference in Las Vegas last week hacked into voting machines, including this model last used in the mid-2000s. Blake Sobczak/E&E News

What do a car wash, a smart meter and a voting machine have in common?

They can all be hacked.

While most devices built on computer code can be broken, researchers at last weekend's DEF CON security conference in Las Vegas said fixing a hacked device has separate challenges. That creates big headaches for operators of critical U.S. infrastructure, including the electric grid, as connected devices fill every corner of modern life.

Jeff Debrosse, founder and CEO of NXT Robotics Corp., which provides robots for data centers and energy companies, said the threat of rogue devices is growing. "The internet is going to be swamped."

Debrosse told E&E News his robotic brainchild, modeled after a Mars rover, is designed to be a "series of connected devices," including cameras, motion sensors and a microphone.

"Unfortunately, the smallest devices just can't be updated, so [security] is going to have to happen in the network," he said, noting that he has added encryption to the communications protocol used by his own product, among other measures. "As a community, we have to figure out how to get that done, because it's coming our way."

The U.S. East Coast caught a glimpse of that dire future last fall, when attackers drew on raw computing power from thousands of hacked electronics to briefly knock down a core pillar of the internet. That "distributed denial-of-service" attack hobbled Dyn, a company that routes traffic to popular sites like Twitter and Grubhub (Energywire, Oct. 25, 2016).

With Dyn offline, casual web users were effectively blocked from reaching swaths of the internet.

"The internet of things terrifies me," said Craig Williams, senior technical leader and outreach manager for Cisco Talos, part of Cisco Systems Inc. "There is no quick solution. We've got devices out there now that are going to be vulnerable, that will have no company around to patch them."

The potential for thousands or even millions of hacked devices to be bundled together in a "botnet" for cyberattacks has set off alarm bells at government agencies and private companies.

When the powerful Mirai botnet of hacked cameras hit cybersecurity journalist Brian Krebs' website last September, power grid operators took note. The North American Electric Reliability Corp. published a rare warning about growing risks posed by the "internet of things."

The subsequent attack on Dyn drove home the danger to utility executives eager to avoid seeing their own "smart" electronics drafted into some hacker's army.

This outdoor security robot from NXT Robotics is an "internet of things" amalgam stitched together with cameras, microphones and digital sensors. Blake Sobczak/E&E News

Energy companies have separately turned to the "industrial internet of things" for efficiency gains in operational networks, though so-called IIoT technologies can carry many of the same security flaws as their consumer-grade counterparts.

"If you are going toward the new concepts for example, 'industry 4.0' or 'IIoT' or whatever well, you have to do it right," said Vladimir Dashchenko, senior security researcher on the critical infrastructure defense team at Russia-based cybersecurity firm Kaspersky Lab.

In a presentation at DEF CON's "IoT Village," Dashchenko laid out bugs he found in several IIoT software products used in multiple sectors and potentially "thousands" of control system environments. As he spoke, hackers at the back of the conference room competed to find faults in everything from smart refrigerators to drones.

Rep. Will Hurd (R-Texas), who visited DEF CON with his colleague Rep. Jim Langevin (D-R.I.) on the House Homeland Security Committee, stopped by the IoT Village and the neighboring "Industrial Control Systems" Village, the latter replete with a home-hacking contest and a realistic mockup of a chemical plant.

"One of the things that I learned is the length of time that these critical components within critical infrastructure are in place," Hurd said on the sidelines of the conference. "These things are designed to last for 20, 30 years. It's just one more thing that you have to take into account."

Eventually, cyberthreats will outpace even well-crafted, internet-of-things devices, according to Katie Moussouris, founder and CEO of Luta Security.

"Old hardware can't keep up with newer security technologies," Moussouris said.

That raises a thorny question for policymakers and IoT companies: Where do they go to die, when it's appropriate for them to die from a security standpoint?

For many IoT systems, there is no simple "off" switch to prevent them from being exploited for eventual use in wide-scale cyberattacks like the ones on Dyn and Brian Krebs. The devices may continue to beacon out to the internet long after their useful life, waiting to be hijacked.

Joseph Mlodzianowski, vice president of training firm Aries Security, deliberately connected IoT devices to the hostile WiFi networks at DEF CON as an invitation for hackers to try their hand. His "sheep city" in the conference's Packet Hacking village included a connected train system, garage door opener and a smart meter that, when hacked, shut off lights to half of the model town.

"All IoT devices lack security," Mlodzianowski said, adding that his mantra is, "you can't spell 'idiot' without 'IoT.'"

Policymakers have tried to address some of the security problems plaguing the IoT space. At least nine federal agencies, from the Federal Trade Commission to Department of Homeland Security, have offered some level of IoT-related guidance, "often on data security and privacy," according to a recent report from the Government Accountability Office.

Congress has also taken note. Hurd told a crowd of DEF CON attendees Sunday that he would push for a hearing on IoT, particularly as "smart" and autonomous vehicles start to become a reality.

"Connected cars is the subsection of IoT that most members [of Congress] can wrap their heads around," Hurd told a crowd of DEF CON attendees Sunday. "We all know we have to bake in security."

Hurd alluded to the early development of the internet, when technologists spared little thought to how their small, trusted network could be abused by hackers. "Let's not make those same mistakes when it comes to IoT," he said.

Moussouris, of Luta Security, suggested Congress could consider offering tax credits to organizations that lay out concrete steps to address IoT cybersecurity.

"Every single manufacturer or writer of open-source software that goes into a device be it car, medical device, or [other] IoT has to have an ability to find and fix vulnerabilities and has to have a process to handle the discovery of new vulnerabilities," she said.

Moussouris acknowledged that small manufacturers may be tempted to cut corners on security, given tight budgets and tough competition.

"They are, unfortunately, relearning old history lessons in security architecture and response," she said. "But on the other hand, if we bog [IoT firms] down with overly heavy regulations, we stifle innovation, so we have an economic responsibility to balance that out."

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Facebook Donates $1M in New Funds for Internet Security at Black Hat – eWeek

LAS VEGASFacebook Chief Security Officer Alex Stamos outlined his views in an hour-long keynote at the Black Hat USA conference here on how the security industry should improve and also announced new investments to boost security.

Stamos is no stranger to Black Hat, which is celebrating its 20th anniversary this year. He said that in the early days there was a much more adversarial atmosphere at the event. He noted that in the early years, the true impact of internet security wasn't well understood, but today that's no longer the case with security breaches making headlines on a regular basis.

"We're no longer the hacker kids fighting against corporate conformity," Stamos said. "We don't fight the man anymore, we are the man, but we haven't changed how we view our responsibilities."

In Stamos' view the security industry as represented at Black Hat has a responsibility to help improve security in ways that it still hasn't achieved to actually help make people live's safer. He noted that often security research is focused on complexity and not the actual harm of cyber-attacks.

As a community, he said that there is an over-weighted focus on incredible security exploits and zero-days, though that's not what the bulk of actual security issues are. The vast majority of things that end up harming internet users are items that he labels as abuse, which includes be things as simple as spam, password re-use or harassing someone online.

"As a community overall we not yet living up to our potential," Stamos said. "We have perfected the art of finding problems without fixing the root issues."

Security nihilism is a condition that Stamos said is prevalent in the industry, with many people holding that view that most threats are from advanced hacker and nation-state adversaries.Stamos emphasized that while zero-day issues are important there needs to be more conversations about standard security issues. He also wanted the audience to remember that users aren't the problem.

"The modern world of technology is built on tightropes and we haven't put nets underneath," Stamos said. "Every single day we ask people to walk the tightrope and if they fall off, we say sorry can't help you."

Facebook's CSO didn't just take the stage just to deliver a sermon to his Black Hat audience on what they should do. He also used his time to explain what his company is doing to make the internet safer for everyone. Facebook recently renewed its' support of the Internet Bug Bounty which pays security researchers for finding vulnerabilities in open-source software.

Stamos also announced $1 million in new funding for the Internet Defense Fund to help encourage original research into practical defensive technologies. Topics that Stamos is interested in include research on how to improve security patching. Stamos added that Facebook is already working on making sure that its users can stay safe while working on unpatched operating systems.

"This room is full of $800 fully patched smartphones, but that's not how it is in the rest of the world," Stamos said. "There are lots of unpatched devices and we can't say they aren't worth protecting."

Stamos also recognized the role that Facebook played in the recent U.S. election and in elections around the world. To that end, Facebook is now also a founding sponsor of the Defending Digital Democracy Project, which is an initiative at the Harvard University's Belfer Center to help secure elections.

"We're working with Harvard to help protect democracy," Stamos said. "We are thinking about how to help election campaigns help themselves and setup good IT infrastructure."

Stamos also advocated for more diversity in the security industry, both in terms of gender and background to better reflect the broader internet community that the security industry is supposed to be protecting.

"It's a critical moment for our industry. We have been asking people to pay attention to us and now they are," Stamos said.

With that focus he wants security professionals to have empathy for the people that use the technology that the security industry builds. He also wants to shift the focus from the spectacular hacks to actually fixing real problems.

"I want as much thought a possible put into out how we eliminate entire classes of vulnerabilities and not just how to do spectacular demos on stage," he said.

Sean Michael Kerner is a senior editor at eWEEK and InternetNews.com. Follow him on Twitter @TechJournalist.

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Mega’s beta cloud storage app for Windows 10 now open to … – Windows Central

Mega is opening its beta doors to everyone on Windows 10 PC and Mobile.

The privacy-focused cloud storage service Mega has been testing a new Universal Windows Platform (UWP) version of its app for the past several months in closed beta, and now it's opening up to everyone. While still technically in beta, the app is now available for anyone to download (via Aggiornamenti Lumia) and test on Windows 10 PC and Mobile.

Much of what you would expect from a cloud storage app is here in the Mega Privacy (beta). There's a Cloud Drive section of the app that details all of your stored files, along with a Rubbish Bin that handles all of your deleted files. A separate Transfer Manager area will let you manage and monitor downloads and uploads. The app can also automatically upload photos by toggling on a dedicated option in the settings menu.

To recap, Mega is a service that strives to provide secure cloud storage by encrypting and decrypting data on your machine. Theoretically, this makes your files more secure because Mega itself doesn't have the ability to decrypt your files only your machine and recovery key can do that.

If you want to try out the UWP beta app, you can grab it from the Windows Store now. Mega's old Windows phone app, designed for Windows Phone 8 and 8.1, is also still available should you need access to it.

Download Mega Privacy (beta) from the Windows Store

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Startup Morro Data launches CloudNAS services for SMBs – TechTarget

Morro Data officially launched new CloudNAS services that combine an on-premises cache with Amazon's Simple Storage Service or Backblaze cloud storage to give small and medium-sized businesses an alternative to local file servers.

The Fremont, California-based startup's CloudNAS and CloudNAS Business services become generally available this week after a soft launch in March to a limited number of customers. These are the first products and services form Morro Data, which was founded in 2013.

But Morro Data CEO Paul Tien is no stranger to file storage. Tien founded the ReadyNAS product line that NetGear bought from his prior company, Infrant, for $60 million in 2007. Tien said the ReadyNAS core team joined him at Morro Data.

"The NAS market grew quite a bit over the past 10 years. However the architecture has pretty much stayed the same, while cloud storage has been coming on strong with its advantages in reliability, scalability and ease of access," Tien said. "What we are doing now at Morro is combining the advantages of NAS for local performance and sharing for a group of local users together with the advantages of cloud."

Morro Data's main intellectual property is a global distributed file system that synchronizes customer data between one or more on-premises CacheDrive hardware appliances and public cloud storage. The CacheDrives keep the most frequently and recently accessed data at one or more customer sites for fast access and group sharing.

The CacheDrive also functions as a cloud storage gateway to speed the transfer of files to cloud-based object storage. Tien said the CacheDrive is designed to optimize bandwidth to accommodate users with poor Internet connections. Morro also supports enterprise storage services such as data encryption, compression, retention policies and fast data recovery.

"Let's say a CacheDrive goes bad or you need to add a new office, all you have to do is get a new CacheDrive and then terabytes would sync down basically in minutes," Tien said. "What's kept in the cache initially is just like metadata. The real data is still kept in the cloud. But the office will be able to see all the files, and all the downloads could be made available on demand."

The cloud storage is essentially invisible to the customer. Morro Data presents a standard Server Message Block (SMB) interface through the CacheDrive appliance, so the system looks like on-premises NAS. The product is designed for Windows and Mac users.

Morro Data's CacheDrive appliance ships with several drive and capacity points. The G40 model offers 1 TB of disk-based cache, and the G80 has a 1 TB solid-state drive (SSD). Morro Data also sells a T600 tower option with 8 TB of disk cache.

Tien recommends a ratio of 1 TB of local cache to 10 TB of cloud storage, although he said the amounts could vary depending on the customer's active data. Those with more than 10 TB of cloud storage can use the T600 tower model or multiple CacheDrive appliances, he said.

Morro Data currently supports public cloud storage with Amazon Simple Storage Service (S3) and Backblaze B2 but plans to add more providers in the future. CloudNAS Business customers can either bring their own cloud storage account or use Morro's provisioned Amazon S3 option. The starting price is $89 per CacheDrive per month with 1 TB of S3 storage. Additional S3 storage capacity is $39 per TB, Tien said.

Morro's CloudNAS with Backblaze option is priced at $10 per Cache Drive, and customers bring their own Backblaze cloud storage account. Tien said Backblaze pricing, at $5 per TB per month, should be compelling for traditional desktop NAS users.

Tien noted that CloudNAS is intended for use as primary storage, with the master copy of the data stored in the cloud and synchronized to the CacheDrives at customer sites. He said cost and performance limitations had previously made cloud storage unsuitable for uses other than backup for many small businesses. Customers don't need to worry about backing up data with CloudNAS because Amazon keeps multiple copies and Morro Data provides file versions in the event of user error or a cloud outage, Tien said.

Howard Marks, founder and chief scientist at Deepstorage LLC, said integrating NAS and cloud storage makes sense for small to mid-sized enterprises (SMEs) because backing up file servers and replicating data between locations is a "real pain." He said Morro Data's CloudNAS is best suited to SMEs with multiple locations, because the global namespace gives users transparent access to all data, no matter where they are.

Marks said other vendors offering cloud/NAS integration include Nasuni, Panzura and Ctera, but they have only a small fraction of the NAS market.

"Panzura or Nasuni focus more on the enterprise segment. We are focusing on the small and medium business," Tien said.

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