Report exposes 'economic damage' caused by hackers

Almost 90% of major Canadian companies have been hit by cyber-attacks

A secret government report on cyber-attacks says that 86 per cent of large Canadian corporations have been "hit" and that espionage hacking on the private sector has doubled in two years.

"Cyber-espionage attacks are causing considerable economic damage," says the 2010 "threat paper," released to Postmedia News through access-to-information laws.

The heavily redacted report was prepared by the Public Safety Department with input from the CSIS, the Defence Department, the RCMP and the Privy Council Office.

Cyber-security expert Rafai Rohozinski said that the vast jump in businesses infiltrated by cyber-hackers is "not surprising at all and, in fact, it's highly worrisome."

He estimated that more than half of corporate espionage originates in China and involves tapping into intellectual property secrets.

The report details the cyber-threat facing Canada and asserts that it is not only an economic issue, but also a national security problem, in that government is also a key target of foreign espionage and when "some terrorist groups are developing an interest in mounting cyber-attacks against state enemies and, most likely, the capabilities to do so."

An accompanying memo to Public Safety Minister Vic Toews says the paper was distributed to deputy ministers involved in crafting a cyber-security strategy to "inform them of the cyber-threats facing government systems and to provide them with potential mitigation measures."

The released sections of the report do not detail Canada's economic losses, nor do they zero in on potential terrorist threats or other potential attacks against government. For instance, passages are blacked out on "key cyber-threat actors," espionage, and much of the paper's conclusions. Foreign intelligence services, however, are cited as a threat against governments.

The Harper government, after years of promising a cyber-strategy, announced last month that it would spend $90 million over five years to protect government systems from hackers, work with the provinces and businesses to ensure private information is properly encrypted, and to help educate Canadians about cyber-safety.

Toews, in announcing his plan in early October, said he worries about the security of 130 government programs offered on the Internet.

The government threat paper focused on deliberate attacks. While most electronic hacking inflicts relatively minor damage, a growing number of attackers are able to cause damage of national significance, such as sabotaging national security operations and causing critical infrastructure to malfunction, such as energy, utilities, communications, and transportation, said the report.

It also touched on the well-documented use of blogs, chat groups and websites to hatch terrorist plots and the explosion in online theft in the recent years, in which billions of dollars annually are lost through high-tech methods to commit credit-card fraud, identity theft, and other commercial crime.

Rohozinski, chief executive officer of SecDev, an Ottawa-based cyber-security firm, said Canada's cyber-strategy spending "is really a drop in the bucket" compared to money being spent in Britain and the U.S.

"The U.S. is set to spend anywhere from $40 (billion) to $60 billion in terms of looking not just at developing cyber-security, but looking at cyberspace as a domain in which they need to have freedom of navigation in ways that states previously sought freedom of navigation in the sea."

Canada is also "heavily leveraged" online and is therefore vulnerable to a "catastrophic" attack, said Rohozinski, who co-authored a report last spring that warned of an "arms race" in cyberspace that prevents governments from joining forces to combat international threats.

* This article was written by 

  JANICE TIBBETTS, POSTMEDIA NEWS 

  NOVEMBER 24, 2010

  To view the original Ottawa Citizen article, click here.

Apple moves into business sector

Big push for Macs to enter the business environment...

Apple may have enjoyed unprecedented success in the consumer market of late, but the company is now broadening its scope by looking to increase market share in the business sector.

The user-friendliness and functionality of Apple’s products have made them hugely popular in the consumer space. The company’s most recent high-profile launch, the iPad, sold 300,000 units in its first day of release in the US. The iPhone too has proven to be the most popular smartphone in the world and is now creeping into the workplace, as businesses begin to rely on the handset to maintain communication between employees and the company.

Now, broadband provider TalkTalk has revealed that it is trialling the use of Apple computers in its offices and CIO David Cooper, who is overseeing the project, told Computing exactly why.

Apple Macs have not traditionally been common in business organisations. Only educational institutions and selected departments in graphics and publishing companies have opted to use Apple over PCs. However, that could all be set to change, as Apple has been working with a number of companies with a view to getting its products into a wider spread of business organisations, according to Cooper.

“There is a big push from Apple onto the business side,” he said. “There are companies that have fully switched to using Apple computers in the workplace or are giving the choice to their users.”

Cooper’s sentiments are echoed by Apple’s logistics and supply chain management partner Syncreon, which delivers all Apple products exclusively in the UK and 80 per cent of products to Europe, according to IT director Niall O’Mahoney.

He told Computing that employees are now using Apple MacBooks in Syncreon’s offices as well, and Apple’s presence in the business sector is set to grow.

“They’re not straitjacketed anymore; in the past we always bought Dell and everyone had a Dell laptop and that’s now changed. It is a cultural thing.

“We’ve actually set up virtual area networks in our own organisation just for Macs and Apple products run on Intel processors, meaning they've come into the mainstream."

O’Mahoney said that in terms of volumes, Apple’s business has doubled every year over the past four years, and is projected to do so again. This year, the growth is expected to be contributed to by businesses to a larger extent than ever before.

TalkTalk’s Cooper explained that the company’s own ambitions to begin using Apple computers in the workplace were borne by the company’s chairman and founder Charles Dunstone.

“He has been a fan of Apple for a number of years and he wanted to see how we could use their technology in the workplace,” explained Cooper.

“Now we have the challenge of integrating the technology within our own legacy infrastructure,” he said. “That’s why we’re having this trial of a few hundred Macs; to iron out the teething troubles that are associated with the introduction of any new technology.”

Cooper admitted that it is not viable to introduce Apple Macs in every corner of an organisation. Within certain functions of a business that don’t interact with the back-end IT infrastructure, such as in TalkTalk’s call centres, he conceded that PCs will continue to be used. However, he advised other CIOs to leave the decision about whether to use PCs or Macs to the individual user.

“The key is to give people the choice. If the technology works well with you, you’ll be more efficient. If it doesn’t, then you won’t – there is a clear idea to give users the choice.”

However, while TalkTalk and Apple both clearly feel that businesses are ready to begin relying on its Macs in the workplace, research analyst Gartner still has reservations.

The firm recently told us that Apple will require additional investment and focus into the business market before end users really begin to take to its technology.

“Apple doesn’t go for enterprises and is weak in terms of support for business customers. It has limited presence, support and even product offerings for business users,” said Isabelle Durand, principal analyst at Gartner.

(Nitro IT Business Solutions Supports Apple for businesses!)

She explained that as enterprises begin to introduce Apple products in the workplace, they are committing to a long-term relationship, and Apple will have to step up its offering and support to its business customers.

“They will need to take into account the replacement cycle and upgrades for business users. Soon, they will also need to introduce a specific product for the small and medium business segment too, because they have nothing for that segment and the MacBook Pro is too high-end for these sorts of businesses.”

Written by 

Dawinderpal Sahota

Computing 

Understanding IT Outsourcing

The concept of outsourcing is nothing new. Since the dawn of industry, businesses have partnered with others to complete tasks otherwise out of reach. But what of today? We hear daily the stories of both success and failure associated with outsourcing––especially IT, thus bringing us to the topic at hand… What should a company consider when outsourcing IT?

First and foremost a company must understand the reasons behind the want / need for outsourcing. Is IT outsourcing a viable option as it pertains to business process? Does it meet the stringent requirements of company protocol? Will it make jobs easier? And finally, will it prove to be valuable, presenting an adequate ROI?

For many companies the idea of migrating systems externally, or at the very least the management of systems, is a frightening thought to say the least. Questions immediately arise regarding a ‘disconnect’ from business processes and those that would be responsible for daily, mission critical attributes. After all, when managed internally the ‘one-throat-to-choke’ concept of management is closer to one’s own door. If outsourced, can the same level of urgency be placed on the expectations of those immersed in the day-to-day action? If done correctly, any outsourcing from a management perspective should be seamless. 

Aside from that listed above, there is also the fear of ‘brand’ issues arising from IT outsourcing. Where does the company reside that now manages IT processes? Are calls that were once fielded in one’s own backyard now moving out of province, country, or continent? If so, how do timezones, cultural morays, and international socio-political actions effect brand recognition and trust? If a company’s protocol for dealing with issues, new implementations and projects is suddenly disrupted, both the internal and external attributes of the company can be tarnished.

Of course, the topic of jobs and job security arises. Will outsourcing mean the repositioning of resources to add more time to more important projects? Or, does it simply mean a loss of jobs internally? That answer resides internally at a management level, as reasons for outsourcing vary greatly from company to company.

Finally, what about the ROI? Can outsourcing IT infrastructure truly save money? Perhaps, but again depends on the company that the work is outsourced to. Inconsistent processes on the part of the external partner may actually hinder more than advance the plans associated with the decision to move resources externally. In any case, due diligence as it pertains to track records and references is always a key to finding the right company for the job.

If you are interested in finding out more about IT outsourcing, please feel free to contact a representative at Nitro IT Business Solutions. We would be happy to sit down with you to discuss all of the elements of IT and to create your perfect combination.

In the interim, visit our website at www.nitro.ca and our ROI calculator by clicking here to determine your savings by outsourcing IT to the national capital's top IT Business Solutions specialist.