WASHINGTON - The U.S. Supreme Court on Wednesday put in jeopardy an $8.5 million settlement Google made with users to resolve a class action lawsuit accusing it of violating their privacy by sharing users’ search queries with other websites.
FILE PHOTO: The Google logo is pictured at the entrance to the Google offices in London, Britain January 18, 2019. REUTERS/Hannah McKay
The justices, in an unsigned opinion, threw out a ruling by the San Francisco-based 9th U.S. Circuit Court of Appeals that had upheld the settlement, directing it to take a fresh look at whether the plaintiffs had the legal standing necessary to sue and whether they were even harmed by the search engine operator.
Google, part of Alphabet Inc., was accused in the lawsuit of violating a 1986 law governing the privacy of stored electronic communications.
Justice Clarence Thomas dissented, saying the increasingly common type of settlement at the heart of the case was “unfair and unreasonable” and should not have been approved by the 9th Circuit.
These so-called “cy pres” (pronounced “see pray”) settlements are used in class action cases when it might be impractical to carve up low-value individual damages among a large number of plaintiffs. In endorsing the Google settlement in 2017, the 9th Circuit said each of the 129 million U.S. Google users who theoretically could have claimed part of it would have received “a paltry 4 cents in recovery.”
Proponents have said these settlements can put otherwise negligible awards per person to good use by benefiting groups that work for the public good or support underfunded entities. Critics have said they encourage frivolous lawsuits and excessive fees going to plaintiffs’ lawyers.
Google agreed in the settlement to disclose on its website how users’ search terms are shared but was not required to change its behavior. The three main plaintiffs received $5,000 each for representing the class. Their attorneys received about $2.1 million.
Under the settlement, much of the rest of the money would go to organizations or projects that promote internet privacy, including at Stanford University and AARP, a lobbying group for older Americans, but nothing to the millions of Google users who the plaintiffs were to have represented in the class action.
A Google representative did not immediately respond to a request for comment on Wednesday.
The settlement was challenged by attorneys including Ted Frank of the Hamilton Lincoln Law Institute, which advocates against what it considers abusive class action procedures.
Following the ruling, Frank said he expects the lower courts to again find that the plaintiffs may sue and that the issue will soon be back before the high court. “The decision simply delays the day of reckoning for this unfair practice,” Frank said.
The case began when a California resident named Paloma Gaos filed a proposed class action lawsuit in 2010 in San Jose federal court.
The plaintiffs said that their privacy was violated when their search terms were disseminated by Google to other sites. One searched for her own name, another for financial and health data, and a third for information related to his divorce proceedings.
The Supreme Court may soon get another opportunity to clarify what is needed for plaintiffs to achieve the legal standing necessary to sue. The justices are considering whether to hear a pending appeal by online shoe retailer Zappos, a subsidiary of Amazon.com Inc, over whether customers are entitled to sue over a 2012 data breach.
Reporting by Andrew Chung; Editing by Will Dunham
Our Standards:The Thomson Reuters Trust Principles.
In today's hyper-connected enterprise, organizations are at risk of two different types of attack. Larry Link, CEO of Cequence Security, explains how to defend at a platform level - without adding friction.
See Also: Live Webinar | Passwords: Here Today, Gone Tomorrow? Be Careful What You Wish For.
In a video interview with Information Security Media Group at RSA Conference 2019 in San Francisco, Link discusses:
The risks of the hyper-connected enterprise; Characteristics of the two types of attacks; The fundamental shift necessary to defend.Link is president and CEO of Cequence Security.
Cybercrime , Data Breach , DDoS
Hector Monsegur Seeks Redemption by Offering Advice to Security Executives• March 20, 2019 Hector Monsegur keynotes ISMG's Fraud SummitFor as long as Hector Monesgur has been online, he's broken the rules.
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There's the teenage curiosity that got him interested in computers, progressing from Windows 95 and AOL dial-up to Unix systems and learning Perl, which eventually led to his first hacks. There's his ability to become a highly-paid system admin without a college degree or a certification.
Then there's the hacktivism and association with the Anonymous collective and LulzSec, which trained their sights on governments and corporations around the world, including distributed denial of service attacks that targeted among others PBS, Sony Pictures, Fox, Visa, MasterCard, PayPal and numerous others. In his role, Monesgur served as one of the lead hackers who stole and publicized confidential information, defaced websites, and helped shut down the internet in Tunisia during the Arab Spring.
Monesgur also broke the rules hackers had created themselves, including avoiding publicity. Eventually, he broke the ultimate rule: He cooperated with the FBI and turned on Anonymous and others.
"It was kind of against the ideas of the hackers and e-zines and the literature that was passed down from the 1980s to the 1990s, when I first got online. One of the first things I would read was that you should never attack the U.S. government - that's one. The second was never let anyone know what you are doing. And I kind of violated both of those," Monesgur told the Information Security Media's Group New York City Fraud Summit on March 19, as the event's keynote speaker.
Following his arrest and incarceration in federal prison several years ago, Monesgur has been on a redemption tour. He's spoken about his past experiences and how he lived with the consequences of his decision. As the chief researcher at Rhino Security Labs, the hacker once known as "Sabu" is now offering better security for corporate clients.
"But I do want to put out a disclaimer. I'm not here to glorify the past. I'm not proud of it and I'm actually very glad that I have made it this far and I have been able to get back to the industry and get working for my family," Monesgur said.
During his talk on Tuesday, Monesgur used examples from his past hacking activities to illustrate a point: Attackers don't give up once a target is picked. It's a rule that Monesgur followed and it shows why persistence is key to understanding better cybersecurity practices.
"Attackers will get you regardless. You can have all the vendors and software you need ... The attacker is not going away, especially if they are focused on you. It's good to have insight and a perspective on this to move forward," Monesgur said.
In an interview with ISMG, Monesgur explained that many of the problems he sees with clients now center around asset management and not knowing what's on the network. As a hacker, Monesgur would spend weeks gathering intelligence about targets, noting what assets were sitting on these networks and what misconfigurations could be exploited.
"Not only do companies have problems with the external side of their security posture but also the internal side of their security posture," Monesgur said. "In many cases, they don't really know what they are running online. We're not even taking about shadow IT or something similar where you have employees coming in with different devices and are running devices that are not vetted or authenticated or given permission to access the network."
Another developing issue he sees: Insider threats.
"You also have things like insider threats, which is going to be a bigger problem going forward because there's no way to really stop that. Even if you were able to implement a DLP or data loss prevention software, there are still ways to circumvent those technologies," Monesgur said.
More recently, Monesgur and his colleagues have started to see the effects that new issues, such as DevOps, can have on enterprise security.
" What we do, when we start auditing a network for asset management, we are falling right into the whole DevOps slash security problem," Monesgur told ISMG. "It's a whole different beast. A lot of organizations that are bringing in-house developers, they are really opening the doors without really putting emphasis on security policies. Believe it or not, you can have a really secure infrastructure elsewhere, but then the DevOps team or the developers department starts bashing holes with ... weak passwords, public GitHub repositories, access to S3 buckets everywhere and permissions are a problem."
The one question that follows Monesgur around is of trust.
In conversation with ISMG's Senior Vice President for Editorial Tom Field, Monesgur was asked if he could be trusted. He did serve almost a year in federal prison and could have faced a maximum sentence of 124 years under sentencing guidelines if found guilty on all counts, although, in reality, he faced between five to 10 years.
His cooperation helped, but that meant turning on his former Anonymous collaborators, a decision that continues to impact him, as hackers occasionally disrupt his public appearances. However, reflecting on the possible loss of his family and a desire for redemption shows that anyone can change.
"It's all about the person's merit ... not everyone is a lifelong career criminal. Sometimes people make mistakes and they deviate and they make decisions without thinking about consequences and I was one of those individuals. Once I was in prison and I lost my family temporarily, I had made the revelation at the end of the day that this is not worth it and there's more to life," Monesgur said.
At the same time, his story holds lessons for CISOs and other security executives looking to protect against cyberattacks now.
"We do have a skill and a talent shortage. Former hackers have the skills and a talent. I'm not saying you have to hire them, but I am saying you should entertain the interview," Monesgur said. "At the end of the day, it's becoming harder to find workers who can follow your policy, enforce your policy and even understand your policies, including implementation and asset management, and developing documentation for your employees and educating employees that are not that technically savvy. It's a broad industry that is still in its infancy and we don't have enough workers."
Application Security , Governance , Next-Generation Technologies & Secure Development
Craig Goodwin of CDK Global on Adding Security to Development(SecurityEditor) • March 20, 2019 Craig Goodwin, CSO, CDK Global LLCAs chief security officer of CDK Global LLC, Craig Goodwin has been part of the rollout of a new API platform that he believes will revolutionize automotive purchasing. So, what's his perspective on security's role in application DevOps?
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In a video interview with Information Security Media Group at RSA Conference 2019 in San Francisco, Goodwin discusses:
Security's role in development; How the CISO can impact product security; How a CISO can build or repair a security function.Goodman is vice president and CSO of CDK Global LLC, an automotive technology company..
Cybersecurity , Endpoint Security
Agency Receives Critique on Draft of Premarket Medical Device Cyber Guidance Update(HealthInfoSec) • March 20, 2019The Food and Drug Administration is generally on the right track in updating guidance for the cybersecurity of premarket medical devices. But various changes are needed, according to some of the three dozen-plus healthcare sector companies and groups recently submitting feedback to the agency.
See Also: 10 Incredible Ways You Can Be Hacked Through Email & How To Stop The Bad Guys
Some of the associations submitting comments on FDA's draft guidance suggested modifications to the agency's call for a "cybersecurity bill of materials," or CBOM, that medical device makers would need to submit to the FDA for premarket review. Some also critiqued FDA's proposal to define two tiers of medical devices based on their cybersecurity risk (see FDA Calls for Cybersecurity Bill of Materials).
The FDA had requested comment by March 18 on its "Content of Premarket Submissions for Management of Cybersecurity in Medical Devices," which was issued last October. That draft premarket guidance is a significant refresh of FDA's 2014 guidance, the agency noted last fall.
Nearly 40 groups and companies submitted comments on the draft guidance by the FDA's March 18 deadline, according to the Regulations.gov website. FDA will review the comments before issuing a final version of the guidance.
Under the FDA's proposals, medical device makers would submit to the agency before devices are marketed a CBOM that would include a list of commercial, open source and off-the-shelf software and hardware components that are or could become susceptible to vulnerabilities, the draft guidance says.
Many of the associations representing healthcare provider organizations were generally supportive of the CBOM proposal. "Our members have a significant need for this information, which is crucial to evaluating threats and risks, as well as undertaking mitigation," wrote the Greater New York Hospital Association in its comments.
Kaiser Permanente, the largest private integrated healthcare delivery system in the U.S., with 12.2 million members in eight states and the District of Columbia, noted that "the introduction of a Cybersecurity Bill of Materials as part of the risk management methodology will significantly improve medical device purchasing and maintenance decisions."
However, some commenters - including some associations representing medical device makers - suggested that the FDA's definition of a CBOM that includes hardware components would be too challenging to implement.
"FDA should reference a 'software bill of materials,' instead of a CBOM, and define SBOM as 'a list of commercial off-the-shelf software or open source software components that are included in the medical device software, limited to version and build," wrote the Advanced Medical Technology Association, or AdvaMed, which represents medical technology companies.
"Providing and maintaining a bill of materials that includes hardware presents unique challenges compared to software-only bill of materials, some of which are outside the immediate control of the manufacturer," AdvaMed wrote.
For example, if components are sourced from a supplier, it may not be possible to obtain a list of all hardware subcomponents, as suppliers may be unwilling or unable to provide such information, AdvaMed contends. "If the BOM were to include all software and all hardware down to the lowest component level, the sheer amount of data provided will very likely work against the shared goal to prioritize, prevent and react to cybersecurity risks to protect patient health."
Medical device maker GE Healthcare offered a similar assessment, and also suggested that FDA focus its bill of materials proposal on software, not hardware components.
"We note that vulnerabilities such as Spectre and Meltdown occurred at the level of CPU," GE Healthcare wrote.
"At this level the bill of materials would include hundreds of programmable chipsets embedded in motherboards, peripherals, and power distribution units within a single general-purpose workstation-class computer. We do not see value for healthcare delivery organizations in proactive customer disclosure and purchasing control at this level, even in the event of another vulnerability such as Spectre."
In the draft guidance, the FDA proposes defining two tiers of devices based on their cybersecurity risk.
Tier 1, or "higher cybersecurity risk" products include devices capable of connecting - wired or wirelessly - to another medical or non-medical product, or to a network or the Internet. In addition, a cybersecurity incident affecting these devices could directly result in patient harm to multiple patients, FDA writes in the draft guidance.
Some examples of Tier 1 devices are implantable cardiac devices, such as defibrillators and pacemakers; infusion and insulin pumps; and the supporting connected systems that interact with these devices, such as home monitors and those with command and control functionality such as programmers, the FDA proposes.
Tier 2, or "standard cybersecurity risk" medical devices are those that don't meet the criteria for tier 1.
Some of the commenters were critical of FDA's cyber risk tier proposals.
"We find this proposed two-tier framework confusing and unnecessary given its superficial similarity to FDA's risk classification scheme for medical devices," AdvaMed wrote.
"There are significant differences between device types that could fit within the proposed tiers. For example, small implanted medical devices, such as ICDs and pacemakers, have significantly more engineering constraints limiting their hardware and software capabilities when compared to larger medical devices used, for example, in a hospital setting," the group wrote.
"We believe FDA should remove the two-tiered approach in favor of a single risk-based approach that addresses the agency's cybersecurity expectations based on the exploitability of a device vulnerability and the severity of patient harm - if exploited."
While AdvaMed argued against FDA's draft two-tier risk approach, GE Healthcare proposed FDA add a third tier.
"We suggest that the addition of an explicit criteria for an additional Tier 3 for 'low cybersecurity risk' [that] may make the entire tiering system more usable," GE Healthcare wrote.
"For example, a device whose security threats are limited to impact only one device at a time by requiring physical access to exploit could be an example of a Tier 3 low cybersecurity risk."
But it wasn't only medical device makers that found the FDA's draft cybersecurity risk tier proposals lacking.
"We recommend FDA expand the discussion of device tiers to address the responsibility of all stakeholders to ensure security of and risk mitigation of medical devices exploiting network vulnerabilities," Kaiser Permanente wrote.
"Devices can be risk vectors for the enterprise and patients without causing direct harm. For example, a network security vulnerability in a device could allow exposure and/or modification of patient data in the electronic medical record resulting in patient harm indirectly," the organization wrote.
Some groups submitting comments also offered up other suggestions about actions FDA should consider taking for improving medical device cybersecurity.
The College of Healthcare Information Management Executive suggests FDA rethink its definition of medical device in the context of cybersecurity. "The definition should recognize that medical devices are part of an overall ecosystem which includes but is not limited to networks, switches, firewalls, applications and other components that come with 'medical devices'," CHIME - an association of healthcare CIOs and CISOs - wrote.
"Many of our members continue to be confronted with some manufacturers who refuse to take action on known vulnerabilities choosing either to categorize them as 'controlled risks' or saying they will wait until the FDA recalls a device," CHIME complained.
"For example, many of our members still report that patch MS17-010 - the patch that protects against WannaCry - has still not been deployed to certain medical devices due to the manufacturers classifying that vulnerability as a controlled risk," CHIME wrote.
This situation continues two years after the global ransomware attacks involving WannaCry and NotPetya CHIME adds.
"From our perspective both of these scenarios are unacceptable. Importantly, we believe that the FDA must be as explicit as possible with manufacturers around their expectations. Without clear direction to the manufacturers about what is required, the burden of proof for demonstrating a standard has been met and devices are secure will be shouldered by providers."
JERUSALEM (Reuters) - Israeli Prime Minister Benjamin Netanyahu alleged on Wednesday that Iran could blackmail his main election rival, Benny Gantz, after hacking the former armed forces chief’s phone, even as Tehran denied doing so.
FILE PHOTO: Benny Gantz, head of Blue and White party speaks to the media in Kibbutz Nir-Am, Israel March 15, 2019 REUTERS/Amir Cohen/File Photo
Without providing any evidence or details, Netanyahu said Iran had gleaned “sensitive information”. His comments, in a brief speech broadcast online from his official residence, brought a new level of vitriol to the election race.
Polls put Netanyahu’s right-wing Likud and Gantz’s centrist Blue and White party neck-and-neck, with election day three weeks away.
Gantz has confirmed an Israeli TV report last week that the Shin Bet domestic intelligence service had detected that his cellphone had been hacked, though the agency itself has not commented.
But he has not confirmed that the hackers are believed to be Iranian, as reported, and has said the phone contained no data that might compromise national security or his ability to carry out his duties if he were elected prime minister.
Iran denied that its intelligence services had hacked Gantz’s phone.
“The (Israeli) regime’s officials are long used to spreading lies,” Foreign Ministry spokesman Bahram Qasemi said, according to the state news agency IRNA.
Gantz, for his part, has sought to focus public attention on the state’s decision not to deem Netanyahu a suspect in a graft scandal over a German submarine deal. Netanyahu, who denies wrongdoing, faces possible indictment in three other corruption cases.
Netanyahu said there was more to be revealed about the contents of the ex-general’s mobile phone.
“What do the Iranians know about you that you are hiding from us?” Netanyahu said. “And above all else, how would you, as prime minister, face up to Iran, our number one enemy, when Iran has sensitive information about you? This is not a matter of gossip. This is a matter of national security.”
Netanyahu called on Gantz to come clean as “the only way not to be vulnerable to blackmail”.
Speaking to the Israeli News Company TV station on Tuesday, Gantz said the Shin Bet had informed him six months ago that “there was a small problem - and I am taking care of it”.
“I have a wonderful family. I have wonderful children. My wife supports me from here until further notice,” he said.
Asked if there was anything on the phone that could be used for blackmail, Gantz said: “Nothing can have an influence over my performance.”
Additional reporting by Bozorgmehr Sharafedin in London; Editing by Jeffrey Heller and Kevin Liffey
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