Now, if I've paid hundreds or thousands of dollars for a software
product, and it turns out that it has security holes in it, who is
really liable for those security holes?  I understand that patches are
provided and they aren't that hard to apply, but are we ever going to
hold the providers of these software products a little more liable? 
It's seems to me that it's all too easy these days to rush a product out
the door and plan on patching it later, never mind the inconvenience it
causes all our customers.

Bryan

On Wed, 2003-02-12 at 10:08, Tim Blalock wrote:
> 
>  Anybody read this on SearchSecurity.com?  I think that it's about time. I
> spent the last two weeks patching computers from almost every business in my
> home town.  Apparently they think that it's ok that someone breaks into
> their computer.  They all told me "I don't have anything that they can
> steal".  Well, there's something, a zombie.
> Tim Blalock
> [EMAIL PROTECTED]
> 
> <Beginning article>
> 
> Patching negligence can get you sued
> 
> By Michael S. Mimoso, News Editor
> 12 Feb 2003, SearchSecurity.com
> 
> MASHANTUCKET, Conn. -- Downstream liability sounds like a cable TV fishing
> show gone awry. But it's something enterprises need to quickly become aware
> of, especially in light of recent security incidents like the outbreak of
> the SQL Slammer worm and the attack on the Internet's root DNS servers.
> 
> Essentially, downstream liability is all about the liability an enterprise
> could incur if its unsecured systems are used as part of a distributed
> denial-of-service attack.
> 
> The topic came up during this week's CyberCrime Conference & Exhibition,
> where former Department of Justice cybercrime prosecutor Marc J. Zwillinger
> of Sonnenschein, Nath & Rosenthal declared that, indeed, enterprises can be
> liable for damages incurred during a DDoS attack.
> 
> Zwillinger theorizes that breach of contract is no longer the only basis for
> liability; now enterprises will be held accountable if they are negligent in
> patching systems, for example. This is the commission of a tort, Zwillinger
> said. Negligence is the crux of downstream liability, according to a paper
> written by Scott C. Zimmerman, CISSP, a research associate with the Software
> Engineering Institute at Carnegie Mellon University; Ron Plesco, director of
> policy for the Pennsylvania state police; and Tim Rosenberg, president and
> CEO of White Wolf Security.
> 
> Negligence, meanwhile, consists of four parts, according to the law: duty,
> breach, causation and harm. Zwillinger and Zimmerman said that all four are
> closely linked and, in order to gain damages, a victim must demonstrate all
> four.
> 
> Duty, for example, is the reasonable expectation that an enterprise with IT
> assets linked to the Internet keep its systems secure. "Does an owner of IT
> assets on the Internet have a duty to keep his systems secure and not to be
> used to hurt another? We believe the answer to this question is a resounding
> yes," wrote Zimmerman, et al.
> 
> A breach of duty is the failure to live up to that obligation. For example,
> leaving unpatched systems exposed to the Internet and ripe for exploitation
> would constitute a breach of duty. Next, a victim must prove this breach
> caused the damages. Finally, the victim must demonstrate he suffered harm,
> like loss of assets, loss of business opportunities, or damage to
> reputation, Zwillinger said.
> 
> Slammer took advantage of vulnerable Microsoft SQL Servers and generated
> massive amounts of traffic that clogged Internet service providers and
> backbones worldwide. Code Red and Nimda exploited holes in Microsoft
> Internet Information Services (IIS) Web servers to bring the Internet to a
> screeching halt in 2001. While Internet performance slowed to a crawl in all
> three instances, businesses were also left inaccessible, at times resulting
> in expensive downtime.
> 
> Now that victims are justified in pursuing damages via lawsuits, they must
> determine just who is liable, Zwillinger said.
> 
> Zwillinger identified potential defendants: the perpetrator; the owners of
> unsecured systems; Internet service providers; and the victim.
> 
> The perpetrator, Zwillinger said, has violated the law [the Computer Fraud
> and Abuse Act that covers DoS attacks, virus outbreaks, ping floods and
> more]. But the difficulty in prosecuting the attacker is finding the person.
> Often, the attacking computer does not belong to the attacker.
> 
> That raises the specter of holding the owners of vulnerable systems liable.
> They would not be liable under breach of contract because usually there is
> no direct contact between this person and the victim. But they could be
> guilty of committing a tort by being negligent in not patching systems.
> Challenges here involve pursuing the owners of 100 systems involved in a
> DDoS, for example. All 100 would have to be investigated, and a portion of
> blame would have to be determined in each instance, Zwillinger said. "It's
> daunting, but it's not a disincentive," he said.
> 
> ISPs, on the other hand, would be liable by contract. There is a reasonable
> expectation that service providers have measures in place to deny bad
> traffic and keep customers online, Zwillinger said.
> 
> Victims also could be held liable. In addition to pursuing damages, victims
> could be forced to pay up if their systems are used to attack another.
> 
> "It's time to recognize that this is a reality," Zwillinger said.
> "Enterprises need to determine best practices, adhere to regulation [HIPAA,
> Gramm-Leach-Bliley], hire consultants, adopt an incident response plan and
> stay current on information security and evolve with it."
> 
> 
> 
> 
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