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Archive for March, 2009

The rogue antivirus economy

March 20th, 2009

Brian Krebs recent Security Fix post on the rogue antivirus economy describes an enormously profitable activity whose margins would make most legitimate businesses envious.  By now we are all familiar with Rogue Antivirus programs, which generally use social engineering trirogue_anatomy4_smallcks to install on an unsuspecting user’s computer and try to scare them into buying absolutely worthless software that is, in fact, malware. With the explosion of new opportunities for social engineering facilitated by social networking, criminally motivated rogueware scams are also on the rise.  The affiliate systems that have sprung up to distribute this malware have created their own cottage industry, receiving handsome wages even in the global economic downturn.  Monthly commissions of 200,000 Euros and above are not uncommon, as are contests within the affiliate systems that give away luxury cars, gold bullion and other exotic prizes to the top affiliates. Krebs mentions at the end of his article that Microsoft’s bounty on the Conficker worm’s originator amounts to little more than a month of affiliate commissions and so would not be very appealing to anyone engaged in this activity. 

PandaLabs has written a few posts on Rogue AntiMalware campaigns and all the moving parts associated with this movement. Because malware is ultimately the most dangerous part of this equation, it garners the lion’s share of attention.  As more about the inner workings of the affiliate systems become known, we will likely learn that the threat represented by these systems has been  underestimated.  For starters, the affiliates are free to modify what their malware actually does as long as its reporting to the affiliate servers is not affected.  That means that in addition to the annoying and useless rogue antimalware infections, additional crimeware can be attached, resulting in the loss of personal data that may be residing on the infected machine. Furthermore, when the victim of rogue antimalware decides to purchase the “product”, their credit card details are being sent to payment systems completely controlled by cybercriminals.  It’s only a matter of time before this information is bought and sold on the black market.

A business such as this needs a good supply chain and it seems as if they have it.  The bad guys can set up an affiliate site in very short order.  We need to start thinking of ways to take down the infrastructure of malware distribution as a means of slowing down the bad guys’ profit motive.  Many of the same fundamentals of capitalism that exist in the real world also apply to the cybercriminal world. Higher barriers are to entry and lower profit potential often leads to less innovation and growth for an industry.   The takedown of McColo shows that the distribution of rogue malware can be negatively affected by changes in the infrastructure.  I believe it would be beneficial for all concerned to support those individuals and organizations that are involved in documenting the underpinnings of malware distribution networks and more importantly, liaising between security vendors, government agencies and law enforcement.

Although the fight against malware is much more than the sum of its parts, the industry should take a closer look at new ways in which we can slow the spread.  It can only bring good to all but the cybercriminals.

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Innovation within growing companies

March 8th, 2009

innovation-2_medBernardo Quintero’s post (in Spanish) has made me think about how innovation evolves as companies grow.  I agree with him that innovation is fostered by, among other things, some of these elements: a visionary team, out-of-the-box thinkers, working in small teams, not being constrained by short terms profitability requirements, creativity, etc.  It also helps to have a clear focus and being challenged towards hitting a certain goal … and all of those things are easy to be lost as we add layers of management.  When the visionary/entrepreneur is close to those that implement the vision it is easier to transmit the sense of urgency, to feed the desire to win, to assess creativity appropriately and reward it through direct acknowledgement.

When any company grows and the product being developed gets more complex, it is critical that the company works according to well structured process so that the information flows all along.  This will allow everyone to have the required information to be able to contribute, within his area of expertise, his share of creativeness and innovation to the final product.

For all of us who operate in technology, to be competitive in the longer term it is key that we sustain a high capacity to innovate.  And that capacity depends on the team that works in the project.  I can’t agree more with Bernardo when he says that “innovation always comes from below”.  As Christensen & Raynor explain in The Innovator’s solution, “… because the senior-most executives in reality cannot participate when and where the big-decisions actually get made, decision making processes that work well without senior attention are critical to success in circumstances of sustaining innovation”.  That is why I strongly believe that one of the biggest responsibilities of a manager is to foster the correct framework so that innovation can flourish and implementing processes so that the decision making process is correct and the company goes ahead with those projects that are innovative.

At Panda I am lucky to count with a tremendously creative and innovative team.  And, most importantly, not only in that area whose key focus is innovation (Panda Research).  Many of the most innovative ideas that flourish in the company come from other areas, be it technical (development, QA, support or IT) or not (product, marketing, sales, etc.).  The only area where we don’t encourage innovation is in the finance area … in that area, “creativity” can only bring trouble … as we ready everyday in the press … ;-)

You can also succeed “copying” or “importing” successful ideas from other markets, but if you want to sustain your competitiveness in the longer term, there is no way around it, you have to be innovative and in order to succeed, you need to count on home-grown talent.  It is not always the case in other successful companies.  A friend of mine likes to say “don’t innovate, copy …” (J. I know that I am using your quote in another context to that you intend.  I know you value innovation).  At Panda, we have managed to recruit and retain very valuable individuals and we have seen the need to establish internal processes and mechanisms so that those individuals could develop their innovative technology. 

All in all, innovation in a company depends on the individuals conforming it and on the way the management ensures that the correct framework is established for the innovation culture to be born, to develop and to flourish.  In addition, management needs to have vision to be able to identify it, prioritize it over other needs and conduct it towards products with high impact in the market.

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“Paying-back” to society

March 7th, 2009

Special OlympicsOn Thursday we announced to the Spanish press the agreement we have signed with Special Olympics. Through year-round sports training and competition, Special Olympics empowers individuals with intellectual disabilities in more than 180 countries. Special Olympics often is the only place where they have an opportunity to participate in their communities and develop belief in themselves. Many live lives of neglect and isolation, hidden away or socially excluded from full participation in schools or society. Transforming the athlete, Special Olympics sports are a gateway to empowerment, competence, acceptance and joy.

I am convinced that businesses have a responsibility towards the society where we operate in.  Being an active part of society encourages us to support concrete actions that have an impact in the world around us.  Companies like Panda should play more than just an economic role in society; we must also be an active force in promoting the positive development of society. In fact, the capacity to have an impact in society is a very enriching part of our business activity.  Knowing that part of the profits we generate with our daily work go towards worthwhile projects is very exciting.  We are enthusiastic with the activities that Special Olympics undertakes and we are proud to be able to collaborate with them.

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