 | | | | | | | | | | |  |  | | | | Top Stories: Crisis triggers online security reviews">Archive of stories pre April 2007 | | | | | | | 
Archive of stories pre April 2007 | News submitted by: fig13_aphotic
NEW YORK -- The "Love Bug" computer virus didn't do it, nor did a string of credit card thefts at scores of e-commerce sites.
'All of a sudden ... I am a potential target.'
It took a completely offline, low-tech event -- the terrorist jetliner attacks -- to prompt a major re-evaluation of online security measures.
Companies that had vacillated on security before September 11 quickly closed deals for products or services after the attacks. Others made inquiries for the first time or resurrected proposals that had been gathering dust.
"Information security officers who had great plans, but couldn't get them funded, are suddenly going to find they are in great demand," says Harris Miller, president of the Information Technology Association of America.
After the attacks, software company eBSure Inc. set up a backup site and asked employees to be wary of outside communications -- the type that may trick insiders into revealing passwords or other vital information.
"It causes us to revisit some of the less-sophisticated techniques, as opposed to the more sophisticated ones like viruses," says Kurt Ziegler, the company's CEO.
Executives from Alliant Energy Corp., TXU Corp. and other power companies have formed a task force to assess security -- offline and online. It will include ways to improve communications between those handling physical security and those who keep computer networks running.
Jayne Brady of the Edison Electric Institute, a trade group, says that although the industry came up with contingencies for Y2K, "what happened on September 11 was beyond people's imaginations."
Foundstone Inc., Riptech Inc. and other Internet security companies report up to three times the normal inquiries. Calling them are government agencies, electric utilities, transportation companies, manufacturers and providers of financial or telecommunications services.
"People recognize that the Internet is a major component of our infrastructure, and any attack on our way of life will necessarily involve the Internet," says Bruce Schneier, chief technology officer with Counterpane Internet Security Inc.
Online security was already a growing concern feeding a burgeoning industry. In August, researchers at IDC projected worldwide spending on information security services would more than triple to $21 billion in 2005, from $6.7 billion last year.
Businesses directly hit by the Love Bug and other viruses improved their protections, while retailers that lost control of credit card numbers closed software vulnerabilities. The jamming of Yahoo!, CNN and other major sites in February 2000 made many companies and Net users aware of the threat hacking poses to the economy.
Before September 11, however, many businesses still considered security to be someone else's problem, taking the attitude: What do I have that hackers would want?
"What changed is that everyday Joes were expressly targeted just because they were U.S. citizens," says Jeff Schmidt, chief executive of Secure Interiors Inc. "All of a sudden, even though I'm not a (major retailer), I'm a U.S. citizen so I am a potential target."
Jack Reis, CEO of NFR Security Inc., notes that the Love Bug remained in the news for only a week or two, while the sustained focus on the terrorist attacks offers the public a constant reminder.
Add to that a worm, "Nimda," which shut down sites in Norway, Japan and elsewhere only a week after the jetliner attacks.
The attention isn't limited to network security, either. Offices have hired more security guards, and individuals have bought more gas masks.
Inquiries have also increased for other high-tech products.
Visionics Corp., which makes face-recognition cameras that can match images with police databases, reported five times the normal sales inquiries from airports, stadiums, subways and law enforcement.
It has postponed low-priority, international shipments to meet domestic demand, and it has expanded its sales team from 12 to 18.
Digital Angel Corp., which is testing wireless products that can track people's whereabouts and monitor their vital signs, was a 30 percent increase in traffic to its Web site.
It's too early to tell how many of the inquiries will turn into sales. For security services, evaluating needs and signing contracts can take weeks. And one-time purchases may herald long-term growth.
Frank Prince, an analyst at Forrester Research Inc., predicts that as perceptions of the threat decrease, so will spending.
He says he thinks some of the increased business now is "knee-jerk buying."
But Amit Yoran, co-founder of Riptech, says the September 11 events are forcing companies to take seriously the "electronic Pearl Harbor" about which federal authorities have long warned.
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