Posted October 29, 2015
Department of Justice Disrupts “Bugat” Cyber-theft Scheme
On Oct. 13, 2015, The U.S. Department of Justice announced that it had disrupted a malware scheme using a botnet known as “Bugat” (aka “Cridex and Dridex.”) The botnet’s administrator – 30 year old Moldovan, Andrey Ghinkul – along with co-conspirators, was able to acquire at least $10 million in stolen funds from U.S. bank accounts by compromising banking and personal information through phishing emails. Ghinkul was arrested on Aug. 28, 2015 in Cyprus, and the U.S. is currently seeking his extradition. He faces a nine-count indictment unsealed in the Western District of Pennsylvania with charges including “criminal conspiracy, unauthorized computer access with intent to defraud, damaging a computer, wire fraud and bank fraud.” U.S. officials have also obtained a civil injunction which permits the FBI to redirect infected computers’ automated requests. Included among the victims were the Sharon, Pennsylvania City School District and Penneco Oil.
“The steps announced today are another example of our global and innovative approach to combating cybercrime,” stated Assistant U.S. Attorney General Leslie Caldwell.
U.S. Attorney David Hickton said “Through a technical disruption and criminal indictment we have struck a blow to one of the most pernicious malware threats in the world.”
House Small Business Committee Hearing,“The EMV Deadline and What it Means for Small Businesses: Part II”
Oct. 21, 2015
This week the House Small Business Committee held its second hearing on the EMV transition. In the first hearing, the Committee heard testimony from representatives of the financial industry, and this more recent hearing heard testimony from retailers, several of whom spoke on behalf of retailer trade associations. The major themes from the hearing were cost of implementation, chip-and-PIN vs. chip-and-signature, and who bears fraud liability. Ms. Wade, the only retailer not representing a trade group, did not see the cost of the transition to be burdensome and instead looked at the new equipment and standards as an insurance policy that protects her customers as well as her business, and gives her peace of mind.
Fed’s Chairwoman Janet Yellen will Testify before HFSC on Nov. 4
On Oct. 27, 2015, House Financial Services Committee Chairman Jeb Hensarling (R-TX) announced that Federal Reserve Chairwoman Janet Yellen will testify before the committee on Nov. 4 at a hearing focused on the central bank’s financial regulation activities. Yellen will testify in lieu of a Dodd-Frank Act required Fed Vice Chair of Supervision (who would usually be called upon to provide such updates) as the White House has not yet nominated anyone for this position. Once appointed, the person in this role would be called to testify two times per year before the House Financial Services Committee and the Senate Banking Committee. In July of this year, Chairman Hensarling received Chairwoman Yellen’s commitment to testify in these hearings until the Vice Chair of Supervision’s position has been filled.
NACHA GR staff will attend the hearing.
CISA (S.754) Passed by the Senate
On Oct. 27, 2015, after a long wait, the bipartisan Cybersecurity Information Sharing Act (CISA), was passed overwhelmingly in the Senate. The legislation would give companies liability protections for sharing threat data with the federal government.
The bill now heads for a conference committee, where a select group of members from the House and Senate will resolve differences between each chambers’ respective versions of CISA, resulting in one bill. This bill will require another vote in each chamber – and then will be sent to the President for his signature. We expect the conference to take until Jan. of 2016 to resolve differences with the bills.
Representative Paul Ryan of Wisconsin is Voted Speaker of the House
On Oct. 29, 2015, Representative Paul Ryan (R-WI) was elected as the 54th Speaker of the House after receiving 236 votes cast by the full House of Representatives. He pledges to empower Committee Chairmen and to prioritize early consideration of spending and budget bills. Speaker John Boehner gave farewell remarks on the floor, thus ending his tenure.
Legislative Tool Kit
House 2015 Calendar (in the right hand bar)
Senate 2015 Calendar (in the right hand bar)