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microsoft-ties-executive-pay-to-security-following-multiple-failures-and-breaches

Microsoft ties executive pay to security following multiple failures and breaches

lock it down —

Microsoft has been criticized for “preventable” failures and poor communication.

A PC running Windows 11.

Enlarge / A PC running Windows 11.

It’s been a bad couple of years for Microsoft’s security and privacy efforts. Misconfigured endpoints, rogue security certificates, and weak passwords have all caused or risked the exposure of sensitive data, and Microsoft has been criticized by security researchers, US lawmakers, and regulatory agencies for how it has responded to and disclosed these threats.

The most high-profile of these breaches involved a China-based hacking group named Storm-0558, which breached Microsoft’s Azure service and collected data for over a month in mid-2023 before being discovered and driven out. After months of ambiguity, Microsoft disclosed that a series of security failures gave Storm-0558 access to an engineer’s account, which allowed Storm-0558 to collect data from 25 of Microsoft’s Azure customers, including US federal agencies.

In January, Microsoft disclosed that it had been breached again, this time by Russian state-sponsored hacking group Midnight Blizzard. The group was able “to compromise a legacy non-production test tenant account” to gain access to Microsoft’s systems for “as long as two months.”

All of this culminated in a report (PDF) from the US Cyber Safety Review Board, which castigated Microsoft for its “inadequate” security culture, its “inaccurate public statements,” and its response to “preventable” security breaches.

To attempt to turn things around, Microsoft announced something it called the “Secure Future Initiative” in November 2023. As part of that initiative, Microsoft today announced a series of plans and changes to its security practices, including a few changes that have already been made.

“We are making security our top priority at Microsoft, above all else—over all other features,” wrote Microsoft Security Executive Vice President Charlie Bell. “We’re expanding the scope of SFI, integrating the recent recommendations from the CSRB as well as our learnings from Midnight Blizzard to ensure that our cybersecurity approach remains robust and adaptive to the evolving threat landscape.”

As part of these changes, Microsoft will also make its Senior Leadership Team’s pay partially dependent on whether the company is “meeting our security plans and milestones,” though Bell didn’t specify how much executive pay would be dependent on meeting those security goals.

Microsoft’s post describes three security principles (“secure by design,” “secure by default,” and “secure operations”) and six “security pillars” meant to address different weaknesses in Microsoft’s systems and development practices. The company says it plans to secure 100 percent of all its user accounts with “securely managed, phishing-resistant multifactor authentication,” enforce least-privilege access across all applications and user accounts, improve network monitoring and isolation, and retain all system security logs for at least two years, among other promises. Microsoft is also planning to put new deputy Chief Information Security Officers on different engineering teams to track their progress and report back to the executive team and board of directors.

As for concrete fixes that Microsoft has already implemented, Bell writes that Microsoft has “implemented automatic enforcement of multifactor authentication by default across more than 1 million Microsoft Entra ID tenants within Microsoft,” removed 730,000 old and/or insecure apps “to date across production and corporate tenants,” expanded its security logging, and adopted the Common Weakness Enumeration (CWE) standard for its security disclosures.

In addition to Bell’s public security promises, The Verge has obtained and published an internal memo from Microsoft CEO Satya Nadella that re-emphasizes the company’s publicly stated commitment to security. Nadella also says that improving security should be prioritized over adding new features, something that may affect the constant stream of tweaks and changes that Microsoft releases for Windows 11 and other software.

“The recent findings by the Department of Homeland Security’s Cyber Safety Review Board (CSRB) regarding the Storm-0558 cyberattack, from summer 2023, underscore the severity of the threats facing our company and our customers, as well as our responsibility to defend against these increasingly sophisticated threat actors,” writes Nadella. “If you’re faced with the tradeoff between security and another priority, your answer is clear: Do security. In some cases, this will mean prioritizing security above other things we do, such as releasing new features or providing ongoing support for legacy systems.”

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Alleged cryptojacking scheme consumed $3.5M of stolen computing to make just $1M

SHOCKING CRYPTOCURRENCY SCAM —

Indictment says man tricked cloud providers into giving him services he never paid for.

Alleged cryptojacking scheme consumed $3.5M of stolen computing to make just $1M

Getty Images

Federal prosecutors indicted a Nebraska man on charges he perpetrated a cryptojacking scheme that defrauded two cloud providers—one based in Seattle and the other in Redmond, Washington—out of $3.5 million.

The indictment, filed in US District Court for the Eastern District of New York and unsealed on Monday, charges Charles O. Parks III—45 of Omaha, Nebraska—with wire fraud, money laundering, and engaging in unlawful monetary transactions in connection with the scheme. Parks has yet to enter a plea and is scheduled to make an initial appearance in federal court in Omaha on Tuesday. Parks was arrested last Friday.

Prosecutors allege that Parks defrauded “two well-known providers of cloud computing services” of more than $3.5 million in computing resources to mine cryptocurrency. The indictment says the activity was in furtherance of a cryptojacking scheme, a term for crimes that generate digital coin through the acquisition of computing resources and electricity of others through fraud, hacking, or other illegal means.

Details laid out in the indictment underscore the failed economics involved in the mining of most cryptocurrencies. The $3.5 million of computing resources yielded roughly $1 million worth of cryptocurrency. In the process, massive amounts of energy were consumed.

Parks’ scheme allegedly used a variety of personal and business identities to register “numerous accounts” with the two cloud providers and in the process acquiring vast amounts of computing processing power and storage that he never paid for. Prosecutors said he tricked the providers into allotting him elevated levels of services and deferred billing accommodations and deflected the providers’ inquiries regarding questionable data usage in unpaid bills. He allegedly then used those resources to mine Ether, Litecoin, and Monero digital currencies.

The defendant then allegedly laundered the proceeds through cryptocurrency exchanges, an NFT marketplace, an online payment provider, and traditional bank accounts in an attempt to disguise the illegal scheme. Once proceeds had been converted to dollars, Parks allegedly bought a Mercedes-Benz, jewelry, first-class hotel and travel accommodations, and other luxury goods and services.

From January to August 2021, prosecutors allege, Parks created five accounts with the Seattle-based “on-demand cloud computing platform” using different names, email addresses, and corporate affiliations. He then allegedly “tricked and defrauded” employees of the platform into providing elevated levels of service, deferring billing payments, and failing to discover the activity.

During this time, Parks repeatedly requested that the provider “provide him access to powerful and expensive instances that included graphics processing units used for cryptocurrency mining and launched tens of thousands of these instances to mine cryptocurrency, employing mining software applications to facilitate the mining of tokens including ETH, LTC and XMR in various mining pools, and employing tools that allowed him to maximize cloud computing power and monitor which instances were actively mining on each mining pool,” prosecutors wrote in the indictment.

Within a day of having one account suspended for nonpayment and fraudulent activity, Parks allegedly used a new account with the provider. In all, Parks allegedly consumed more than $2.5 million of the Seattle-based provider’s services.

The prosecutors went on to allege that Parks used similar tactics to defraud the Redmond provider of more than $969,000 in cloud computing and related services.

Prosecutors didn’t say precisely how Parks was able to trick the providers into giving him elevated services, deferring unpaid payments, or failing to discover the allegedly fraudulent behavior. They also didn’t identify either of the cloud providers by name. Based on the details, however, they are almost certainly Amazon Web Services and Microsoft Azure. Representatives from both providers didn’t immediately return emails seeking confirmation.

If convicted on all charges, Parks faces as much as 30 years in prison.

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Microsoft Releases Initial Azure Cloud Rendering Support for Quest 2 & Quest Pro

Microsoft announced it’s released a public preview of Azure Remote Rendering support for Meta Quest 2 and Quest Pro, something that promises to allow devs to render complex 3D content in the cloud and stream it to those VR headsets in real-time.

Azure Remote Rendering, which already supports desktop and the company’s AR headset HoloLens 2, notably uses a hybrid rendering approach to combine remotely rendered content with locally rendered content.

Now supporting Quest 2 and Quest Pro, developers are able to integrate Microsoft’s Azure cloud rendering capabilities to do things like view large and complex models on Quest.

Microsoft says in a developer blog post that one such developer Fracture Reality has already integrated Azure Remote Rendering into its JoinXR platform, enhancing its CAD review and workflows for engineering clients.

Image courtesy Microsoft, Fracture Reality

The JoinXR model above was said to take 3.5 minutes to upload and contains 12.6 million polygons and 8K images.

While streaming XR content from the cloud isn’t a new phenomenon—Nvidia initially released its own CloudXR integration for AWS, Microsoft Azure, and Google Cloud in 2021—Microsoft offering direct integration is a hopeful sign that the company hasn’t given up on VR, and is actively looking to bring enterprise deeper into the fold.

If you’re looking to integrate Azure’s cloud rendering tech into your project, check out Microsoft’s step-by-step guide here.

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