TechJournal South
Header

Archive for March, 2009

“Conflicker” worm set to phone home April 1

Monday, March 30th, 2009

SAN FRANCISCO (AP) – The fast-moving Conficker computer worm, a scourge of the Internet that has infected at least 3 million PCs, is set to spring to life in a new way on Wednesday – April Fools’ Day.

That’s when many of the poisoned machines will get more aggressive about “phoning home” to the worm’s creators over the Internet. When that happens, the bad guys behind the worm will be able to trigger the program to send spam, spread more infections, clog networks with traffic, or try and bring down Web sites.

Technically, this could cause havoc, from massive network outages to the creation of a cyberweapon of mass destruction that attacks government computers. But researchers who have been tracking Conficker say the date will probably come and go quietly.

More likely, these researchers say, the programming change that goes into effect April 1 is partly symbolic-an April Fools’ Day tweaking of Conficker’s pursuers, who for now have been able to prevent the worm from doing significant damage.

“I don’t think there will be a cataclysmic network event,” said Richard Wang, manager of the U.S. research division of security firm Sophos PLC. “It doesn’t make sense for the guys behind Conficker to cause a major network problem, because if they’re breaking parts of the Internet they can’t make any money.”

Previous Internet threats were designed to cause haphazard destruction. In 2003 a worm known as Slammer saturated the Internet’s data pipelines with so much traffic it crippled corporate and government systems, including ATM networks and 911 centers.

Far more often now, Internet threats are designed to ring up profits. Control of infected PCs is valuable on the black market, since the machines can be rented out, from one group of bad guys to another, and act as a kind of illicit supercomputer, sending spam, scanning Web sites for security holes, or participating in network attacks.

The army of Conficker-infected machines, known as a “botnet,” could be one of the greatest cybercrime tools ever assembled. Conficker’s authors just need to figure out a way to reliably communicate with it.

Infected PCs need commands to come alive. They get those commands by connecting to Web sites controlled by the bad guys. Even legitimate sites can be co-opted for this purpose, if hackers break in and use the sites’ servers to send out malicious commands.

So far, Conficker-infected machines have been trying to connect each day to 250 Internet domains – the spots on the Internet where Web sites are parked. The bad guys need to get just one of those sites under their control to send their commands to the botnet. (The name Conficker comes from rearranging letters in the name of one of the original sites the worm was connecting to.)

Conficker has been a victim of its success, however, because its rapid spread across the Internet drew the notice of computer security companies. They have been able to work with domain name registrars, which administer Web site addresses, to block the botnet from dialing in.

Now those efforts will get much harder. On April 1, many Conficker-infected machines will generate a list of 50,000 new domains a day that they could try. Of that group, the botnet will randomly select 500 for the machines to actually query.

The bad guys still need to get only one of those up and running to connect to their botnet. And the bigger list of possibilities increases the odds they’ll slip something by the security community.

Researchers already know which domains the infected machines will check, but pre-emptively registering them all, or persuading the registrars to neutralize all of them, is a bigger hurdle.

“We expect something will happen, but we don’t quite know what it will look like,” said Jose Nazario, manager of security research for Arbor Networks, a member of the “Conficker Cabal,” an alliance trying to hunt down the worm’s authors.

“With every move that they make, there’s the potential to identify who they are, where they’re located and what we can do about them,” he added. “The real challenge right now is doing all that work around the world. That’s not a technical challenge, but it is a logistical challenge.”

Conficker’s authors also have updated the worm so infected machines have new ways to talk to each other. They can share malicious commands rather than having to contact a hacked Web site for instructions.

That variation is important because it shows that even as security researchers have neutralized much of what the botnet might do, the worm’s authors “didn’t lose control of their botnet,” said Michael La Pilla, manager of the malicious code operations team at VeriSign Inc.’s iDefense division.

The Conficker outbreak illustrates the importance of keeping current with Internet security updates. Conficker moves from PC to PC by exploiting a vulnerability in Windows that Microsoft Corp. fixed in October. But many people haven’t applied the patch or are running pirated copies of Windows that don’t get the updates.

Unlike other Internet threats that trick people into downloading a malicious program, Conficker is so good at spreading because it finds vulnerable PCs on its own and doesn’t need human involvement to infect a machine.

Once inside, it does nasty things. The worm tries to crack administrators’ passwords, disables security software, blocks access to antivirus vendors’ Web sites to prevent updating, and opens the machines to further infections by Conficker’s authors.

Someone whose machine is infected might have to reinstall the operating system.

Siboney acquired as Orchard Learning by Arlington’s Educational Options affiliate

Monday, March 30th, 2009

ARLINGTON, VA – Siboney Learning Group says it has been acquired as Orchard Learning by an affiliate of Education Options of Arlington, VA, an online education technology firm.

Financial details were not disclosed.

The new partnership will create a comprehensive pre-K – Adult curriculum solution.

Orchard Learning is a publisher of award-winning educational software including Orchard Software(, its flagship product line, which provides targeted state standards-based instruction, assessment and data management for pre-K – 9 in reading, language arts, math, and science.

“The synergy between Educational Options and Orchard Learning delivers a powerful single-source solution for educators of pre-K through adult students nationwide,” said Tom Sawner, Ed.D., president and CEO of Educational Options and the new president of Orchard Learning Inc.

Online: www.edoptions.com

New Capital Partners closes new fund at $140M

Monday, March 30th, 2009

BIRMINGHAM, AL – New Capital Partners, a venture capital fund which concentrates on the micro and lower middle-market businesses primarily in the the southeastern United States and Texas, has closed its Fund II with $140 million in commitments.

Atlantic-Pacific Capital Inc., the largest independent global placement agent for alternative investment funds and direct private placements, placement agent for the fund, said the it was oversubscribed.

Based in Birmingham, Alabama and with offices in Dallas, Texas, New Capital Partners invests in micro and lower middle-market high growth companies in the healthcare, financial services and business services sectors.

New Capital Partners Fund I invested in 10 portfolio companies.

Online: www.newcapitalpartners.com

Funded.com admits notice was early April Fool’s Day joke

Monday, March 30th, 2009

The Funded.com, a Web site that allows entrepreneurs to review and discuss venture capitalists, posted a notice today admitting an earlier one saying it would stop publishing reviews of venture capital firms was an early April Fool’s Day joke.

The new notice says that due to the speculation inspired by the prank, they were ending it.

The earlier notice on the site with the title, “Conclusion, Investors are Great,” apologized for previous comments on the site disparaging investors.

It said Funded.com would cease running reviews of VC firms April 2nd, 2009.

The new notice says:

“On March 27th, 2009, TheFunded.com announced that it would cease offering reviews of venture funds as an early “April Fools’ Day” prank. The prank was run over the weekend, when the site has less traffic. The stated reason, written in legalese, for ending the review functionality was: “Conclusion: Investors are Great.” A Member tipped off the media that the site was shutting down “following a lawsuit.” This lead to a flurry of speculation, so we ended the prank.”

It adds that it does receive many threats but “will not back down until investors really are great,” but that “there is a long way to go before that is realized.

See the notice here: www.thefunded.com

Angel investing falls 26.2 percent

Monday, March 30th, 2009

Angel investments fell $26.2 percent in 2008 compared with 2007, according to the Center for Venture Research at the University of New Hampshire.

While the amount of angel investing declined to $19.2 billion, compared to $26 billion in 2007, the actual number of deals fell only 2.9 percent.

In 2008, angel investors put money into 55,480 firms, compared to 57, 120 in 2007.

The number of active angel investors actually increased minutely in 2008 to 260,500, up from 258,200 in 2007.

Center Director Jeffrey Sohl said that the figures suggest that angels have not slowed their investment activity, but are investing less money.

That probably stems from both lower valuations for the companies and caution on the part of the investors, says Sohl.

Online: http://wsbe.unh.edu/cvr/

Virginia-based ICF International acquiring Macro International for $155M

Monday, March 30th, 2009

FAIRFAX, VA – ICF International (Nasdaq:ICFI), is acquiring Maryland-based Marco International for $155 million in cash.

Marco employs about 700 people in the DC-area and has offices in Calverton, Bethesda, Rockville, and Silver Spring, MD. It sells research, management consulting, marketing communications, and IT services to the federal government.

ICF says the deal will expand its health market offerings.

Getloaded.com, a Match.com for truckers and freight brokers

Monday, March 30th, 2009

By Allan Maurer

LOUISVILLE, KY—The idea of truckers using a site called “Getloaded.com” might raise eyebrows if you didn’t know that it’s simply an online resource to help them haul freight both to and from a destination, avoiding costly one-way loads. The company, which has been helping truckers match up with loads online since 1999, recently added the ability for them to use mobile phones as well.

“It’s like Match.com for truckers,” says David vanBlaricom II, marketing manager.

The 58-employee company is funded by its membership. It costs $45 a month for a company to post available loads of freight and $45 a month to access the information. “A lot of independent truckers user us to make a living,” says VanBlaricom.

“Finding one load pretty much pays for the service for a year,” he adds. The Getloaded.com site has a page of testimonials from users. One-way freight loads are the bane of the trucking industry, but not uncommon, particularly for independent contractors who are not on a trucking company payroll. Returning empty is costly in both time and money.

The site allows truckers to a profitable multi-legged route. A driver may not have anything from Richmond to New York. He might build one from Richmond to Massachusetts and then from Massachusetts to New York. Then from New York to Richmond.

The Getloaded site has about 32,000 users. A number of freight brokers and shippers have integrated their systems with that of Getloaded so that when their transport management software posts a load, it automatically goes to the Getloaded system.

The company had 1.6 million page views in January and 1.8 million in February, “So it’s going up,” says VanBlaricom. The company also sells advertising on the site.

He notes that while truck stops and other Internet sites have data boards showing available loads, “Most don’t have the capacity ours does because we’ve been around so long.”

VanBlaricom says that when the Internet came along, Getloaded created its own backend system. Initially, posting of available freight was free, which “was unheard of at the time.”

“When we got to critical mass, we offered as many features as possible, such as allowing brokers to do the negations themselves. All we do is match the two (brokers and truckers).
Getloaded also does invoicing for larger companies, but 70 percent of its users sign up online, pay by credit card monthly, says VanBlaricom.

The company’s new mobile site lets trucker’s search for loads from a Web-enabled phone, so they don’t need a laptop, hot spot or Wi-Fi connection.

Bryan Jones, president of Getloaded.com, explained when the new mobile application was released, “Now it doesn’t matter if you’re pumping gas or making a stop to grab a hamburger. The power to find loads for truckers is always available to them, right at their fingertips.”

He added that “This is ideal for brokers who are often on the road meeting with shippers, giving them time to travel while also finding available trucks for their clients.”

The company’s family of websites including GLAuthority.com, GLClassifieds.com, allwarehouses.com and HotCDLjobs.com, internet properties servicing the trucking industry.

Recession Hitting Small Firms Looking for Capital to Expand

Friday, March 27th, 2009

WASHINGTON, DC – The economic recession is preventing small firms and start-up companies from securing the private equity investment they need to launch, grow and develop new products and services, witnesses told Chairman Jason Altmire (PA-04) and the House Small Business Committee’s Investigations and Oversight Subcommittee Thursday.

Access to financing is critical for promising enterprises seeking to develop the next innovative drug therapy or revolutionary breakthrough in technology.

However, the private investments needed to fuel small business growth have fallen steeply in the struggling economy, lawmakers heard.

“With the right idea, hard work and sufficient capital, a new business can grow into a large enterprise which employs hundreds of people,” said Chairman Jason Altmire (D-PA).

“Unfortunately, today many entrepreneurs are finding that they cannot secure capital when they need it the most.”

During previous economic booms, much of the small business growth that helped boost our nation’s economy was fueled by venture capital and angel investors who invested in high-risk, high-growth endeavors.

However, a panel of experienced investors told lawmakers yesterday that venture capital investments are down by a third compared to a year ago, as investors have become more cautious about backing small firms. They also said some would-be entrepreneurs have shied away from taking a gamble, opting to remain in corporate jobs, rather than starting their own companies.

“In western Pennsylvania in recent years, venture capital has helped drive the growth of small medical research and development firms that are transforming our region’s economy,” Altmire said.

“If sources of capital continue to dry up, it will stifle the development of new businesses and hinder our entire region’s economic growth and prosperity. It is my hope that today’s hearing will help us identify ways we can improve small businesses’ access to credit so they can attract the resources they need to launch, expand and create more good paying jobs.”

Whereas larger companies can sell stock to raise capital, small firms often rely on personal savings, loans, or private investment to get off the ground.

Investors told lawmakers that small technology, alternative energy and biotech firms with cutting edge research should benefit from public and private resources that can help innovations reach the marketplace quicker and spur economic growth and job creation.

To view a video of the hearing see:

http://tiny.pl/bsd8

UNC-CH funds four new Gillings Innovation labs

Friday, March 27th, 2009

CHAPEL HILL, NC – The University of North Carolina at Chapel Hill Gillings School of Global Public Health has announced funding for four new Gillings Innovation Laboratories, on topics as diverse as water and the environment, drug safety, statistical genomics and 21st century public health teaching.

The projects bring to 14 the number of innovation laboratories that have been funded since the program was established in 2007.

The laboratories, funded through a gift to the public health school by Dennis and Joan Gillings, aim to help accelerate delivery of real-world solutions for some of the most challenging public health problems.

The new labs will focus on:

* Treating hog waste for energy recovery while meeting environmental goals;

* Developing new methods and open source software for genetic research’

* Determining benefit and harms drugs pose for older adults;

* The Global seamless classroom.

For more information on the Gillings Innovation Labs, see: www.sph.unc.edu/accelerate

Virginia-based Network Solutions names new president

Friday, March 27th, 2009

HERNDON, VA – Network Solutions, which sells hosting, Web site design and domain name registrations, has named Tim Kelly president.

Kelly was previously chief marketing officer of Sprint/Nextel. He spent 12 years with the firm.

He was also formerly president of Tickets.com.

Online: www.networksolutions.com