Vigilinx Network Security Threat Assessment Reports Digital Security Threats Rising in the Russian Federation.

Business Editors

PARSIPPANY, N.J.--(BUSINESS WIRE)--July 24, 2001

Espionage, Sabotage, Sensitive Intrusion, and Computer Crimes Pose

Especially Severe Threats Toward U.S. and Western Businesses

U.S. and Western firms operating in the Russian Federation (RF) face severe threats to network integrity and must adopt the most stringent security measures to protect themselves from industrial sabotage and espionage, according to a new report by Vigilinx, Inc., the leading full service provider of digital security solutions.

According to Vigilinx' three-year "threatscape" assessment, risks have escalated since 1996, when then-Russian President Boris Yeltsin ordered top state officials to close the technology gap with the West. In 2001, that mandate is much closer to reality as Russian organizations use increasingly sophisticated technologies to commit crimes.

"These findings raise serious concerns for the hundreds of U.S. and Western firms that have established operations in the federation, hoping to take advantage of the nation's transition from communism to democracy," said Bruce Murphy, Vigilinx CEO. "The situation in the RF is further compounded by government initiatives and policies designed to restore a more centralized form of government, and it advocates industrial espionage to close the technological gap with Western economies."

The Vigilinx report, which analyzes network security threats active within the RF from 1999 through 2001 using the firm's exclusive Threat Axis Analysis system, identifies more than 25 major security threats within seven primary network security "threat axes." These are Sensitive Intrusion; Information Warfare; Espionage & Sabotage; Group Causes; Malicious Codes & Their Applications; Intellectual Property Theft & Infringement; and Computer Crime.

The Vigilinx report shows that three of these axes, Espionage & Sabotage, Sensitive Intrusion and Computer Crimes, pose especially severe threats toward U.S. and Western businesses. The findings include:

-- Espionage & Sabotage. Highly developed espionage and sabotage techniques are
a Russian Cold War legacy. The RF government controls almost all electronic
paths in and out of Russia and electronic monitoring is a `fact of life' there.
Therefore, the possibility that U.S. firms are already under active
surveillance by Russian special services is very real.

-- Sensitive Intrusion. There is an extensive body of evidence demonstrating
that entities based in the RF have engaged in serious sensitive intrusions
targeted against U.S. government networks, as well as networks of Western
companies inside and outside the RF.

-- Computer Crime. Russian computer crime rose by 60 percent in 2000. According
to the FBI, more than 40 e-commerce sites in 20 states were victims of an
organized hacker attack in March 2001 by hackers from Russia and the Ukraine.
More than one million credit card numbers were stolen.

What can companies do to protect themselves in this increasingly dangerous network security environment? The Vigilinx report recommends five steps, including:

-- Establish a security plan and policy covering all company

information. This policy should address information in all

forms and cover everyone associated with the enterprise,

including employees, customers, suppliers, partners and

contractors.

-- Secure the "human element" and access to sensitive

information. People are the single most important element of

any information security program. Advise and frequently update

people concerning threats, countermeasures and their

responsibilities.

-- Establish and maintain physical security barriers. Facility

access controls must be instituted, and proper proprietary

information disposal methods used to protect against theft.

-- Update, maintain, and routinely revalidate electronic security

tools. This includes intelligence and early warning,

authentication, encryption, intrusion detection and other

tools.

-- Adopt a standard operating procedure for contingencies and

incidents. Plan for the worst, and if it happens, follow

established forensics procedures to the letter.

"While a Western firm can operate profitably within the Russian Federation, even the most stringent security measures cannot ensure network security, especially along the Espionage & Sabotage, Sensitive Intrusion, and Computer Crime threat axes," said Murphy.

The Russian Federation "threatscape" assessment is one of a series of Vigilinx knowledge products that address the need for companies and institutions to adopt focused and preemptive digital security strategies. Developed by leading security and geopolitical analysts, the knowledge products promote development of effective technology solutions that can be put in place before potential threats become reality. Each of these products provides threat awareness at multiple levels - for the organization, the enterprise and for current and future global e-commerce initiatives.

ABOUT VIGILINX

Vigilinx is the leading full service provider of digital security solutions, offering a complete line of security products and services including security intelligence, managed security services, knowledge products, security advisory consulting, integration services, investigation/forensics services, and training. The company has industry practices devoted to vertical markets including financial services, telecommunications, government, media and entertainment, and general services. The firm serves both mid-sized and Fortune 500 companies including Cablevision, New York Life Insurance Company, Saks, News Corporation, Cardinal Health, The Sony Corp. of America, and Viacom. Visit the company online at www.Vigilinx.com.