The worm is a form of virus that self-replicates, without
actually altering files and is designed to flood computer networks
with data. It was timed to begin replicating itself overnight.
Security experts had warned that it threatened to considerably slow
down the operation of the internet. However, Ronald Dick, director
of the FBI’s National Infrastructure Protection Center (NIPC)
said:
“Currently all government and private sector
watch centres are not reporting any unusual activity associated
with the Code Red worm. While there is no activity now, it does not
mean that the storm has passed.”
The low impact of the worm has been attributed to the actions of
systems and network operators who have patched their systems to
protect them. According to Microsoft, the patch it offered has been
downloaded more than one million times.
Although there has been a positive public response to high
profile warnings of the dangers posed by the worm, the FTC wants
greater powers to force businesses to take heed of future
warnings.
The FTC is seeking public comment on a proposed regulation that
is in part intended to force businesses to protect against “any
anticipated threats or hazards to the security or integrity” of
customer information. These measures are aimed at financial
institutions and are included in standards required under the
country’s Gramm-Leach-Bliley Act. As of 1st July, 2001, this Act
requires US financial institutions to notify customers about their
privacy practices and allow consumers to "opt out" of having their
non-public personal information disclosed to non-affiliated third
parties.
The Act's security provisions require certain other federal
agencies to establish standards for financial institutions relating
to administrative, technical and physical safeguards for customer
information. The objectives of these standards are to ensure the
security and confidentiality of customer records and information,
to protect against any anticipated threats or hazards to the
security or integrity of such records and to protect against
unauthorised access to, or use of, such records or information that
could result in substantial harm or inconvenience to any customer.
The standards could allow action to be taken against financial
institutions that fail to take heed of security warnings such as
that issued by the FBI for the Code Red worm.
