Putin Promises to Bolster Russia’s IT Security in Face of Cyber Attacks

Russian President Vladimir Putin chairs a meeting with members of the Security Council via teleconference call at the Novo-Ogaryovo state residence outside Moscow, Russia, Friday, May 20, 2022. (AP)
Russian President Vladimir Putin chairs a meeting with members of the Security Council via teleconference call at the Novo-Ogaryovo state residence outside Moscow, Russia, Friday, May 20, 2022. (AP)
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Putin Promises to Bolster Russia’s IT Security in Face of Cyber Attacks

Russian President Vladimir Putin chairs a meeting with members of the Security Council via teleconference call at the Novo-Ogaryovo state residence outside Moscow, Russia, Friday, May 20, 2022. (AP)
Russian President Vladimir Putin chairs a meeting with members of the Security Council via teleconference call at the Novo-Ogaryovo state residence outside Moscow, Russia, Friday, May 20, 2022. (AP)

President Vladimir Putin said on Friday that the number of cyber attacks on Russia by foreign "state structures" had increased several times over and that Russia must bolster its cyber defenses by reducing the use of foreign software and hardware.

The websites of many state-owned companies and news websites have suffered sporadic hacking attempts since Russia sent its armed forces into Ukraine on Feb. 24, often to show information that is at odds with Moscow's official line on the conflict.

"Targeted attempts are being made to disable the internet resources of Russia's critical information infrastructure," Putin said, adding that media and financial institutions had been targeted.

"Serious attacks have been launched against the official sites of government agencies. Attempts to illegally penetrate the corporate networks of leading Russian companies are much more frequent as well," he said.

In a meeting with the Security Council, Putin said that Russia would need to improve information security in key sectors and switch to using domestic technology and equipment.

"Restrictions on foreign IT, software and products have become one of the tools of sanctions pressure on Russia," Putin said. "A number of Western suppliers have unilaterally stopped technical support of their equipment in Russia."

He said cases of programs getting blocked after being updated were becoming more frequent.

Data leaks
State communications regulator Roskomnadzor on Wednesday said it had blocked a website that was hosting the personal data of a number of companies' clients. It did not name the companies. Russia's second-biggest bank VTB was quoted by media as saying some customers' phone numbers had been leaked but there was no risk to their funds.

E-commerce player Wildberries and online marketplace Avito denied reports in Russian media that their data had been leaked.

A data leak in early March exposed the personal details of more than 58,000 people on tech giant Yandex's food delivery app, Yandex.Eda.

Yandex.Eda competitor Delivery Club on Friday apologized to users after it suffered a data leak on orders placed by users.

"The data includes information about orders and does not affect bank details. We are doing our best to prevent the dissemination of the data," TASS news agency quoted the company as saying.

Hacking attacks this month kept video-hosting site RuTube offline for three days and altered satellite television menus in Moscow on Victory Day, when Russia celebrated the 77th anniversary of the Soviet Union's victory over Nazi Germany.

Moscow has long sought to improve its domestic internet infrastructure, even disconnecting itself from the global internet during tests last summer.

However, the unprecedented Western barrage of sanctions imposed in response to Moscow's military campaign in Ukraine has increased the pressure to make Russia's IT systems more resilient.



US Supreme Court Tosses Case Involving Securities Fraud Suit against Facebook

A 3D-printed Facebook logo is seen in front of a displayed stock graph. (Reuters)
A 3D-printed Facebook logo is seen in front of a displayed stock graph. (Reuters)
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US Supreme Court Tosses Case Involving Securities Fraud Suit against Facebook

A 3D-printed Facebook logo is seen in front of a displayed stock graph. (Reuters)
A 3D-printed Facebook logo is seen in front of a displayed stock graph. (Reuters)

The US Supreme Court sidestepped on Friday a decision on whether to allow shareholders to proceed with a securities fraud lawsuit accusing Meta's Facebook of misleading investors about the misuse of the social media platform's user data.
The justices, who heard arguments in the case on Nov. 6, dismissed Facebook's appeal of a lower court's ruling that had allowed a 2018 class action led by Amalgamated Bank to proceed. The Supreme Court opted not resolve the underlying legal dispute, determining that the case should not have been taken up. Its action leaves the lower court's decision in place, Reuters reported. 
The court's dismissal came in a one-line order that provided no explanation. The Facebook dispute was one of two cases to come before the Supreme Court this month involving the right of private litigants to hold companies to account for alleged securities fraud. The other one, involving the artificial intelligence chipmaker Nvidia, was argued on Nov. 13. The Supreme Court has not ruled yet in the Nvidia case.
The plaintiffs in the Facebook case claimed the company unlawfully withheld information from investors about a 2015 data breach involving British political consulting firm Cambridge Analytica that affected more than 30 million Facebook users. They accused Facebook of misleading investors in violation of the Securities Exchange Act, a 1934 federal law that requires publicly traded companies to disclose their business risks. Facebook's stock fell following 2018 media reports that Cambridge Analytica had used improperly harvested Facebook user data in connection with Donald Trump's successful US presidential campaign in 2016. The investors have sought unspecified monetary damages in part to recoup the lost value of the Facebook stock they held.
At issue was whether Facebook broke the law when it failed to detail the prior data breach in subsequent business-risk disclosures, and instead portrayed the risk of such incidents as purely hypothetical.
Facebook argued that it was not required to reveal that its warned-of risk had already materialized because "a reasonable investor" would understand risk disclosures to be forward-looking statements. President Joe Biden's administration supported the shareholders in the case.
US District Judge Edward Davila dismissed the lawsuit but the San Francisco-based 9th US Circuit Court of Appeals revived it.
The Cambridge Analytica data breach prompted US government investigations into Facebook's privacy practices, various lawsuits and a US congressional hearing. The US Securities and Exchange Commission in 2019 brought an enforcement action against Facebook over the matter, which the company settled for $100 million. Facebook paid a separate $5 billion penalty to the US Federal Trade Commission over the issue.
The Supreme Court in prior rulings has limited the authority of the Securities and Exchange Commission, the federal agency that polices securities fraud.