Schumer targets rental car recalls

  By MICHAEL GORMLEY Association PressALBANY, N.Y. -- U.S. Sen. Charles Schumer of New York said he will introduce a bill to stop car rental agencies from renting automobiles that are under recalls for problems that aren't yet fixed.

The industry this month proposed a two-tiered system in which cars would be kept off the road if the recall involved serious safety issues. Recalls considered less serious would be fixed as soon as possible, but the cars wouldn't be "grounded" until then, under the proposal by the American Car Rental Association.

"Rental car agencies appear more interested in reaping profit by keeping recalled vehicles on the road then they do with ensuring the safety of the individuals and families who are driving their cars," Schumer said before his announcement Monday.

Schumer said the law is needed because of serious crashes in recent years involving rental cars under recalls. He said car rental agencies must be held to the same standard as automobile dealerships that don't lease cars for longer terms until a problem identified in a recall is fixed.

The American Car Rental Association said its two-tiered system would make sure unsafe cars aren't rented but also wouldn't keep cars off the road unnecessarily. The association said neither manufacturers nor the National Highway Traffic Safety Administration gives clear direction on which recalls pose a serious risk that must be fixed before a car can be operated.

"Currently all vehicle owners, including rental companies, must decide whether to continue to operate vehicles subject to a recall based on the information provided by the manufacturer and NHTSA in the recall notice," the association said on its website.

Schumer said all recalled vehicles should be off the road until they're fixed.

"The latest proposal by car rental companies to create a vague double-standard that defines some recalled cars as safe and others as dangerous allows these companies to shirk their responsibility to consumers' safety," Schumer said.

Schumer said a consumer who rents a car, unlike a private owner, won't be notified that the car is under recall.

An association spokesman didn't respond to a request for comment Sunday.

"We can't determine the significance of a recall and whether a vehicle is no longer safe to operate or whether it can continue to operate and then should simply be brought in for service at some point in time," the association's Bob Barton told The New York times in April in lobbying for a two-tier system.

"We simply want the manufacturers to instruct us when a vehicle needs to be grounded and we will absolutely comply," Barton said.

(Copyright ©2011 by The Associated Press. All Rights Reserved.) Get more Politics & Elections »

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Lockheed attack highlights rise in cyber espionage

FILE - In this April 9, 2009 file photo, a sign outside the Lockheed Martin plant in Marietta, Ga. is shown. Lockheed Martin on Saturday, May 28, 2011 admitted it was the recent target of a "significant and tenacious" cyber attack, although the defense contractor and the Department of Homeland Security insist the hack was thwarted before any critical data was stolen. (AP Photo/John Amis, File)

  By CHIP CUTTER and LOLITA C. BALDORNEW YORK -- This cyber attack didn't go after people playing war games on their PlayStations. It targeted a company that helps the U.S. military do the real thing.

Lockheed Martin says it was the recent target of a "significant and tenacious" hack, although the defense contractor and the Department of Homeland Security insist the attack was thwarted before any critical data was stolen. The effort highlighted the fact that some hackers, including many working for foreign governments, set their sights on information far more devastating than credit card numbers.

Information security experts say a rash of cyber attacks this year - including a massive security breach at Sony Corp. last month that affected millions of PlayStation users - has emboldened hackers and made them more willing to pursue sensitive information.

"2011 has really lit up the boards in terms of data breaches," said Josh Shaul, chief technology officer at Application Security, a New York-based company that is one of the largest database security software makers. "The list of targets just grows and grows."

Lockheed Martin Corp. said in a statement Saturday that it detected the May 21 attack "almost immediately" and took countermeasures.

"Our systems remain secure; no customer, program or employee personal data has been compromised," the Bethesda, Md.-based company said. Neither Lockheed Martin nor federal agencies would reveal specifics of the attack, or its origins. Company spokeswoman Jennifer Whitlow declined to comment further on the case Sunday.

This isn't the first time Lockheed Martin has been targeted.

Nearly four years ago, officials revealed that hackers had breached Lockheed's Joint Strike Fighter program. Officials said no classified information about the military program was compromised, but heightened protections were added.

Analysts said the latest attack would likely spur rival defense contractors like Northrop Grumman Corp., Raytheon Co., General Dynamics Corp. and Boeing Co. to take additional steps to safeguard their systems.

"I guarantee you every major defense contractor is on double alert this weekend, watching what's going on and making sure they're not the next to fall victim," Shaul said.

Boeing declined to comment on the company's network security measures. Northrop Grumman spokesman Randy Belote said in an e-mailed statement that "we do not comment on whether or not Northrop Grumman is or has been a target for cyber intrusions," adding that the company "continuously monitors and proactively strengthens the security of our networks."

Over the past several years, the U.S. government has become more aggressive in its efforts to tackle cybercrime, developing strategies to beef up government computer systems, expand cooperation with other countries and improve coordination with the private sector. President Barack Obama declared cybersecurity a top priority shortly after taking office in 2009, setting off several government-wide reviews to develop strategies to better secure government, business and public online activity.

The Pentagon last May set up a new Cyber Command, based alongside the National Security Agency at Fort Meade, Md., in recognition of the expanding threat against the Defense Department and the need to better coordinate the nation's offensive and defensive cyber operations. The Department of Homeland Security is also slowly employing an automated system - known as Einstein 2 and Einstein 3 - to protect government agencies' computer systems.

Still, the attacks have continued. William J. Lynn III, the deputy defense secretary, said in January that more than 100 foreign intelligence agencies have tried to breach U.S. defense computer networks, largely to steal military plans and weapons systems designs.

China is often pointed to as a source of cyber attacks because a large amount of malware, or malicious software, originates from there. The government denies it is involved but experts say the high skill level of some attacks suggests the Chinese military, a leader in cyberwarfare research, or other agencies might be stealing technology and trade secrets to help state companies.

Meanwhile, attacks against corporations have been growing this year. In March, RSA, the security division of data storage company EMC, acknowledged that its computer network was hacked. The implications are serious because RSA's technology underpins the security of some of the world's most closely guarded data. RSA makes small security devices that supply constantly changing numbers that are used as secondary passwords for accessing corporate networks and email.

Last month, more than 100 million online accounts were affected by the hacking of Sony's PlayStation Network gaming service and other online services.

Companies have gotten better at detecting attacks through so-called "intrusion software" that uncovers odd behavior on networks, said Alfred Huger, vice president of development at security firm Sourcefire. As recently as five years ago, Huger said, it was difficult for companies to even determine if they were being hacked.

Even with enhanced technology to fight cyber espionage, experts say it will continue and evolve.

Rich Mogull, analyst and CEO of Phoenix-based security research firm Securosis, noted that governments and defense agencies have been spying on each other throughout history. Computers have just made it easier to do so electronically.

"This is just what countries do," he said. "It's the unfortunate reality of how the world works."

---
Baldor reported from Washington.

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