German Industry giants team up in New Cyber security venture


VWThe cases of auto-hacks have grown tremendously in the last few years and particularly in 2015. From Tesla motors, Range Rover to Fiat Chrysler, the cases keep increasing. In the case of of Fiat Chrysler, two US cyber security researchers were able to hack into the vehicle using the vehicle’s infotainment system.The incident led to a recall of 1.4 million vehicles to receive a software update.

Reports also emerged that German car maker Volkswagen spent the last two years fighting an expert research detailing the risks of electric car hacking. In 2012, researchers discovered vulnerabilities in keyless vehicles that affects the transponders used in these vehicles. The vehicle manufacturers sued the researchers to prevent the report from going public. The research detailed the flaws in the cryptography and authentication protocol used in Volkswagen-owned luxury brands including Audi, Porsche, Bentley and Lamborghini.

Now to avert the situation, a group of top German companies are planning to establish a cyber security firm aimed at fending off cyber criminals according to a report by Bloomberg.  The four, Volkswagen AG, insurer Allianz SE, medical company Bayer AG and chemicals producer BASF SE plan to sell information-technology security services to firms in Germany starting 2016. It is reported that German companies lose 51 billion euros attributed to cyber crime. The four companies are each expected to hold a 25% stake in the business.

The company called DCSO will collaborate with the German government in an effort to buffer its IT defense systems. Germany has been planning to blanket itself with high speed internet connection by 2018 and sees this as an opportunity to bolster its internet security.

Source: Bloomberg