5G networks promise high speeds, lower latency, and more robust security compared to its predecessors – and this has created a lot of buzz. As a result, there is a lot of competition among operators to roll out the network while manufacturers are already producing 5G devices.
The deployment of 5G around the world has also been facilitated by a need for always-connected computers, widespread internet of things (IoT), and dependence on smartphones. All of this is constraining the 4G LTE technology.
With the current uptake in remote working due to COVID-19, 5G is expected to see more deployment.
However, despite the promised benefits, there are varying concerns about the potential vulnerabilities of this network. Since there are various security concerns, this article will highlight those involving the standalone 5G networks.
What is 5G Standalone Network?
5G stands for the fifth generation of networks that are designed to address gaps and errors existing in the architecture of previous generation networks. However, its implementation is through a gradual phasing out of the existing networks.
Note that the 5G network involves two streams, which include the standalone (SA) and non-standalone (NSA). The NSA relies on the existing 4G infrastructure because 5G standards are not fully finalized.
On the other hand, the standalone is a completely new, end-to-end 5G network. To offer ultra-low latency and high capacities, service providers will have to fully implement the standalone 5G infrastructure.
Despite the radical and beneficial transformation promised by 5G networks, there are concerns that it might become a multidimensional cyberattack vulnerability.
Vulnerabilities for Subscribers and Mobile Network Operators
Unlike previous networks, 5G is a software-defined network and involves network function virtualization, which makes it more vulnerable.
The previous networks implement hardware choke points because they are centralized and hardware-based; whereas 5G digital routing lacks inspection and control chokepoints.
This new architecture has seen various research carried out to check its viability. As a result, industry professionals and government officials have already raised concern over the network’s security and overall architecture.
An investigation by global cybersecurity firm Positive Technologies focused on 5G standalone core in terms of its architecture security, the interaction of network elements, as well as subscriber authentication and registration procedures.
The examination revealed that “the stack of technologies in 5G potentially leaves the door open to attacks on subscribers and the operator’s network. Such attacks can be performed from the international roaming network, the operator’s network, or partner networks that provide access to services.”
The vulnerabilities were discovered in two protocols that are, PFCP and HTTP/2, which are used in 5G standalone networks.
Exploitation in Packet Forwarding Control Protocol (PFCP) would result in denial of service. This is because the PFCP is used to manage subscriber connections. A PFCP session includes three procedures: session establishment, modification, and deletion. It’s at this point that denial of service can be carried out by attackers through a session deletion request, a session modification request, or redirection of data through a session modification request.
For the HTTP/2, the Positive Technologies research found that an attacker could obtain the network functions profile and impersonate any network service. This is because the HTTP/2 protocol is responsible for vital network functions that register and store profiles on 5G networks. The attacker then would have access to authentication status, current location, and subscriber settings for network access. It’s also possible that an attacker would be able to delete NF profiles, which could result in a financial loss as well as damage subscriber trust.
If not handled correctly, the 5G standalone network security issues will place critical infrastructures such as hospitals, transport, and utilities at risk.
Solution and Conclusion
According to the report, the vulnerabilities would appear due to misconfigurations. With vendors competing to launch 5G networks, attackers will take advantage of poor configurations.
Therefore, it calls for proper configuration of the architecture to stop these types of attacks. Unfortunately, errors still might occur. To detect configuration errors in the networks, regular security audits should be performed.
It’s also vital that apart from ensuring proper equipment configuration, security monitoring, and enhancing the implementation of firewalls are also top priorities.
In conclusion, 5G’s high speeds, low latency, and high bandwidth will be highly beneficial. However, potential security holes could cost more than the cost of implementing this technology. As a business owner considering the 5G network, do not let your guard down just because the new network promises to address gaps and errors in previous generation networks.
Standalone 5G Networks: Potential Vulnerabilities that Could Result in Denial of Service for Customers
January 1, 2021 · Blog, What's New in Technology
⏱ 4 min read
5G networks promise high speeds, lower latency, and more robust security compared to its predecessors – and this has created a lot of buzz. As a result, there is a lot of competition among operators to roll out the network while manufacturers are already producing 5G devices.
The deployment of 5G around the world has also been facilitated by a need for always-connected computers, widespread internet of things (IoT), and dependence on smartphones. All of this is constraining the 4G LTE technology.
With the current uptake in remote working due to COVID-19, 5G is expected to see more deployment.
However, despite the promised benefits, there are varying concerns about the potential vulnerabilities of this network. Since there are various security concerns, this article will highlight those involving the standalone 5G networks.
What is 5G Standalone Network?
5G stands for the fifth generation of networks that are designed to address gaps and errors existing in the architecture of previous generation networks. However, its implementation is through a gradual phasing out of the existing networks.
Note that the 5G network involves two streams, which include the standalone (SA) and non-standalone (NSA). The NSA relies on the existing 4G infrastructure because 5G standards are not fully finalized.
On the other hand, the standalone is a completely new, end-to-end 5G network. To offer ultra-low latency and high capacities, service providers will have to fully implement the standalone 5G infrastructure.
Despite the radical and beneficial transformation promised by 5G networks, there are concerns that it might become a multidimensional cyberattack vulnerability.
Vulnerabilities for Subscribers and Mobile Network Operators
Unlike previous networks, 5G is a software-defined network and involves network function virtualization, which makes it more vulnerable.
The previous networks implement hardware choke points because they are centralized and hardware-based; whereas 5G digital routing lacks inspection and control chokepoints.
This new architecture has seen various research carried out to check its viability. As a result, industry professionals and government officials have already raised concern over the network’s security and overall architecture.
An investigation by global cybersecurity firm Positive Technologies focused on 5G standalone core in terms of its architecture security, the interaction of network elements, as well as subscriber authentication and registration procedures.
The examination revealed that “the stack of technologies in 5G potentially leaves the door open to attacks on subscribers and the operator’s network. Such attacks can be performed from the international roaming network, the operator’s network, or partner networks that provide access to services.”
The vulnerabilities were discovered in two protocols that are, PFCP and HTTP/2, which are used in 5G standalone networks.
Exploitation in Packet Forwarding Control Protocol (PFCP) would result in denial of service. This is because the PFCP is used to manage subscriber connections. A PFCP session includes three procedures: session establishment, modification, and deletion. It’s at this point that denial of service can be carried out by attackers through a session deletion request, a session modification request, or redirection of data through a session modification request.
For the HTTP/2, the Positive Technologies research found that an attacker could obtain the network functions profile and impersonate any network service. This is because the HTTP/2 protocol is responsible for vital network functions that register and store profiles on 5G networks. The attacker then would have access to authentication status, current location, and subscriber settings for network access. It’s also possible that an attacker would be able to delete NF profiles, which could result in a financial loss as well as damage subscriber trust.
If not handled correctly, the 5G standalone network security issues will place critical infrastructures such as hospitals, transport, and utilities at risk.
Solution and Conclusion
According to the report, the vulnerabilities would appear due to misconfigurations. With vendors competing to launch 5G networks, attackers will take advantage of poor configurations.
Therefore, it calls for proper configuration of the architecture to stop these types of attacks. Unfortunately, errors still might occur. To detect configuration errors in the networks, regular security audits should be performed.
It’s also vital that apart from ensuring proper equipment configuration, security monitoring, and enhancing the implementation of firewalls are also top priorities.
In conclusion, 5G’s high speeds, low latency, and high bandwidth will be highly beneficial. However, potential security holes could cost more than the cost of implementing this technology. As a business owner considering the 5G network, do not let your guard down just because the new network promises to address gaps and errors in previous generation networks.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
Despite the fresh start that a new year promises, our world hasn’t changed much since last March. We’re still living in a new normal. We’re masking up, working (and schooling) from home, and social distancing. Furthermore, scores of community events and activities have been canceled. However, there is something that’s never been canceled: it’s called hope. Here are a few things to embrace that can lift your spirits and help you navigate all the uncertainty.
Be Happy: The COVID-19 Vaccine is Here
This is incredible news. To date, there are two vaccines: Pfizer-BioNTech and Moderna. Those who receive the Pfizer-BioNTech shot will be given two injections, 21 days apart. Those who receive the Moderna shot also will be given two injections, one month (28 days) apart. Both are given in the muscle of the upper arm and can cause mild side effects. However, clinical trials for both have shown a high level of efficacy. Learn more about each one here. The vaccine will be rolled out in phases. Healthcare personnel and residents of long-term care facilities will be offered the first doses. Learn more about who will get it and when here. The fact that we even have a vaccine available might well be the very definition of hope.
Feel Refreshed: Take a News Break
Since most of us are isolated to some degree, it’s only natural to turn to our devices. Games and social media both have the potential to take your mind off of the pain in our world. However, if you tend to veer toward newsfeeds that feature nothing but bad news (which can be addicting), perhaps it’s time to take a break. According to Verywell.com, a constant stream of sensational or disaster reporting, whether you are exposed actively or passively, can elevate stress levels and trigger symptoms like anxiety and sleep troubles, robbing you of your well-being. So, unplug. Step away from your laptop. Give your phone to a family member, partner, or friend. Get outside and soak in some vitamin D. Re-claim that part of yourself that sees the glass half full.
Ditch the Guilt: Plan Your Cheat Meals
If you’ve been looking to food for some much-needed comfort over the past year, you’re not alone. Being at home just a few feet away from a fully stocked kitchen is tempting every minute! Perhaps some of you have banished any guilt about indulging, but for those who just can’t seem to shake it, choose your moments to indulge. Satisfy your cravings a few times a week or just on the weekends. The less you do this, the more you’ll enjoy it. And when you want to splurge, why not support a local restaurant by ordering takeout? You’ll feel better in no time.
Chill Out: Spend Time Doing Nothing
With everything that’s going on and all the responsibilities of living life and crossing things off our lists, stopping to do nothing might seem counter-intuitive; but often, it’s the best remedy for eliminating stress and restoring your sanity. Carving out time to sit with the feelings you’re experiencing – whether that’s irritation, anxiety, or sadness – can help dissipate them. Take some advice from Winnie the Pooh who said, “Doing nothing often leads to the very best of something.” When you give yourself permission to let go and empty your mind, you’ll be rejuvenated and ready to begin again.
Even though the happenings of 2020 were unprecedented, the truth is you do have a new year ahead. One that can be anything you want it to be. Just grab hold of something that has always been there and will never be canceled: hope.
Despite the fresh start that a new year promises, our world hasn’t changed much since last March. We’re still living in a new normal. We’re masking up, working (and schooling) from home, and social distancing. Furthermore, scores of community events and activities have been canceled. However, there is something that’s never been canceled: it’s called hope. Here are a few things to embrace that can lift your spirits and help you navigate all the uncertainty.
Be Happy: The COVID-19 Vaccine is Here
This is incredible news. To date, there are two vaccines: Pfizer-BioNTech and Moderna. Those who receive the Pfizer-BioNTech shot will be given two injections, 21 days apart. Those who receive the Moderna shot also will be given two injections, one month (28 days) apart. Both are given in the muscle of the upper arm and can cause mild side effects. However, clinical trials for both have shown a high level of efficacy. Learn more about each one here. The vaccine will be rolled out in phases. Healthcare personnel and residents of long-term care facilities will be offered the first doses. Learn more about who will get it and when here. The fact that we even have a vaccine available might well be the very definition of hope.
Feel Refreshed: Take a News Break
Since most of us are isolated to some degree, it’s only natural to turn to our devices. Games and social media both have the potential to take your mind off of the pain in our world. However, if you tend to veer toward newsfeeds that feature nothing but bad news (which can be addicting), perhaps it’s time to take a break. According to Verywell.com, a constant stream of sensational or disaster reporting, whether you are exposed actively or passively, can elevate stress levels and trigger symptoms like anxiety and sleep troubles, robbing you of your well-being. So, unplug. Step away from your laptop. Give your phone to a family member, partner, or friend. Get outside and soak in some vitamin D. Re-claim that part of yourself that sees the glass half full.
Ditch the Guilt: Plan Your Cheat Meals
If you’ve been looking to food for some much-needed comfort over the past year, you’re not alone. Being at home just a few feet away from a fully stocked kitchen is tempting every minute! Perhaps some of you have banished any guilt about indulging, but for those who just can’t seem to shake it, choose your moments to indulge. Satisfy your cravings a few times a week or just on the weekends. The less you do this, the more you’ll enjoy it. And when you want to splurge, why not support a local restaurant by ordering takeout? You’ll feel better in no time.
Chill Out: Spend Time Doing Nothing
With everything that’s going on and all the responsibilities of living life and crossing things off our lists, stopping to do nothing might seem counter-intuitive; but often, it’s the best remedy for eliminating stress and restoring your sanity. Carving out time to sit with the feelings you’re experiencing – whether that’s irritation, anxiety, or sadness – can help dissipate them. Take some advice from Winnie the Pooh who said, “Doing nothing often leads to the very best of something.” When you give yourself permission to let go and empty your mind, you’ll be rejuvenated and ready to begin again.
Even though the happenings of 2020 were unprecedented, the truth is you do have a new year ahead. One that can be anything you want it to be. Just grab hold of something that has always been there and will never be canceled: hope.
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
The CARES Act created the Employee Retention Credit as part of the government’s relief package to mitigate the economic impact of COVID-19. Recently, on Dec. 28, 2020, Congress enacted the Consolidated Appropriations Act, 2021, which clarified and expanded the scope of the Employee Retention Credit (ERC).
Below is a summary of the changes in key provisions of the credit and the new guidance. Noteworthy updates include a broader application of the credit and news that changes are retroactive.
Time of Availability
Previously, the credit only applied to qualified wages paid between March 12, 2020, through Dec. 31, 2020. The new legislation extends the credit period for six more months – through June 30, 2020.
Eligibility Requirements
There are two main triggers for eligibility. The first applies in all instances, with the credit available to any business whose operations were partially or totally suspended by a governmental COVID-19 order during the time the order is in effect.
The second option to become eligible differs under the new act. Previously, businesses were eligible if gross receipts were less than half of the same quarter in 2019 and remained eligible until reaching 80 percent – compared to the prior year. Under the revision, gross receipts were still compared to the same quarter in 2019. Still, beginning Jan. 1, 2021, eligibility starts at less than 80 percent for the comparable period (you don’t have to get to less than 50 percent). Further, if a business didn’t begin operations until 2020, they can compare to 2020 instead of 2019.
Percentage of Wages and Maximum Credit
The percentage of wages qualified for the credit increased from 50 percent to 70 percent. The cost of providing healthcare benefits to employees remains deductible as before.
Coupled with this is an increase in the maximum credit amount. Previously, the annual maximum credit per employee was $5,000; but starting Jan. 1, 2021, this increases to $7,000 for both the first and second quarters, for a $14,000 annual maximum.
Employer Size for Whether an Employee is Working or Not
The employer size threshold is another notable change. The original act prevented companies with more than 100 employees from taking the ERC for any employee still performing services – even if at a reduced capacity. Starting in 2021, this increases to 500 employees.
Paycheck Protection Program Loans versus ERC
Previously, companies who participated in the PPP loan program were not eligible for the Employee Retention Credit, including affiliated companies. The updated law retroactively changes this requirement. Companies that received PPP loans are now eligible for the ERC credit, but there are restrictions.
The change applies to wages paid on or after March 13, 2020. Prior PPP loan recipients cannot claim the credit for wages paid with proceeds from a PPP loan receiving forgiveness. If the company paid qualified wages over the amount of the forgiven quantity, they could claim the credit retroactively. The IRS is expected to issue more guidance on this topic.
Advance Payments
There was no advance payment option; employers were required to pay employee wages before they could receive the credit. While this is still not settled, it is expected that the IRS will draft guidance allowing for advance payment of the ERC for companies with 500 or fewer employees based on 70 percent of the average quarterly payroll for the comparable quarter in 2019.
Eligibility of Governmental Entities
Previously, the ERC was not available to governmental agencies at any level; however, starting Jan. 1, 2021, public colleges and universities, agencies that provide medical care, and select other agencies such as federal credit unions are now eligible.
Conclusion
The Consolidated Appropriations Act, 2021 extended and clarified many of the Employee Retention Credit provisions up through June 30, 2021. Overall, the ERC is expanded in terms of amount, employer size, and more flexible gross receipts test. Further, PPP loan recipients are now also eligible for the credit if they meet certain criteria.
Most likely, employers will need to file amended payroll tax returns for the second and third quarters, but guidance is still pending for this and PPP loan recipients who want to access the credit.
The changes can be complex, and compliance can be cumbersome, so if any of the information outlined above applies to you, be sure to reach out to us to help you capture the most value from the changes to the Employee Retention Credit rules.
Details on the Expansion and Clarification of the Employee Retention Credit
January 1, 2021 · Blog, Guest Article of the Month
⏱ 4 min read
The CARES Act created the Employee Retention Credit as part of the government’s relief package to mitigate the economic impact of COVID-19. Recently, on Dec. 28, 2020, Congress enacted the Consolidated Appropriations Act, 2021, which clarified and expanded the scope of the Employee Retention Credit (ERC).
Below is a summary of the changes in key provisions of the credit and the new guidance. Noteworthy updates include a broader application of the credit and news that changes are retroactive.
Time of Availability
Previously, the credit only applied to qualified wages paid between March 12, 2020, through Dec. 31, 2020. The new legislation extends the credit period for six more months – through June 30, 2020.
Eligibility Requirements
There are two main triggers for eligibility. The first applies in all instances, with the credit available to any business whose operations were partially or totally suspended by a governmental COVID-19 order during the time the order is in effect.
The second option to become eligible differs under the new act. Previously, businesses were eligible if gross receipts were less than half of the same quarter in 2019 and remained eligible until reaching 80 percent – compared to the prior year. Under the revision, gross receipts were still compared to the same quarter in 2019. Still, beginning Jan. 1, 2021, eligibility starts at less than 80 percent for the comparable period (you don’t have to get to less than 50 percent). Further, if a business didn’t begin operations until 2020, they can compare to 2020 instead of 2019.
Percentage of Wages and Maximum Credit
The percentage of wages qualified for the credit increased from 50 percent to 70 percent. The cost of providing healthcare benefits to employees remains deductible as before.
Coupled with this is an increase in the maximum credit amount. Previously, the annual maximum credit per employee was $5,000; but starting Jan. 1, 2021, this increases to $7,000 for both the first and second quarters, for a $14,000 annual maximum.
Employer Size for Whether an Employee is Working or Not
The employer size threshold is another notable change. The original act prevented companies with more than 100 employees from taking the ERC for any employee still performing services – even if at a reduced capacity. Starting in 2021, this increases to 500 employees.
Paycheck Protection Program Loans versus ERC
Previously, companies who participated in the PPP loan program were not eligible for the Employee Retention Credit, including affiliated companies. The updated law retroactively changes this requirement. Companies that received PPP loans are now eligible for the ERC credit, but there are restrictions.
The change applies to wages paid on or after March 13, 2020. Prior PPP loan recipients cannot claim the credit for wages paid with proceeds from a PPP loan receiving forgiveness. If the company paid qualified wages over the amount of the forgiven quantity, they could claim the credit retroactively. The IRS is expected to issue more guidance on this topic.
Advance Payments
There was no advance payment option; employers were required to pay employee wages before they could receive the credit. While this is still not settled, it is expected that the IRS will draft guidance allowing for advance payment of the ERC for companies with 500 or fewer employees based on 70 percent of the average quarterly payroll for the comparable quarter in 2019.
Eligibility of Governmental Entities
Previously, the ERC was not available to governmental agencies at any level; however, starting Jan. 1, 2021, public colleges and universities, agencies that provide medical care, and select other agencies such as federal credit unions are now eligible.
Conclusion
The Consolidated Appropriations Act, 2021 extended and clarified many of the Employee Retention Credit provisions up through June 30, 2021. Overall, the ERC is expanded in terms of amount, employer size, and more flexible gross receipts test. Further, PPP loan recipients are now also eligible for the credit if they meet certain criteria.
Most likely, employers will need to file amended payroll tax returns for the second and third quarters, but guidance is still pending for this and PPP loan recipients who want to access the credit.
The changes can be complex, and compliance can be cumbersome, so if any of the information outlined above applies to you, be sure to reach out to us to help you capture the most value from the changes to the Employee Retention Credit rules.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.