Blog: July 2020 Archives

Friday Squid Blogging: Squid Proteins for a Better Face Mask

Researchers are synthesizing squid proteins to create a face mask that better survives cleaning. (And you thought there was no connection between squid and COVID-19.) The military thinks this might have applications for self-healing robots.

As usual, you can also use this squid post to talk about the security stories in the news that I haven’t covered.

Read my blog posting guidelines here.

Posted on July 31, 2020 at 4:00 PM148 Comments

Fake Stories in Real News Sites

Fireeye is reporting that a hacking group called Ghostwriter broke into the content management systems of Eastern European news sites to plant fake stories.

From a Wired story:

The propagandists have created and disseminated disinformation since at least March 2017, with a focus on undermining NATO and the US troops in Poland and the Baltics; they’ve posted fake content on everything from social media to pro-Russian news websites. In some cases, FireEye says, Ghostwriter has deployed a bolder tactic: hacking the content management systems of news websites to post their own stories. They then disseminate their literal fake news with spoofed emails, social media, and even op-eds the propagandists write on other sites that accept user-generated content.

That hacking campaign, targeting media sites from Poland to Lithuania, has spread false stories about US military aggression, NATO soldiers spreading coronavirus, NATO planning a full-on invasion of Belarus, and more.

EDITED TO ADD (8/12): This review of three books on the topic is related.

Posted on July 30, 2020 at 2:56 PM9 Comments

Survey of Supply Chain Attacks

The Atlantic Council has a released a report that looks at the history of computer supply chain attacks.

Key trends from their summary:

  1. Deep Impact from State Actors: There were at least 27 different state attacks against the software supply chain including from Russia, China, North Korea, and Iran as well as India, Egypt, the United States, and Vietnam.States have targeted software supply chains with great effect as the majority of cases surveyed here did, or could have, resulted in remote code execution. Examples: CCleaner, NotPetya, Kingslayer, SimDisk, and ShadowPad.
  2. Abusing Trust in Code Signing: These attacks undermine public key cryptography and certificates used to ensure the integrity of code. Overcoming these protections is a critical step to enabling everything from simple alterations of open-source code to complex nation-state espionage campaigns. Examples: ShadowHammer, Naid/McRAT, and BlackEnergy 3.
  3. Hijacking Software Updates: 27% of these attacks targeted software updates to insert malicious code against sometimes millions of targets. These attacks are generally carried out by extremely capable actors and poison updates from legitimate vendors. Examples: Flame, CCleaner 1 & 2, NotPetya, and Adobe pwdum7v71.
  4. Poisoning Open-Source Code: These incidents saw attackers either modify open-source code by gaining account access or post their own packages with names similar to common examples. Attacks targeted some of the most widely used open source tools on the internet. Examples: Cdorked/Darkleech, RubyGems Backdoor, Colourama, and JavaScript 2018 Backdoor.
  5. Targeting App Stores: 22% of these attacks targeted app stores like the Google Play Store, Apple’s App Store, and other third-party app hubs to spread malware to mobile devices. Some attacks even targeted developer tools ­ meaning every app later built using that tool was potentially compromised. Examples: ExpensiveWall, BankBot, Gooligan, Sandworm’s Android attack, and XcodeGhost.

Recommendations included in the report. The entirely open and freely available dataset is here.

Posted on July 28, 2020 at 6:40 AM33 Comments

Friday Squid Blogging: Introducing the Seattle Kraken

The Kraken is the name of Seattle’s new NFL franchise.

I have always really liked collective nouns as sports team names (like the Utah Jazz or the Minnesota Wild), mostly because it’s hard to describe individual players.

As usual, you can also use this squid post to talk about the security stories in the news that I haven’t covered.

Read my blog posting guidelines here.

Posted on July 24, 2020 at 4:07 PM161 Comments

Update on NIST's Post-Quantum Cryptography Program

NIST has posted an update on their post-quantum cryptography program:

After spending more than three years examining new approaches to encryption and data protection that could defeat an assault from a quantum computer, the National Institute of Standards and Technology (NIST) has winnowed the 69 submissions it initially received down to a final group of 15. NIST has now begun the third round of public review. This “selection round” will help the agency decide on the small subset of these algorithms that will form the core of the first post-quantum cryptography standard.

[…]

For this third round, the organizers have taken the novel step of dividing the remaining candidate algorithms into two groups they call tracks. The first track contains the seven algorithms that appear to have the most promise.

“We’re calling these seven the finalists,” Moody said. “For the most part, they’re general-purpose algorithms that we think could find wide application and be ready to go after the third round.”

The eight alternate algorithms in the second track are those that either might need more time to mature or are tailored to more specific applications. The review process will continue after the third round ends, and eventually some of these second-track candidates could become part of the standard. Because all of the candidates still in play are essentially survivors from the initial group of submissions from 2016, there will also be future consideration of more recently developed ideas, Moody said.

“The likely outcome is that at the end of this third round, we will standardize one or two algorithms for encryption and key establishment, and one or two others for digital signatures,” he said. “But by the time we are finished, the review process will have been going on for five or six years, and someone may have had a good idea in the interim. So we’ll find a way to look at newer approaches too.”

Details are here. This is all excellent work, and exemplifies NIST at its best. The quantum-resistant algorithms will be standardized far in advance of any practical quantum computer, which is how we all want this sort of thing to go.

Posted on July 24, 2020 at 6:36 AM34 Comments

Adversarial Machine Learning and the CFAA

I just co-authored a paper on the legal risks of doing machine learning research, given the current state of the Computer Fraud and Abuse Act:

Abstract: Adversarial Machine Learning is booming with ML researchers increasingly targeting commercial ML systems such as those used in Facebook, Tesla, Microsoft, IBM, Google to demonstrate vulnerabilities. In this paper, we ask, “What are the potential legal risks to adversarial ML researchers when they attack ML systems?” Studying or testing the security of any operational system potentially runs afoul the Computer Fraud and Abuse Act (CFAA), the primary United States federal statute that creates liability for hacking. We claim that Adversarial ML research is likely no different. Our analysis show that because there is a split in how CFAA is interpreted, aspects of adversarial ML attacks, such as model inversion, membership inference, model stealing, reprogramming the ML system and poisoning attacks, may be sanctioned in some jurisdictions and not penalized in others. We conclude with an analysis predicting how the US Supreme Court may resolve some present inconsistencies in the CFAA’s application in Van Buren v. United States, an appeal expected to be decided in 2021. We argue that the court is likely to adopt a narrow construction of the CFAA, and that this will actually lead to better adversarial ML security outcomes in the long term.

Medium post on the paper. News article, which uses our graphic without attribution.

Posted on July 23, 2020 at 6:03 AM5 Comments

Fawkes: Digital Image Cloaking

Fawkes is a system for manipulating digital images so that they aren’t recognized by facial recognition systems.

At a high level, Fawkes takes your personal images, and makes tiny, pixel-level changes to them that are invisible to the human eye, in a process we call image cloaking. You can then use these “cloaked” photos as you normally would, sharing them on social media, sending them to friends, printing them or displaying them on digital devices, the same way you would any other photo. The difference, however, is that if and when someone tries to use these photos to build a facial recognition model, “cloaked” images will teach the model an highly distorted version of what makes you look like you. The cloak effect is not easily detectable, and will not cause errors in model training. However, when someone tries to identify you using an unaltered image of you (e.g. a photo taken in public), and tries to identify you, they will fail.

Research paper.

EDITED TO ADD (8/3): Kashmir Hill checks it out, and it’s got problems.

Another article.

Posted on July 22, 2020 at 9:12 AM48 Comments

Hacking a Power Supply

This hack targets the firmware on modern power supplies. (Yes, power supplies are also computers.)

Normally, when a phone is connected to a power brick with support for fast charging, the phone and the power adapter communicate with each other to determine the proper amount of electricity that can be sent to the phone without damaging the device­ — the more juice the power adapter can send, the faster it can charge the phone.

However, by hacking the fast charging firmware built into a power adapter, Xuanwu Labs demonstrated that bad actors could potentially manipulate the power brick into sending more electricity than a phone can handle, thereby overheating the phone, melting internal components, or as Xuanwu Labs discovered, setting the device on fire.

Research paper, in Chinese.

Posted on July 21, 2020 at 6:09 AM46 Comments

On the Twitter Hack

Twitter was hacked this week. Not a few people’s Twitter accounts, but all of Twitter. Someone compromised the entire Twitter network, probably by stealing the log-in credentials of one of Twitter’s system administrators. Those are the people trusted to ensure that Twitter functions smoothly.

The hacker used that access to send tweets from a variety of popular and trusted accounts, including those of Joe Biden, Bill Gates, and Elon Musk, as part of a mundane scam — stealing bitcoin — but it’s easy to envision more nefarious scenarios. Imagine a government using this sort of attack against another government, coordinating a series of fake tweets from hundreds of politicians and other public figures the day before a major election, to affect the outcome. Or to escalate an international dispute. Done well, it would be devastating.

Whether the hackers had access to Twitter direct messages is not known. These DMs are not end-to-end encrypted, meaning that they are unencrypted inside Twitter’s network and could have been available to the hackers. Those messages — between world leaders, industry CEOs, reporters and their sources, heath organizations — are much more valuable than bitcoin. (If I were a national-intelligence agency, I might even use a bitcoin scam to mask my real intelligence-gathering purpose.) Back in 2018, Twitter said it was exploring encrypting those messages, but it hasn’t yet.

Internet communications platforms — such as Facebook, Twitter, and YouTube — are crucial in today’s society. They’re how we communicate with one another. They’re how our elected leaders communicate with us. They are essential infrastructure. Yet they are run by for-profit companies with little government oversight. This is simply no longer sustainable. Twitter and companies like it are essential to our national dialogue, to our economy, and to our democracy. We need to start treating them that way, and that means both requiring them to do a better job on security and breaking them up.

In the Twitter case this week, the hacker’s tactics weren’t particularly sophisticated. We will almost certainly learn about security lapses at Twitter that enabled the hack, possibly including a SIM-swapping attack that targeted an employee’s cellular service provider, or maybe even a bribed insider. The FBI is investigating.

This kind of attack is known as a “class break.” Class breaks are endemic to computerized systems, and they’re not something that we as users can defend against with better personal security. It didn’t matter whether individual accounts had a complicated and hard-to-remember password, or two-factor authentication. It didn’t matter whether the accounts were normally accessed via a Mac or a PC. There was literally nothing any user could do to protect against it.

Class breaks are security vulnerabilities that break not just one system, but an entire class of systems. They might exploit a vulnerability in a particular operating system that allows an attacker to take remote control of every computer that runs on that system’s software. Or a vulnerability in internet-enabled digital video recorders and webcams that allows an attacker to recruit those devices into a massive botnet. Or a single vulnerability in the Twitter network that allows an attacker to take over every account.

For Twitter users, this attack was a double whammy. Many people rely on Twitter’s authentication systems to know that someone who purports to be a certain celebrity, politician, or journalist is really that person. When those accounts were hijacked, trust in that system took a beating. And then, after the attack was discovered and Twitter temporarily shut down all verified accounts, the public lost a vital source of information.

There are many security technologies companies like Twitter can implement to better protect themselves and their users; that’s not the issue. The problem is economic, and fixing it requires doing two things. One is regulating these companies, and requiring them to spend more money on security. The second is reducing their monopoly power.

The security regulations for banks are complex and detailed. If a low-level banking employee were caught messing around with people’s accounts, or if she mistakenly gave her log-in credentials to someone else, the bank would be severely fined. Depending on the details of the incident, senior banking executives could be held personally liable. The threat of these actions helps keep our money safe. Yes, it costs banks money; sometimes it severely cuts into their profits. But the banks have no choice.

The opposite is true for these tech giants. They get to decide what level of security you have on your accounts, and you have no say in the matter. If you are offered security and privacy options, it’s because they decided you can have them. There is no regulation. There is no accountability. There isn’t even any transparency. Do you know how secure your data is on Facebook, or in Apple’s iCloud, or anywhere? You don’t. No one except those companies do. Yet they’re crucial to the country’s national security. And they’re the rare consumer product or service allowed to operate without significant government oversight.

For example, President Donald Trump’s Twitter account wasn’t hacked as Joe Biden’s was, because that account has “special protections,” the details of which we don’t know. We also don’t know what other world leaders have those protections, or the decision process surrounding who gets them. Are they manual? Can they scale? Can all verified accounts have them? Your guess is as good as mine.

In addition to security measures, the other solution is to break up the tech monopolies. Companies like Facebook and Twitter have so much power because they are so large, and they face no real competition. This is a national-security risk as well as a personal-security risk. Were there 100 different Twitter-like companies, and enough compatibility so that all their feeds could merge into one interface, this attack wouldn’t have been such a big deal. More important, the risk of a similar but more politically targeted attack wouldn’t be so great. If there were competition, different platforms would offer different security options, as well as different posting rules, different authentication guidelines — different everything. Competition is how our economy works; it’s how we spur innovation. Monopolies have more power to do what they want in the quest for profits, even if it harms people along the way.

This wasn’t Twitter’s first security problem involving trusted insiders. In 2017, on his last day of work, an employee shut down President Donald Trump’s account. In 2019, two people were charged with spying for the Saudi government while they were Twitter employees.

Maybe this hack will serve as a wake-up call. But if past incidents involving Twitter and other companies are any indication, it won’t. Underspending on security, and letting society pay the eventual price, is far more profitable. I don’t blame the tech companies. Their corporate mandate is to make as much money as is legally possible. Fixing this requires changes in the law, not changes in the hearts of the company’s leaders.

This essay previously appeared on TheAtlantic.com.

EDITED TO ADD: This essay has been translated into Czech.

Posted on July 20, 2020 at 8:49 AM74 Comments

Twitter Hackers May Have Bribed an Insider

Motherboard is reporting that this week’s Twitter hack involved a bribed insider. Twitter has denied it.

I have been taking press calls all day about this. And while I know everyone wants to speculate about the details of the hack, we just don’t know — and probably won’t for a couple of weeks.

EDITED TO ADD (8/10): It was social engineering and not bribery.

Posted on July 17, 2020 at 6:04 AM55 Comments

NSA on Securing VPNs

The NSA’s Cybersecurity Directorate — that’s the part that’s supposed to work on defense — has released two documents (a full and an abridged version) on securing virtual private networks. Some of it is basic, but it contains good information.

Maintaining a secure VPN tunnel can be complex and requires regular maintenance. To maintain a secure VPN, network administrators should perform the following tasks on a regular basis:

  • Reduce the VPN gateway attack surface
  • Verify that cryptographic algorithms are Committee on National Security Systems Policy (CNSSP) 15-compliant
  • Avoid using default VPN settings
  • Remove unused or non-compliant cryptography suites
  • Apply vendor-provided updates (i.e. patches) for VPN gateways and clients

Posted on July 15, 2020 at 9:29 AM33 Comments

Friday Squid Blogging: China Closing Its Squid Spawning Grounds

China is prohibiting squid fishing in two areas — both in international waters — for two seasons, to give squid time to recover and reproduce.

This is the first time China has voluntarily imposed a closed season on the high seas. Some experts regard it as an important step forward in China’s management of distant-water fishing (DWF), and crucial for protecting the squid fishing industry. But others say the impact will be limited and that stronger oversight of fishing vessels is needed, or even a new fisheries management body specifically for squid.

As usual, you can also use this squid post to talk about the security stories in the news that I haven’t covered.

Read my blog posting guidelines here.

Posted on July 10, 2020 at 4:09 PM151 Comments

EFF's 30th Anniversary Livestream

It’s the EFF’s 30th birthday, and the organization is having a celebratory livestream today from 3:00 to 10:00 pm PDT.

There are a lot of interesting discussions and things. I am having a fireside chat at 4:10 pm PDT to talk about the Crypto Wars and more.

Stop by. And thank you for supporting EFF.

EDITED TO ADD: This event is over, but you can watch a recorded version on YouTube.

Posted on July 10, 2020 at 11:48 AM3 Comments

Business Email Compromise (BEC) Criminal Ring

A criminal group called Cosmic Lynx seems to be based in Russia:

Dubbed Cosmic Lynx, the group has carried out more than 200 BEC campaigns since July 2019, according to researchers from the email security firm Agari, particularly targeting senior executives at large organizations and corporations in 46 countries. Cosmic Lynx specializes in topical, tailored scams related to mergers and acquisitions; the group typically requests hundreds of thousands or even millions of dollars as part of its hustles.

[…]

For example, rather than use free accounts, Cosmic Lynx will register strategic domain names for each BEC campaign to create more convincing email accounts. And the group knows how to shield these domains so they’re harder to trace to the true owner. Cosmic Lynx also has a strong understanding of the email authentication protocol DMARC and does reconnaissance to assess its targets’ specific system DMARC policies to most effectively circumvent them.

Cosmic Lynx also drafts unusually clean and credible-looking messages to deceive targets. The group will find a company that is about to complete an acquisition and contact one of its top executives posing as the CEO of the organization being bought. This phony CEO will then involve “external legal counsel” to facilitate the necessary payments. This is where Cosmic Lynx adds a second persona to give the process an air of legitimacy, typically impersonating a real lawyer from a well-regarded law firm in the United Kingdom. The fake lawyer will email the same executive that the “CEO” wrote to, often in a new email thread, and share logistics about completing the transaction. Unlike most BEC campaigns, in which the messages often have grammatical mistakes or awkward wording, Cosmic Lynx messages are almost always clean.

Posted on July 10, 2020 at 6:12 AM9 Comments

Half a Million IoT Passwords Leaked

It is amazing that this sort of thing can still happen:

…the list was compiled by scanning the entire internet for devices that were exposing their Telnet port. The hacker then tried using (1) factory-set default usernames and passwords, or (2) custom, but easy-to-guess password combinations.

Telnet? Default passwords? In 2020?

We have a long way to go to secure the IoT.

EDITED TO ADD (7/14): Apologies, but I previously blogged this story in January.

Posted on July 8, 2020 at 6:41 AM24 Comments

IoT Security Principles

The BSA — also known as the Software Alliance, formerly the Business Software Alliance (which explains the acronym) — is an industry lobbying group. They just published “Policy Principles for Building a Secure and Trustworthy Internet of Things.”

They call for:

  • Distinguishing between consumer and industrial IoT.
  • Offering incentives for integrating security.
  • Harmonizing national and international policies.
  • Establishing regularly updated baseline security requirements

As with pretty much everything else, you can assume that if an industry lobbying group is in favor of it, then it doesn’t go far enough.

And if you need more security and privacy principles for the IoT, here’s a list of over twenty.

Posted on July 7, 2020 at 6:38 AM13 Comments

ThiefQuest Ransomware for the Mac

There’s a new ransomware for the Mac called ThiefQuest or EvilQuest. It’s hard to get infected:

For your Mac to become infected, you would need to torrent a compromised installer and then dismiss a series of warnings from Apple in order to run it. It’s a good reminder to get your software from trustworthy sources, like developers whose code is “signed” by Apple to prove its legitimacy, or from Apple’s App Store itself. But if you’re someone who already torrents programs and is used to ignoring Apple’s flags, ThiefQuest illustrates the risks of that approach.

But it’s nasty:

In addition to ransomware, ThiefQuest has a whole other set of spyware capabilities that allow it to exfiltrate files from an infected computer, search the system for passwords and cryptocurrency wallet data, and run a robust keylogger to grab passwords, credit card numbers, or other financial information as a user types it in. The spyware component also lurks persistently as a backdoor on infected devices, meaning it sticks around even after a computer reboots, and could be used as a launchpad for additional, or “second stage,” attacks. Given that ransomware is so rare on Macs to begin with, this one-two punch is especially noteworthy.

Posted on July 6, 2020 at 6:43 AM11 Comments

EncroChat Hacked by Police

French police hacked EncroChat secure phones, which are widely used by criminals:

Encrochat’s phones are essentially modified Android devices, with some models using the “BQ Aquaris X2,” an Android handset released in 2018 by a Spanish electronics company, according to the leaked documents. Encrochat took the base unit, installed its own encrypted messaging programs which route messages through the firm’s own servers, and even physically removed the GPS, camera, and microphone functionality from the phone. Encrochat’s phones also had a feature that would quickly wipe the device if the user entered a PIN, and ran two operating systems side-by-side. If a user wanted the device to appear innocuous, they booted into normal Android. If they wanted to return to their sensitive chats, they switched over to the Encrochat system. The company sold the phones on a subscription based model, costing thousands of dollars a year per device.

This allowed them and others to investigate and arrest many:

Unbeknownst to Mark, or the tens of thousands of other alleged Encrochat users, their messages weren’t really secure. French authorities had penetrated the Encrochat network, leveraged that access to install a technical tool in what appears to be a mass hacking operation, and had been quietly reading the users’ communications for months. Investigators then shared those messages with agencies around Europe.

Only now is the astonishing scale of the operation coming into focus: It represents one of the largest law enforcement infiltrations of a communications network predominantly used by criminals ever, with Encrochat users spreading beyond Europe to the Middle East and elsewhere. French, Dutch, and other European agencies monitored and investigated “more than a hundred million encrypted messages” sent between Encrochat users in real time, leading to arrests in the UK, Norway, Sweden, France, and the Netherlands, a team of international law enforcement agencies announced Thursday.

EncroChat learned about the hack, but didn’t know who was behind it.

Going into full-on emergency mode, Encrochat sent a message to its users informing them of the ongoing attack. The company also informed its SIM provider, Dutch telecommunications firm KPN, which then blocked connections to the malicious servers, the associate claimed. Encrochat cut its own SIM service; it had an update scheduled to push to the phones, but it couldn’t guarantee whether that update itself wouldn’t be carrying malware too. That, and maybe KPN was working with the authorities, Encrochat’s statement suggested (KPN declined to comment). Shortly after Encrochat restored SIM service, KPN removed the firewall, allowing the hackers’ servers to communicate with the phones once again. Encrochat was trapped.

Encrochat decided to shut itself down entirely.

Lots of details about the hack in the article. Well worth reading in full.

The UK National Crime Agency called it Operation Venetic: “46 arrests, and £54m criminal cash, 77 firearms and over two tonnes of drugs seized so far.”

Many more news articles. EncroChat website. Slashdot thread. Hacker News threads.

EDITED TO ADD (7/14): Some people are questioning the official story. I don’t know.

Posted on July 3, 2020 at 10:39 AM67 Comments

The Security Value of Inefficiency

For decades, we have prized efficiency in our economy. We strive for it. We reward it. In normal times, that’s a good thing. Running just at the margins is efficient. A single just-in-time global supply chain is efficient. Consolidation is efficient. And that’s all profitable. Inefficiency, on the other hand, is waste. Extra inventory is inefficient. Overcapacity is inefficient. Using many small suppliers is inefficient. Inefficiency is unprofitable.

But inefficiency is essential security, as the COVID-19 pandemic is teaching us. All of the overcapacity that has been squeezed out of our healthcare system; we now wish we had it. All of the redundancy in our food production that has been consolidated away; we want that, too. We need our old, local supply chains — not the single global ones that are so fragile in this crisis. And we want our local restaurants and businesses to survive, not just the national chains.

We have lost much inefficiency to the market in the past few decades. Investors have become very good at noticing any fat in every system and swooping down to monetize those redundant assets. The winner-take-all mentality that has permeated so many industries squeezes any inefficiencies out of the system.

This drive for efficiency leads to brittle systems that function properly when everything is normal but break under stress. And when they break, everyone suffers. The less fortunate suffer and die. The more fortunate are merely hurt, and perhaps lose their freedoms or their future. But even the extremely fortunate suffer — maybe not in the short term, but in the long term from the constriction of the rest of society.

Efficient systems have limited ability to deal with system-wide economic shocks. Those shocks are coming with increased frequency. They’re caused by global pandemics, yes, but also by climate change, by financial crises, by political crises. If we want to be secure against these crises and more, we need to add inefficiency back into our systems.

I don’t simply mean that we need to make our food production, or healthcare system, or supply chains sloppy and wasteful. We need a certain kind of inefficiency, and it depends on the system in question. Sometimes we need redundancy. Sometimes we need diversity. Sometimes we need overcapacity.

The market isn’t going to supply any of these things, least of all in a strategic capacity that will result in resilience. What’s necessary to make any of this work is regulation.

First, we need to enforce antitrust laws. Our meat supply chain is brittle because there are limited numbers of massive meatpacking plants — now disease factories — rather than lots of smaller slaughterhouses. Our retail supply chain is brittle because a few national companies and websites dominate. We need multiple companies offering alternatives to a single product or service. We need more competition, more niche players. We need more local companies, more domestic corporate players, and diversity in our international suppliers. Competition provides all of that, while monopolies suck that out of the system.

The second thing we need is specific regulations that require certain inefficiencies. This isn’t anything new. Every safety system we have is, to some extent, an inefficiency. This is true for fire escapes on buildings, lifeboats on cruise ships, and multiple ways to deploy the landing gear on aircraft. Not having any of those things would make the underlying systems more efficient, but also less safe. It’s also true for the internet itself, originally designed with extensive redundancy as a Cold War security measure.

With those two things in place, the market can work its magic to provide for these strategic inefficiencies as cheaply and as effectively as possible. As long as there are competitors who are vying with each other, and there aren’t competitors who can reduce the inefficiencies and undercut the competition, these inefficiencies just become part of the price of whatever we’re buying.

The government is the entity that steps in and enforces a level playing field instead of a race to the bottom. Smart regulation addresses the long-term need for security, and ensures it’s not continuously sacrificed to short-term considerations.

We have largely been content to ignore the long term and let Wall Street run our economy as efficiently as it can. That’s no longer sustainable. We need inefficiency — the right kind in the right way — to ensure our security. No, it’s not free. But it’s worth the cost.

This essay previously appeared in Quartz.

EDITED TO ADD (7/14): A related piece by Dan Geer.

Posted on July 2, 2020 at 9:26 AM52 Comments

Securing the International IoT Supply Chain

Together with Nate Kim (former student) and Trey Herr (Atlantic Council Cyber Statecraft Initiative), I have written a paper on IoT supply chain security. The basic problem we try to solve is: How do you enforce IoT security regulations when most of the stuff is made in other countries? And our solution is: enforce the regulations on the domestic company that’s selling the stuff to consumers. There’s a lot of detail between here and there, though, and it’s all in the paper.

We also wrote a Lawfare post:

…we propose to leverage these supply chains as part of the solution. Selling to U.S. consumers generally requires that IoT manufacturers sell through a U.S. subsidiary or, more commonly, a domestic distributor like Best Buy or Amazon. The Federal Trade Commission can apply regulatory pressure to this distributor to sell only products that meet the requirements of a security framework developed by U.S. cybersecurity agencies. That would put pressure on manufacturers to make sure their products are compliant with the standards set out in this security framework, including pressuring their component vendors and original device manufacturers to make sure they supply parts that meet the recognized security framework.

News article.

Posted on July 1, 2020 at 9:31 AM15 Comments

Sidebar photo of Bruce Schneier by Joe MacInnis.