Crypto-Gram

July 15, 2020

by Bruce Schneier
Fellow and Lecturer, Harvard Kennedy School
schneier@schneier.com
https://www.schneier.com

A free monthly newsletter providing summaries, analyses, insights, and commentaries on security: computer and otherwise.

For back issues, or to subscribe, visit Crypto-Gram's web page.

These same essays and news items appear in the Schneier on Security blog, along with a lively and intelligent comment section. An RSS feed is available.


In this issue:

  1. Examining the US Cyber Budget
  2. Eavesdropping on Sound Using Variations in Light Bulbs
  3. Bank Card "Master Key" Stolen
  4. Zoom Will Be End-to-End Encrypted for All Users
  5. Theft of CIA's "Vault Seven" Hacking Tools Due to Its Own Lousy Security
  6. New Hacking-for-Hire Company in India
  7. Security and Human Behavior (SHB) 2020
  8. Identifying a Person Based on a Photo, LinkedIn and Etsy Profiles, and Other Internet Bread Crumbs
  9. Nation-State Espionage Campaigns against Middle East Defense Contractors
  10. Cryptocurrency Pump and Dump Scams
  11. COVID-19 Risks of Flying
  12. Analyzing IoT Security Best Practices
  13. The Unintended Harms of Cybersecurity
  14. iPhone Apps Stealing Clipboard Data
  15. Android Apps Stealing Facebook Credentials
  16. Securing the International IoT Supply Chain
  17. The Security Value of Inefficiency
  18. EncroChat Hacked by Police
  19. ThiefQuest Ransomware for the Mac
  20. IoT Security Principles
  21. Traffic Analysis of Home Security Cameras
  22. Business Email Compromise (BEC) Criminal Ring
  23. EFF's 30th Anniversary Livestream
  24. A Peek into the Fake Review Marketplace
  25. Enigma Machine for Sale

Examining the US Cyber Budget

[2020.06.15] Jason Healey takes a detailed look at the US federal cybersecurity budget and reaches an important conclusion: the US keeps saying that we need to prioritize defense, but in fact we prioritize attack.

To its credit, this budget does reveal an overall growth in cybersecurity funding of about 5 percent above the fiscal 2019 estimate. However, federal cybersecurity spending on civilian departments like the departments of Homeland Security, State, Treasury and Justice is overshadowed by that going toward the military:

  • The Defense Department's cyber-related budget is nearly 25 percent higher than the total going to all civilian departments, including the departments of Homeland Security, Treasury and Energy, which not only have to defend their own critical systems but also partner with critical infrastructure to help secure the energy, finance, transportation and health sectors ($9.6 billion compared to $7.8 billion).
  • The funds to support just the headquarters element -- that is, not even the operational teams in facilities outside of headquarters -- of U.S. Cyber Command are 33 percent higher than all the cyber-related funding to the State Department ($532 million compared to $400 million).
  • Just the increased funding to Defense was 30 percent higher than the total Homeland Security budget to improve the security of federal networks ($909 million compared to $694.1 million).
  • The Defense Department is budgeted two and a half times as much just for cyber operations as the Cybersecurity and Infrastructure Security Agency (CISA), which is nominally in charge of cybersecurity ($3.7 billion compared to $1.47 billion). In fact, the cyber operations budget is higher than the budgets for the CISA, the FBI and the Department of Justice's National Security Division combined ($3.7 billion compared to $2.21 billion).
  • The Defense Department's cyber operations have nearly 10 times the funding as the relevant Homeland Security defensive operational element, the National Cybersecurity and Communications Integration Center (NCCIC) ($3.7 billion compared to $371.4 million).
  • The U.S. government budgeted as much on military construction for cyber units as it did for the entirety of Homeland Security ($1.9 billion for each).

We cannot ignore what the money is telling us. The White House and National Cyber Strategy emphasize the need to protect the American people and our way of life, yet the budget does not reflect those values. Rather, the budget clearly shows that the Defense Department is the government's main priority. Of course, the exact Defense numbers for how much is spent on offense are classified.


Eavesdropping on Sound Using Variations in Light Bulbs

[2020.06.16] New research is able to recover sound waves in a room by observing minute changes in the room's light bulbs. This technique works from a distance, even from a building across the street through a window.

Details:

In an experiment using three different telescopes with different lens diameters from a distance of 25 meters (a little over 82 feet) the researchers were successfully able to capture sound being played in a remote room, including The Beatles' Let It Be, which was distinguishable enough for Shazam to recognize it, and a speech from President Trump that Google's speech recognition API could successfully transcribe. With more powerful telescopes and a more sensitive analog-to-digital converter, the researchers believe the eavesdropping distances could be even greater.

It's not expensive: less than $1,000 worth of equipment is required. And unlike other techniques like bouncing a laser off the window and measuring the vibrations, it's completely passive.

News articles.


Bank Card "Master Key" Stolen

[2020.06.17] South Africa's Postbank experienced a catastrophic security failure. The bank's master PIN key was stolen, forcing it to cancel and replace 12 million bank cards.

The breach resulted from the printing of the bank's encrypted master key in plain, unencrypted digital language at the Postbank's old data centre in the Pretoria city centre.

According to a number of internal Postbank reports, which the Sunday Times obtained, the master key was then stolen by employees.

One of the reports said that the cards would cost about R1bn to replace. The master key, a 36-digit code, allows anyone who has it to gain unfettered access to the bank's systems, and allows them to read and rewrite account balances, and change information and data on any of the bank's 12-million cards.

The bank lost $3.2 million in fraudulent transactions before the theft was discovered. Replacing all the cards will cost an estimated $58 million.


Zoom Will Be End-to-End Encrypted for All Users

[2020.06.17] Zoom is doing the right thing: it's making end-to-end encryption available to all users, paid and unpaid. (This is a change; I wrote about the initial decision here.)

...we have identified a path forward that balances the legitimate right of all users to privacy and the safety of users on our platform. This will enable us to offer E2EE as an advanced add-on feature for all of our users around the globe -- free and paid -- while maintaining the ability to prevent and fight abuse on our platform.

To make this possible, Free/Basic users seeking access to E2EE will participate in a one-time process that will prompt the user for additional pieces of information, such as verifying a phone number via a text message. Many leading companies perform similar steps on account creation to reduce the mass creation of abusive accounts. We are confident that by implementing risk-based authentication, in combination with our current mix of tools -- including our Report a User function -- we can continue to prevent and fight abuse.

Thank you, Zoom, for coming around to the right answer.

And thank you to everyone for commenting on this issue. We are learning -- in so many areas -- the power of continued public pressure to change corporate behavior.

EDITED TO ADD (6/18): Let's do Apple next.


Theft of CIA's "Vault Seven" Hacking Tools Due to Its Own Lousy Security

[2020.06.18] The Washington Post is reporting on an internal CIA report about its "Vault 7" security breach:

The breach -- allegedly committed by a CIA employee -- was discovered a year after it happened, when the information was published by WikiLeaks, in March 2017. The anti-secrecy group dubbed the release "Vault 7," and U.S. officials have said it was the biggest unauthorized disclosure of classified information in the CIA's history, causing the agency to shut down some intelligence operations and alerting foreign adversaries to the spy agency's techniques.

The October 2017 report by the CIA's WikiLeaks Task Force, several pages of which were missing or redacted, portrays an agency more concerned with bulking up its cyber arsenal than keeping those tools secure. Security procedures were "woefully lax" within the special unit that designed and built the tools, the report said.

Without the WikiLeaks disclosure, the CIA might never have known the tools had been stolen, according to the report. "Had the data been stolen for the benefit of a state adversary and not published, we might still be unaware of the loss," the task force concluded.

The task force report was provided to The Washington Post by the office of Sen. Ron Wyden (D-Ore.), a member of the Senate Intelligence Committee, who has pressed for stronger cybersecurity in the intelligence community. He obtained the redacted, incomplete copy from the Justice Department.

It's all still up on WikiLeaks.


New Hacking-for-Hire Company in India

[2020.06.19] Citizen Lab has a new report on Dark Basin, a large hacking-for-hire company in India.

Key Findings:

  • Dark Basin is a hack-for-hire group that has targeted thousands of individuals and hundreds of institutions on six continents. Targets include advocacy groups and journalists, elected and senior government officials, hedge funds, and multiple industries.
  • Dark Basin extensively targeted American nonprofits, including organisations working on a campaign called #ExxonKnew, which asserted that ExxonMobil hid information about climate change for decades.
  • We also identify Dark Basin as the group behind the phishing of organizations working on net neutrality advocacy, previously reported by the Electronic Frontier Foundation.
  • We link Dark Basin with high confidence to an Indian company, BellTroX InfoTech Services, and related entities.
  • Citizen Lab has notified hundreds of targeted individuals and institutions and, where possible, provided them with assistance in tracking and identifying the campaign. At the request of several targets, Citizen Lab shared information about their targeting with the US Department of Justice (DOJ). We are in the process of notifying additional targets.

BellTroX InfoTech Services has assisted clients in spying on over 10,000 email accounts around the world, including accounts of politicians, investors, journalists and activists.

News article. Boing Boing post


Security and Human Behavior (SHB) 2020

[2020.06.19] Today is the second day of the thirteenth Workshop on Security and Human Behavior. It's being hosted by the University of Cambridge, which in today's world means we're all meeting on Zoom.

SHB is a small, annual, invitational workshop of people studying various aspects of the human side of security, organized each year by Alessandro Acquisti, Ross Anderson, and myself. The forty or so attendees include psychologists, economists, computer security researchers, sociologists, political scientists, criminologists, neuroscientists, designers, lawyers, philosophers, anthropologists, business school professors, and a smattering of others. It's not just an interdisciplinary event; most of the people here are individually interdisciplinary.

Our goal is always to maximize discussion and interaction. We do that by putting everyone on panels, and limiting talks to six to eight minutes, with the rest of the time for open discussion. We've done pretty well translating this format to video chat, including using the random breakout feature to put people into small groups.

I invariably find this to be the most intellectually stimulating two days of my professional year. It influences my thinking in many different, and sometimes surprising, ways.

This year's schedule is here. This page lists the participants and includes links to some of their work. As he does every year, Ross Anderson is liveblogging the talks.

Here are my posts on the first, second, third, fourth, fifth, sixth, seventh, eighth, ninth, tenth, eleventh, and twelfth SHB workshops. Follow those links to find summaries, papers, and occasionally audio recordings of the various workshops. Ross also maintains a good webpage of psychology and security resources.


Identifying a Person Based on a Photo, LinkedIn and Etsy Profiles, and Other Internet Bread Crumbs

[2020.06.22] Interesting story of how the police can identify someone by following the evidence chain from website to website.

According to filings in Blumenthal's case, FBI agents had little more to go on when they started their investigation than the news helicopter footage of the woman setting the police car ablaze as it was broadcast live May 30.

It showed the woman, in flame-retardant gloves, grabbing a burning piece of a police barricade that had already been used to set one squad car on fire and tossing it into the police SUV parked nearby. Within seconds, that car was also engulfed in flames.

Investigators discovered other images depicting the same scene on Instagram and the video sharing website Vimeo. Those allowed agents to zoom in and identify a stylized tattoo of a peace sign on the woman's right forearm.

Scouring other images -- including a cache of roughly 500 photos of the Philly protest shared by an amateur photographer -- agents found shots of a woman with the same tattoo that gave a clear depiction of the slogan on her T-shirt.

[...]

That shirt, agents said, was found to have been sold only in one location: a shop on Etsy, the online marketplace for crafters, purveyors of custom-made clothing and jewelry, and other collectibles....

The top review on her page, dated just six days before the protest, was from a user identifying herself as "Xx Mv," who listed her location as Philadelphia and her username as "alleycatlore."

A Google search of that handle led agents to an account on Poshmark, the mobile fashion marketplace, with a user handle "lore-elisabeth." And subsequent searches for that name turned up Blumenthal's LinkedIn profile, where she identifies herself as a graduate of William Penn Charter School and several yoga and massage therapy training centers.

From there, they located Blumenthal's Jenkintown massage studio and its website, which featured videos demonstrating her at work. On her forearm, agents discovered, was the same distinctive tattoo that investigators first identified on the arsonist in the original TV video.

The obvious moral isn't a new one: don't have a distinctive tattoo. But more interesting is how different pieces of evidence can be strung together in order to identify someone. This particular chain was put together manually, but expect machine learning techniques to be able to do this sort of thing automatically -- and for organizations like the NSA to implement them on a broad scale.

Another article did a more detailed analysis, and concludes that the Etsy review was the linchpin.


Nation-State Espionage Campaigns against Middle East Defense Contractors

[2020.06.23] Report on espionage attacks using LinkedIn as a vector for malware, with details and screenshots. They talk about "several hints suggesting a possible link" to the Lazarus group (aka North Korea), but that's by no means definite.

As part of the initial compromise phase, the Operation In(ter)ception attackers had created fake LinkedIn accounts posing as HR representatives of well-known companies in the aerospace and defense industries. In our investigation, we've seen profiles impersonating Collins Aerospace (formerly Rockwell Collins) and General Dynamics, both major US corporations in the field.

Detailed report.


Cryptocurrency Pump and Dump Scams

[2020.06.24] Really interesting research: "An examination of the cryptocurrency pump and dump ecosystem":

Abstract: The surge of interest in cryptocurrencies has been accompanied by a proliferation of fraud. This paper examines pump and dump schemes. The recent explosion of nearly 2,000 cryptocurrencies in an unregulated environment has expanded the scope for abuse. We quantify the scope of cryptocurrency pump and dump schemes on Discord and Telegram, two popular group-messaging platforms. We joined all relevant Telegram and Discord groups/channels and identified thousands of different pumps. Our findings provide the first measure of the scope of such pumps and empirically document important properties of this ecosystem.


COVID-19 Risks of Flying

[2020.06.24] I fly a lot. Over the past five years, my average speed has been 32 miles an hour. That all changed mid-March. It's been 105 days since I've been on an airplane -- longer than any other time in my adult life -- and I have no future flights scheduled. This is all a prelude to saying that I have been paying a lot of attention to the COVID-related risks of flying.

We know a lot more about how COVID-19 spreads than we did in March. The "less than six feet, more than ten minutes" model has given way to a much more sophisticated model involving airflow, the level of virus in the room, and the viral load in the person who might be infected.

Regarding airplanes specifically: on the whole, they seem safer than many other group activities. Of all the research about contact tracing results I have read, I have seen no stories of a sick person on an airplane infecting other passengers. There are no superspreader events involving airplanes. (That did happen with SARS.) It seems that the airflow inside the cabin really helps.

Airlines are trying to make things better: blocking middle seats, serving less food and drink, trying to get people to wear masks. (This video is worth watching.) I've started to see airlines requiring masks and banning those who won't, and not just strongly encouraging them. (If mask wearing is treated the same as the seat belt wearing, it will make a huge difference.) Finally, there are a lot of dumb things that airlines are doing.

This article interviewed 511 epidemiologists, and the general consensus was that flying is riskier than getting a haircut but less risky than eating in a restaurant. I think that most of the risk is pre-flight, in the airport: crowds at the security checkpoints, gates, and so on. And that those are manageable with mask wearing and situational awareness. So while I am not flying yet, I might be willing to soon. (It doesn't help that I get a -1 on my COVID saving throw for type A blood, and another -1 for male pattern baldness. On the other hand, I think I get a +3 Constitution bonus. Maybe, instead of sky marshals we can have high-level clerics on the planes.)

And everyone: wear a mask, and wash your hands.

EDITED TO ADD (6/27): Airlines are starting to crowd their flights again.


Analyzing IoT Security Best Practices

[2020.06.25] New research: "Best Practices for IoT Security: What Does That Even Mean?" by Christopher Bellman and Paul C. van Oorschot:

Abstract: Best practices for Internet of Things (IoT) security have recently attracted considerable attention worldwide from industry and governments, while academic research has highlighted the failure of many IoT product manufacturers to follow accepted practices. We explore not the failure to follow best practices, but rather a surprising lack of understanding, and void in the literature, on what (generically) "best practice" means, independent of meaningfully identifying specific individual practices. Confusion is evident from guidelines that conflate desired outcomes with security practices to achieve those outcomes. How do best practices, good practices, and standard practices differ? Or guidelines, recommendations, and requirements? Can something be a best practice if it is not actionable? We consider categories of best practices, and how they apply over the lifecycle of IoT devices. For concreteness in our discussion, we analyze and categorize a set of 1014 IoT security best practices, recommendations, and guidelines from industrial, government, and academic sources. As one example result, we find that about 70\% of these practices or guidelines relate to early IoT device lifecycle stages, highlighting the critical position of manufacturers in addressing the security issues in question. We hope that our work provides a basis for the community to build on in order to better understand best practices, identify and reach consensus on specific practices, and then find ways to motivate relevant stakeholders to follow them.

Back in 2017, I catalogued nineteen security and privacy guideline documents for the Internet of Things. Our problem right now isn't that we don't know how to secure these devices, it's that there is no economic or regulatory incentive to do so.


The Unintended Harms of Cybersecurity

[2020.06.26] Interesting research: "Identifying Unintended Harms of Cybersecurity Countermeasures":

Abstract: Well-meaning cybersecurity risk owners will deploy countermeasures (technologies or procedures) to manage risks to their services or systems. In some cases, those countermeasures will produce unintended consequences, which must then be addressed. Unintended consequences can potentially induce harm, adversely affecting user behaviour, user inclusion, or the infrastructure itself (including other services or countermeasures). Here we propose a framework for preemptively identifying unintended harms of risk countermeasures in cybersecurity.The framework identifies a series of unintended harms which go beyond technology alone, to consider the cyberphysical and sociotechnical space: displacement, insecure norms, additional costs, misuse, misclassification, amplification, and disruption. We demonstrate our framework through application to the complex,multi-stakeholder challenges associated with the prevention of cyberbullying as an applied example. Our framework aims to illuminate harmful consequences, not to paralyze decision-making, but so that potential unintended harms can be more thoroughly considered in risk management strategies. The framework can support identification and preemptive planning to identify vulnerable populations and preemptively insulate them from harm. There are opportunities to use the framework in coordinating risk management strategy across stakeholders in complex cyberphysical environments.

Security is always a trade-off. I appreciate work that examines the details of that trade-off.


iPhone Apps Stealing Clipboard Data

[2020.06.29] iOS apps are repeatedly reading clipboard data, which can include all sorts of sensitive information.

While Haj Bakry and Mysk published their research in March, the invasive apps made headlines again this week with the developer beta release of iOS 14. A novel feature Apple added provides a banner warning every time an app reads clipboard contents. As large numbers of people began testing the beta release, they quickly came to appreciate just how many apps engage in the practice and just how often they do it.

This YouTube video, which has racked up more than 87,000 views since it was posted on Tuesday, shows a small sample of the apps triggering the new warning.

EDITED TO ADD (7/6): LinkedIn and Reddit are doing this.


Android Apps Stealing Facebook Credentials

[2020.06.30] Google has removed 25 Android apps from its store because they steal Facebook credentials:

Before being taken down, the 25 apps were collectively downloaded more than 2.34 million times.

The malicious apps were developed by the same threat group and despite offering different features, under the hood, all the apps worked the same.

According to a report from French cyber-security firm Evina shared with ZDNet today, the apps posed as step counters, image editors, video editors, wallpaper apps, flashlight applications, file managers, and mobile games.

The apps offered a legitimate functionality, but they also contained malicious code. Evina researchers say the apps contained code that detected what app a user recently opened and had in the phone's foreground.


Securing the International IoT Supply Chain

[2020.07.01] 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.


The Security Value of Inefficiency

[2020.07.02] 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.


EncroChat Hacked by Police

[2020.07.03] 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.


ThiefQuest Ransomware for the Mac

[2020.07.06] 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.


IoT Security Principles

[2020.07.07] 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.


Traffic Analysis of Home Security Cameras

[2020.07.09] Interesting research on home security cameras with cloud storage. Basically, attackers can learn very basic information about what's going on in front of the camera, and infer when there is someone home.

News article.

Slashdot thread.


Business Email Compromise (BEC) Criminal Ring

[2020.07.10] 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.


EFF's 30th Anniversary Livestream

[2020.07.10] 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.


A Peek into the Fake Review Marketplace

[2020.07.13] A personal account of someone who was paid to buy products on Amazon and leave fake reviews.

Fake reviews are one of the problems that everyone knows about, and no one knows what to do about -- so we all try to pretend doesn't exist.


Enigma Machine for Sale

[2020.07.14] A four-rotor Enigma machine -- with rotors -- is up for auction.


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Bruce Schneier is an internationally renowned security technologist, called a security guru by the Economist. He is the author of over one dozen books -- including his latest, Click Here to Kill Everybody -- as well as hundreds of articles, essays, and academic papers. His newsletter and blog are read by over 250,000 people. Schneier is a fellow at the Berkman Klein Center for Internet and Society at Harvard University; a Lecturer in Public Policy at the Harvard Kennedy School; a board member of the Electronic Frontier Foundation, AccessNow, and the Tor Project; and an advisory board member of EPIC and VerifiedVoting.org.

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