Schneier on Security

A cybersecurity expert examines how the powerful game whatever system is put before them, leaving it to others to cover the cost.

Schneier, a professor at Harvard Kennedy School and author of such books as Data and Goliath and Click Here To Kill Everybody, regularly challenges his students to write down the first 100 digits of pi, a nearly impossible task—but not if they cheat, concerning which he admonishes, “Don’t get caught.” Not getting caught is the aim of the hackers who exploit the vulnerabilities of systems of all kinds. Consider right-wing venture capitalist Peter Thiel, who located a hack in the tax code: “Because he was one of the founders of PayPal, he was able to use a $2,000 investment to buy 1.7 million shares of the company at $0.001 per share, turning it into $5 billion—all forever tax free.” It was perfectly legal—and even if it weren’t, the wealthy usually go unpunished. The author, a fluid writer and tech communicator, reveals how the tax code lends itself to hacking, as when tech companies like Apple and Google avoid paying billions of dollars by transferring profits out of the U.S. to corporate-friendly nations such as Ireland, then offshoring the “disappeared” dollars to Bermuda, the Caymans, and other havens. Every system contains trap doors that can be breached to advantage. For example, Schneier cites “the Pudding Guy,” who hacked an airline miles program by buying low-cost pudding cups in a promotion that, for $3,150, netted him 1.2 million miles and “lifetime Gold frequent flier status.” Since it was all within the letter if not the spirit of the offer, “the company paid up.” The companies often do, because they’re gaming systems themselves. “Any rule can be hacked,” notes the author, be it a religious dietary restriction or a legislative procedure. With technology, “we can hack more, faster, better,” requiring diligent monitoring and a demand that everyone play by rules that have been hardened against tampering…