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This seems to be an identity theft first:
Criminals used artificial intelligence-based software to impersonate a chief executive’s voice and demand a fraudulent transfer of €220,000 ($243,000) in March in what cybercrime experts described as an unusual case of artificial intelligence being used in hacking.
Another news article.
The Carnegie Endowment for International Peace and Princeton University’s Center for Information Technology Policy convened an Encryption Working Group to attempt progress on the “going dark” debate. They have released their report: “Moving the Encryption Policy Conversation Forward.
The main contribution seems to be that attempts to backdoor devices like smartphones shouldn’t also backdoor communications systems:
Conclusion: There will be no single approach for requests for lawful access that can be applied to every technology or means of communication. More work is necessary, such as that initiated in this paper, to separate the debate into its component parts, examine risks and benefits in greater granularity, and seek better data to inform the debate. Based on our attempt to do this for one particular area, the working group believes that some forms of access to encrypted information, such as access to data at rest on mobile phones, should be further discussed. If we cannot have a constructive dialogue in that easiest of cases, then there is likely none to be had with respect to any of the other areas. Other forms of access to encrypted information, including encrypted data-in-motion, may not offer an achievable balance of risk vs. benefit, and as such are not worth pursuing and should not be the subject of policy changes, at least for now. We believe that to be productive, any approach must separate the issue into its component parts.
I don’t believe that backdoor access to encryption data at rest offers “an achievable balance of risk vs. benefit” either, but I agree that the two aspects should be treated independently.
EDITED TO ADD (9/12): This report does an important job moving the debate forward. It advises that policymakers break the issues into component parts. Instead of talking about restricting all encryption, it separates encrypted data at rest (storage) from encrypted data in motion (communication). It advises that policymakers pick the problems they have some chance of solving, and not demand systems that put everyone in danger. For example: no key escrow, and no use of software updates to break into devices).
Data in motion poses challenges that are not present for data at rest. For example, modern cryptographic protocols for data in motion use a separate “session key” for each message, unrelated to the private/public key pairs used to initiate communication, to preserve the message’s secrecy independent of other messages (consistent with a concept known as “forward secrecy”). While there are potential techniques for recording, escrowing, or otherwise allowing access to these session keys, by their nature, each would break forward secrecy and related concepts and would create a massive target for criminal and foreign intelligence adversaries. Any technical steps to simplify the collection or tracking of session keys, such as linking keys to other keys or storing keys after they are used, would represent a fundamental weakening of all the communications.
These are all big steps forward given who signed on to the report. Not just the usual suspects, but also Jim Baker—former general counsel of the FBI—and Chris Inglis: former deputy director of the NSA.
Good paper on cybersecurity insurance: both the history and the promise for the future. From the conclusion:
Policy makers have long held high hopes for cyber insurance as a tool for improving security. Unfortunately, the available evidence so far should give policymakers pause. Cyber insurance appears to be a weak form of governance at present. Insurers writing cyber insurance focus more on organisational procedures than technical controls, rarely include basic security procedures in contracts, and offer discounts that only offer a marginal incentive to invest in security. However, the cost of external response services is covered, which suggests insurers believe ex-post responses to be more effective than ex-ante mitigation. (Alternatively, they can more easily translate the costs associated with ex-post responses into manageable claims.)
The private governance role of cyber insurance is limited by market dynamics. Competitive pressures drive a race-to-the-bottom in risk assessment standards and prevent insurers including security procedures in contracts. Policy interventions, such as minimum risk assessment standards, could solve this collective action problem. Policy-holders and brokers could also drive this change by looking to insurers who conduct rigorous assessments. Doing otherwise ensures adverse selection and moral hazard will increase costs for firms with responsible security postures. Moving toward standardised risk assessment via proposal forms or external scans supports the actuarial base in the long-term. But there is a danger policyholders will succumb to Goodhart’s law by internalising these metrics and optimising the metric rather than minimising risk. This is particularly likely given these assessments are constructed by private actors with their own incentives. Search-light effects may drive the scores towards being based on what can be measured, not what is important.
EDITED TO ADD (9/11): Boing Boing post.
Wired has a long article on NotPetya.
EDITED TO ADD (9/12): Another good article on NotPetya.
It’s not perfume for squids. Nor is it perfume made from squids. It’s a perfume called Squid, “inspired by life in the sea.”
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.
Many GPS trackers are shipped with the default password 123456. Many users don’t change them.
We just need to eliminate default passwords. This is an easy win.
EDITED TO ADD (9/12): A California law bans default passwords starting in 2020.
A decade ago, the Doghouse was a regular feature in both my email newsletter Crypto-Gram and my blog. In it, I would call out particularly egregious—and amusing—examples of cryptographic “snake oil.”
I dropped it both because it stopped being fun and because almost everyone converged on standard cryptographic libraries, which meant standard non-snake-oil cryptography. But every so often, a new company comes along that is so ridiculous, so nonsensical, so bizarre, that there is nothing to do but call it out.
Crown Sterling is complete and utter snake oil. The company sells “TIME AI,” “the world’s first dynamic ‘non-factor’ based quantum AI encryption software,” “utilizing multi-dimensional encryption technology, including time, music’s infinite variability, artificial intelligence, and most notably mathematical constancies to generate entangled key pairs.” Those sentence fragments tick three of my snake-oil warning signs—from 1999!—right there: pseudo-math gobbledygook (warning sign #1), new mathematics (warning sign #2), and extreme cluelessness (warning sign #4).
More: “In March of 2019, Grant identified the first Infinite Prime Number prediction pattern, where the discovery was published on Cornell University’s www.arXiv.org titled: ‘Accurate and Infinite Prime Number Prediction from Novel Quasi-Prime Analytical Methodology.’ The paper was co-authored by Physicist and Number Theorist Talal Ghannam PhD. The discovery challenges today’s current encryption framework by enabling the accurate prediction of prime numbers.” Note the attempt to leverage Cornell’s reputation, even though the preprint server is not peer-reviewed and allows anyone to upload anything. (That should be another warning sign: undeserved appeals to authority.) PhD student Mark Carney took the time to refute it. Most of it is wrong, and what’s right isn’t new.
I first encountered the company earlier this year. In January, Tom Yemington from the company emailed me, asking to talk. “The founder and CEO, Robert Grant is a successful healthcare CEO and amateur mathematician that has discovered a method for cracking asymmetric encryption methods that are based on the difficulty of finding the prime factors of a large quasi-prime numbers. Thankfully the newly discovered math also provides us with much a stronger approach to encryption based on entangled-pairs of keys.” Sounds like complete snake-oil, right? I responded as I usually do when companies contact me, which is to tell them that I’m too busy.
In April, a colleague at IBM suggested I talk with the company. I poked around at the website, and sent back: “That screams ‘snake oil.’ Bet you a gazillion dollars they have absolutely nothing of value—and that none of their tech people have any cryptography expertise.” But I thought this might be an amusing conversation to have. I wrote back to Yemington. I never heard back—LinkedIn suggests he left in April—and forgot about the company completely until it surfaced at Black Hat this year.
Robert Grant, president of Crown Sterling, gave a sponsored talk: “The 2019 Discovery of Quasi-Prime Numbers: What Does This Mean For Encryption?” I didn’t see it, but it was widely criticized and heckled. Black Hat was so embarrassed that it removed the presentation from the conference website. (Parts of it remain on the Internet. Here’s a short video from the company, if you want to laugh along with everyone else at terms like “infinite wave conjugations” and “quantum AI encryption.” Or you can read the company’s press release about what happened at Black Hat, or Grant’s Twitter feed.)
Grant has no cryptographic credentials. His bio—on the website of something called the “Resonance Science Foundation”—is all over the place: “He holds several patents in the fields of photonics, electromagnetism, genetic combinatorics, DNA and phenotypic expression, and cybernetic implant technologies. Mr. Grant published and confirmed the existence of quasi-prime numbers (a new classification of prime numbers) and their infinite pattern inherent to icositetragonal geometry.”
Grant’s bio on the Crown Sterling website contains this sentence, absolutely beautiful in its nonsensical use of mathematical terms: “He has multiple publications in unified mathematics and physics related to his discoveries of quasi-prime numbers (a new classification for prime numbers), the world’s first predictive algorithm determining infinite prime numbers, and a unification wave-based theory connecting and correlating fundamental mathematical constants such as Pi, Euler, Alpha, Gamma and Phi.” (Quasi-primes are real, and they’re not new. They’re numbers with only large prime factors, like RSA moduli.)
Near as I can tell, Grant’s coauthor is the mathematician of the company: “Talal Ghannam—a physicist who has self-published a book called The Mystery of Numbers: Revealed through their Digital Root as well as a comic book called The Chronicles of Maroof the Knight: The Byzantine.” Nothing about cryptography.
There seems to be another technical person. Ars Technica writes: “Alan Green (who, according to the Resonance Foundation website, is a research team member and adjunct faculty for the Resonance Academy) is a consultant to the Crown Sterling team, according to a company spokesperson. Until earlier this month, Green—a musician who was ‘musical director for Davy Jones of The Monkees’—was listed on the Crown Sterling website as Director of Cryptography. Green has written books and a musical about hidden codes in the sonnets of William Shakespeare.”
None of these people have demonstrated any cryptographic credentials. No papers, no research, no nothing. (And, no, self-publishing doesn’t count.)
After the Black Hat talk, Grant—and maybe some of those others—sat down with Ars Technica and spun more snake oil. They claimed that the patterns they found in prime numbers allows them to break RSA. They’re not publishing their results “because Crown Sterling’s team felt it would be irresponsible to disclose discoveries that would break encryption.” (Snake-oil warning sign #7: unsubstantiated claims.) They also claim to have “some very, very strong advisors to the company” who are “experts in the field of cryptography, truly experts.” The only one they name is Larry Ponemon, who is a privacy researcher and not a cryptographer at all.
Enough of this. All of us can create ciphers that we cannot break ourselves, which means that amateur cryptographers regularly produce amateur cryptography. These guys are amateurs. Their math is amateurish. Their claims are nonsensical. Run away. Run, far, far, away.
But be careful how loudly you laugh when you do. Not only is the company ridiculous, it’s litigious as well. It has sued ten unnamed “John Doe” defendants for booing the Black Hat talk. (It also sued Black Hat, which may have more merit. The company paid $115K to have its talk presented amongst actual peer-reviewed talks. For Black Hat to remove its nonsense may very well be a breach of contract.)
Maybe Crown Sterling can file a meritless lawsuit against me instead for this post. I’m sure it would think it’d result in all sorts of positive press coverage. (Although any press is good press, so maybe it’s right.) But if I can prevent others from getting taken in by this stuff, it would be a good thing.
Good article in the Washington Post on all the surveillance associated with credit card use.
China is being blamed for a massive surveillance operation that targeted Uyghur Muslims. This story broke in waves, the first wave being about the iPhone.
Earlier this year, Google’s Project Zero found a series of websites that have been using zero-day vulnerabilities to indiscriminately install malware on iPhones that would visit the site. (The vulnerabilities were patched in iOS 12.1.4, released on February 7.)
Earlier this year Google’s Threat Analysis Group (TAG) discovered a small collection of hacked websites. The hacked sites were being used in indiscriminate watering hole attacks against their visitors, using iPhone 0-day.
There was no target discrimination; simply visiting the hacked site was enough for the exploit server to attack your device, and if it was successful, install a monitoring implant. We estimate that these sites receive thousands of visitors per week.
TAG was able to collect five separate, complete and unique iPhone exploit chains, covering almost every version from iOS 10 through to the latest version of iOS 12. This indicated a group making a sustained effort to hack the users of iPhones in certain communities over a period of at least two years.
This upends pretty much everything we know about iPhone hacking. We believed that it was hard. We believed that effective zero-day exploits cost $2M or $3M, and were used sparingly by governments only against high-value targets. We believed that if an exploit was used too frequently, it would be quickly discovered and patched.
None of that is true here. This operation used fourteen zero-days exploits. It used them indiscriminately. And it remained undetected for two years. (I waited before posting this because I wanted to see if someone would rebut this story, or explain it somehow.)
Google’s announcement left out of details, like the URLs of the sites delivering the malware. That omission meant that we had no idea who was behind the attack, although the speculation was that it was a nation-state.
Subsequent reporting added that malware against Android phones and the Windows operating system were also delivered by those websites. And then that the websites were targeted at Uyghurs. Which leads us all to blame China.
So now this is a story of a large, expensive, indiscriminate, Chinese-run surveillance operation against an ethnic minority in their country. And the politics will overshadow the tech. But the tech is still really impressive.
EDITED TO ADD: New data on the value of smartphone exploits:
According to the company, starting today, a zero-click (no user interaction) exploit chain for Android can get hackers and security researchers up to $2.5 million in rewards. A similar exploit chain impacting iOS is worth only $2 million.
EDITED TO ADD (9/6): Apple disputes some of the claims Google made about the extent of the vulnerabilities and the attack.
EDITED TO ADD (9/7): More on Apple’s pushbacks.
A group of scientists conclude that it’s shifting weather patterns and ocean conditions.
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.
Sidebar photo of Bruce Schneier by Joe MacInnis.