Entries Tagged "authentication"

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Stride-Based Security

Can a cell phone detect if it is stolen by measuring the gait of the person carrying it?

Researchers at the VTT Technical Research Centre of Finland have developed a prototype of a cell phone that uses motion sensors to record a user’s walking pattern of movement, or gait. The device then periodically checks to see that it is still in the possession of its legitimate owner, by measuring the current stride and comparing it against that stored in its memory.

Clever, as long as you realize that there are going to be a lot of false alarms. This seems okay:

If the phone suspects it has fallen into the wrong hands, it will prompt the user for a password if they attempt to make calls or access its memory.

Posted on November 16, 2005 at 6:26 AM • View Comments

Still More on Sony's DRM Rootkit

This story is just getting weirder and weirder (previous posts here and here).

Sony already said that they’re stopping production of CDs with the embedded rootkit. Now they’re saying that they will pull the infected disks from stores and offer free exchanges to people who inadvertently bought them.

Sony BMG Music Entertainment said Monday it will pull some of its most popular CDs from stores in response to backlash over copy-protection software on the discs.

Sony also said it will offer exchanges for consumers who purchased the discs, which contain hidden files that leave them vulnerable to computer viruses when played on a PC.

That’s good news, but there’s more bad news. The patch Sony is distributing to remove the rootkit opens a huge security hole:

The root of the problem is a serious design flaw in Sony’s web-based uninstaller. When you first fill out Sony’s form to request a copy of the uninstaller, the request form downloads and installs a program – an ActiveX control created by the DRM vendor, First4Internet – called CodeSupport. CodeSupport remains on your system after you leave Sony’s site, and it is marked as safe for scripting, so any web page can ask CodeSupport to do things. One thing CodeSupport can be told to do is download and install code from an Internet site. Unfortunately, CodeSupport doesn’t verify that the downloaded code actually came from Sony or First4Internet. This means any web page can make CodeSupport download and install code from any URL without asking the user’s permission.

Even more interesting is that there may be at least half a million infected computers:

Using statistical sampling methods and a secret feature of XCP that notifies Sony when its CDs are placed in a computer, [security researcher Dan] Kaminsky was able to trace evidence of infections in a sample that points to the probable existence of at least one compromised machine in roughly 568,200 networks worldwide. This does not reflect a tally of actual infections, however, and the real number could be much higher.

I say “may be at least” because the data doesn’t smell right to me. Look at the list of infected titles, and estimate what percentage of CD buyers will play them on their computers; does that seem like half a million sales to you? It doesn’t to me, although I readily admit that I don’t know the music business. Their methodology seems sound, though:

Kaminsky discovered that each of these requests leaves a trace that he could follow and track through the internet’s domain name system, or DNS. While this couldn’t directly give him the number of computers compromised by Sony, it provided him the number and location (both on the net and in the physical world) of networks that contained compromised computers. That is a number guaranteed to be smaller than the total of machines running XCP.

His research technique is called DNS cache snooping, a method of nondestructively examining patterns of DNS use. Luis Grangeia invented the technique, and Kaminsky became famous in the security community for refining it.

Kaminsky asked more than 3 million DNS servers across the net whether they knew the addresses associated with the Sony rootkit—connected.sonymusic.com, updates.xcp-aurora.com and license.suncom2.com. He uses a “non-recursive DNS query” that allows him to peek into a server’s cache and find out if anyone else has asked that particular machine for those addresses recently.

If the DNS server said yes, it had a cached copy of the address, which means that at least one of its client computers had used it to look up Sony’s digital-rights-management site. If the DNS server said no, then Kaminsky knew for sure that no Sony-compromised machines existed behind it.

The results have surprised Kaminsky himself: 568,200 DNS servers knew about the Sony addresses. With no other reason for people to visit them, that points to one or more computers behind those DNS servers that are Sony-compromised. That’s one in six DNS servers, across a statistical sampling of a third of the 9 million DNS servers Kaminsky estimates are on the net.

In any case, Sony’s rapid fall from grace is a great example of the power of blogs; it’s been fifteen days since Mark Russinovich first posted about the rootkit. In that time the news spread like a firestorm, first through the blogs, then to the tech media, and then into the mainstream media.

Posted on November 15, 2005 at 3:16 PM • View Comments

Scandinavian Attack Against Two-Factor Authentication

I’ve repeatedly said that two-factor authentication won’t stop phishing, because the attackers will simply modify their techniques to get around it. Here’s an example where that has happened:

Scandinavian bank Nordea was forced to shut down part of its Web banking service for 12 hours last week following a phishing attack that specifically targeted its paper-based one-time password security system.

According to press reports, the scam targeted customers that access the Nordea Sweden Web banking site using a paper-based single-use password security system.

A blog posting by Finnish security firm F-Secure says recipients of the spam e-mail were directed to bogus Web sites but were also asked to enter their account details along with the next password on their list of one-time passwords issued to them by the bank on a “scratch sheet”.

From F-Secure’s blog:

The fake mails were explaining that Nordea is introducing new security measures, which can be accessed at www.nordea-se.com or www.nordea-bank.net (fake sites hosted in South Korea).

The fake sites looked fairly real. They were asking the user for his personal number, access code and the next available scratch code. Regardless of what you entered, the site would complain about the scratch code and asked you to try the next one. In reality the bad boys were trying to collect several scratch codes for their own use.

The Register also has a story.

Two-factor authentication won’t stop identity theft, because identity theft is not an authentication problem. It’s a transaction-security problem. I’ve written about that already. Solutions need to address the transactions directly, and my guess is that they’ll be a combination of things. Some transactions will become more cumbersome. It will definitely be more cumbersome to get a new credit card. Back-end systems will be put in place to identify fraudulent transaction patterns. Look at credit card security; that’s where you’re going to find ideas for solutions to this problem.

Unfortunately, until financial institutions are liable for all the losses associated with identity theft, and not just their direct losses, we’re not going to see a lot of these solutions. I’ve written about this before as well.

We got them for credit cards because Congress mandated that the banks were liable for all but the first $50 of fraudulent transactions.

EDITED TO ADD: Here’s a related story. The Bank of New Zealand suspended Internet banking because of phishing concerns. Now there’s a company that is taking the threat seriously.

Posted on October 25, 2005 at 12:49 PM • View Comments

ATM Fraud and British Banks

An absolutely great story about phantom ATM withdrawals and British banking from the early 90s. (The story is from the early 90s; it has just become public now.) Read how a very brittle security system, coupled with banks using the legal system to avoid fixing the problem, resulted in lots of innocent people losing money to phantom withdrawals. Read how lucky everyone was that the catastrophic security problem was never discovered by criminals. It’s an amazing story.

See also Ross Anderson’s page on phantom withdrawals.

Oh, and Alistair Kelman assures me that he did not charge 1,750 pounds per hour, only 450 pounds per hour.

Posted on October 24, 2005 at 7:16 AM • View Comments

U.S. Regulators Require Two-Factor Authentication for Banks

Two-factor authentication is coming to U.S. banks:

Federal regulators will require banks to strengthen security for Internet customers through authentication that goes beyond mere user names and passwords, which have become too easy for criminals to exploit.

Bank Web sites are expected to adopt some form of “two-factor” authentication by the end of 2006, regulators with the Federal Financial Institutions Examination Council said in a letter to banks last week.

Here’s more details.

This won’t help. It’ll change the tactics of the criminals, but won’t make them go away. I’ve written about that already (the short version is that two-factor authentication won’t mitigate identity theft, because it’s not an authentication problem—it’s a problem with fraudulent transactions), and also about what will solve the problem.

Posted on October 19, 2005 at 2:51 PM • View Comments

Real ID and Identity Theft

Reuters on the trade-offs of Real ID:

Nobody yet knows how much the Real ID Act will cost to implement or how much money Congress will provide for it. The state of Washington, which has done the most thorough cost analysis, put the bill in that state alone at $97 million in the first two years and believes it will have to raise the price of a driver’s license to $58 from $25.

On the other hand, a secure ID system could save millions in Medicare and Medicaid fraud and combat identity theft.

Why does Reuters think that a better ID card will protect against identity theft? The problem with identity theft isn’t that ID cards are forgeable, it’s that financial institutions don’t check them before authorizing transactions.

Posted on October 14, 2005 at 11:20 AM • View Comments

The Doghouse: Lexar LockTight

Do you think we should tell these people that SHA-1 is not an encryption algorithm?

Developed by Lexar, the new security solution is based on a 160-bit encryption technology and uses SHA-1 (Secure Hash Algorithm), a standard approved by the National Institute of Standards and Technology (NIST). The 160-bit encryption technology is among the most effective and widely accepted security solutions available.

This seems not to be a typo. They explain themselves in more detail here:

Lexar has provided us with the following explanation as to how data is protected on the LockTight cards: (we understand that the encryption is carried out on the communications layer between the card and camera/computer rather than the data itself).

“Lexar employs a unique strategy to protect data on LockTight cards. LockTight cards are always ‘locked.’ In other words no computer or camera can read or write data from/to a LockTight card until a critical authorization process takes place between the LockTight card and the host computer or host camera. This authorization process is where the 160-bit HMAC SHAH-1 encryption algorithm is employed.”

Posted on October 3, 2005 at 8:22 AM • View Comments

Forging Low-Value Paper Certificates

Both Subway and Cold Stone Creamery have discontinued their frequent-purchaser programs because the paper documentation is too easy to forge. (The article says that forged Subway stamps are for sale on eBay.)

It used to be that the difficulty of counterfeiting paper was enough security for these sorts of low-value applications. Now that desktop publishing and printing is common, it’s not. Subway is implementing a system based on magnetic stripe cards instead. Anyone care to guess how long before that’s hacked?

Posted on September 27, 2005 at 7:43 AM • View Comments

Identity Thief Steals House

From Plastic:

James Cook left on a business trip to Florida, and his wife Paula went to Oklahoma to care for her sick mother. When the two returned to Frisco, Texas, several days later, their keys didn’t work. The locks on the house had been changed.

They spent their first night back sleeping in a walk-in closet, with a steel pipe ready to cold-cock any intruders. The next day, they met the man who thought he owned their house, because he had put a US$12,000 down payment to someone named Carlos Ramirez. The Cooks went to the Denton County Courthouse and checked their title. Someone had forged Paula Cook’s maiden name, Paula Smart, and transferred the deed to Carlos Ramirez. Paula’s identity was not only stolen, but the thief also stole her house. Even the police said they’ve never seen a case like this one, but suspect the criminal was able to steal the identity and the house with just Mrs. Cook’s Social Security number, driver’s license number and a copy of her signature.

This is a perfect example of the sort of fraud issue that a national ID card won’t solve. The problem is not that identity credentials are too easy to forge. The problem is that the criminal needed nothing more than “Mrs. Cook’s Social Security number, driver’s license number and a copy of her signature.” And the solution isn’t a harder-to-forge card; the solution is to make the procedure for transferring real-estate ownership more onerous. If the Denton County Courthouse had better transaction authentication procedures, the particulars of identity authentication—a national ID, a state driver’s license, biometrics, or whatever—wouldn’t matter.

If we are ever going to solve identity theft, we need to think about it properly. The problem isn’t misused identity information; the problem is fraudulent transactions.

Posted on August 29, 2005 at 7:42 AM • View Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.