Entries Tagged "crime"

Page 16 of 39

The Global Illicit Economy

Interesting video:

A new class of global actors is playing an increasingly important role in globalization: smugglers, warlords, guerrillas, terrorists, gangs, and bandits of all stripes. Since the end of the Cold War, the global illicit economy has consistently grown at twice the rate of the licit global economy. Increasingly, illicit actors will represent not just an economic but a political force. As globalization hollows out traditional nation-states, what will fill the power vacuum in slums and hinterlands will be informal non-state governance structures. These zones will be globally connected, effectively run by local gangs, religious leaders, or quasi-tribal organizations—organizations that will govern without aspiring to statehood.

Malware is one of Nils Gilman’s examples, at about the nine-minute mark.

The seven rules of the illicit global economy (he seems to use “illicit” and “deviant” interchangeably in the talk):

  1. Perfectly legitimate forms of demand can produce perfectly deviant forms of supply.
  2. Uneven global regulatory structures create arbitrage opportunities for deviant entrepreneurs.
  3. Pathways for legitimate globalization are always also pathways for deviant globalization.
  4. Once a deviant industry professionalizes, crackdowns merely promote innovation.
  5. States themselves undermine the distinction between legitimate and deviant economics.
  6. Unchecked, deviant entrepreneurs will overtake the legitimate economy.
  7. Deviant globalization presents an existential challenge to state legitimacy.

Posted on September 8, 2009 at 7:12 AM • View Comments

On London's Surveillance Cameras

A recent report has concluded that the London’s surveillance cameras have solved one crime per thousand cameras per year.

David Davis MP, the former shadow home secretary, said: “It should provoke a long overdue rethink on where the crime prevention budget is being spent.”

He added: “CCTV leads to massive expense and minimum effectiveness.

“It creates a huge intrusion on privacy, yet provides little or no improvement in security.

Also:

Earlier this year separate research commissioned by the Home Office suggested that the cameras had done virtually nothing to cut crime, but were most effective in preventing vehicle crimes in car parks.

A report by a House of Lords committee also said that £500 million was spent on new cameras in the 10 years to 2006, money which could have been spent on street lighting or neighbourhood crime prevention initiatives.

A large proportion of the cash has been In London, where an estimated £200 million so far has been spent on the cameras. This suggests that each crime has cost £20,000 to detect.

I haven’t seen the report, but I know it’s hard to figure out when a crime has been “solved” by a surveillance camera. To me, the crime has to have been unsolvable without the cameras. Repeatedly I see pro-camera lobbyists pointing to the surveillance-camera images that identified the 7/7 London Transport bombers, but it is obvious that they would have been identified even without the cameras.

And it would really help my understanding of that £20,000 figure (I assume it is calculated from £200 million for the cameras times 1 in 1000 cameras used to solve a crime per year divided by ten years) if I knew what sorts of crimes the cameras “solved.” If the £200 million solved 10,000 murders, it might very well be a good security trade-off. But my guess is that most of the crimes were of a much lower level.

Cameras are largely security theater:

A Home Office spokeswoman said CCTVs “help communities feel safer”.

Posted on August 31, 2009 at 5:59 AM • View Comments

Banning Beer Glasses in Pubs

Not beer, just the glasses:

The Home Office has commissioned a new design, in an attempt to stop glasses being used as weapons.

Official figures show 5,500 people are attacked with glasses and bottles every year in England and Wales.

The British Beer and Pub Association said it did not want the new plastic glasses to be made compulsory.

I don’t think this will go anywhere, but the sheer idiocy is impressive. Reminds me of the call to ban pointy knives. That recommendation also came out of the UK. What’s going on over there?

Posted on August 27, 2009 at 1:44 PM • View Comments

Stealing 130 Million Credit Card Numbers

Someone has been charged with stealing 130 million credit card numbers.

Yes, it’s a lot, but that’s the sort of quantities credit card numbers come in. They come by the millions, in large database files. Even if you only want ten, you have to steal millions. I’m sure every one of us has a credit card in our wallet whose number has been stolen. It’ll probably never be used for fraudulent purposes, but it’s in some stolen database somewhere.

Years ago, when giving advice on how to avoid identity theft, I would tell people to shred their trash. Today, that advice is completely obsolete. No one steals credit card numbers one by one out of the trash when they can be stolen by the millions from merchant databases.

Posted on August 27, 2009 at 7:02 AM • View Comments

Small Business Identity Theft and Fraud

The sorts of crimes we’ve been seeing perpetrated against individuals are starting to be perpetrated against small businesses:

In July, a school district near Pittsburgh sued to recover $700,000 taken from it. In May, a Texas company was robbed of $1.2 million. An electronics testing firm in Baton Rouge, La., said it was bilked of nearly $100,000.

In many cases, the advisory warned, the scammers infiltrate companies in a similar fashion: They send a targeted e-mail to the company’s controller or treasurer, a message that contains either a virus-laden attachment or a link that—when opened—surreptitiously installs malicious software designed to steal passwords. Armed with those credentials, the crooks then initiate a series of wire transfers, usually in increments of less than $10,000 to avoid banks’ anti-money-laundering reporting requirements.

The alert states that these scams typically rely on help from “money mules”—willing or unwitting individuals in the United States—often hired by the criminals via popular Internet job boards. Once enlisted, the mules are instructed to set up bank accounts, withdraw the fraudulent deposits and then wire the money to fraudsters, the majority of which are in Eastern Europe, according to the advisory.

This has the potential to grow into a very big problem. Even worse:

Businesses do not enjoy the same legal protections as consumers when banking online. Consumers typically have up to 60 days from the receipt of a monthly statement to dispute any unauthorized charges.

In contrast, companies that bank online are regulated under the Uniform Commercial Code, which holds that commercial banking customers have roughly two business days to spot and dispute unauthorized activity if they want to hold out any hope of recovering unauthorized transfers from their accounts.

And, of course, the security externality means that the banks care much less:

“The banks spend a lot of money on protecting consumer customers because they owe money if the consumer loses money,” Litan said. “But the banks don’t spend the same resources on the corporate accounts because they don’t have to refund the corporate losses.”

Posted on August 26, 2009 at 5:46 AM • View Comments

The Continuing Cheapening of the Word "Terrorism"

“Terroristic threats“?

A pickup truck driver is accused of trying to run over a bicyclist and then coming after him brandishing an ax after a road-rage incident in Burnsville last weekend.

The driver, Mitchel J. Pieper, 32, of Burnsville, was charged in Dakota County District Court on Tuesday with making terroristic threats, a felony, in connection with the altercation Saturday. The bicyclist was not seriously hurt.

Seems like a normal threat to me. Or assault, with intent to do bodily harm. What’s wrong with those criminal statutes?

Let’s save the word “terrorism” for things that actually are terrorism.

Posted on August 19, 2009 at 1:08 PM • View Comments

Pepper Spray–Equipped ATMs

South Africa takes its security seriously. Here’s an ATM that automatically squirts pepper spray into the face of “people tampering with the card slots.”

Sounds cool, but these kinds of things are all about false positives:

But the mechanism backfired in one incident last week when pepper spray was inadvertently inhaled by three technicians who required treatment from paramedics.

Patrick Wadula, spokesman for the Absa bank, which is piloting the scheme, told the Mail & Guardian Online: “During a routine maintenance check at an Absa ATM in Fish Hoek, the pepper spray device was accidentally activated.

“At the time there were no customers using the ATM. However, the spray spread into the shopping centre where the ATMs are situated.”

Posted on July 17, 2009 at 1:04 PM •

Did a Public Twitter Post Lead to a Burglary?

No evidence one way or the other:

Like a lot of people who use social media, Israel Hyman and his wife Noell went on Twitter to share real-time details of a recent trip. Their posts said they were “preparing to head out of town,” that they had “another 10 hours of driving ahead,” and that they “made it to Kansas City.”

While they were on the road, their home in Mesa, Ariz., was burglarized. Hyman has an online video business called IzzyVideo.com, with 2,000 followers on Twitter. He thinks his Twitter updates tipped the burglars off.

“My wife thinks it could be a random thing, but I just have my suspicions,” he said. “They didn’t take any of our normal consumer electronics.” They took his video editing equipment.

I’m not saying that there isn’t a connection, but people have a propensity for seeing these sorts of connections.

Posted on June 15, 2009 at 2:26 PM • View Comments

Second SHB Workshop Liveblogging (3)

The second session was about fraud. (These session subjects are only general. We tried to stick related people together, but there was the occasional oddball—and scheduling constraint—to deal with.)

Julie Downs, Carnegie Mellon University (suggested reading: Behavioral Response to Phishing Risk; Parents’ vaccination comprehension and decisions; The Psychology of Food Consumption), is a psychologist who studies how people make decisions, and talked about phishing. To determine how people respond to phishing attempts—what e-mails they open and when they click on links—she watched as people interacted with their e-mail. She found that most people’s strategies to deal with phishing attacks might have been effective 5-10 years ago, but are no longer sufficient now that phishers have adapted. She also found that educating people about phishing didn’t make them more effective at spotting phishing attempts, but made them more likely to be afraid of doing anything on line. She found this same overreaction among people who were recently the victims of phishing attacks, but again people were no better separating real e-mail from phishing attempts. What does make a difference is contextual understanding: how to parse a URL, how and why the scams happen, what SSL does and doesn’t do.

Jean Camp, Indiana University (suggested reading: Experimental Evaluation of Expert and Non-expert Computer Users’ Mental Models of Security Risks), studies people taking risks online. Four points: 1) “people create mental models from internal narratives about risk,” 2) “risk mitigating action is taken only if the risk is perceived as relevant,” 3) “contextualizing risk can show risks as relevant,” and 4) “narrative can increase desire and capacity to use security tools.” Stories matter: “people are willing to wash out their cat food cans and sweep up their sweet gum balls to be a good neighbor, but allow their computers to join zombie networks” because there’s a good story in the former and none in the latter. She presented two experiments to demonstrate this. One was a video experiment watching business majors try to install PGP. No one was successful: there was no narrative, and the mixed metaphor of physical and cryptographic “key” confused people.

Matt Blaze, University of Pennsylvania (his blog), talked about electronic voting machines and fraud. He related this anecdote about actual electronic voting machine vote fraud in Kentucky. In the question session, he speculated about the difficulty of having a security model that would have captured the problem, and how to know whether that model was complete enough.

Jeffrey Friedberg, Microsoft (suggested reading: Internet Fraud Battlefield; End to End Trust and the Trust User Experience; Testimony on “spyware”), discussed research at Microsoft around the Trust User Experience (TUX). He talked about the difficulty of verifying SSL certificates. Then he talked about how Microsoft added a “green bar” to signify trusted sites, and how people who learned to trust the green bar were fooled by “picture in picture attacks”: where a hostile site embedded a green-bar browser window in its page. Most people don’t understand that the information inside the browser window is arbitrary, but that the stuff around it is not. The user interface, user experience, mental models all matter. Designing and evaluating TUX is hard. From the questions: training doesn’t help much, because given a plausible story, people will do things counter to their training.

Stuart Schechter, Microsoft, presented this research on secret questions. Basically, secret questions don’t work. They’re easily guessable based on the most common answers; friends and relatives of people can easily predict unique answers; and people forget their answers. Even worse, the more memorable the question/answers are, the easier they are to guess. Having people write their own questions is no better: “What’s my blood type?” “How tall am I?”

Tyler Moore, Harvard University (suggested reading: The Consequences of Non-Cooperation in the Fight against Phishing; Information Security Economics—and Beyond), discussed his empirical studies on online crime and defense. Fraudsters are good at duping users, but they’re also effective at exploiting failures among IT professionals to perpetuate the infrastructure necessary to carry out these exploits on a large scale (hosting fake web pages, sending spam, laundering the profits via money mules, and so on). There is widespread refusal among the defenders to cooperate with each other, and attackers exploit these limitations. We are better at removing phishing websites than we are at defending against the money mules. Defenders tend to fix immediate problems, but not underlying problems.

In the discussion phase, there was a lot of talk about the relationships between websites, like banks, and users—and how that affects security for both good and bad. Jean Camp doesn’t want a relationship with her bank, because that unduly invests her in the bank. (Someone from the audience pointed out that, as a U.S. taxpayer, she is already invested in her bank.) Angela Sasse said that the correct metaphor is “rules of engagement,” rather than relationships.

Adam Shostack’s liveblogging. Ross Anderson’s liveblogging is in his blog post’s comments.

Matt Blaze is taping the sessions—except for the couple of presenters who would rather not be taped—I’ll post his links as soon as the files are online.

EDITED TO ADD (6/11): Audio of the session is here.

Posted on June 11, 2009 at 11:42 AM • View Comments

Malware Steals ATM Data

One of the risks of using a commercial OS for embedded systems like ATMs: it’s easier to write malware against it:

The report does not detail how the ATMs are infected, but it seems likely that the malware is encoded on a card that can be inserted in an ATM card reader to mount a buffer overflow attack. The machine is compromised by replacing the isadmin.exe file to infect the system.

The malicious isadmin.exe program then uses the Windows API to install the functional attack code by replacing a system file called lsass.exe in the C:WINDOWS directory.

Once the malicious lsass.exe program is installed, it collects users account numbers and PIN codes and waits for a human controller to insert a specially crafted control card to take over the ATM.

After the ATM is put under control of a human attacker, they can perform various functions, including harvesting the purloined data or even ejecting the cash box.

EDITED TO ADD (6/14): Seems like the story I quoted was jumping to conclusions. The actual report says “the malware is installed and activated through a dropper file (a file that an attacker can use to deploy tools onto a compromised system) by the name of isadmin.exe,” which doesn’t really sound like it’s referring to a buffer overflow attack carried out through a card emulator. Also, The Register says “[the] malicious programs can be installed only by people with physical access to the machines, making some level of insider cooperation necessary.”

Posted on June 10, 2009 at 1:51 PM • View Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.