Entries Tagged "crime"

Page 28 of 39

Remotely Eavesdropping on Cell Phone Microphones

I give a talk called “The Future of Privacy,” where I talk about current and future technological developments that erode our privacy. One of the things I talk about is auditory eavesdropping, and I hypothesize that a cell phone microphone could be turned on surreptitiously and remotely.

I never had any actual evidence one way or the other, but the technique has surfaced in an organized crime prosecution:

The surveillance technique came to light in an opinion published this week by U.S. District Judge Lewis Kaplan. He ruled that the “roving bug” was legal because federal wiretapping law is broad enough to permit eavesdropping even of conversations that take place near a suspect’s cell phone.

Kaplan’s opinion said that the eavesdropping technique “functioned whether the phone was powered on or off.” Some handsets can’t be fully powered down without removing the battery; for instance, some Nokia models will wake up when turned off if an alarm is set.

Seems that the technique is to download eavesdropping software into the phone:

The U.S. Commerce Department’s security office warns that “a cellular telephone can be turned into a microphone and transmitter for the purpose of listening to conversations in the vicinity of the phone.” An article in the Financial Times last year said mobile providers can “remotely install a piece of software on to any handset, without the owner’s knowledge, which will activate the microphone even when its owner is not making a call.”

Nextel and Samsung handsets and the Motorola Razr are especially vulnerable to software downloads that activate their microphones, said James Atkinson, a counter-surveillance consultant who has worked closely with government agencies. “They can be remotely accessed and made to transmit room audio all the time,” he said. “You can do that without having physical access to the phone.”

[…]

Details of how the Nextel bugs worked are sketchy. Court documents, including an affidavit (p1) and (p2) prepared by Assistant U.S. Attorney Jonathan Kolodner in September 2003, refer to them as a “listening device placed in the cellular telephone.” That phrase could refer to software or hardware.

One private investigator interviewed by CNET News.com, Skipp Porteous of Sherlock Investigations in New York, said he believed the FBI planted a physical bug somewhere in the Nextel handset and did not remotely activate the microphone.

“They had to have physical possession of the phone to do it,” Porteous said. “There are several ways that they could have gotten physical possession. Then they monitored the bug from fairly near by.”

But other experts thought microphone activation is the more likely scenario, mostly because the battery in a tiny bug would not have lasted a year and because court documents say the bug works anywhere “within the United States”—in other words, outside the range of a nearby FBI agent armed with a radio receiver.

In addition, a paranoid Mafioso likely would be suspicious of any ploy to get him to hand over a cell phone so a bug could be planted. And Kolodner’s affidavit seeking a court order lists Ardito’s phone number, his 15-digit International Mobile Subscriber Identifier, and lists Nextel Communications as the service provider, all of which would be unnecessary if a physical bug were being planted.

A BBC article from 2004 reported that intelligence agencies routinely employ the remote-activation method. “A mobile sitting on the desk of a politician or businessman can act as a powerful, undetectable bug,” the article said, “enabling them to be activated at a later date to pick up sounds even when the receiver is down.”

For its part, Nextel said through spokesman Travis Sowders: “We’re not aware of this investigation, and we weren’t asked to participate.”

EDITED TO ADD (12/12): Another article.

Posted on December 5, 2006 at 6:29 AM •

Forecasting Murderers

There’s new software that can predict who is likely to become a murderer.

Using probation department cases entered into the system between 2002 and 2004, Berk and his colleagues performed a two-year follow-up study—enough time, they theorized, for a person to reoffend if he was going to. They tracked each individual, with particular attention to the people who went on to kill. That created the model. What remains at this stage is to find a way to marry the software to the probation department’s information technology system.

When caseworkers begin applying the model next year they will input data about their individual cases – what Berk calls “dropping ‘Joe’ down the model”—to come up with scores that will allow the caseworkers to assign the most intense supervision to the riskiest cases.

Even a crime as serious as aggravated assault—pistol whipping, for example—”might not mean that much” if the first-time offender is 30, but it is an “alarming indicator” in a first-time offender who is 18, Berk said.

The model was built using adult probation data stripped of personal identifying information for confidentiality. Berk thinks it could be an even more powerful diagnostic tool if he could have access to similarly anonymous juvenile records.

The central public policy question in all of this is a resource allocation problem. With not enough resources to go around, overloaded case workers have to cull their cases to find the ones in most urgent need of attention—the so-called true positives, as epidemiologists say.

But before that can begin in earnest, the public has to decide how many false positives it can afford in order to head off future killers, and how many false negatives (seemingly nonviolent people who nevertheless go on to kill) it is willing to risk to narrow the false positive pool.

Pretty scary stuff, as it gets into the realm of thoughtcrime.

Posted on December 1, 2006 at 7:34 AM • View Comments

Fighting Fraudulent Transactions

Last March I wrote that two-factor authentication isn’t going to reduce financial fraud or identity theft, that all it will do is force the criminals to change their tactics:

Unfortunately, the nature of attacks has changed over those two decades. Back then, the threats were all passive: eavesdropping and offline password guessing. Today, the threats are more active: phishing and Trojan horses.

Here are two new active attacks we’re starting to see:

  • Man-in-the-Middle attack. An attacker puts up a fake bank website and entices user to that website. User types in his password, and the attacker in turn uses it to access the bank’s real website. Done right, the user will never realize that he isn’t at the bank’s website. Then the attacker either disconnects the user and makes any fraudulent transactions he wants, or passes along the user’s banking transactions while making his own transactions at the same time.
  • Trojan attack. Attacker gets Trojan installed on user’s computer. When user logs into his bank’s website, the attacker piggybacks on that session via the Trojan to make any fraudulent transaction he wants.

See how two-factor authentication doesn’t solve anything? In the first case, the attacker can pass the ever-changing part of the password to the bank along with the never-changing part. And in the second case, the attacker is relying on the user to log in.

The solution is not to better authenticate the person, but to authenticate the transaction. (Think credit cards. No one checks your signature. They really don’t care if you’re you. They maintain security by authenticating the transactions.)

Of course, no one listens to me. U.S. regulators required banks to implement two-factor authentication by the end of this year. But customers are rebelling, and banks are scrambling to figure out something—anything—else. And, amazingly enough and purely by accident it seems, they’ve stumbled on security solutions that actually work:

Instead, to comply with new banking regulations and stem phishing losses, banks and the vendors who serve them are hurriedly putting together multipronged strategies that they say amount to “strong” authentication. The emerging approach generally consists of somehow recognizing a customer’s computer, asking additional challenge questions for risky behavior and putting in place back-end fraud detection.

[…]

Despite the FFIEC guidance about authentication, the emerging technologies that actually seem to hold the most promise for protecting the funds in consumer banking accounts aren’t authentication systems at all. They’re back-end systems that monitor for suspicious behavior.

Some of these tools are rule-based: If a customer from Nebraska signs on from, say, Romania, the bank can determine that the log-on always be considered suspect. Others are based on a risk score: That log-on from Romania would add points to a risk score, and when the score reaches a certain threshold, the bank takes action.

Flagged transactions can get bumped to second-factor authentication—usually, a call on the telephone, something the user has. This has long been done manually in the credit card world. Just think about the last phone call you got from your credit card company’s fraud department when you (or someone else) tried to make a large purchase with your credit card in Europe. Some banks, including Washington Mutual, are in the process of automating out-of-band phone calls for risky online transactions.

Exactly. That’s how you do it.

EDITED TO ADD (12/6): Another example.

Posted on November 27, 2006 at 6:07 AM • View Comments

Skimming RFID Credit Cards

It’s easy to skim personal information off an RFID credit card.

From The New York Times:

They could skim and store the information from a card with a device the size of a couple of paperback books, which they cobbled together from readily available computer and radio components for $150. They say they could probably make another one even smaller and cheaper: about the size of a pack of gum for less than $50. And because the cards can be read even through a wallet or an item of clothing, the security of the information, the researchers say, is startlingly weak. ‘Would you be comfortable wearing your name, your credit card number and your card expiration date on your T-shirt?’ Mr. Heydt-Benjamin, a graduate student, asked.

And from The Register:

The attack uses off-the-shelf radio and card reader equipment that could cost as little as $150. Although the attack fails to yield verification codes normally needed to make online purchases, it would still be potentially possible for crooks to use the data to order goods and services from online stores that don’t request this information.

Despite assurances by the issuing companies that data contained on RFID-based credit cards would be encrypted, the researchers found that the majority of cards they tested did not use encryption or other data protection technology.

And from the RFID Journal:

I don’t think the exposing of potential vulnerabilities of these cards is a huge black eye for the credit-card industry or for the RFID industry. Millions of people won’t suddenly have their credit-card numbers exposed to thieves the way they do when someone hacks a bank’s database or an employee loses a laptop with the card numbers on it. But it is likely that these vulnerabilities will need to be addressed as the technology becomes more mature and criminals start figuring out ways to abuse it.

Posted on November 7, 2006 at 12:49 PM • View Comments

Insider Identity Theft

CEO arrested for stealing the identities of his employees:

Terrence D. Chalk, 44, of White Plains was arraigned in federal court in White Plains, along with his nephew, Damon T. Chalk, 35, after an FBI investigation turned up the curious lending and spending habits. The pair are charged with submitting some $1 million worth of credit applications using the names and personal information—names, addresses and social security numbers—of some of Compulinx’s 50 employees. According to federal prosecutors, the employees’ information was used without their knowledge; the Chalks falsely represented to the lending institutions, in writing and in face-to-face meetings, that the employees were actually officers of the company.

Posted on November 2, 2006 at 12:15 PM • View Comments

Real-World Social Engineering Crime

Classic:

Late on Monday, two thieves used a swipe card to drive a van up to Easynet’s Brick Lane headquarters. Once inside they began loading equipment into their van. They were watched by two security guards—one was doing his rounds and the other watched by CCTV—but both assumed the thieves, with their legitimate swipe cards also had a legitimate reason to take the kit, according to our sources.

EDITED TO ADD (11/25): Here’s another story (link in Turkish). The police receive an anonymous emergency call from someone claiming to have planted an explosive in the Haydarpasa Numune Hospital. They evaculate the hospital (100 patients plus doctors, staff, visitors, etc.) and search the place for two hours. They find nothing. When patients and visitors return, they realize that their valuables were stolen.

Posted on October 24, 2006 at 2:13 PM • View Comments

Lousy Home Security Installation

Impressively bad. (Yes, it’s an advertisement. But there are still important security lessons in the blog post.)

1. The keypad is actually the control panel. This particular model is called a Lynx and is manufactured by Honeywell. However, most of the major manufacturers have their own version of an “all-in-one” control panel, siren & keypad (Here is a link to GE’s version). These all-in-one models were designed to simplify installation and are typically part of “free” or low-cost alarm systems. They are all equally useless.

The most important problem with systems like this is the fact that you need to have a delay time in order to open your door and get to the keypad each time you enter your home. So, when a crook breaks in, they also have the same amount of time. If the crook follows the sound of the beeping keypad they will be standing in front of not only the keypad, but the brains of the alarm system. So, rather than punching in a valid code, the crook could simply rip the entire unit off of the wall.

Provided that they rip the panel off of the wall before the alarm sends its first signal, it will never be able to send a signal.

2. If point #1 wasn’t bad enough (or maybe because the installer who put the ‘system’ in realized how useless it was going to be) the power supply for the system is located right beside the keypad/control panel. Unplug the transformer (which is just barely able to stay plugged in as it is) and the alarm loses power. This provides a really convenient way for someone to either accidentally or intentionally unplug the system and wait for the back-up battery to die.

3. Even worse, the phone jack has also been located beside the power supply. The phone jack is the alarm systems only connection to the outside world. If it gets unplugged, the system cannot communicate and a crook would not have to go through the hassle of ripping the panel off of the wall.

Posted on October 19, 2006 at 9:46 AM • View Comments

Programming ATMs to Believe $20 Bills Are $5 Bills

Clever attack:

Last month, a man reprogrammed an automated teller machine at a gas station on Lynnhaven Parkway to spit out four times as much money as it should.

He then made off with an undisclosed amount of cash.

No one noticed until nine days later, when a customer told the clerk at a Crown gas station that the machine was disbursing more money than it should. Police are now investigating the incident as fraud.

Police spokeswoman Rene Ball said the first withdrawal occurred at 6:17 p.m. Aug. 19. Surveillance footage documented a man about 5-foot-8 with a thin build walking into the gas station on the 2400 block of Lynnhaven Parkway and swiping an ATM card.

The man then punched a series of numbers on the machine’s keypad, breaking the security code. The ATM was programmed to disburse $20 bills. The man reprogrammed the machine so it recorded each $20 bill as a $5 debit to his account.

The suspect returned to the gas station a short time later and took more money, but authorities did not say how much. Because the account was pre-paid and the card could be purchased at several places, police are not sure who is behind the theft.

What’s weird is that it seems that this is easy. The ATM is a Tranax Mini Bank 1500. And you can buy the manuals from the Tranax website. And they’re useful for this sort of thing:

I am holding in my hands a legitimately obtained copy of the manual. There are a lot of security sensitive things inside of this manual. As promised, I am not going to reveal them, but there are:

  • Instructions on how to enter the diagnostic mode

    • Default passwords

  • Default Combinations For the Safe

Do not ask me for them. If you maintain one of these devices, make sure that you are not using the default password. If you are, change it immediately.

This is from an eWeek article:

“If you get your hand on this manual, you can basically reconfigure the ATM if the default password was not changed. My guess is that most of these mini-bank terminals are sitting around with default passwords untouched,” Goldsmith said.

Officials at Tranax did not respond to eWEEK requests for comment. According to a note on the company’s Web site, Tranax has shipped 70,000 ATMs, self-service terminals and transactional kiosks around the country. The majority of those shipments are of the flagship Mini-Bank 1500 machine that was rigged in the Virginia Beach heist.

So, as long as you can use an account that’s not traceable back to you, and you disguise yourself for the ATM cameras, this is a pretty easy crime.

eWeek claims you can get a copy of the manual simply by Googling for it. (Here’s one on eBay.

And Tranax is promising a fix that will force operators to change the default passwords. But honestly, what’s the liklihood that someone who can’t be bothered to change the default password will take the time to install a software patch?

EDITED TO ADD (9/22): Here’s the manual.

Posted on September 22, 2006 at 7:04 AM • View Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.