Entries Tagged "crime"

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Shell Suspends Chip & Pin in the UK

According to the BBC:

Petrol giant Shell has suspended chip-and-pin payments in 600 UK petrol stations after more than £1m was siphoned out of customers’ accounts.

This is just sad:

“These Pin pads are supposed to be tamper resistant, they are supposed to shut down, so that has obviously failed,” said Apacs spokeswoman Sandra Quinn.

She said Apacs was confident the problem was specific to Shell and not a systemic issue.

A Shell spokeswoman said: “Shell’s chip-and-pin solution is fully accredited and complies with all relevant industry standards.

That spokesperson simply can’t conceive of the fact that those “relevant industry standards” were written by those trying to sell the technology, and might possibly not be enough to ensure security.

And this is just after APACS (that’s the Association of Payment Clearing Services, by the way) reported that chip-and-pin technology reduced fraud by 13%.

Good commentary here. See also this article. Here’s a chip-and-pin FAQ from February.

EDITED TO ADD (5/8): Arrests have been made. And details emerge:

The scam works by criminals implanting devices into chip and pin machines which can copy a bank card’s magnetic strip and record a person’s pin number.

The device cannot copy the chip, which means any fake card can only be used in machines where chip and pin is not implemented – often abroad.

This is a common attack, one that I talk about in Beyond Fear: falling back to a less secure system. The attackers made use of the fact that there is a less secure system that is running parallel to the chip-and-pin system. Clever.

Posted on May 8, 2006 at 12:41 PMView Comments

Counterfeiting an Entire Company

We’ve talked about counterfeit money, counterfeit concert tickets, counterfeit police credentials, and counterfeit police departments. Here’s a story about a counterfeit company:

Evidence seized in raids on 18 factories and warehouses in China and Taiwan over the past year showed that the counterfeiters had set up what amounted to a parallel NEC brand with links to a network of more than 50 electronics factories in China, Hong Kong and Taiwan.

In the name of NEC, the pirates copied NEC products, and went as far as developing their own range of consumer electronic products – everything from home entertainment centers to MP3 players. They also coordinated manufacturing and distribution, collecting all the proceeds.

Posted on May 1, 2006 at 8:02 AMView Comments

Mafia Boss Secures His Data with Caesar Cipher

Odd story:

At least one coded note, published in the Web site’s biography, has a strong resemblance to what’s known as Caesar cipher, an encryption scheme used by Julius Caesar to protect important military messages.

The letter, written in January 2001 by Angelo Provenzano to his father, was found with other documents when one of Provenzano’s men, Nicola La Barbera, was arrested.

“…I met 512151522 191212154 and we agreed that we will see each other after the holidays…,” said the letter, which included several other cryptograms.

“The Binnu code is nothing new: each number corresponds to a letter of the alphabet. ‘A’ is 4, ‘B’ is 5, ‘C’ is 6 and so on until the letter Z , which corresponds to number 24,” wrote Palazzolo and Oliva.

I got a nice quote:

“Looks like kindergarten cryptography to me. It will keep your kid sister out, but it won’t keep the police out. But what do you expect from someone who is computer illiterate?” security guru Bruce Schneier, author of several books on cryptography, told Discovery News.

Posted on April 24, 2006 at 6:52 AMView Comments

VOIP Encryption

There are basically four ways to eavesdrop on a telephone call.

One, you can listen in on another phone extension. This is the method preferred by siblings everywhere. If you have the right access, it’s the easiest. While it doesn’t work for cell phones, cordless phones are vulnerable to a variant of this attack: A radio receiver set to the right frequency can act as another extension.

Two, you can attach some eavesdropping equipment to the wire with a pair of alligator clips. It takes some expertise, but you can do it anywhere along the phone line’s path—even outside the home. This used to be the way the police eavesdropped on your phone line. These days it’s probably most often used by criminals. This method doesn’t work for cell phones, either.

Three, you can eavesdrop at the telephone switch. Modern phone equipment includes the ability for someone to listen in this way. Currently, this is the preferred police method. It works for both land lines and cell phones. You need the right access, but if you can get it, this is probably the most comfortable way to eavesdrop on a particular person.

Four, you can tap the main trunk lines, eavesdrop on the microwave or satellite phone links, etc. It’s hard to eavesdrop on one particular person this way, but it’s easy to listen in on a large chunk of telephone calls. This is the sort of big-budget surveillance that organizations like the National Security Agency do best. They’ve even been known to use submarines to tap undersea phone cables.

That’s basically the entire threat model for traditional phone calls. And when most people think about IP telephony—voice over internet protocol, or VOIP—that’s the threat model they probably have in their heads.

Unfortunately, phone calls from your computer are fundamentally different from phone calls from your telephone. Internet telephony’s threat model is much closer to the threat model for IP-networked computers than the threat model for telephony.

And we already know the threat model for IP. Data packets can be eavesdropped on anywhere along the transmission path. Data packets can be intercepted in the corporate network, by the internet service provider and along the backbone. They can be eavesdropped on by the people or organizations that own those computers, and they can be eavesdropped on by anyone who has successfully hacked into those computers. They can be vacuumed up by nosy hackers, criminals, competitors and governments.

It’s comparable to threat No. 3 above, but with the scope vastly expanded.

My greatest worry is the criminal attacks. We already have seen how clever criminals have become over the past several years at stealing account information and personal data. I can imagine them eavesdropping on attorneys, looking for information with which to blackmail people. I can imagine them eavesdropping on bankers, looking for inside information with which to make stock purchases. I can imagine them stealing account information, hijacking telephone calls, committing identity theft. On the business side, I can see them engaging in industrial espionage and stealing trade secrets. In short, I can imagine them doing all the things they could never have done with the traditional telephone network.

This is why encryption for VOIP is so important. VOIP calls are vulnerable to a variety of threats that traditional telephone calls are not. Encryption is one of the essential security technologies for computer data, and it will go a long way toward securing VOIP.

The last time this sort of thing came up, the U.S. government tried to sell us something called “key escrow.” Basically, the government likes the idea of everyone using encryption, as long as it has a copy of the key. This is an amazingly insecure idea for a number of reasons, mostly boiling down to the fact that when you provide a means of access into a security system, you greatly weaken its security.

A recent case in Greece demonstrated that perfectly: Criminals used a cell-phone eavesdropping mechanism already in place, designed for the police to listen in on phone calls. Had the call system been designed to be secure in the first place, there never would have been a backdoor for the criminals to exploit.

Fortunately, there are many VOIP-encryption products available. Skype has built-in encryption. Phil Zimmermann is releasing Zfone, an easy-to-use open-source product. There’s even a VOIP Security Alliance.

Encryption for IP telephony is important, but it’s not a panacea. Basically, it takes care of threats No. 2 through No. 4, but not threat No. 1. Unfortunately, that’s the biggest threat: eavesdropping at the end points. No amount of IP telephony encryption can prevent a Trojan or worm on your computer—or just a hacker who managed to get access to your machine—from eavesdropping on your phone calls, just as no amount of SSL or e-mail encryption can prevent a Trojan on your computer from eavesdropping—or even modifying—your data.

So, as always, it boils down to this: We need secure computers and secure operating systems even more than we need secure transmission.

This essay originally appeared on Wired.com.

Posted on April 6, 2006 at 5:09 AMView Comments

iJacking

The San Francisco Bay Guardian is reporting on a new crime: people who grab laptops out of their owners’ hands and then run away. It’s called “iJacking,” and there seems to be a wave of this type of crime at Internet cafes in San Francisco:

In 2004 the SFPD Robbery Division recorded 17 strong-arm laptop robberies citywide. This increased to 30 cases in 2005, a total that doesn’t even include thefts that fall under the category of “burglary,” when a victim isn’t present. (SFPD could not provide statistics on the number of laptop burglaries.)

In the past three months alone, Park Station, the police precinct that includes the Western Addition, has reported 11 strong-arm laptop robberies, a statistic that suggests this one district may exceed last year’s citywide total by the end of 2006.

Some stories:

Maloney was absorbed in his work when suddenly a hooded person yanked the laptop from Maloney’s hands and ran out the door. Maloney tried to grab his computer, but he stumbled across a few chairs and landed on the floor as the perpetrator dashed to a vehicle waiting a quarter block away.

[…]

Two weeks before Maloney’s robbery, on a Sunday afternoon, a man had been followed out of the Starbucks on the corner of Fulton Street and Masonic Avenue and was assaulted by two suspects in broad daylight. According to the police report, the suspects dragged the victim 15 feet along the pavement, kicking him in the face before stealing his computer.

In early February a women had her laptop snatched while sitting in Ali’s Café. She pursued the perpetrator out the door, only to be blindsided by a second accomplice. Ali described the assault as “a football tackle” so severe it left the victim’s eyeglasses in the branches of a nearby tree. In the most recent laptop robbery, on March 16 in a café on the 900 block of Valencia Street, police say the victim was actually stabbed.

It’s obvious why these thefts are occurring. Laptops are valuable, easy to steal, and easy to fence. If we want to “solve” this problem, we need to modify at least one of those characteristics. Some Internet cafes are providing locking cables for their patrons, in an attempt to make them harder to steal. But that will only mean that the muggers will follow their victims out of the cafes. Laptops will become less valuable over time, but that really isn’t a good solution. The only thing left is to make them harder to fence.

This isn’t an easy problem. There are a bunch of companies that make solutions that help people recover stolen laptops. There are programs that “phone home” if a laptop is stolen. There are programs that hide a serial number on the hard drive somewhere. There are non-removable tags users can affix to their computers with ID information. But until this kind of thing becomes common, the crimes will continue.

Reminds me of the problem of bicycle thefts.

Posted on March 31, 2006 at 1:06 PMView Comments

MySpace Used as Forensics Tool

From CNN:

Detectives used profiles posted on the MySpace social networking Web site to identify six suspects in a rape and robbery….

[…]

She knew only their first names but their pictures were posted on MySpace.

“Primarily, we pulled up her friends list. It helped us identify some of the players,” said Bartley.

Posted on March 28, 2006 at 1:19 PMView Comments

Blowing Up ATMs

In the Netherlands, criminals are stealing money from ATMs by blowing them up (article in Dutch). First, they drill a hole in an ATM and fill it with some sort of gas. Then, they ignite the gas—from a safe distance—and clean up the money that flies all over the place after the ATM explodes.

Sounds crazy, but apparently there has been an increase in this type of attack recently. The banks’ countermeasure is to install air vents so that gas can’t build up inside the ATMs.

Posted on March 10, 2006 at 12:26 PMView Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.