Entries Tagged "crime"

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Security Implications of Cash

I saw two related stories today. The first is about high-denomination currency. The EU is considering dropping its 500-euro note, on the grounds that only criminals need to move around that much cash. In response, Switzerland said that it is not dropping its 1,000-Swiss franc note. Of course, the US leads the way in small money here; its biggest banknote is $100.

This probably matters. Moving and laundering cash is at least as big a logistical and legal problem as moving and selling drugs. On the other hand, countries make a profit from their cash in circulation: it’s called seigniorage.

The second story is about the risks associated with legal marijuana dispensaries in the US not being able to write checks, have a bank account, and so on. There’s the physical risk of theft and violence, and the logistical nightmare of having to pay a $100K tax bill with marijuana-smelling paper currency.

Posted on February 19, 2016 at 6:34 AM • View Comments

Security vs. Surveillance

Both the “going dark” metaphor of FBI Director James Comey and the contrasting “golden age of surveillance” metaphor of privacy law professor Peter Swire focus on the value of data to law enforcement. As framed in the media, encryption debates are about whether law enforcement should have surreptitious access to data, or whether companies should be allowed to provide strong encryption to their customers.

It’s a myopic framing that focuses only on one threat—criminals, including domestic terrorists—and the demands of law enforcement and national intelligence. This obscures the most important aspects of the encryption issue: the security it provides against a much wider variety of threats.

Encryption secures our data and communications against eavesdroppers like criminals, foreign governments, and terrorists. We use it every day to hide our cell phone conversations from eavesdroppers, and to hide our Internet purchasing from credit card thieves. Dissidents in China and many other countries use it to avoid arrest. It’s a vital tool for journalists to communicate with their sources, for NGOs to protect their work in repressive countries, and for attorneys to communicate with their clients.

Many technological security failures of today can be traced to failures of encryption. In 2014 and 2015, unnamed hackers—probably the Chinese government—stole 21.5 million personal files of U.S. government employees and others. They wouldn’t have obtained this data if it had been encrypted. Many large-scale criminal data thefts were made either easier or more damaging because data wasn’t encrypted: Target, TJ Maxx, Heartland Payment Systems, and so on. Many countries are eavesdropping on the unencrypted communications of their own citizens, looking for dissidents and other voices they want to silence.

Adding backdoors will only exacerbate the risks. As technologists, we can’t build an access system that only works for people of a certain citizenship, or with a particular morality, or only in the presence of a specified legal document. If the FBI can eavesdrop on your text messages or get at your computer’s hard drive, so can other governments. So can criminals. So can terrorists. This is not theoretical; again and again, backdoor accesses built for one purpose have been surreptitiously used for another. Vodafone built backdoor access into Greece’s cell phone network for the Greek government; it was used against the Greek government in 2004-2005. Google kept a database of backdoor accesses provided to the U.S. government under CALEA; the Chinese breached that database in 2009.

We’re not being asked to choose between security and privacy. We’re being asked to choose between less security and more security.

This trade-off isn’t new. In the mid-1990s, cryptographers argued that escrowing encryption keys with central authorities would weaken security. In 2013, cybersecurity researcher Susan Landau published her excellent book Surveillance or Security?, which deftly parsed the details of this trade-off and concluded that security is far more important.

Ubiquitous encryption protects us much more from bulk surveillance than from targeted surveillance. For a variety of technical reasons, computer security is extraordinarily weak. If a sufficiently skilled, funded, and motivated attacker wants in to your computer, they’re in. If they’re not, it’s because you’re not high enough on their priority list to bother with. Widespread encryption forces the listener—whether a foreign government, criminal, or terrorist—to target. And this hurts repressive governments much more than it hurts terrorists and criminals.

Of course, criminals and terrorists have used, are using, and will use encryption to hide their planning from the authorities, just as they will use many aspects of society’s capabilities and infrastructure: cars, restaurants, telecommunications. In general, we recognize that such things can be used by both honest and dishonest people. Society thrives nonetheless because the honest so outnumber the dishonest. Compare this with the tactic of secretly poisoning all the food at a restaurant. Yes, we might get lucky and poison a terrorist before he strikes, but we’ll harm all the innocent customers in the process. Weakening encryption for everyone is harmful in exactly the same way.

This essay previously appeared as part of the paper “Don’t Panic: Making Progress on the ‘Going Dark’ Debate.” It was reprinted on Lawfare. A modified version was reprinted by the MIT Technology Review.

Posted on February 3, 2016 at 6:09 AM • View Comments

Horrible Story of Digital Harassment

This is just awful.

Their troll—or trolls, as the case may be—have harassed Paul and Amy in nearly every way imaginable. Bomb threats have been made under their names. Police cars and fire trucks have arrived at their house in the middle of the night to respond to fake hostage calls. Their email and social media accounts have been hacked, and used to bring ruin to their social lives. They’ve lost jobs, friends, and relationships. They’ve developed chronic anxiety and other psychological problems. More than once, they described their lives as having been “ruined” by their mystery tormenter.

We need to figure out how to identify perpetrators like this without destroying Internet privacy in the process.

EDITED TO ADD: One of the important points is the international nature of many of these cases. Even once the attackers are identified, the existing legal system isn’t adequate for shutting them down.

Posted on January 27, 2016 at 6:20 AM • View Comments

Forced Authorization Attacks Against Chip-and-Pin Credit Card Terminals

Clever:

The way forced authorisation fraud works is that the retailer sets up the terminal for a transaction by inserting the customer’s card and entering the amount, then hands the terminal over to the customer so they can type in the PIN. But the criminal has used a stolen or counterfeit card, and due to the high value of the transaction the terminal performs a “referral”—asking the retailer to call the bank to perform additional checks such as the customer answering a security question. If the security checks pass, the bank will give the retailer an authorisation code to enter into the terminal.

The problem is that when the terminal asks for these security checks, it’s still in the hands of the criminal, and it’s the criminal that follows the steps that the retailer should have. Since there’s no phone conversation with the bank, the criminal doesn’t know the correct authorisation code. But what surprises retailers is that the criminal can type in anything at this stage and the transaction will go through. The criminal might also be able to bypass other security features, for example they could override the checking of the PIN by following the steps the retailer would if the customer has forgotten the PIN.

By the time the terminal is passed back to the retailer, it looks like the transaction was completed successfully. The receipt will differ only very subtly from that of a normal transaction, if at all. The criminal walks off with the goods and it’s only at the end of the day that the authorisation code is checked by the bank. By that time, the criminal is long gone. Because some of the security checks the bank asked for weren’t completed, the retailer doesn’t get the money.

Posted on December 7, 2015 at 5:35 AM • View Comments

Cosa Nostra Dead Drops

Good operational security is hard, and often uses manual technologies:

Investigators described how Messina Denaro, 53, disdains telecommunications and relies on handwritten notes, or “pizzini,'” to relay orders. The notes were wadded tight, covered in tape and hidden under rocks or dug into soil until go-betweens retrieved them. The messages were ordered destroyed after being read.

That’s a classic dead drop.

Posted on August 13, 2015 at 6:33 AM • View Comments

Bizarre High-Tech Kidnapping

This is a story of a very high-tech kidnapping:

FBI court filings unsealed last week showed how Denise Huskins’ kidnappers used anonymous remailers, image sharing sites, Tor, and other people’s Wi-Fi to communicate with the police and the media, scrupulously scrubbing meta data from photos before sending. They tried to use computer spyware and a DropCam to monitor the aftermath of the abduction and had a Parrot radio-controlled drone standing by to pick up the ransom by remote control.

The story also demonstrates just how effective the FBI is tracing cell phone usage these days. They had a blocked call from the kidnappers to the victim’s cell phone. First they used a search warrant to AT&T to get the actual calling number. After learning that it was an AT&T prepaid Tracfone, they called AT&T to find out where the burner was bought, what the serial numbers were, and the location where the calls were made from.

The FBI reached out to Tracfone, which was able to tell the agents that the phone was purchased from a Target store in Pleasant Hill on March 2 at 5:39 pm. Target provided the bureau with a surveillance-cam photo of the buyer: a white male with dark hair and medium build. AT&T turned over records showing the phone had been used within 650 feet of a cell site in South Lake Tahoe.

Here’s the criminal complaint. It borders on surreal. Were it an episode of CSI:Cyber, you would never believe it.

Posted on July 29, 2015 at 6:34 AM • View Comments

Admiral Rogers Speaking at the Joint Service Academy Cyber Security Summit

Admiral Mike Rogers gave the keynote address at the Joint Service Academy Cyber Security Summit today at West Point. He started by explaining the four tenets of security that he thinks about.

First: partnerships. This includes government, civilian, everyone. Capabilities, knowledge, and insight of various groups, and aligning them to generate better outcomes to everyone. Ability to generate and share insight and knowledge, and to do that in a timely manner.

Second, innovation. It’s about much more than just technology. It’s about ways to organize, values, training, and so on. We need to think about innovation very broadly.

Third, technology. This is a technologically based problem, and we need to apply technology to defense as well.

Fourth, human capital. If we don’t get people working right, all of this is doomed to fail. We need to build security workforces inside and outside of military. We need to keep them current in a world of changing technology.

So, what is the Department of Defense doing? They’re investing in cyber, both because it’s a critical part of future fighting of wars and because of the mission to defend the nation.

Rogers then explained the five strategic goals listed in the recent DoD cyber strategy:

  1. Build and maintain ready forces and capabilities to conduct cyberspace operations;
  2. Defend the DoD information network, secure DoD data, and mitigate risks to DoD missions;
  3. Be prepared to defend the U.S. homeland and U.S. vital interests from disruptive or destructive cyberattacks of significant consequence;
  4. Build and maintain viable cyber options and plan to use those options to control conflict escalation and to shape the conflict environment at all stages;
  5. Build and maintain robust international alliances and partnerships to deter shared threats and increase international security and stability.

Expect to see more detailed policy around these coming goals in the coming months.

What is the role of the US CyberCommand and the NSA in all of this? The CyberCommand has three missions related to the five strategic goals. They defend DoD networks. They create the cyber workforce. And, if directed, they defend national critical infrastructure.

At one point, Rogers said that he constantly reminds his people: “If it was designed by man, it can be defeated by man.” I hope he also tells this to the FBI when they talk about needing third-party access to encrypted communications.

All of this has to be underpinned by a cultural ethos that recognizes the importance of professionalism and compliance. Every person with a keyboard is both a potential asset and a threat. There needs to be well-defined processes and procedures within DoD, and a culture of following them.

What’s the threat dynamic, and what’s the nature of the world? The threat is going to increase; it’s going to get worse, not better; cyber is a great equalizer. Cyber doesn’t recognize physical geography. Four “prisms” to look at threat: criminals, nation states, hacktivists, groups wanting to do harm to the nation. This fourth group is increasing. Groups like ISIL are going to use the Internet to cause harm. Also embarrassment: releasing documents, shutting down services, and so on.

We spend a lot of time thinking about how to stop attackers from getting in; we need to think more about how to get them out once they’ve gotten in—and how to continue to operate even though they are in. (That was especially nice to hear, because that’s what I’m doing at my company.) Sony was a “wake-up call”: a nation-state using cyber for coercion. It was theft of intellectual property, denial of service, and destruction. And it was important for the US to acknowledge the attack, attribute it, and retaliate.

Last point: “Total force approach to the problem.” It’s not just about people in uniform. It’s about active duty military, reserve military, corporations, government contractors—everyone. We need to work on this together. “I am not interested in endless discussion…. I am interested in outcomes.” “Cyber is the ultimate team sport.” There’s no single entity, or single technology, or single anything, that will solve all of this. He wants to partner with the corporate world, and to do it in a way that benefits both.

First question was about the domains and missions of the respective services. Rogers talked about the inherent expertise that each service brings to the problem, and how to use cyber to extend that expertise—and the mission. The goal is to create a single integrated cyber force, but not a single service. Cyber occurs in a broader context, and that context is applicable to all the military services. We need to build on their individual expertises and contexts, and to apply it in an integrated way. Similar to how we do special forces.

Second question was about values, intention, and what’s at risk. Rogers replied that any structure for the NSA has to integrate with the nation’s values. He talked about the value of privacy. He also talked about “the security of the nation.” Both are imperatives, and we need to achieve both at the same time. The problem is that the nation is polarized; the threat is getting worse at the same time trust is decreasing. We need to figure out how to improve trust.

Third question was about DoD protecting commercial cyberspace. Rogers replied that the DHS is the lead organization in this regard, and DoD provides capability through that civilian authority. Any DoD partnership with the private sector will go through DHS.

Fourth question: How will DoD reach out to corporations, both established and start-ups? Many ways. By providing people to the private sectors. Funding companies, through mechanisms like the CIA’s In-Q-Tel. And some sort of innovation capability. Those are the three main vectors, but more important is that the DoD mindset has to change. DoD has traditionally been very insular; in this case, more partnerships are required.

Final question was about the NSA sharing security information in some sort of semi-classified way. Rogers said that there are lot of internal conversations about doing this. It’s important.

In all, nothing really new or controversial.

These comments were recorded—I can’t find them online now—and are on the record. Much of the rest of the summit was held under Chatham House Rules. I participated in a panel on “Crypto Wars 2015” with Matt Blaze and a couple of government employees.

EDITED TO ADD (5/15): News article.

Posted on May 14, 2015 at 1:12 PM • View Comments

The Eighth Movie-Plot Threat Contest

It’s April 1, and time for another Movie-Plot Threat Contest. This year, the theme is Crypto Wars II. Strong encryption is evil, because it prevents the police from solving crimes. (No, really—that’s the argument.) FBI Director James Comey is going to be hard to beat with his heartfelt litany of movie-plot threats:

“We’re drifting toward a place where a whole lot of people are going to be looking at us with tears in their eyes,” Comey argued, “and say ‘What do you mean you can’t? My daughter is missing. You have her phone. What do you mean you can’t tell me who she was texting with before she disappeared?”

[…]

“I’ve heard tech executives say privacy should be the paramount virtue,” Comey said. “When I hear that, I close my eyes and say, ‘Try to imagine what that world looks like where pedophiles can’t be seen, kidnappers can’t be seen, drug dealers can’t be seen.'”

(More Comey here.)

Come on, Comey. You might be able to scare noobs like Rep. John Carter with that talk, but you’re going to have to do better if you want to win this contest. We heard this same sort of stuff out of then-FBI director Louis Freeh in 1996 and 1997.

This is the contest: I want a movie-plot threat that shows the evils of encryption. (For those who don’t know, a movie-plot threat is a scary-threat story that would make a great movie, but is much too specific to build security policies around. Contest history here.) We’ve long heard about the evils of the Four Horsemen of the Internet Apocalypse—terrorists, drug dealers, kidnappers, and child pornographers. (Or maybe they’re terrorists, pedophiles, drug dealers, and money launderers; I can never remember.) Try to be more original than that. And nothing too science fictional; today’s technology or presumed technology only.

Entries are limited to 500 words—I check—and should be posted in the comments. At the end of the month, I’ll choose five or so semifinalists, and we can all vote and pick the winner.

The prize will be signed copies of the 20th Anniversary Edition of the 2nd Edition of Applied Cryptography, and the 15th Anniversary Edition of Secrets and Lies, both being published by Wiley this year in an attempt to ride the Data and Goliath bandwagon.

Good luck.

Posted on April 1, 2015 at 6:33 AM • View Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.