Entries Tagged "encryption"

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New Directions in Malware

Kaspersky Labs reports on extortion scams using malware:

We’ve reported more than once on cases where remote malicious users have moved away from the stealth use of infected computers (stealing data from them, using them as part of zombie networks etc) to direct blackmail, demanding payment from victims. At the moment, this method is used in two main ways: encrypting user data and corrupting system information.

Users quickly understand that something has happened to their data. They are then told that they should send a specific sum to an e-payment account maintained by the remote malicious user, whether it be EGold, Webmoney or whatever. The ransom demanded varies significantly depending on the amount of money available to the victim. We know of cases where the malicious users have demanded $50, and of cases where they have demanded more than $2,000. The first such blackmail case was in 1989, and now this method is again gaining in popularity.

In 2005, the most striking examples of this type of cybercrime were carried out using the Trojans GpCode and Krotten. The first of these encrypts user data; the second restricts itself to making a number of modifications to the victim machine’s system registry, causing it to cease functioning.

Among other worms, the article discusses the GpCode.ac worm, which encrypts data using 56-bit RSA (no, that’s not a typo). The whole article is interesting reading.

Posted on April 26, 2006 at 1:07 PMView 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

The Kryptos Sculpture

The Kryptos Sculpture is located in the center of the CIA Headquarters in Langley, VA. It was designed in 1990, and contains a four-part encrypted puzzle. The first three parts have been solved, but now we’ve learned that the second-part solution was wrong and here’s the corrected solution.

The fourth part remains unsolved. Wired wrote:

Sanborn has said that clues to the last section, which has only 97 letters, are contained in previously deciphered parts. Therefore getting those first three sections correct has been crucial.

Posted on April 21, 2006 at 7:54 AMView Comments

Deniable File System

Some years ago I did some design work on something I called a Deniable File System. The basic idea was the fact that the existence of ciphertext can in itself be incriminating, regardless of whether or not anyone can decrypt it. I wanted to create a file system that was deniable: where encrypted files looked like random noise, and where it was impossible to prove either the existence or non-existence of encrypted files.

This turns out to be a very hard problem for a whole lot of reasons, and I never pursued the project. But I just discovered a file system that seems to meet all of my design criteria—Rubberhose:

Rubberhose transparently and deniably encrypts disk data, minimising the effectiveness of warrants, coersive interrogations and other compulsive mechanims, such as U.K RIP legislation. Rubberhose differs from conventional disk encryption systems in that it has an advanced modular architecture, self-test suite, is more secure, portable, utilises information hiding (steganography / deniable cryptography), works with any file system and has source freely available.

The devil really is in the details with something like this, and I would hesitate to use this in places where it really matters without some extensive review. But I’m pleased to see that someone is working on this problem.

Next request: A deniable file system that fits on a USB token, and leaves no trace on the machine it’s plugged into.

Posted on April 18, 2006 at 7:17 AMView Comments

Triple-DES Upgrade Adding Insecurities?

It’s a provocative headline: “Triple DES Upgrades May Introduce New ATM Vulnerabilities.” Basically, at the same time they’re upgrading their encryption to triple-DES, they’re also moving the communications links from dedicated lines to the Internet. And while the protocol encrypts PINs, it doesn’t encrypt any of the other information, such as card numbers and expiration dates.

So it’s the move from dedicated lines to the Internet that’s adding the insecurities.

Posted on April 17, 2006 at 6:48 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

Quasar Encryption

Does anyone have the faintest clue what they’re talking about here? If I had to guess, it’s just another random-number generator. It definitely doesn’t sound like two telescopes pointing at the same piece of key can contruct the same key—now that would be cool.

The National Institute of Information and Communications Technology is trying to patent a system of encryption using electromagnetic waves from Quasars.

According to The Nihon Keizai Shimbun, this technology is used to take cosmic radio waves are received through a radio telescope, encrypt and then retransmit them. Because cosmic waves are irregular, it is virtually impossible for others to decipher them. A spokesman is quoted as saying that the system could be used for the transmission of state secrets and other sensitive information.

The radio telescope can decipher the information by observing the cosmic wave patterns emitted by a particular quasar selected in advance. Even if the encrypted data is stolen, it is impossible to read it without the appropriate quasar’s radio signals.

The only way to really break the code is to know which radio telescope the coder is using and what Quasar it is pointing at. Only then do you have a slim chance of decoding it.

I can see the story on the home page of Nikkei.net Interactive, but can’t get at the story without a login.

Posted on March 27, 2006 at 1:21 PMView Comments

Power Analysis of RFID Tags

This is great work by Yossi Oren and Adi Shamir:

Abstract (Summary)

We show the first power analysis attack on passive RFID tags. Compared to standard power analysis attacks, this attack is unique in that it requires no physical contact with the device under attack. While the specific attack described here requires the attacker to actually transmit data to the tag under attack, the power analysis part itself requires only a receive antenna. This means that a variant of this attack can be devised such that the attacker is completely passive while it is acquiring the data, making the attack very hard to detect. As a proof of concept, we describe a password extraction attack on Class 1 Generation 1 EPC tags operating in the UHF frequency range. The attack presented below lets an adversary discover the kill password of such a tag and, then, disable it. The attack can be readily adapted to finding the access and kill passwords of Gen 2 tags. The main significance of our attack is in its implications ­ any cryptographic functionality built into tags needs to be designed to be resistant to power analysis, and achieving this resistance is an undertaking which has an effect both on the price and on the read range of tags.

My guess of the industry’s response: downplay the results and pretend it’s not a problem.

Posted on March 17, 2006 at 12:22 PMView Comments

Unfortunate Court Ruling Regarding Gramm-Leach-Bliley

A Federal Court Rules That A Financial Institution Has No Duty To Encrypt A Customer Database“:

In a legal decision that could have broad implications for financial institutions, a court has ruled recently that a student loan company was not negligent and did not have a duty under the Gramm-Leach-Bliley statute to encrypt a customer database on a laptop computer that fell into the wrong hands.

Basically, an employee of Brazos Higher Education Service Corporation, Inc., had customer information on a laptop computer he was using at home. The computer was stolen, and a customer sued Brazos.

The judge dismissed the lawsuit. And then he went further:

Significantly, while recognizing that Gramm-Leach-Bliley does require financial institutions to protect against unauthorized access to customer records, Judge Kyle held that the statute “does not prohibit someone from working with sensitive data on a laptop computer in a home office,” and does not require that “any nonpublic personal information stored on a laptop computer should be encrypted.”

I know nothing of the legal merits of the case, nor do I have an opinion about whether Gramm-Leach-Bliley does or does not require financial companies to encrypt personal data in its purview. But I do know that we as a society need to force companies to encrypt personal data about us. Companies won’t do it on their own—the market just doesn’t encourage this behavior—so legislation or liability are the only available mechanisms. If this law doesn’t do it, we need another one.

EDITED TO ADD (2/22): Some commentary here.

Posted on February 21, 2006 at 1:34 PMView Comments

Risks of Losing Portable Devices

Last July I blogged about the risks of storing ever-larger amounts of data in ever-smaller devices.

Last week I wrote my tenth Wired.com column on the topic:

The point is that it’s now amazingly easy to lose an enormous amount of information. Twenty years ago, someone could break into my office and copy every customer file, every piece of correspondence, everything about my professional life. Today, all he has to do is steal my computer. Or my portable backup drive. Or my small stack of DVD backups. Furthermore, he could sneak into my office and copy all this data, and I’d never know it.

This problem isn’t going away anytime soon.

There are two solutions that make sense. The first is to protect the data. Hard-disk encryption programs like PGP Disk allow you to encrypt individual files, folders or entire disk partitions. Several manufacturers market USB thumb drives with built-in encryption. Some PDA manufacturers are starting to add password protection—not as good as encryption, but at least it’s something—to their devices, and there are some aftermarket PDA encryption programs.

The second solution is to remotely delete the data if the device is lost. This is still a new idea, but I believe it will gain traction in the corporate market. If you give an employee a BlackBerry for business use, you want to be able to wipe the device’s memory if he loses it. And since the device is online all the time, it’s a pretty easy feature to add.

But until these two solutions become ubiquitous, the best option is to pay attention and erase data. Delete old e-mails from your BlackBerry, SMSs from your cell phone and old data from your address books—regularly. Find that call log and purge it once in a while. Don’t store everything on your laptop, only the files you might actually need.

EDITED TO ADD (2/2): A Dutch army officer lost a memory stick with details of an Afgan mission.

Posted on February 1, 2006 at 10:32 AMView Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.