Entries Tagged "insiders"

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Forged Subway Passes in Boston

For years, an employee of Cubic Corp—the company that makes the automatic fare card systems for most of the subway systems around the world—forged and then sold monthly passes for the Boston MBTA system.

The scheme was discovered by accident:

Coakley said the alleged scheme was only discovered after a commuter rail operator asked a rider where he had bought his pass. When the rider said he’d purchased the pass on Craigslist, the operator became suspicious and confiscated the ticket.

An investigation by the MBTA Transit Police found that despite opening electronic gates, the printed serial number in the MBTA database did not show the card had ever been activated. Hundreds of similar passes in use by passengers were then discovered, investigators said.

Although you’d think the MBTA would poke around the net occasionally, looking for discount tickets being sold on places like Craigslist.

Cubic Transportation Systems said in a written statement that it is cooperating with authorities. “Our company has numerous safeguards designed to prevent fraudulent production or distribution of Charlie Tickets,” the statement said, referring to the monthly MBTA passes.

It always amuses me when companies pretend the obvious isn’t true in their press releases. “Someone completely broke our system.” “Say that we have a lot of security.” “But it didn’t work.” “Say it anyway; the press will just blindly report it.”

To be fair, we don’t—and probably will never—know how this proprietary system was broken. In this case, an insider did it. But did that insider just have access to the system specifications, or was access to blank ticket stock or specialized equipment necessary as well?

EDITED TO ADD (5/22): More details:

On March 11, a conductor on the commuter rail’s Providence/Stoughton Line did a double-take when a customer flashed a discolored monthly pass, its arrow an unusually light shade of orange. The fading, caused by inadvertent laundering, would have happened even if the pass were legitimate, but the customer, perhaps out of nervousness, volunteered that he had purchased it at a discount on Craigslist, Coakley said.

That raised the conductor’s suspicion. He collected the pass and turned it over to the Transit Police, who found no record of its serial number and began investigating. Working with State Police from Coakley’s office, they traced it to equipment at the Beverly branch of Cubic Transportation Systems Inc. and then specifically to an employee: Townes, a 27-year-old Revere resident.

Auditing could have discovered the fraud much earlier:

A records check would have indicated that the serial numbers were not tied to accounts for paying customers. But the financially strapped MBTA, which handles thousands of passes and moves millions of riders a month, did not have practices in place to sniff out the small percentage of unauthorized passes in circulation, Davey said.

Posted on May 20, 2011 at 7:44 AMView Comments

UK Immigration Officer Puts Wife on the No-Fly List

A UK immigration officer decided to get rid of his wife by putting her on the no-fly list, ensuring that she could not return to the UK from abroad. This worked for three years, until he put in for a promotion and—during the routine background check—someone investigated why his wife was on the no-fly list.

Okay, so he’s an idiot. And a bastard. But the real piece of news here is how easy it is for a UK immigration officer to put someone on the no-fly list with absolutely no evidence that that person belongs there. And how little auditing is done on that list. Once someone is on, they’re on for good.

That’s simply no way to run a free country.

Posted on February 4, 2011 at 1:35 PMView Comments

$100 to Put a Bomb on an Airplane

An undercover TSA agent successfully bribed JetBlue ticket agent to check a suitcase under a random passenger’s name and put it on an airplane.

As with a lot of these tests, I’m not that worried because it’s not a reliable enough tactic to build a plot around. But untrustworthy airline personnel—or easily bribeable airline personal—could be used in a smarter and less risky plot.

Posted on January 28, 2011 at 1:40 PMView Comments

Gift Cards and Employee Retail Theft

Retail theft by employees has always been a problem, but gift cards make it easier:

At the Saks flagship store in Manhattan, a 23-year-old sales clerk was caught recently ringing up $130,000 in false merchandise returns and siphoning the money onto a gift card.

[…]

Many of the gift card crimes are straightforward, frequently involving young sales clerks and smaller amounts than the Saks theft. Among the variations of such crimes, cashiers often do fake refunds of merchandise and then, with the amount refunded, use their registers to electronically fill gift cards, which they take. Or sometimes when shoppers buy gift cards, cashiers give them blank cards and then divert the shoppers’ money onto cards for themselves.

That last tactic is particularly Grinch-like.

Posted on January 7, 2010 at 5:46 AMView Comments

Don't Let Hacker Inmates Reprogram Prison Computers

You’d think this would be obvious:

Douglas Havard, 27, serving six years for stealing up to £6.5million using forged credit cards over the internet, was approached after governors wanted to create an internal TV station but needed a special computer program written.

He was left unguarded and hacked into the system’s hard drive at Ranby Prison, near Retford, Notts. Then he set up a series of passwords so no one else could get into the system.

And you shouldn’t give a prisoner who is a lockpicking expert access to the prison’s keys, either. No, wait:

The blunder emerged a week after the Sunday Mirror revealed how an inmate at the same jail managed to get a key cut that opened every door.

Next week: inmate sharpshooters in charge of prison’s gun locker.

Posted on October 6, 2009 at 2:32 PMView Comments

Subpoenas as a Security Threat

Blog post from Ed Felten:

Usually when the threat model mentions subpoenas, the bigger threats in reality come from malicious intruders or insiders. The biggest risk in storing my documents on CloudCorp’s servers is probably that somebody working at CloudCorp, or a contractor hired by them, will mess up or misbehave.

So why talk about subpoenas rather than intruders or insiders? Perhaps this kind of talk is more diplomatic than the alternative. If I’m talking about the risks of Gmail, I might prefer not to point out that my friends at Google could hire someone who is less than diligent, or less than honest. If I talk about subpoenas as the threat, nobody in the room is offended, and the security measures I recommend might still be useful against intruders and insiders. It’s more polite to talk about data losses that are compelled by a mysterious, powerful Other—in this case an Anonymous Lawyer.

Politeness aside, overemphasizing subpoena threats can be harmful in at least two ways. First, we can easily forget that enforcement of subpoenas is often, though not always, in society’s interest. Our legal system works better when fact-finders have access to a broader range of truthful evidence. That’s why we have subpoenas in the first place. Not all subpoenas are good—and in some places with corrupt or evil legal systems, subpoenas deserve no legitimacy at all—but we mustn’t lose sight of society’s desire to balance the very real cost imposed on the subpoena’s target and affected third parties, against the usefulness of the resulting evidence in administering justice.

The second harm is to security. To the extent that we focus on the subpoena threat, rather than the larger threats of intruders and insiders, we risk finding “solutions” that fail to solve our biggest problems. We might get lucky and end up with a solution that happens to address the bigger threats too. We might even design a solution for the bigger threats, and simply use subpoenas as a rhetorical device in explaining our solution—though it seems risky to mislead our audience about our motivations. If our solution flows from our threat model, as it should, then we need to be very careful to get our threat model right.

Posted on September 4, 2009 at 6:18 AMView Comments

John Walker and the Fleet Broadcasting System

Ph.D. thesis from 2001:

An Analysis of the Systemic Security Weaknesses of the U.S. Navy Fleet Broadcasting System, 1967-1974, as exploited by CWO John Walker, by MAJ Laura J. Heath

Abstract: CWO John Walker led one of the most devastating spy rings ever unmasked in the US. Along with his brother, son, and friend, he compromised US Navy cryptographic systems and classified information from 1967 to 1985. This research focuses on just one of the systems compromised by John Walker himself: the Fleet Broadcasting System (FBS) during the period 1967-1975, which was used to transmit all US Navy operational orders to ships at sea. Why was the communications security (COMSEC) system so completely defenseless against one rogue sailor, acting alone? The evidence shows that FBS was designed in such a way that it was effectively impossible to detect or prevent rogue insiders from compromising the system. Personnel investigations were cursory, frequently delayed, and based more on hunches than hard scientific criteria. Far too many people had access to the keys and sensitive materials, and the auditing methods were incapable, even in theory, of detecting illicit copying of classified materials. Responsibility for the security of the system was distributed between many different organizations, allowing numerous security gaps to develop. This has immediate implications for the design of future classified communications systems.

EDITED TO ADD (9/23): I blogged about this in 2005. Apologies; I forgot.

Posted on June 23, 2009 at 1:30 PMView Comments

Industry Differences in Types of Security Breaches

Interhack has been working on a taxonomy of security breaches, and has an interesting conclusion:

The Health Care and Social Assistance sector reported a larger than average proportion of lost and stolen computing hardware, but reported an unusually low proportion of compromised hosts. Educational Services reported a disproportionally large number of compromised hosts, while insider conduct and lost and stolen hardware were well below the proportion common to the set as a whole. Public Administration’s proportion of compromised host reports was below average, but their proportion of processing errors was well above the norm. The Finance and Insurance sector experienced the smallest overall proportion of processing errors, but the highest proportion of insider misconduct. Other sectors showed no statistically significant difference from the average, either due to a true lack of variance, or due to an insignificant number of samples for the statistical tests being used

Full study is here.

Posted on June 10, 2009 at 6:18 AMView Comments

Sidebar photo of Bruce Schneier by Joe MacInnis.