Entries Tagged "reports"

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Nick Weaver on Regulating Cryptocurrency

Nicholas Weaver wrote an excellent paper on the problems of cryptocurrencies and the need to regulate the space—with all existing regulations. His conclusion:

Regulators, especially regulators in the United States, often fear accusations of stifling innovation. As such, the cryptocurrency space has grown over the past decade with very little regulatory oversight.

But fortunately for regulators, there is no actual innovation to stifle. Cryptocurrencies cannot revolutionize payments or finance, as the basic nature of all cryptocurrencies render them fundamentally unsuitable to revolutionize our financial system—which, by the way, already has decades of successful experience with digital payments and electronic money. The supposedly “decentralized” and “trustless” cryptocurrency systems, both technically and socially, fail to provide meaningful benefits to society—and indeed, necessarily also fail in their foundational claims of decentralization and trustlessness.

When regulating cryptocurrencies, the best starting point is history. Regulating various tokens is best done through the existing securities law framework, an area where the US has a near century of well-established law. It starts with regulating the issuance of new cryptocurrency tokens and related securities. This should substantially reduce the number of fraudulent offerings.

Similarly, active regulation of the cryptocurrency exchanges should offer substantial benefits, including eliminating significant consumer risk, blocking key money-laundering channels, and overall producing a far more regulated and far less manipulated market.

Finally, the stablecoins need basic regulation as money transmitters. Unless action is taken they risk becoming substantial conduits for money laundering, but requiring them to treat all users as customers should prevent this risk from developing further.

Read the whole thing.

Posted on March 3, 2023 at 10:58 AM • View Comments

Cyberwar Lessons from the War in Ukraine

The Aspen Institute has published a good analysis of the successes, failures, and absences of cyberattacks as part of the current war in Ukraine: “The Cyber Defense Assistance Imperative ­ Lessons from Ukraine.”

Its conclusion:

Cyber defense assistance in Ukraine is working. The Ukrainian government and Ukrainian critical infrastructure organizations have better defended themselves and achieved higher levels of resiliency due to the efforts of CDAC and many others. But this is not the end of the road—the ability to provide cyber defense assistance will be important in the future. As a result, it is timely to assess how to provide organized, effective cyber defense assistance to safeguard the post-war order from potential aggressors.

The conflict in Ukraine is resetting the table across the globe for geopolitics and international security. The US and its allies have an imperative to strengthen the capabilities necessary to deter and respond to aggression that is ever more present in cyberspace. Lessons learned from the ad hoc conduct of cyber defense assistance in Ukraine can be institutionalized and scaled to provide new approaches and tools for preventing and managing cyber conflicts going forward.

I am often asked why where weren’t more successful cyberattacks by Russia against Ukraine. I generally give four reasons: (1) Cyberattacks are more effective in the “grey zone” between peace and war, and there are better alternatives once the shooting and bombing starts. (2) Setting these attacks up takes time, and Putin was secretive about his plans. (3) Putin was concerned about attacks spilling outside the war zone, and affecting other countries. (4) Ukrainian defenses were good, aided by other countries and companies. This paper gives a fifth reason: they were technically successful, but keeping them out of the news made them operationally unsuccessful.

Posted on February 23, 2023 at 7:27 AM • View Comments

NSA on Supply Chain Security

The NSA (together with CISA) has published a long report on supply-chain security: “Securing the Software Supply Chain: Recommended Practices Guide for Suppliers.“:

Prevention is often seen as the responsibility of the software developer, as they are required to securely develop and deliver code, verify third party components, and harden the build environment. But the supplier also holds a critical responsibility in ensuring the security and integrity of our software. After all, the software vendor is responsible for liaising between the customer and software developer. It is through this relationship that additional security features can be applied via contractual agreements, software releases and updates, notifications and mitigations of vulnerabilities.

Software suppliers will find guidance from NSA and our partners on preparing organizations by defining software security checks, protecting software, producing well-secured software, and responding to vulnerabilities on a continuous basis. Until all stakeholders seek to mitigate concerns specific to their area of responsibility, the software supply chain cycle will be vulnerable and at risk for potential compromise.

They previously published “Securing the Software Supply Chain: Recommended Practices Guide for Developers.” And they plan on publishing one focused on customers.

EDITED TO ADD (11/14): The proposed EU Cyber Resilience Act places obligations on software providers to deliver secure code, and fix bugs in a timely manner.

Posted on November 4, 2022 at 9:16 AM • View Comments

New Report on IoT Security

The Atlantic Council has published a report on securing the Internet of Things: “Security in the Billions: Toward a Multinational Strategy to Better Secure the IoT Ecosystem.” The report examines the regulatory approaches taken by four countries—the US, the UK, Australia, and Singapore—to secure home, medical, and networking/telecommunications devices. The report recommends that regulators should 1) enforce minimum security standards for manufacturers of IoT devices, 2) incentivize higher levels of security through public contracting, and 3) try to align IoT standards internationally (for example, international guidance on handling connected devices that stop receiving security updates).

This report looks to existing security initiatives as much as possible—both to leverage existing work and to avoid counterproductively suggesting an entirely new approach to IoT security—while recommending changes and introducing more cohesion and coordination to regulatory approaches to IoT cybersecurity. It walks through the current state of risk in the ecosystem, analyzes challenges with the current policy model, and describes a synthesized IoT security framework. The report then lays out nine recommendations for government and industry actors to enhance IoT security, broken into three recommendation sets: setting a baseline of minimally acceptable security (or “Tier 1”), incentivizing above the baseline (or “Tier 2” and above), and pursuing international alignment on standards and implementation across the entire IoT product lifecycle (from design to sunsetting). It also includes implementation guidance for the United States, Australia, UK, and Singapore, providing a clearer roadmap for countries to operationalize the recommendations in their specific jurisdictions—and push towards a stronger, more cohesive multinational approach to securing the IoT worldwide.

Note: One of the authors of this report was a student of mine at Harvard Kennedy School, and did this work with the Atlantic Council under my supervision.

Posted on September 27, 2022 at 6:15 AM • View Comments

New UEFI Rootkit

Kaspersky is reporting on a new UEFI rootkit that survives reinstalling the operating system and replacing the hard drive. From an article:

The firmware compromises the UEFI, the low-level and highly opaque chain of firmware required to boot up nearly every modern computer. As the software that bridges a PC’s device firmware with its operating system, the UEFI—short for Unified Extensible Firmware Interface—is an OS in its own right. It’s located in an SPI-connected flash storage chip soldered onto the computer motherboard, making it difficult to inspect or patch the code. Because it’s the first thing to run when a computer is turned on, it influences the OS, security apps, and all other software that follows.

Both links have lots of technical details; the second contains a list of previously discovered UEFI rootkits. Also relevant are the NSA’s capabilities—now a decade old—in this area.

Posted on July 28, 2022 at 6:16 AM • View Comments

Security Vulnerabilities in Honda’s Keyless Entry System

Honda vehicles from 2021 to 2022 are vulnerable to this attack:

On Thursday, a security researcher who goes by Kevin2600 published a technical report and videos on a vulnerability that he claims allows anyone armed with a simple hardware device to steal the code to unlock Honda vehicles. Kevin2600, who works for cybersecurity firm Star-V Lab, dubbed the attack RollingPWN.

[…]

In a phone call, Kevin2600 explained that the attack relies on a weakness that allows someone using a software defined radio—such as HackRF—to capture the code that the car owner uses to open the car, and then replay it so that the hacker can open the car as well. In some cases, he said, the attack can be performed from 30 meters (approximately 98 feet) away.

In the videos, Kevin2600 and his colleagues show how the attack works by unlocking different models of Honda cars with a device connected to a laptop.

The Honda models that Kevin2600 and his colleagues tested the attack on use a so-called rolling code mechanism, which means that­—in theory­—every time the car owner uses the keyfob, it sends a different code to open it. This should make it impossible to capture the code and use it again. But the researchers found that there is a flaw that allows them to roll back the codes and reuse old codes to open the car, Kevin2600 said.

Posted on July 12, 2022 at 7:23 AM • View Comments

Ubiquitous Surveillance by ICE

Report by Georgetown’s Center on Privacy and Technology published a comprehensive report on the surprising amount of mass surveillance conducted by Immigration and Customs Enforcement (ICE).

Our two-year investigation, including hundreds of Freedom of Information Act requests and a comprehensive review of ICE’s contracting and procurement records, reveals that ICE now operates as a domestic surveillance agency. Since its founding in 2003, ICE has not only been building its own capacity to use surveillance to carry out deportations but has also played a key role in the federal government’s larger push to amass as much information as possible about all of our lives. By reaching into the digital records of state and local governments and buying databases with billions of data points from private companies, ICE has created a surveillance infrastructure that enables it to pull detailed dossiers on nearly anyone, seemingly at any time. In its efforts to arrest and deport, ICE has ­ without any judicial, legislative or public oversight ­ reached into datasets containing personal information about the vast majority of people living in the U.S., whose records can end up in the hands of immigration enforcement simply because they apply for driver’s licenses; drive on the roads; or sign up with their local utilities to get access to heat, water and electricity.

ICE has built its dragnet surveillance system by crossing legal and ethical lines, leveraging the trust that people place in state agencies and essential service providers, and exploiting the vulnerability of people who volunteer their information to reunite with their families. Despite the incredible scope and evident civil rights implications of ICE’s surveillance practices, the agency has managed to shroud those practices in near-total secrecy, evading enforcement of even the handful of laws and policies that could be invoked to impose limitations. Federal and state lawmakers, for the most part, have yet to confront this reality.

Posted on July 7, 2022 at 1:18 PM • View Comments

ICE Is a Domestic Surveillance Agency

Georgetown has a new report on the highly secretive bulk surveillance activities of ICE in the US:

When you think about government surveillance in the United States, you likely think of the National Security Agency or the FBI. You might even think of a powerful police agency, such as the New York Police Department. But unless you or someone you love has been targeted for deportation, you probably don’t immediately think of Immigration and Customs Enforcement (ICE).

This report argues that you should. Our two-year investigation, including hundreds of Freedom of Information Act requests and a comprehensive review of ICE’s contracting and procurement records, reveals that ICE now operates as a domestic surveillance agency. Since its founding in 2003, ICE has not only been building its own capacity to use surveillance to carry out deportations but has also played a key role in the federal government’s larger push to amass as much information as possible about all of our lives. By reaching into the digital records of state and local governments and buying databases with billions of data points from private companies, ICE has created a surveillance infrastructure that enables it to pull detailed dossiers on nearly anyone, seemingly at any time. In its efforts to arrest and deport, ICE has—without any judicial, legislative or public oversight—reached into datasets containing personal information about the vast majority of people living in the U.S., whose records can end up in the hands of immigration enforcement simply because they apply for driver’s licenses; drive on the roads; or sign up with their local utilities to get access to heat, water and electricity.

ICE has built its dragnet surveillance system by crossing legal and ethical lines, leveraging the trust that people place in state agencies and essential service providers, and exploiting the vulnerability of people who volunteer their information to reunite with their families. Despite the incredible scope and evident civil rights implications of ICE’s surveillance practices, the agency has managed to shroud those practices in near-total secrecy, evading enforcement of even the handful of laws and policies that could be invoked to impose limitations. Federal and state lawmakers, for the most part, have yet to confront this reality.

EDITED TO ADD (5/13): A news article.

Posted on May 11, 2022 at 9:24 AM • View Comments

Microsoft Issues Report of Russian Cyberattacks against Ukraine

Microsoft has a comprehensive report on the dozens of cyberattacks—and even more espionage operations—Russia has conducted against Ukraine as part of this war:

At least six Russian Advanced Persistent Threat (APT) actors and other unattributed threats, have conducted destructive attacks, espionage operations, or both, while Russian military forces attack the country by land, air, and sea. It is unclear whether computer network operators and physical forces are just independently pursuing a common set of priorities or actively coordinating. However, collectively, the cyber and kinetic actions work to disrupt or degrade Ukrainian government and military functions and undermine the public’s trust in those same institutions.

[…]

Threat groups with known or suspected ties to the GRU have continuously developed and used destructive wiper malware or similarly destructive tools on targeted Ukrainian networks at a pace of two to three incidents a week since the eve of invasion. From February 23 to April 8, we saw evidence of nearly 40 discrete destructive attacks that permanently destroyed files in hundreds of systems across dozens of organizations in Ukraine.

Posted on April 28, 2022 at 9:15 AM • View Comments

NASA’s Insider Threat Program

The Office of Inspector General has audited NASA’s insider threat program:

While NASA has a fully operational insider threat program for its classified systems, the vast majority of the Agency’s information technology (IT) systems—including many containing high-value assets or critical infrastructure—are unclassified and are therefore not covered by its current insider threat program. Consequently, the Agency may be facing a higher-than-necessary risk to its unclassified systems and data. While NASA’s exclusion of unclassified systems from its insider threat program is common among federal agencies, adding those systems to a multi-faceted security program could provide an additional level of maturity to the program and better protect agency resources. According to Agency officials, expanding the insider threat program to unclassified systems would benefit the Agency’s cybersecurity posture if incremental improvements, such as focusing on IT systems and people at the most risk, were implemented. However, on-going concerns including staffing challenges, technology resource limitations, and lack of funding to support such an expansion would need to be addressed prior to enhancing the existing program.

Further amplifying the complexities of insider threats are the cross-discipline challenges surrounding cybersecurity expertise. At NASA, responsibilities for unclassified systems are largely shared between the Office of Protective Services and the Office of the Chief Information Officer. In addition, Agency contracts are managed by the Office of Procurement while grants and cooperative agreements are managed by the Office of the Chief Financial Officer. Nonetheless, in our view, mitigating the risk of an insider threat is a team sport in which a comprehensive insider threat risk assessment would allow the Agency to gather key information on weak spots or gaps in administrative processes and cybersecurity. At a time when there is growing concern about the continuing threats of foreign influence, taking the proactive step to conduct a risk assessment to evaluate NASA’s unclassified systems ensures that gaps cannot be exploited in ways that undermine the Agency’s ability to carry out its mission.

Posted on March 23, 2022 at 6:16 AM • View Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.