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Other companies have been quick to deny that they did the same thing, but I generally don’t believe those carefully worded statements about what they have and haven’t done. We do know that the NSA uses bribery, coercion, threat, legal compulsion, and outright theft to get what they want. We just don’t know which one they use in which case.
EDITED TO ADD (10/7): More news. This and this, too.
EDITED TO ADD (10/17): A related story.
Last week, Yahoo! announced that it was hacked pretty massively in 2014. Over half a billion usernames and passwords were affected, making this the largest data breach of all time.
Yahoo! claimed it was a government that did it:
A recent investigation by Yahoo! Inc. has confirmed that a copy of certain user account information was stolen from the company’s network in late 2014 by what it believes is a state-sponsored actor.
I did a bunch of press interviews after the hack, and repeatedly said that “state-sponsored actor” is often code for “please don’t blame us for our shoddy security because it was a really sophisticated attacker and we can’t be expected to defend ourselves against that.”
Well, it turns out that Yahoo! had shoddy security and it was a bunch of criminals that hacked them. The first story is from the New York Times, and outlines the many ways Yahoo! ignored security issues.
But when it came time to commit meaningful dollars to improve Yahoo’s security infrastructure, Ms. Mayer repeatedly clashed with Mr. Stamos, according to the current and former employees. She denied Yahoo’s security team financial resources and put off proactive security defenses, including intrusion-detection mechanisms for Yahoo’s production systems.
The second story is from the Wall Street Journal:
InfoArmor said the hackers, whom it calls “Group E,” have sold the entire Yahoo database at least three times, including one sale to a state-sponsored actor. But the hackers are engaged in a moneymaking enterprise and have “a significant criminal track record,” selling data to other criminals for spam or to affiliate marketers who aren’t acting on behalf of any government, said Andrew Komarov, chief intelligence officer with InfoArmor Inc.
That is not the profile of a state-sponsored hacker, Mr. Komarov said. “We don’t see any reason to say that it’s state sponsored,” he said. “Their clients are state sponsored, but not the actual hackers.”
In 2008, Yahoo fought the NSA to avoid becoming part of the PRISM program. It eventually lost the court battle, and at one point was threatened with a $250,000 a day fine if it continued to resist. I am continually amazed at the extent of the government coercion.
If you’ve been reading the news recently, you might think that corporate America is doing its best to thwart NSA surveillance.
Google just announced that it is encrypting Gmail when you access it from your computer or phone, and between data centers. Last week, Mark Zuckerberg personally called President Obama to complain about the NSA using Facebook as a means to hack computers, and Facebook’s Chief Security Officer explained to reporters that the attack technique has not worked since last summer. Yahoo, Google, Microsoft, and others are now regularly publishing “transparency reports,” listing approximately how many government data requests the companies have received and complied with.
On the government side, last week the NSA’s General Counsel Rajesh De seemed to have thrown those companies under a bus by stating that—despite their denials—they knew all about the NSA’s collection of data under both the PRISM program and some unnamed “upstream” collections on the communications links.
Yes, it may seem like the public/private surveillance partnership has frayed—but, unfortunately, it is alive and well. The main focus of massive Internet companies and government agencies both still largely align: to keep us all under constant surveillance. When they bicker, it’s mostly role-playing designed to keep us blasé about what’s really going on.
The U.S. intelligence community is still playing word games with us. The NSA collects our data based on four different legal authorities: the Foreign Intelligence Surveillance Act (FISA) of 1978, Executive Order 12333 of 1981 and modified in 2004 and 2008, Section 215 of the Patriot Act of 2001, and Section 702 of the FISA Amendments Act (FAA) of 2008. Be careful when someone from the intelligence community uses the caveat “not under this program” or “not under this authority”; almost certainly it means that whatever it is they’re denying is done under some other program or authority. So when De said that companies knew about NSA collection under Section 702, it doesn’t mean they knew about the other collection programs.
The big Internet companies know of PRISM—although not under that code name—because that’s how the program works; the NSA serves them with FISA orders. Those same companies did not know about any of the other surveillance against their users conducted on the far more permissive EO 12333. Google and Yahoo did not know about MUSCULAR, the NSA’s secret program to eavesdrop on their trunk connections between data centers. Facebook did not know about QUANTUMHAND, the NSA’s secret program to attack Facebook users. And none of the target companies knew that the NSA was harvesting their users’ address books and buddy lists.
These companies are certainly pissed that the publicity surrounding the NSA’s actions is undermining their users’ trust in their services, and they’re losing money because of it. Cisco, IBM, cloud service providers, and others have announced that they’re losing billions, mostly in foreign sales.
These companies are doing their best to convince users that their data is secure. But they’re relying on their users not understanding what real security looks like. IBM’s letter to its clients last week is an excellent example. The letter lists five "simple facts" that it hopes will mollify its customers, but the items are so qualified with caveats that they do the exact opposite to anyone who understands the full extent of NSA surveillance. And IBM’s spending $1.2B on data centers outside the U.S. will only reassure customers who don’t realize that National Security Letters require a company to turn over data, regardless of where in the world it is stored.
Google’s recent actions, and similar actions of many Internet companies, will definitely improve its users’ security against surreptitious government collection programs—both the NSA’s and other governments’—but their assurances deliberately ignores the massive security vulnerability built into its services by design. Google, and by extension, the U.S. government, still has access to your communications on Google’s servers.
Google could change that. It could encrypt your e-mail so only you could decrypt and read it. It could provide for secure voice and video so no one outside the conversations could eavesdrop.
It doesn’t. And neither does Microsoft, Facebook, Yahoo, Apple, or any of the others.
Why not? They don’t partly because they want to keep the ability to eavesdrop on your conversations. Surveillance is still the business model of the Internet, and every one of those companies wants access to your communications and your metadata. Your private thoughts and conversations are the product they sell to their customers. We also have learned that they read your e-mail for their own internal investigations.
But even if this were not true, even if—for example—Google were willing to forgo data mining your e-mail and video conversations in exchange for the marketing advantage it would give it over Microsoft, it still won’t offer you real security. It can’t.
The biggest Internet companies don’t offer real security because the U.S. government won’t permit it.
This isn’t paranoia. We know that the U.S. government ordered the secure e-mail provider Lavabit to turn over its master keys and compromise every one of its users. We know that the U.S. government convinced Microsoft—either through bribery, coercion, threat, or legal compulsion—to make changes in how Skype operates, to make eavesdropping easier.
We don’t know what sort of pressure the U.S. government has put on Google and the others. We don’t know what secret agreements those companies have reached with the NSA. We do know the NSA’s BULLRUN program to subvert Internet cryptography was successful against many common protocols. Did the NSA demand Google’s keys, as it did with Lavabit? Did its Tailored Access Operations group break into to Google’s servers and steal the keys?
We just don’t know.
The best we have are caveat-laden pseudo-assurances. At SXSW earlier this month, CEO Eric Schmidt tried to reassure the audience by saying that he was “pretty sure that information within Google is now safe from any government’s prying eyes.” A more accurate statement might be, “Your data is safe from governments, except for the ways we don’t know about and the ways we cannot tell you about. And, of course, we still have complete access to it all, and can sell it at will to whomever we want.” That’s a lousy marketing pitch, but as long as the NSA is allowed to operate using secret court orders based on secret interpretations of secret law, it’ll never be any different.
Google, Facebook, Microsoft, and the others are already on the record as supporting these legislative changes. It would be better if they openly acknowledged their users’ insecurity and increased their pressure on the government to change, rather than trying to fool their users and customers.
This essay previously appeared on TheAtlantic.com.
The public/private surveillance partnership between the NSA and corporate data collectors is starting to fray. The reason is sunlight. The publicity resulting from the Snowden documents has made companies think twice before allowing the NSA access to their users’ and customers’ data.
Pre-Snowden, there was no downside to cooperating with the NSA. If the NSA asked you for copies of all your Internet traffic, or to put backdoors into your security software, you could assume that your cooperation would forever remain secret. To be fair, not every corporation cooperated willingly. Some fought in court. But it seems that a lot of them, telcos and backbone providers especially, were happy to give the NSA unfettered access to everything. Post-Snowden, this is changing. Now that many companies’ cooperation has become public, they’re facing a PR backlash from customers and users who are upset that their data is flowing to the NSA. And this is costing those companies business.
How much is unclear. In July, right after the PRISM revelations, the Cloud Security Alliance reported that US cloud companies could lose $35 billion over the next three years, mostly due to losses of foreign sales. Surely that number has increased as outrage over NSA spying continues to build in Europe and elsewhere. There is no similar report for software sales, although I have attended private meetings where several large US software companies complained about the loss of foreign sales. On the hardware side, IBM is losing business in China. The US telecom companies are also suffering: AT&T is losing business worldwide.
This is the new reality. The rules of secrecy are different, and companies have to assume that their responses to NSA data demands will become public. This means there is now a significant cost to cooperating, and a corresponding benefit to fighting.
Over the past few months, more companies have woken up to the fact that the NSA is basically treating them as adversaries, and are responding as such. In mid-October, it became public that the NSA was collecting e-mail address books and buddy lists from Internet users logging into different service providers. Yahoo, which didn’t encrypt those user connections by default, allowed the NSA to collect much more of its data than Google, which did. That same day, Yahoo announced that it would implement SSL encryption by default for all of its users. Two weeks later, when it became public that the NSA was collecting data on Google users by eavesdropping on the company’s trunk connections between its data centers, Google announced that it would encrypt those connections.
We recently learned that Yahoo fought a government order to turn over data. Lavabit fought its order as well. Apple is now tweaking the government. And we think better of those companies because of it.
Now Lavabit, which closed down its e-mail service rather than comply with the NSA’s request for the master keys that would compromise all of its customers, has teamed with Silent Circle to develop a secure e-mail standard that is resistant to these kinds of tactics.
The Snowden documents made it clear how much the NSA relies on corporations to eavesdrop on the Internet. The NSA didn’t build a massive Internet eavesdropping system from scratch. It noticed that the corporate world was already eavesdropping on every Internet user—surveillance is the business model of the Internet, after all—and simply got copies for itself.
Now, that secret ecosystem is breaking down. Supreme Court Justice Louis Brandeis wrote about transparency, saying “Sunlight is said to be the best of disinfectants.” In this case, it seems to be working.
These developments will only help security. Remember that while Edward Snowden has given us a window into the NSA’s activities, these sorts of tactics are probably also used by other intelligence services around the world. And today’s secret NSA programs become tomorrow’s PhD theses, and the next day’s criminal hacker tools. It’s impossible to build an Internet where the good guys can eavesdrop, and the bad guys cannot. We have a choice between an Internet that is vulnerable to all attackers, or an Internet that is safe from all attackers. And a safe and secure Internet is in everyone’s best interests, including the US’s.
This essay previously appeared on TheAtlantic.com.
The Washington Post reported that the NSA is eavesdropping on the Google and Yahoo private networks—the code name for the program is MUSCULAR. I may write more about this later, but I have some initial comments:
John Schindler, a former NSA chief analyst and frequent defender who teaches at the Naval War College, said it is obvious why the agency would prefer to avoid restrictions where it can.
“Look, NSA has platoons of lawyers, and their entire job is figuring out how to stay within the law and maximize collection by exploiting every loophole,” he said. “It’s fair to say the rules are less restrictive under Executive Order 12333 than they are under FISA,” the Foreign Intelligence Surveillance Act.
No surprise, really. But it illustrates how difficult meaningful reform will be. I wrote this in September:
It’s time to start cleaning up this mess. We need a special prosecutor, one not tied to the military, the corporations complicit in these programs, or the current political leadership, whether Democrat or Republican. This prosecutor needs free rein to go through the NSA’s files and discover the full extent of what the agency is doing, as well as enough technical staff who have the capability to understand it. He needs the power to subpoena government officials and take their sworn testimony. He needs the ability to bring criminal indictments where appropriate. And, of course, he needs the requisite security clearance to see it all.
We also need something like South Africa’s Truth and Reconciliation Commission, where both government and corporate employees can come forward and tell their stories about NSA eavesdropping without fear of reprisal.
Without this, crafting reform legislation will be impossible.
EDITED TO ADD (11/1): We don’t actually know if the NSA did this surreptitiously, or if it had assistance from another US corporation. Level 3 Communications provides the data links to Google, and its statement was sufficiently non-informative as to be suspicious:
In a statement, Level 3 said: “We comply with the laws in each country where we operate. In general, governments that seek assistance in law enforcement or security investigations prohibit disclosure of the assistance provided.”
When I write that the NSA has destroyed the fabric of trust on the Internet, this is the kind of thing I mean. Google can no longer trust its bandwidth providers not to betray the company.
EDITED TO ADD (11/2): The NSA’s denial is pretty lame. It feels as if it’s hardly trying anymore.
We also know that Level 3 Communications already cooperates with the NSA, and has the codename of LITTLE:
The document identified for the first time which telecoms companies are working with GCHQ’s “special source” team. It gives top secret codenames for each firm, with BT (“Remedy”), Verizon Business (“Dacron”), and Vodafone Cable (“Gerontic”). The other firms include Global Crossing (“Pinnage”), Level 3 (“Little”), Viatel (“Vitreous”) and Interoute (“Streetcar”).
Again, those code names should properly be in all caps.
EDITED TO ADD (11/5): More details on the program.
A new Snowden document shows that the NSA is harvesting contact lists—e-mail address books, IM buddy lists, etc.—from Google, Yahoo, Microsoft, Facebook, and others.
Unlike PRISM, this unnamed program collects the data from the Internet . This is similar to how the NSA identifies Tor users. They get direct access to the Internet backbone, either through secret agreements with companies like AT&T, or surreptitiously, by doing things like tapping undersea cables. Once they have the data, they have powerful packet inspectors—code names include TUMULT, TURBULENCE, and TURMOIL—that run a bunch of different identification and copying systems. One of them, code name unknown, searches for these contact lists and copies them. Google, Yahoo, Microsoft, etc., have no idea that this is happening, nor have they consented to their data being harvested in this way.
These contact lists provide the NSA with the same sort of broad surveillance that the Verizon (and others) phone-record “metadata” collection programs provide: information about who are our friends, lovers, confidants, associates. This is incredibly intimate information, all collected without any warrant or due process. Metadata equals surveillance; always remember that.
The quantities are interesting:
During a single day last year, the NSA’s Special Source Operations branch collected 444,743 e-mail address books from Yahoo, 105,068 from Hotmail, 82,857 from Facebook, 33,697 from Gmail and 22,881 from unspecified other providers….
Note that Gmail, which uses SSL by default, provides the NSA with much less data than Yahoo, which doesn’t, despite the fact that Gmail has many more users than Yahoo does. (It’s actually kind of amazing how small that Gmail number is.) This implies that, despite BULLRUN, encryption works. Ubiquitous use of SSL can foil NSA eavesdropping. This is the same lesson we learned from the NSA’s attempts to break Tor: encryption works.
In response to this story, Yahoo has finally decided to enable SSL by default: by January 2014.
One more amusing bit: the NSA has a spam problem.
Spam has proven to be a significant problem for the NSA—clogging databases with information that holds no foreign intelligence value. The majority of all e-mails, one NSA document says, “are SPAM from ‘fake addresses and never ‘delivered’ to targets.”
The Washington Post published three NSA documents to support this article.
EDITED TO ADD: The New York Times makes this observation:
Spokesmen for the eavesdropping organizations reassured The Post that we shouldn’t bother our heads with all of this. They have “checks and balances built into our tools,” said one intelligence official.
Since the Snowden leaks began, the administration has adopted an interesting definition of that term. It used to be that “checks and balances” referred to one branch of the government checking and balancing the other branches—like the Supreme Court deciding whether laws are constitutional.
Now the N.S.A., the C.I.A. and the White House use the term to refer to a secret organization reviewing the actions it has taken and deciding in secret by itself whether they were legal and constitutional.
Facebook (here), Apple (here), and Yahoo (here) have all released details of US government requests for data. They each say that they’ve turned over user data for about 10,000 people, although the time frames are different. The exact number isn’t important; what’s important is that it’s much lower than the millions implied by the PRISM document.
Now the big question: do we believe them? If we don’t, what would it take before we did believe them?
This isn’t good:
The hacker, whose March 15 attack was traced to an IP address in Iran, compromised a partner account at the respected certificate authority Comodo Group, which he used to request eight SSL certificates for six domains: mail.google.com, www.google.com, login.yahoo.com, login.skype.com, addons.mozilla.org and login.live.com.
The certificates would have allowed the attacker to craft fake pages that would have been accepted by browsers as the legitimate websites. The certificates would have been most useful as part of an attack that redirected traffic intended for Skype, Google and Yahoo to a machine under the attacker’s control. Such an attack can range from small-scale Wi-Fi spoofing at a coffee shop all the way to global hijacking of internet routes.
At a minimum, the attacker would then be able to steal login credentials from anyone who entered a username and password into the fake page, or perform a “man in the middle” attack to eavesdrop on the user’s session.
More news articles. Comodo announcement.
Fake certs for Google, Yahoo, and Skype? Wow.
This isn’t the first time Comodo has screwed up with certificates. The safest thing for us users to do would be to remove the Comodo root certificate from our browsers so that none of their certificates work, but we don’t have the capability to do that. The browser companies—Microsoft, Mozilla, Opera, etc.—could do that, but my guess is they won’t. The economic incentives don’t work properly. Comodo is likely to sue any browser company that takes this sort of action, and Comodo’s customers might as well. So it’s smarter for the browser companies to just ignore the issue and pass the problem to us users.
This article is a detailed writeup of the actual investigation. While it seems that intercepted emails were instrumental at several points during the investigation, the article doesn’t explain whether the intercepts were the result of some of the wholesale eavesdropping programs or specifically obtained for this case.
The US intelligence agencies, the NSA and CIA, provided the most important information: copies of messages between German Islamists and their contacts in Pakistan. Three people in Germany were apparently the ones maintaining contact. The first was a man with the pseudonym “Muaz,” who investigators suspected was Islamist Attila S., 22. The second was a man named “Zafer,” from the town of Neunkirchen, who they believed was Zafer S., an old friend of Daniel S., one of the three men arrested last week. According to his father, Hizir S., Zafer is currently attending a language course in Istanbul. The third name that kept reappearing in the emails the NSA intercepted was “Abdul Malik,” a.k.a. Fritz Gelowicz, who prosecutors believe was the ringleader of the German cell, a man Deputy Secretary Hanning calls “cold-blooded and full of hate.”
[…]
While at the Pakistani camp in the spring of 2006, Adem Y. and Gelowicz probably discussed ways to secretly deliver messages from Pakistan to Germany. They used a Yahoo mailbox, but instead of sending messages directly, they would store them in a draft folder through which their fellow Islamists could then access the messages. But it turned out that the method they hit upon had long been known as an al-Qaida ploy. The CIA, NSA and BKA had no trouble monitoring the group’s communications. Two men who went by the aliases “Sule” or “Suley” and “Jaf” kept up the contact from the IJU side.
This is also interesting, given the many discussions on this blog and elsewhere about stopping people watching and photographing potential terrorist targets:
Early in the evening of Dec. 31, 2006, a car containing several passengers drove silently past the Hutier Barracks in Lamboy, a section of the western German city of Hanau. Hanau is known as the home of a major US military base, where thousands of US soldiers live and routinely look forward to celebrating New Year’s Eve in their home away from home. The BfV’s observation team later noted that the car drove back and forth in front of the barracks several times. When German agents finally stopped the car, they discovered that the passengers were Fritz Gelowicz, Attila S. from the southern city of Ulm, Ayhan T. from Langen near Frankfurt and Dana B., a German of Iranian descent from Frankfurt who, when asked what he and the others were doing there, claimed that they had just wanted to see “how the Americans celebrate New Year’s Eve.”
Sidebar photo of Bruce Schneier by Joe MacInnis.