[info] CRYPTO-GRAM, November 15, 2007

Eugen Leitl <eugen at leitl.org> on Thu Nov 15 11:55:44 UTC 2007

----- Forwarded message from Bruce Schneier <schneier at SCHNEIER.COM> -----

From: Bruce Schneier <schneier at SCHNEIER.COM>
Date:         Thu, 15 Nov 2007 01:17:09 -0600
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Subject: CRYPTO-GRAM, November 15, 2007
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Reply-To: Bruce Schneier <schneier at SCHNEIER.COM>

                 CRYPTO-GRAM

              November 15, 2007

              by Bruce Schneier
               Founder and CTO
                BT Counterpane
             schneier at schneier.com
            http://www.schneier.com
           http://www.counterpane.com


A free monthly newsletter providing summaries, analyses, insights, and 
commentaries on security: computer and otherwise.

For back issues, or to subscribe, visit 
<http://www.schneier.com/crypto-gram.html>.

You can read this issue on the web at 
<http://www.schneier.com/crypto-gram-0711.html>.  These same essays 
appear in the "Schneier on Security" blog: 
<http://www.schneier.com/blog>.  An RSS feed is available.


** *** ***** ******* *********** *************

In this issue:
     The War on the Unexpected
     Security Risks of Online Political Contributing
     Chemical Plant Security and Externalities
     News
     Switzerland Protects its Vote with Quantum Cryptography
     Security by Letterhead
     Schneier/BT Counterpane News
     Cyberwar: Myth or Reality?
     Understanding the Black Market in Internet Crime
     The Strange Story of Dual_EC_DRBG
     Comments from Readers


** *** ***** ******* *********** *************

     The War on the Unexpected



We've opened up a new front on the war on terror. It's an attack on the 
unique, the unorthodox, the unexpected; it's a war on different. If you 
act different, you might find yourself investigated, questioned, and 
even arrested -- even if you did nothing wrong, and had no intention of 
doing anything wrong. The problem is a combination of citizen informants 
and a CYA attitude among police that results in a knee-jerk escalation 
of reported threats.

This isn't the way counterterrorism is supposed to work, but it's 
happening everywhere. It's a result of our relentless campaign to 
convince ordinary citizens that they're the front line of terrorism 
defense. "If you see something, say something" is how the ads read in 
the New York City subways. "If you suspect something, report it" urges 
another ad campaign in Manchester, UK. The Michigan State Police have a 
seven-minute video. Administration officials from then-attorney general 
John Ashcroft to DHS Secretary Michael Chertoff to President Bush have 
asked us all to report any suspicious activity.

The problem is that ordinary citizens don't know what a real terrorist 
threat looks like. They can't tell the difference between a bomb and a 
tape dispenser, electronic name badge, CD player, bat detector, or trash 
sculpture; or the difference between terrorist plotters and imams, 
musicians, or architects. All they know is that something makes them 
uneasy, usually based on fear, media hype, or just something being 
different.

Even worse: after someone reports a "terrorist threat," the whole system 
is biased towards escalation and CYA instead of a more realistic threat 
assessment.

Watch how it happens. Someone sees something, so he says something. The 
person he says it to -- a policeman, a security guard, a flight 
attendant -- now faces a choice: ignore or escalate. Even though he may 
believe that it's a false alarm, it's not in his best interests to 
dismiss the threat. If he's wrong, it'll cost him his career. But if he 
escalates, he'll be praised for "doing his job" and the cost will be 
borne by others. So he escalates. And the person he escalates to also 
escalates, in a series of CYA decisions. And before we're done, innocent 
people have been arrested, airports have been evacuated, and hundreds of 
police hours have been wasted.

This story has been repeated endlessly, both in the U.S. and in other 
countries. Someone -- these are all real -- notices a funny smell, or 
some white powder, or two people passing an envelope, or a dark-skinned 
man leaving boxes at the curb, or a cell phone in an airplane seat; the 
police cordon off the area, make arrests, and/or evacuate airplanes; and 
in the end the cause of the alarm is revealed as a pot of Thai chili 
sauce, or flour, or a utility bill, or an English professor recycling, 
or a cell phone in an airplane seat.

Of course, by then it's too late for the authorities to admit that they 
made a mistake and overreacted, that a sane voice of reason at some 
level should have prevailed. What follows is the parade of police and 
elected officials praising each other for doing a great job, and 
prosecuting the poor victim -- the person who was different in the first 
place -- for having the temerity to try to trick them.

For some reason, governments are encouraging this kind of behavior. It's 
not just the publicity campaigns asking people to come forward and 
snitch on their neighbors; they're asking certain professions to pay 
particular attention: truckers to watch the highways, students to watch 
campuses, and scuba instructors to watch their students. The U.S. wanted 
meter readers and telephone repairmen to snoop around houses. There's 
even a new law protecting people who turn in their travel mates based on 
some undefined "objectively reasonable suspicion," whatever that is.

If you ask amateurs to act as front-line security personnel, you 
shouldn't be surprised when you get amateur security.

We need to do two things. The first is to stop urging people to report 
their fears. People have always come forward to tell the police when 
they see something genuinely suspicious, and should continue to do so. 
But encouraging people to raise an alarm every time they're spooked only 
squanders our security resources and makes no one safer.

We don't want people to never report anything. A store clerk's tip led 
to the unraveling of a plot to attack Fort Dix last May, and in March an 
alert Southern California woman foiled a kidnapping by calling the 
police about a suspicious man carting around a person-sized crate. But 
these incidents only reinforce the need to realistically assess, not 
automatically escalate, citizen tips. In criminal matters, law 
enforcement is experienced in separating legitimate tips from 
unsubstantiated fears, and allocating resources accordingly; we should 
expect no less from them when it comes to terrorism.

Equally important, politicians need to stop praising and promoting the 
officers who get it wrong. And everyone needs to stop castigating, and 
prosecuting, the victims just because they embarrassed the police by 
their innocence.

Causing a city-wide panic over blinking signs, a guy with a pellet gun, 
or stray backpacks, is not evidence of doing a good job: it's evidence 
of squandering police resources. Even worse, it causes its own form of 
terror, and encourages people to be even more alarmist in the future. We 
need to spend our resources on things that actually make us safer, not 
on chasing down and trumpeting every paranoid threat anyone can come up 
with.

Ad campaigns:
http://www.mta.info/mta/security/index.html
http://www.manchestereveningnews.co.uk/news/s/1000/1000981_help_us_spot_terrorists__police.html 
or http://tinyurl.com/27wuan
http://www.schneier.com/blog/archives/2007/04/citizencountert.html

Administration comments:
http://www.washingtonpost.com/wp-srv/nation/attacked/transcripts/ashcroft_100801.htm
http://www.usatoday.com/news/washington/2005-07-07-dc-londonblasts_x.htm 
or http://tinyurl.com/25vf3y
http://query.nytimes.com/gst/fullpage.html?res=9C05E6DC1F3AF932A05752C0A9649C8B63 
or http://tinyurl.com/2463aw

Incidents:
http://news.bbc.co.uk/1/hi/northern_ireland/6387857.stm
http://www.schneier.com/blog/archives/2007/09/woman_arrested.html
http://www.lineofduty.com/content/view/84004/128/
http://www.schneier.com/blog/archives/2007/05/uk_police_blow.html
http://www.startribune.com/462/story/826056.html
http://dir.salon.com/story/tech/col/smith/2004/07/21/askthepilot95/index.html 
or http://tinyurl.com/2bn3qo
http://www.schneier.com/blog/archives/2006/10/this_is_what_vi.html
http://www.schneier.com/blog/archives/2007/10/latest_terroris.html
http://www.msnbc.msn.com/id/20441775/
http://www.thisisbournemouth.co.uk/display.var.1717690.0.seized_by_the_police.php 
or http://tinyurl.com/36dgj8
http://alternet.org/rights/50939/
http://www.schneier.com/blog/archives/2007/04/english_profess.html
http://www.mercurynews.com/breakingnews/ci_7084101?nclick_check=1
http://www.boston.com/news/globe/city_region/breaking_news/2007/01/bomb_squad_remo.html 
or http://tinyurl.com/ywumfl
http://www.postgazette.com/pg/06081/674773.stm
http://www.schneier.com/blog/archives/2007/04/another_boston.html

CYA:
http://www.schneier.com/blog/archives/2007/02/cya_security_1.html

Public campaigns:
http://www.schneier.com/blog/archives/2005/12/truckers_watchi.html
http://www.winnipegfirst.ca/article/2007/09/24/report_suspicious_behaviour_u_of_m_tells_students 
or http://tinyurl.com/2c2t2a
http://www.underwatertimes.com/print.php?article_id=64810251370
http://en.wikipedia.org/wiki/Operation_TIPS

Law protecting tipsters:
http://www.post-gazette.com/pg/07245/813550-37.stm

Successful tips:
http://www.washingtonpost.com/wp-dyn/content/article/2007/05/08/AR2007050800465.html 
or http://tinyurl.com/38t6vd
http://www.pe.com/localnews/publicsafety/stories/PE_News_Local_D_honor06.3ee3472.html 
or http://tinyurl.com/2g26xv

This essay originally appeared in Wired.com:
http://www.wired.com/politics/security/commentary/securitymatters/2007/11/securitymatters_1101 
or http://tinyurl.com/yqvoy6

Some links didn't make it into the original article.  There's this 
creepy "if you see a father holding his child's hands, call the cops" 
campaign:
http://www.bloggernews.net/18108
There's this story of an iPod found on an airplane:
http://forums.worldofwarcraft.com/thread.html?topicId=11211166&pageNo=1 
or http://tinyurl.com/ogpbv
There's this story of an "improvised electronics device" trying to get 
through airport security:
http://www.makezine.com/blog/archive/2007/09/microcontroller_programme.html?CMP=OTC-0D6B48984890 
or http://tinyurl.com/2ynbru
This is a good essay on the "war on electronics."
http://www.cnet.com/surveillance-state/8301-13739_1-9782861-46.html


** *** ***** ******* *********** *************

     Security Risks of Online Political Contributing



Security researcher Christopher Soghoian gave a presentation last month 
warning of the potential phishing risk caused by online political 
donation sites.  The Threat Level blog reported:

"The presidential campaigns'  tactic of relying on impulsive giving 
spurred by controversial news events and hyped-up deadlines, combined 
with a number of other factors such as inconsistent Web addresses and a 
muddle of payment mechanisms creates a conducive environment for fraud, 
says Soghoian."

And:

"Fraudsters could easily send out e-mails and establish Web sites that 
mimic the official campaigns' sites and similarly send out such e-mails 
that would encourage  people to  'donate' money without checking for the 
authenticity of the site."

He has a point, but it's not new to online contributions.  Fake 
charities and political organizations have long been problems.  When you 
get a solicitation in the mail for "Concerned Citizens for a More 
Perfect Country" -- insert whatever personal definition you have for 
"more perfect" and "country" -- you don't know if the money is going to 
your cause or into someone's pocket.  When you give money on the street 
to someone soliciting contributions for this cause or that one, you have 
no idea what will happen to the money at the end of the day.

In the end, contributing money requires trust.  While the Internet 
certainly makes frauds like this easier -- anyone can set up a webpage 
that accepts PayPal and send out a zillion e-mails -- it's nothing new.

http://blog.wired.com/27bstroke6/2007/10/online-campaign.html
http://www.politicalphishing.com/political-phishing-slides.pdf


** *** ***** ******* *********** *************

     Chemical Plant Security and Externalities



It's not true that no one worries about terrorists attacking chemical 
plants, it's just that our politics seem to leave us unable to deal with 
the threat.

Toxins such as ammonia, chlorine, propane, and flammable mixtures are 
constantly being produced or stored in the United States as a result of 
legitimate industrial processes. Chlorine gas is particularly toxic; in 
addition to bombing a plant, someone could hijack a chlorine truck or 
blow up a railcar.  Phosgene is even more dangerous. According to the 
Environmental Protection Agency, there are 7,728 chemical plants in the 
United States where an act of sabotage -- or an accident -- could 
threaten more than 1,000 people. Of those, 106 facilities could threaten 
more than a million people.

The problem of securing chemical plants against terrorism -- or even 
accidents -- is actually simple once you understand the underlying 
economics. Normally, we leave the security of something up to its owner. 
The basic idea is that the owner of each chemical plant 1) best 
understands the risks, and 2) is the one who loses out if security 
fails. Any outsider -- i.e., regulatory agency -- is just going to get 
it wrong. It's the basic free-market argument, and in most instances it 
makes a lot of sense.

And chemical plants do have security. They have fences and guards (which 
might or might not be effective). They have fail-safe mechanisms built 
into their operations. For example, many large chemical companies use 
hazardous substances like phosgene, methyl isocyanate and ethylene oxide 
in their plants, but don't ship them between locations. They minimize 
the amounts that are stored as process intermediates. In rare cases of 
extremely hazardous materials, no significant amounts are stored; 
instead they are only present in pipes connecting the reactors that make 
them with the reactors that consume them.

This is all good and right, and what free-market capitalism dictates. 
The problem is, that isn't enough.

Any rational chemical plant owner will only secure the plant up to its 
value to him. That is, if the plant is worth $100 million, then it makes 
no sense to spend $200 million on securing it. If the odds of it being 
attacked are less than 1 percent, it doesn't even make sense to spend $1 
million on securing it. The math is more complicated than this, because 
you have to factor in such things as the reputational cost of having 
your name splashed all over the media after an incident, but that's the 
basic idea.

But to society, the cost of an actual attack can be much, much greater. 
If a terrorist blows up a particularly toxic plant in the middle of a 
densely populated area, deaths could be in the tens of thousands and 
damage could be in the hundreds of millions.  Indirect economic damage 
could be in the billions. The owner of the chlorine plant would pay none 
of these potential costs.

Sure, the owner could be sued. But he's not at risk for more than the 
value of his company, and -- in any case -- he'd probably be smarter to 
take the chance. Expensive lawyers can work wonders, courts can be 
fickle, and the government could step in and bail him out (as it did 
with airlines after Sept. 11). And a smart company can often protect 
itself by spinning off the risky asset in a subsidiary company, or 
selling it off completely. The overall result is that our nation's 
chemical plants are secured to a much smaller degree than the risk warrants.

In economics, this is called an *externality*: an effect of a decision 
not borne by the decision maker. The decision maker in this case, the 
chemical plant owner, makes a rational economic decision based on the 
risks and costs *to him*.

If we -- whether we're the community living near the chemical plant or 
the nation as a whole -- expect the owner of that plant to spend money 
for increased security to account for those externalities, we're going 
to have to pay for it. And we have three basic ways of doing that. One, 
we can do it ourselves, stationing government police or military or 
contractors around the chemical plants. Two, we can pay the owners to do 
it, subsidizing some sort of security standard.

Or three, we could regulate security and force the companies to pay for 
it themselves. There's no free lunch, of course. "We," as in society, 
still pay for it in increased prices for whatever the chemical plants 
are producing, but the cost is paid for by the product's consumers 
rather than by taxpayers in general.

Personally, I don't care very much which method is chosen: that's 
politics, not security. But I do know we'll have to pick one, or some 
combination of the three. Asking nicely just isn't going to work. It 
can't; not in a free-market economy.

We taxpayers pay for airport security, and not the airlines, because the 
overall effects of a terrorist attack against an airline are far greater 
than their effects to the particular airline targeted. We pay for port 
security because the effects of bringing a large weapon into the country 
are far greater than the concerns of the port's owners. And we should 
pay for chemical plant, train and truck security for exactly the same 
reasons.

Thankfully, after years of hoping the chemical industry would do it on 
its own, this April the Department of Homeland Security started 
regulating chemical plant security. Some complain that the regulations 
don't go far enough, but at least it's a start.

Risks:
http://www.usatoday.com/news/washington/2007-04-23-chlorine-truck-bomb_N.htm 
or http://tinyurl.com/2zk2a5
http://www.chemsafety.gov/index.cfm?folder=news_releases&page=news&NEWS_ID=379 
or http://tinyurl.com/23bokt
http://www.bt.cdc.gov/agent/phosgene/basics/facts.asp
http://www.opencrs.com/document/M20050627/2005-06-27%2000:00:00
http://digital.library.unt.edu/govdocs/crs/permalink/meta-crs-9917
http://www.washingtonmonthly.com/features/2007/0703.levine1.html

Regulations:
http://www.boston.com/news/nation/washington/articles/2007/04/03/chemical_plants_at_risk_us_agency_says/ 
or http://tinyurl.com/2babz5
http://www.usatoday.com/printedition/news/20070427/a_chemplant27.art.htm 
or http://tinyurl.com/22xwab

This essay previously appeared on Wired.com.
http://www.wired.com/politics/security/commentary/securitymatters/2007/10/securitymatters_1018 
or http://tinyurl.com/yr2cd2


** *** ***** ******* *********** *************

     News



A handful of prominent security researchers have published a report on 
the security risks of the large-scale eavesdropping made temporarily 
legal by the "Protect America Act" passed in the U.S. in August, and 
which may be made permanently legal soon.  "Risking Communications 
Security: Potential Hazards of the 'Protect America Act'"  -- dated 
October 1, 2007, and marked "draft" -- is well worth reading:
http://www.crypto.com/papers/paa-comsec-draft.pdf
http://www.schneier.com/blog/archives/2007/10/security_risks_5.html

Hacker extensions for the Firefox web browser.
http://www.darkreading.com/document.asp?doc_id=136029

An excellent three-part series on trends in criminal malware, mostly 
about Gozi.  Malware as service.
http://www.cio.com/article/135500/
http://www.cio.com/article/135550/
http://www.cio.com/article/135551/

Macintosh security:
http://www.macworld.com/2007/10/features/lockup_others/index.php

Hacking a 911 emergency phone system.  There are no details of what the 
"hacking" was, or whether it was anything more than spoofing the caller ID.
http://seattletimes.nwsource.com/html/localnews/2003955611_hacker17.html 
or http://tinyurl.com/ytqla2
http://cwflyris.computerworld.com/t/2216044/42831165/83643/2/
http://www.msnbc.msn.com/id/21336319/
http://www.ocregister.com/news/home-emami-county-1894171-ellis-system

Fascinating story of insider cheating in online poker:
http://freakonomics.blogs.nytimes.com/2007/10/17/the-absolute-poker-cheating-scandal-blown-wide-open/ 
or http://tinyurl.com/2869f9
http://forumserver.twoplustwo.com/showthreaded.php?Cat=0&Number=12523924&an=&page=0&vc=1 
or http://tinyurl.com/yuu3ts
http://forumserver.twoplustwo.com/showflat.php?Cat=0&Number=12579229&an=0&page=0#Post12579229 
or http://tinyurl.com/23766y
This graph of players' river aggression is a great piece of evidence. 
Note the single outlying point.
http://www.absolutepokercheats.com/500800vpip.GIF

A classified 2006 TSA report on airport security was leaked to USA 
Today.  (Other papers covered the story, but their articles all seem to 
be derived from the original USA Today article.)
http://www.usatoday.com/printedition/news/20071018/a_insidescreeners18.art.htm 
or http://tinyurl.com/yudwy4
http://www.latimes.com/news/local/la-me-airports19oct19,0,1334943.story?coll=la-home-local 
or http://tinyurl.com/2f53yv
http://www.kutv.com/content/news/watercooler/story.aspx?content_id=8380cb0e-3088-4e6b-bbc4-2ca1d91754e1 
or http://tinyurl.com/2h6x8g
Weirdest news:  "At San Diego International Airport, tests are run by 
passengers whom local TSA managers ask to carry a fake bomb, said 
screener Cris Soulia, an official in a screeners union."  Someone please 
tell me this doesn't actually happen. "Hi Mr. Passenger.  I'm a TSA 
manager.  You know I'm not lying to you because of this official-looking 
laminated badge I have.  We need you to help us test airport security. 
Here's a 'fake' bomb that we'd like you to carry through security in 
your luggage.  Another TSA manager will, um, meet you at your 
destination.  Give the fake bomb to him when you land.  And, by the way, 
what's your mother's maiden name?"  How in the world is this a good 
idea?  And how hard is it to dress real TSA managers up like vacationers?

TSA claims that this doesn't happen:
http://www.tsa.gov/approach/mythbusters/fake_bomb.shtm
Here's someone who said that it did, at Dulles Airport:
http://www.flyertalk.com/forum/showthread.php?t=737223

"Conceptual Terrorists Encase Sears Tower In Jell-O"
http://www.theonion.com/content/news/conceptual_terrorists_encase_sears 
or http://tinyurl.com/2pgnrk

Hiding data behind attorney-client privilege:
http://denver.bizjournals.com/denver/stories/2007/09/10/story3.html
Gregory Engel has some good comments about this:
http://weblog.javazen.com/?p=528
This talk from Defcon this year is related.
http://video.google.com/videoplay?docid=1528717968000992954

Detecting restaurant credit card fraud with checksums.
http://www.punny.org/money/fight-thieving-restaurant-servers-with-checksum-tips/ 
or http://tinyurl.com/2ga8sh
I don't know how common tip fraud is.  This thread implies that it's 
pretty common, but I use my credit card in restaurants all the time all 
over the world and I've never been the victim of this sort of fraud.  On 
the other hand, I'm not a lousy tipper.  And maybe I don't frequent the 
right sort of restaurants.
http://www.fatwallet.com/t/52/771939/

Declan McCullagh on the politicization of security:
http://www.news.com/8301-13578_3-9795316-38.html

Urban camouflage:  I want to be able to disguise myself as a Japanese 
vending machine.
http://www.nytimes.com/2007/10/20/world/asia/20japan.html?em&ex=1193198400&en=2d37e48f1fcd907c&ei=5087%0A 
or http://tinyurl.com/29vb8k
http://www.treehugger.com/files/2007/10/urban_camouflag.php"

I made my own hollow book as a kid.  These are much nicer.  You can even 
order your hollow book by topic, the better to blend it into the rest of 
your library.
http://www.secretstoragebooks.com/

Terrorist insects: Yet another movie-plot threat to worry about.
http://www.boston.com/news/globe/ideas/articles/2007/10/21/bug_bomb/

A school in the UK is using RFID chips in school uniforms to track 
attendance.  So now it's easy to cut class; just ask someone to carry 
your shirt around the building while you're elsewhere.
http://www.theregister.co.uk/2007/10/22/kid_chipping_doncaster_go/

Brandon Mayfield, the Oregon man who was arrested because his 
fingerprint "matched" that of an Algerian who handled one of the Madrid 
bombs, now has a legacy: a judge has ruled partial prints cannot be used 
in a murder case.
http://www.baltimoresun.com/news/local/baltimore_county/bal-te.md.co.prints23oct23,0,6370011.story 
or http://tinyurl.com/2vnyg8

World Series ticket website hacked?  Maybe.  Certainly scalpers have an 
incentive to attack this system.
http://www.schneier.com/blog/archives/2007/10/world_series_ti_1.html

So, this pedophile posts photos of himself with young boys, but obscures 
his face with the Photoshop "twirl" tool.  Turns out that the 
transformation isn't lossy, and that you can untwirl his face.  He was 
caught in Thailand.  Moral: Don't blindly trust technology; you need to 
really know what it's doing.
http://www.boingboing.net/2007/10/08/untwirling-photo-of.html
http://www.reuters.com/article/topNews/idUSBKK21344820071019

The Russian company Elcomsoft ported password cracking software to a 
graphics card, boosting speed by 25 times.  Why is this news?
http://technology.newscientist.com/article/dn12825-passwordcracking-chip-causes-security-concerns.html 
or http://tinyurl.com/2sjh8v
http://blogs.techrepublic.com.com/tech-news/?p=1433&tag=nl.e019
The Utah company AccessData has been doing this sort of thing much 
longer, and has much better technology.
http://www.schneier.com/essay-148.html

Dilbert on profiling:
http://www.dilbert.com/comics/dilbert/archive/dilbert-20071020.html
http://www.dilbert.com/comics/dilbert/archive/dilbert-20071022.html

In a stupid terrorism overreaction, Pennsylvania state officials decided 
not to publicize the list of polling places.
http://www.foxnews.com/story/0,2933,305537,00.html
A few days later, the governor rescinded the order.
http://www.usatoday.com/news/politics/election2008/2007-10-26-pa-polls_N.htm 
or http://tinyurl.com/yvs3vr

A specialized printer used to print Missouri driver's licenses was 
stolen and recovered.  It's a funny story, actually.  Turns out the 
thief couldn't get access to the software needed to run the printer; a 
lockout on the control computer apparently thwarted him.  When he called 
tech support, they tipped off the Secret Service.  On the one hand, this 
probably won't deter a more sophisticated thief.  On the other hand, you 
can make pretty good forgeries with off-the-shelf equipment.
http://www.news.com/8301-10784_3-9803114-7.html

AT&T has a programming language for wholesale surveillance and data mining:
http://blog.wired.com/27bstroke6/2007/10/att-invents-pro.html
http://www.freedom-to-tinker.com/?p=1219

The House of Lords on the airplane liquid ban:  "We continuously monitor 
the effectiveness of, in particular, the liquid security measures..." 
How?  "The fact that there has not been a serious incident involving 
liquid explosives indicates, I would have thought, that the measures 
that we have put in place so far have been very effective."
http://www.theregister.co.uk/2007/10/30/lords_liquid_ban/

Architecture and anti-terrorist paranoia:
http://asla.org/awards/2007/studentawards/393.html
http://www.asymmetry.org/2007/10/11/insecurity/

Spammers using porn to break captchas:
http://news.bbc.co.uk/1/hi/technology/7067962.stm
I've been saying that spammers would start doing this for years.  I'm 
actually surprised it took this long.

Good essay on the no-joke zone at airports:
http://www.stuff.co.nz/4256682a1861.html

Someone arrested as a homicide suspect walked out of jail after 
identifying himself as someone else.  The biometric system worked, but 
human error overrode it.  It's a neat scam.  Find out someone else who's 
been arrested, have a friend come and post bail for that person, and 
then steal his identity when the jailers come into the cellblock.
http://www.cbsnews.com/stories/2007/10/29/national/main3425770.shtml

Synthetic identity theft is poised to become a bigger problem than 
regular identity theft:
http://online.wsj.com/article/SB119362045526074445.html
http://biz.yahoo.com/brn/070516/21861.html?.v=1

Interesting GAO testimony/report:  "Internet Infrastructure: Challenges 
in Developing a Public/Private Recovery Plan," Gregory C. Wilshusen, 
Director, Information Security Issues, Government Accountability Office 
(GAO), October 23, 2007.
http://www.gao.gov/new.items/d08212t.pdf

Mad at someone?  Turn him in as a terrorist:
http://news.yahoo.com/s/afp/20071102/od_afp/swedenjusticeterrorismoffbeat_071102124748;_ylt=Ah8e3WCMqHLBJaArTqoWc2is0NUE 
or http://tinyurl.com/24nthu
Businesses do this too:  "In May 2005 Jet's application for a licence to 
fly to America was held up after a firm based in Maryland, also called 
Jet Airways, accused Mr Goyal's company of being a money-laundering 
outfit for al-Qaeda. Mr Goyal says some of his local competitors were 
behind the claim, which was later withdrawn."
http://www.economist.com/people/displaystory.cfm?story_id=9762898

This denial-of-service attack against electronic car locks was 
accidental, but it could certainly be done on purpose.
http://news.bbc.co.uk/1/hi/england/kent/7073935.stm

Interesting identity theft study.  (It's long, but at least read the 
executive summary.)
http://www.utica.edu/academic/institutes/cimip/publications/index.cfm?action=form&paper=6 
or http://tinyurl.com/2y225d
http://www.siliconvalley.com/security/ci_7248917

GSMK CryptoPhone G10i: open source, and it uses Twofish.
http://www.cryptophone.de/products/CPG10i/index.html

A Salesforce.com data breach results in targeted phishing attacks:
http://it.slashdot.org/article.pl?sid=07/11/06/216228

This is a very moving story about a foreign tourist being removed from a 
train for taking pictures:
http://www.episcopalcafe.com/daily/war_and_peace/every_day_diplomacy.php 
or http://tinyurl.com/3x5f6c
A response from the writer of the original article, after people 
questioned the veracity of the story:
http://www.schneier.com/blog/archives/2007/11/taking_pictures.html#c215790 
or http://tinyurl.com/27j8d8

An Al Qaeda hacker attack was supposed to begin last Sunday.  I noticed 
nothing.
http://www.debka.com/headline.php?hid=4723

Funny security cartoon from "The New Yorker":
http://www.cartoonbank.com/product_details.asp?sid=119416

Suicide attacks in the computer game Halo 3:
http://www.wired.com/gaming/gamingreviews/commentary/games/2007/11/gamesfrontiers_1105 
or http://tinyurl.com/3xcjcr

Computer security consultant admits to running a botnet:
http://www.iht.com/articles/ap/2007/11/10/america/NA-GEN-US-Hacker-Charged.php 
or http://tinyurl.com/yv2gy6
http://blog.washingtonpost.com/securityfix/2007/11/security_pro_admits_to_hijacki.html?nav=rss_blog 
or http://tinyurl.com/246mh6

High-school football prank provokes terrorism fears:
http://www.schneier.com/blog/archives/2007/11/highschool_foot.html

Sensible comments from the Canadian privacy commissioner on the no-fly list:
http://www.canada.com/edmontonjournal/news/story.html?id=4f6539d8-ccd7-4e32-a2d5-1231a6aee0a4&k=31493 
or http://tinyurl.com/2ka3yl

Malcolm Gladwell makes a convincing case that criminal profiling is 
nothing more than a "cold reading" magic trick.
http://www.schneier.com/blog/archives/2007/11/the_sham_of_cri.html

Donald Kerr, the principal deputy director of national intelligence, 
made some very dangerous comments about redefining privacy.  The press 
reported only the most inflammatory comments:
http://www.cnn.com/2007/POLITICS/11/11/terrorist.surveillance.ap/index.html 
or http://tinyurl.com/ywqv2t
http://www.schneier.com/blog/archives/2007/11/redefining_priv.html
His actual comments are more nuanced:
http://www.odni.gov/speeches/20071023_speech.pdf
Other comments:
http://digbysblog.blogspot.com/2007/11/telling-it-straight-by-digby-intel.html 
or http://tinyurl.com/2ohxnn
http://www.crooksandliars.com/2007/11/13/the-cafferty-file-redefining-privacy/ 
or http://tinyurl.com/ypjjj6
http://www.cs.columbia.edu/~smb/blog/2007-11/2007-11-12.html
Me on the value of privacy:
http://www.schneier.com/blog/archives/2006/05/the_value_of_pr.html

Hushmail turns encrypted e-mail over to the government:
http://blog.wired.com/27bstroke6/2007/11/encrypted-e-mai.html

The overblown threat of suitcase nukes:
http://hosted.ap.org/dynamic/stories/T/TALE_OF_THE_SUITCASE_NUKE?SITE=WIMIL 
or http://tinyurl.com/22az8h


** *** ***** ******* *********** *************

     Switzerland Protects its Vote with Quantum Cryptography



This is so silly I wasn't going to even bother blogging about it.  But 
the sheer number of news stories has made me change my mind.

Basically, the Swiss company ID Quantique convinced the Swiss government 
to use quantum cryptography to protect vote transmissions during their 
October 21 election.  It was a great publicity stunt, and the news 
articles were filled with hyperbole: how the "unbreakable" encryption 
will ensure the integrity of the election, how this will protect the 
election against hacking, and so on.

Complete idiocy.  There are many serious security threats to voting 
systems, especially paperless touch-screen voting systems, but they're 
not centered around the transmission of votes from the voting site to 
the central tabulating office.  The software in the voting machines 
themselves is a much bigger threat, one that quantum cryptography 
doesn't solve in the least.

Moving data from point A to point B securely is one of the easiest 
security problems we have.  Conventional encryption works great.  PGP, 
SSL, SSH could all be used to solve this problem, as could pretty much 
any good VPN software package; there's no need to use quantum crypto for 
this at all.  Software security, OS security, network security, and user 
security are much harder security problems; and quantum crypto doesn't 
even begin to address them.

So, congratulations to ID Quantique for a nice publicity stunt.  But did 
they actually increase the security of the Swiss election?  Doubtful.

http://www.economist.com/displaystory.cfm?story_id=9982957
http://www.itwire.com/content/view/14833/53/
http://www.networkworld.com/news/2007/101007-quantum-cryptography-secure-ballots.html 
or http://tinyurl.com/2plz5a
http://www.smh.com.au/news/World/Swiss-to-use-encryption-voting-method/2007/10/13/1191696216022.html 
or http://tinyurl.com/2buszw
http://feeds.arstechnica.com/~r/arstechnica/BAaf/~3/168988905/20071012-geneva-brings-quantum-cryptography-to-internet-voting.html 
or http://tinyurl.com/ytxloe
http://cwflyris.computerworld.com/t/2191514/92085/83014/2/
http://technology.newscientist.com/article/dn12786-quantum-cryptography-to-protect-swiss-election.html 
or http://tinyurl.com/3ctx4y

Me on quantum cryptography:
http://www.schneier.com/crypto-gram-0312.html#6

Me on voting:
http://www.schneier.com/crypto-gram-0411.html#1
http://www.schneier.com/crypto-gram-0411.html#2
http://www.schneier.com/crypto-gram-0312.html#9
http://www.schneier.com/crypto-gram-0012.html#1


** *** ***** ******* *********** *************

     Security by Letterhead



Worsethanfailure.com has an amusing story about someone trying to get 
something done via phone tech support.  The person at the other end of 
the phone line needs a written request on "company letterhead," which -- 
after an argument -- is provided by fax.

Ha ha.  The idiot ISP guy doesn't realize how easy it for anyone with a 
word processor and a laser printer to fake a letterhead.  But what this 
story really shows is how hard it is for people to change their security 
intuition.  Security-by-letterhead was fairly robust when printing was 
hard, and faking a letterhead was real work.  Today it's easy, but 
people -- especially people who grew up under the older paradigm -- 
don't act as if it is.  They would if they thought about it, but most of 
the time our security runs on intuition and not on explicit thought.

This kind of thing bites us all the time.  Mother's maiden name is no 
longer a good password.  An impressive-looking storefront on the 
Internet is not the same as an impressive-looking storefront in the real 
world.  The headers on an e-mail are not a good authenticator of its 
origin.  It's an effect of technology moving faster than our ability to 
develop a good intuition about that technology.

And, as technology changes ever increasingly faster, this will only get 
worse.

http://worsethanfailure.com/Articles/Security-by-Letterhead.aspx


** *** ***** ******* *********** *************

     Schneier/BT Counterpane News



Schneier is speaking at the ISMS Forum on November 20 in Madrid:
https://www.ismsforum.es/index.php

Schneier is speaking at the ISF Annual World Congress on December 10 in 
Capetown:
http://www.securityforum.org/html/congres.htm

I spoke at the EDUCAUSE conference this year in Seattle.  There's a 
podcast and video of my talk available ("Ten Trends of Information 
Security"; I've given the talk before) as well as a podcast of an 
interview with me.
http://www.educause.edu/E07/Program/11073?PRODUCT_CODE=E07/GS02
http://connect.educause.edu/blog/mpasiewicz/e07podcastanintervie/45439

My blog, "Schneier on Security," has been listed as the Illuminated Site 
of the Week by Daily Illuminator, run by Steve Jackson Games.
http://www.sjgames.com/ill/archives.html?y=2007&m=November&d=10


** *** ***** ******* *********** *************

     Cyberwar: Myth or Reality?



The biggest problems in discussing cyberwar are the definitions. The 
things most often described as cyberwar are really cyberterrorism, and 
the things most often described as cyberterrorism are more like 
cybercrime, cybervandalism or cyberhooliganism--or maybe cyberespionage.

At first glance, there's nothing new about these terms except the 
"cyber" prefix. War, terrorism, crime and vandalism are old concepts. 
What's new is the domain; it's the same old stuff occurring in a new 
arena. But because cyberspace is different, there are differences worth 
considering.

Of course, the terms overlap. Although the goals are different, many 
tactics used by armies, terrorists and criminals are the same. Just as 
they use guns and bombs, they can use cyberattacks. And just as every 
shooting is not necessarily an act of war, every successful Internet 
attack, no matter how deadly, is not necessarily an act of cyberwar. A 
cyberattack that shuts down the power grid might be part of a cyberwar 
campaign, but it also might be an act of cyberterrorism, cybercrime or 
even--if done by some 14-year-old who doesn't really understand what 
he's doing--cyberhooliganism. Which it is depends on the attacker's 
motivations and the surrounding circumstances--just as in the real world.

For it to be cyberwar, it must first be war. In the 21st century, war 
will inevitably include cyberwar. Just as war moved into the air with 
the development of kites, balloons, and aircraft, and into space with 
satellites and ballistic missiles, war will move into cyberspace with 
the development of specialized weapons, tactics, and defenses.

I have no doubt that smarter and better-funded militaries are planning 
for cyberwar. They have Internet attack tools: denial-of-service tools; 
exploits that would allow military intelligence to penetrate military 
systems; viruses and worms similar to what we see now, but perhaps 
country- or network-specific; and Trojans that eavesdrop on networks, 
disrupt operations, or allow an attacker to penetrate other networks. I 
believe militaries know of vulnerabilities in operating systems, generic 
or custom military applications, and code to exploit those 
vulnerabilities. It would be irresponsible for them not to.

The most obvious attack is the disabling of large parts of the Internet, 
although in the absence of global war, I doubt a military would do so; 
the Internet is too useful an asset and too large a part of the world 
economy. More interesting is whether militaries would disable national 
pieces of it. For a surgical approach, we can imagine a cyberattack 
against a military headquarters, or networks handling logistical 
information.

Destruction is the last thing a military wants to accomplish with a 
communications network. A military only wants to shut down an enemy's 
network if it isn't acquiring useful information. The best thing is to 
infiltrate enemy computers and networks, spy on them, and 
surreptitiously disrupt select pieces of their communications when 
appropriate. The next best thing is to passively eavesdrop. After that, 
perform traffic analysis: analyze the characteristics of communications. 
Only if a military can't do any of this would it consider shutting the 
thing down. Or if, as sometimes but rarely happens, the benefits of 
completely denying the enemy the communications channel outweigh the 
advantages of eavesdropping on it.

Cyberwar is certainly not a myth. But you haven't seen it yet, despite 
the attacks on Estonia. Cyberwar is warfare in cyberspace. And warfare 
involves massive death and destruction. When you see it, you'll know it.

This is the second half of a point/counterpoint with Marcus Ranum; it 
appeared in the November issue of "Information Security Magazine."  You 
can read Marcus's half here:
http://searchsecurity.techtarget.com/magazineFeature/0,296894,sid14_gci1280052,00.html 
or http://tinyurl.com/25bs56

Longer essay of mine on cyberwar:
http://www.schneier.com/blog/archives/2007/06/cyberwar.html


** *** ***** ******* *********** *************

     Understanding the Black Market in Internet Crime



Here's an interesting paper from Carnegie Mellon University: "An Inquiry 
into the Nature and Causes of the Wealth of Internet Miscreants."

The paper focuses on the large illicit market that specializes in the 
commoditization of activities in support of Internet-based crime.  The 
main goal of the paper was to understand and measure how these markets 
function, and discuss the incentives of the various market entities. 
Using a dataset collected over seven months and comprising over 13 
million messages, they were able to categorize the market's 
participants, the goods and services advertised, and the asking prices 
for selected interesting goods.

Really cool stuff.

Unfortunately, the data is extremely noisy and so far the authors have 
no way to cross-validate it, so it is difficult to make any strong 
conclusions.

The press focused on just one thing: a discussion of general ways to 
disrupt the market.  Contrary to the claims of the article, the authors 
have not built any tools to disrupt the markets.

http://sparrow.ece.cmu.edu/group/pub/franklin_paxson_perrig_savage_miscreants.pdf 
or http://tinyurl.com/25cgas

Press:
http://arstechnica.com/news.ars/post/20071017-comp-sci-researchers-use-economic-theory-to-disrupt-malware-black-markets.html 
or http://tinyurl.com/2gbok8
http://www.cmu.edu/news/archive/2007/October/oct15_internetblackmarkets.shtml 
or http://tinyurl.com/2hhyos

Related blog posts:
http://www.schneier.com/blog/archives/2007/10/the_storm_worm.html
http://www.schneier.com/blog/archives/2007/10/future_of_malwa.html


** *** ***** ******* *********** *************

     The Strange Story of Dual_EC_DRBG



Random numbers are critical for cryptography: for encryption keys, 
random authentication challenges, initialization vectors, nonces, key 
agreement schemes, generating prime numbers, and so on.  Break the 
random number generator, and most of the time you break the entire 
security system.  Which is why you should worry about a new random 
number standard that includes an algorithm that is slow, badly designed, 
and just might contain a backdoor for the NSA.

Generating random numbers isn't easy, and researchers have discovered 
lots of problems and attacks over the years.  A recent paper found a 
flaw in the Windows 2000 random number generator; another paper found 
flaws in the Linux random number generator.  Back in 1996, an early 
version of SSL was broken because of flaws in its random number 
generator.  In 1999, I co-authored (with John Kelsey and Ferguson) 
Yarrow, a random number generator based on our own cryptanalysis work. 
I improved this design four years later -- and renamed it Fortuna -- in 
the book "Practical Cryptography," which I co-authored with Ferguson.

This year, the U.S. government released a new official standard for 
random number generators, which will likely be followed by software and 
hardware developers around the world.  Called NIST Special Publication 
800-90, the 130-page document contains four different approved 
techniques, called DRBGs, or "Deterministic Random Bit Generators."  All 
four are based on existing cryptographic primitives.  One is based on 
hash functions, one on HMAC, one on block ciphers, and one on elliptic 
curves.  It's smart cryptographic design to use only a few well-trusted 
cryptographic primitives, so building a random number generator out of 
existing parts is a good thing.

But one of those generators -- the one based on elliptic curves -- is 
not like the others. Called Dual_EC_DRBG, not only is it a mouthful to 
say, it's also three orders of magnitude slower than its peers.  It's in 
the standard only because it's been championed by the NSA, which first 
proposed it years ago in a related standardization project at the 
American National Standards Institute.

The NSA has always been intimately involved in U.S. cryptography 
standards -- it is, after all, expert in making and breaking secret 
codes. So the agency's participation in the NIST standard is not 
sinister in itself. It's only when you look under the hood at the NSA's 
contribution that questions arise.

Problems with Dual_EC_DBRG were first described in early 2006.  The math 
is complicated, but the general point is that the random numbers it 
produces have a small bias.  The problem isn't large enough to make the 
algorithm unusable -- and Appendix E of the NIST standard describes an 
optional workaround to avoid the issue -- but it's cause for concern. 
Cryptographers are a conservative bunch; we don't like to use algorithms 
that have even a whiff of a problem.

But today there's an even bigger stink brewing around Dual_EC_DRBG.  In 
an informal presentation at the CRYPTO 2007 conference this past August, 
Dan Shumow and Niels Ferguson showed that the algorithm contains a 
weakness that can only be described as a backdoor.

This is how it works:  There are a bunch of constants -- fixed numbers 
-- in the standard used to define the algorithm's elliptic curve.  These 
constants are listed in Appendix A of the NIST publication, but nowhere 
is it explained where they came from.

What Shumow and Ferguson showed is that these numbers have a 
relationship with a second, secret set of numbers that can act as a kind 
of skeleton key. If you know the secret numbers, you can predict the 
output of the random number generator after collecting just 32 bytes of 
its output. To put that in real terms, you only need to monitor one TLS 
internet encryption connection in order to crack the security of that 
protocol.  If you know the secret numbers, you can completely break any 
instantiation of Dual_EC_DRBG.

The researchers don't know what the secret numbers are. But because of 
the way the algorithm works, the person who produced the constants might 
know; he had the mathematical opportunity to produce the constants and 
the secret numbers in tandem.

Of course, we have no way of knowing whether the NSA knows the secret 
numbers that break Dual_EC-DRBG.  We have no way of knowing whether an 
NSA employee, working on his own came up with the constants, and has the 
secret numbers. We don't know if someone from NIST, or someone in the 
ANSI working group, has them. Maybe nobody does.

We don't know where the constants came from in the first place; we only 
know that whoever came up with them could have the key to this backdoor. 
 And we know there's no way for NIST -- or anyone else -- to prove 
otherwise.

This is scary stuff indeed.

Even if no one knows the secret numbers, the fact that the backdoor is 
present  makes Dual_EC_DRBG very fragile.  If someone were to solve just 
one instance of the algorithm's elliptic curve problem, he would 
effectively have the keys to the kingdom.  He could then use it for 
whatever nefarious purpose he wanted.  Or he could publish his result, 
and render every implementation of the random number generator 
completely insecure.

It's possible to implement Dual_EC_DRBG in such a way as to protect it 
against this backdoor, by generating new constants with another secure 
random number generator and then publishing the seed.  This method is 
even in the NIST document, in Appendix A.  But the procedure is 
optional, and my guess is that most implementations of the Dual_EC_DRBG 
won't bother.

If this story leaves you confused, join the club.  I don't understand 
why the NSA was so insistent about including Dual_EC-DRBG in the 
standard.  It makes no sense as a trap door: it's public, and rather 
obvious.  It makes no sense from an engineering perspective: it's too 
slow for anyone to willingly use it.  And it makes no sense from a 
backwards compatibility perspective: swapping one random number 
generator for another is easy.

My recommendation, if you're in need of a random number generator, is 
not to use Dual_EC_DRBG under any circumstances.  If you have to use 
something in SP 800-90, use CTR_DRBG or Hash_DRBG.  Or Fortuna or 
Yarrow, for that matter.

In the meantime, both NIST and the NSA have some explaining to do.

RNG Flaws:

http://www.cs.virginia.edu/~rjg7v/annotated.html
http://eprint.iacr.org/2007/419
http://eprint.iacr.org/2006/086.pdf
http://www.ddj.com/windows/184409807
http://www.schneier.com/paper-prngs.html

Yarrow:
http://www.schneier.com/yarrow.html

NIST SP 800-90:
http://csrc.nist.gov/publications/nistpubs/800-90/SP800-90revised_March2007.pdf

Dual_EC_DRBG problems:
http://eprint.iacr.org/2006/190
http://eprint.iacr.org/2007/048

Shumow-Ferguson presentation:
http://rump2007.cr.yp.to/15-shumow.pdf


** *** ***** ******* *********** *************

     Comments from Readers



There are hundreds of comments -- many of them interesting -- on these 
topics on my blog. Search for the story you want to comment on, and join 
in.

http://www.schneier.com/blog


** *** ***** ******* *********** *************

CRYPTO-GRAM is a free monthly newsletter providing summaries, analyses, 
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Please feel free to forward CRYPTO-GRAM, in whole or in part, to 
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CRYPTO-GRAM is written by Bruce Schneier.  Schneier is the author of the 
best sellers "Beyond Fear," "Secrets and Lies," and "Applied 
Cryptography," and an inventor of the Blowfish and Twofish algorithms. 
He is founder and CTO of BT Counterpane, and is a member of the Board of 
Directors of the Electronic Privacy Information Center (EPIC).  He is a 
frequent writer and lecturer on security topics.  See 
<http://www.schneier.com>.

BT Counterpane is the world's leading protector of networked information 
- the inventor of outsourced security monitoring and the foremost 
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Crypto-Gram is a personal newsletter.  Opinions expressed are not 
necessarily those of BT or BT Counterpane.

Copyright (c) 2007 by Bruce Schneier.

----- End forwarded message -----
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______________________________________________________________
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